2490-S

AN ACT Relating to financial aid; amending RCW 28B.102.020, 28B.102.060, and 28B.102.040; adding a new section to chapter 28B.102 RCW; and repealing RCW 28B.102.900.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 28B.102.020 and 1993 sp.s. c 18 s 36 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a teacher in an approved education program or in the public schools of this state.

(2) "Institution of higher education" or "institution" means a college or university in the state of Washington ((~~which~~)) that is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.

(3) "Board" means the higher education coordinating board.

(4) "Eligible student" means a student who is registered for at least ten credit hours or the equivalent, demonstrates achievement of at least a 3.30 grade point average for students entering an institution of higher education directly from high school or maintains at least a 3.00 grade point average or the equivalent for each academic year in an institution of higher education, is a resident student as defined by RCW 28B.15.012 and 28B.15.013, and has a declared intention to complete an approved preparation program leading to initial teacher certification or required for earning an additional endorsement, or a college or university graduate who meets the same credit hour requirements and is seeking an additional teaching endorsement or initial teacher certification. Resident students defined in RCW 28B.15.012(2)(e) are not eligible students under this chapter.

(5) "Public school" means an elementary school, a middle school, junior high school, or high school within the public school system referred to in Article IX of the state Constitution.

(6) "Forgiven" or "to forgive" or "forgiveness" means to render service as a teacher at a public school or in an approved education program in the state of Washington in lieu of monetary repayment.

(7) "Satisfied" means paid-in-full.

(8) "Participant" means an eligible student who has received a conditional scholarship under this chapter.

(9) "Targeted ethnic minority" means a group of Americans with a common ethnic or racial heritage selected by the board for program consideration due to societal concerns such as high dropout rates or low rates of college participation by members of the group.

(10) "Approved education program" means an education program for knowledge and skills generally learned in preschool through twelfth grade, offered in the state of Washington, and funded predominantly by the state government, federal government, public schools, or community colleges. Approved education programs may include but need not be limited to: Head start, early childhood education and assistance, alternative schools, developmental education, education centers, tribal schools, English as a second language, and basic skills programs.

Sec. 2. RCW 28B.102.060 and 1993 c 423 s 1 are each amended to read as follows:

(1) Participants in the conditional scholarship program incur an obligation to repay the conditional scholarship, with interest, unless they teach ((~~for ten years~~)) in an approved education program or in the public schools of the state of Washington for two years for each year of scholarship received, under rules adopted by the board.

(2) The interest rate shall be eight percent for the first four years of repayment and ten percent beginning with the fifth year of repayment.

(3) The period for repayment shall be ten years, with payments of principal and interest accruing quarterly commencing nine months from the date the participant completes or discontinues the course of study. Provisions for deferral of payment shall be determined by the board.

(4) The entire principal and interest of each ((~~payment~~)) year of scholarship received shall be forgiven for each ((~~payment~~)) two-year period in which the participant teaches in a public school or in an approved education program until the entire repayment obligation is satisfied or the borrower ceases to teach at a public school or in an approved education program in this state. Should the participant cease to teach at a public school or in an approved education program in this state before the participant's repayment obligation is completed, payments on the unsatisfied portion of the principal and interest shall begin the next payment period and continue until the remainder of the participant's repayment obligation is satisfied.

(5) The board is responsible for collection of repayments made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Collection and servicing of repayments under this section shall be pursued using the full extent of the law, including wage garnishment if necessary((~~, and shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency~~)). The board is responsible to forgive all or parts of such repayments under the criteria established in this section and shall maintain all necessary records of forgiven payments.

(6) Receipts from the payment of principal or interest or any other subsidies to which the board as administrator is entitled, which are paid by or on behalf of participants under this section, shall be deposited with the higher education coordinating board and shall be used to cover the costs of granting the conditional scholarships, maintaining necessary records, and making collections under subsection (5) of this section. The board shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant conditional scholarships to eligible students.

(7) The board shall temporarily or, in special circumstances, permanently defer the requirements of this section for eligible students as defined in RCW 28B.10.017.

NEW SECTION. Sec. 3. A new section is added to chapter 28B.102 RCW to read as follows:

In consultation with the higher education coordinating board, any institution of higher education as defined in RCW 28B.07.020, and any state-supported, four-year institution of higher education is strongly encouraged to provide participants in the future teachers conditional scholarship program under this chapter, enrolled at the institution, with a special program designed to enrich the participants' college experience and encourage them to enter the teaching profession. The program may include, but need not be limited to the following elements:

(1) Providing recipients with faculty mentors;

(2) Providing opportunities and experiences that encourage the development of leaders and decision makers;

(3) Offering special programs, seminars, events, and activities for scholarship recipients;

(4) Creating cooperative ventures with local public schools to ensure that recipients have the opportunity to work closely with outstanding teachers throughout the recipients' academic careers; and

(5) Assisting recipients to participate in internships with businesses and education or governmental organizations.

Sec. 4. RCW 28B.102.040 and 1987 c 437 s 4 are each amended to read as follows:

The higher education coordinating board shall establish a planning committee to develop criteria for the screening and selection of recipients of the conditional scholarships. These criteria shall emphasize factors demonstrating excellence including but not limited to superior scholastic achievement, leadership ability, community contributions, and an ability to act as a role model for targeted ethnic minority students. These criteria also may include the opportunity to participate in a special program as described in section 3 of this act, and, for approximately half of the recipients, requirements that those recipients meet the definition of "needy student" under RCW 28B.10.802.

NEW SECTION. Sec. 5. RCW 28B.102.900 and 1987 c 437 s 9 are each repealed.