HOUSE BILL REPORT

HB 386

BYRepresentatives Ebersole, Hine, Holland, Peery, Ferguson, Wang, P. King, Sutherland, Cole, Pruitt, Taylor, Rayburn, Betrozoff, Unsoeld, R. King, Miller and Todd

Establishing a loan forgiveness program for academically outstanding teacher candidates.

House Committe on Higher Education

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (12)

     Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Allen, Barnes, Basich, Jesernig, Miller, Nelson, Silver, Unsoeld, K. Wilson and Wineberry.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 20, 1987

BACKGROUND:

Many of the reports of recent years assessing the challenges facing the country's K-12 educational systems, have emphasized a need to recruit academically superior students into the teaching profession.  "Right now too many students entering college programs leading to teaching careers are among the lowest achieving graduates of U.S. high schools.  We are preparing our poorest students to be our future teachers, and this situation must be changed."  This declaration from the Committee for Economic Development was included in A NATION PREPARED, a report on educational reform by the Carnegie Forum on Education and the Economy.

The Marshall Plan, a report recommending major changes needed in higher education to prepare this country for the 21st century, recommended reinstituting a student loan forgiveness program for college graduates entering teaching.  Such a program would complement the Governor's plan to require that future teachers acquire a master's degree before entering the teaching profession.

Washington already provides an incentive loan program for future math and science teachers.  Students receiving loans under this program have the entire loan, with interest, forgiven if they teach math or science in the public schools of this state for ten years.

SUMMARY:

SUBSTITUTE BILL:  A long-term loan program is established for academically superior future teachers.  Resident students, taking at least twelve credit hours or the equivalent, who achieve and maintain a 3.50 grade point average or the equivalent for each academic year, and who have a declared major in a program leading to a degree in teacher education, are eligible for the program.  Students who have completed a bachelor of arts or science degree with a cumulative grade point average of 3.50 or the equivalent are also eligible if they are pursuing a degree in teacher education.

The Higher Education Coordinating Board will administer the program.  The board may make long-term loans available to eligible students from funds appropriated to the board for that purpose.  The amount of any loan shall not exceed the demonstrated need of the student, or $2,500 per year, whichever is less, and the total amount of these loans must not exceed $10,000 per student.  The terms and interest rates of these loans will be consistent with the federal guaranteed student loan program.

The payback period for the loan is 10 years, with payments accruing quarterly.  The first payment is due one year after the borrower graduates.  However, the entire principal and interest of each loan will be forgiven for each payment period in which the borrower teaches in a public school in this state.

Should the borrower stop teaching before the loan is repaid, the payments on the unpaid portion of the loan will begin during the next payment period and continue until the loan is satisfied.

The board is responsible for the collection, servicing, and forgiveness of the loans.  Any collection of these loans will be performed by entities approved by the Washington Student Loan Guarantee Association.

Receipts from loan payments will be deposited with the board, and will be used to cover program costs.  Any receipts beyond those used to cover program costs will be used to make additional loans.

The board and the institutions of higher education are to work cooperatively to publicize and promote this program.

After consulting with the Higher Education Coordinating Board, the governor may transfer the administration of this program to another agency with an appropriate educational mission.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Students will begin repaying these loans one year after graduation instead of nine months after graduation; eligible students must achieve and maintain a 3.50 grade point average or the equivalent for those students attending schools such as The Evergreen State College which do not assign grades; and the governor is authorized to assign program administration to an educational agency other than the Higher Education Coordinating Board.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.