State of Illinois
92nd General Assembly
Legislation

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92_SB0903

 
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 1        AN ACT concerning education.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.   Short  title.  This Act may be cited as the
 5    Loan Assumption for Teachers Act.

 6        Section  5.   Legislative  findings,  declarations,   and
 7    intent.
 8        (a)    The General Assembly finds and declares all of the
 9    following:
10             (1)  There is a  growing  shortage  of  high-quality
11        classroom  teachers,  and  there  is a need for qualified
12        teachers throughout this State.
13             (2)  One of the most important elements in a pupil's
14        success at learning is the quality of the teacher.
15             (3)  The  teacher  shortage  is  most   serious   in
16        particular  subject  areas, partly due to the shortage of
17        students  in  these  fields  who   enter   the   teaching
18        profession.
19             (4)  Many    school    districts   have   difficulty
20        recruiting  and  retaining  high-quality   teachers   for
21        low-performing  schools,  for  pupils with special needs,
22        and for schools serving rural areas or large  populations
23        of   pupils   from  low-income  and  linguistic  minority
24        families.
25             (5)  The rising costs of higher  education,  coupled
26        with a shift in available financial aid from scholarships
27        and  grants  to  loans,  make  loan  repayment options an
28        important consideration in a student's decision to pursue
29        a postsecondary education.
30             (6)  The availability  of  financial  aid  and  loan
31        repayment  assistance  are  important  considerations for
 
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 1        many  students,  especially  economically   disadvantaged
 2        students, in making their educational decisions.
 3        (b)    It  is,  therefore,  the  intent  of  the  General
 4    Assembly that all of the following occur:
 5             (1)  That  the  loan assumption for teachers program
 6        authorized  under  this  Act  be  designed  to  encourage
 7        persons  to  enter  into  the  teaching   profession   in
 8        designated  subject  matter shortage areas and in schools
 9        serving  large  populations  of  pupils  from  low-income
10        families and schools serving rural areas.
11             (2)  That this Act accomplish all of the following:
12                  (A)  Provide     outstanding      postsecondary
13             education    students,   particularly   economically
14             disadvantaged  students,  with  the   assurance   of
15             financial  assistance  to encourage them to complete
16             postsecondary education programs leading to  teacher
17             certification and to seek employment as teachers.
18                  (B)  Provide   persons   who  agree  to  become
19             teachers in a subject matter shortage area with  the
20             assurance  of financial assistance to encourage them
21             to complete the coursework  necessary  to  obtain  a
22             teaching certificate.
23                  (C)  Identify  subject  matter areas or schools
24             in which there are shortages of teachers and provide
25             incentives   for   persons   to    obtain    teacher
26             certification  and  seek teaching positions in those
27             areas.
28                  (D)  Identify schools serving rural  areas  and
29             schools  serving  large populations of students from
30             low-income  families  and  provide  incentives   for
31             persons  to  obtain  teacher  certification and seek
32             teaching positions in those schools.
33                  (E)  Identify   low-performing   schools    and
34             provide  incentives  for  persons  to obtain teacher
 
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 1             certification and seek teaching positions  in  those
 2             schools.
 3             (3)  That commencing with the 2001-2002 school year,
 4        all  persons  eligible  to enter into agreements for loan
 5        assumption pursuant to this Act shall be persons who need
 6        to  complete  training  or  coursework  in  order  to  be
 7        certified as a teacher and who agree to obtain a teaching
 8        certificate and teach  in  a  designated  subject  matter
 9        shortage  area  or in a school that, at the time that the
10        teacher is hired, meets any of the following criteria:
11                  (A)  Serves a large population of  pupils  from
12             low-income families.
13                  (B)  Is a low-performing school.
14             (4)  That  funding  necessary for the administration
15        of this Act shall be included within the annual budget of
16        the Commission in an amount necessary to meet the student
17        loan obligations incurred by the Commission.

18        Section 10.  Definitions.  In this Act:
19        "Commission"  means  the  Illinois   Student   Assistance
20    Commission.
21        "Eligible  institution"  means  a postsecondary education
22    institution  in  this  State  that  is  determined   by   the
23    Commission to meet all of the following requirements:
24             (1)  The  institution  is eligible to participate in
25        State and federal financial aid programs.
26             (2)  The  institution  is   a   recognized   teacher
27        training  institution, as defined in Section 21-21 of the
28        School Code,  operating  a  program  of  preparation  for
29        teacher certification.
30        "Low-performing school" means a school on the State Board
31    of  Education's  academic watch list under Section 2-3.25d of
32    the School Code at the time that the teacher is hired.
 
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 1        Section 15.  Eligibility for loan assumption.
 2        (a)  Any person enrolled in an  eligible  institution  is
 3    eligible  to  enter into an agreement for loan assumption, to
 4    be redeemed pursuant to Section 25 of this Act upon  becoming
 5    employed  as  a  teacher, if he or she meets the requirements
 6    set forth in this Section.  In order to be eligible to  enter
 7    into  an  agreement  for  loan  assumption, an applicant must
 8    satisfy all of the following conditions:
 9             (1)  The applicant (i) has  completed  at  least  60
10        semester  units  or  the  equivalent  at  a postsecondary
11        education institution and (ii) is enrolled in an academic
12        program leading to a baccalaureate degree at an  eligible
13        institution   or  has  been  admitted  to  a  program  of
14        preparation for  teacher  certification  at  an  eligible
15        institution.
16             (2)  The  applicant is enrolled or has been admitted
17        to a program in which he or she will be  enrolled  on  at
18        least   a   half-time   basis,   as   determined  by  the
19        participating eligible institution.  The applicant  shall
20        agree  to  maintain  satisfactory academic progress and a
21        minimum  of  half-time  enrollment,  as  defined  by  the
22        participating eligible institution.
23             (3)  The applicant has been judged  by  his  or  her
24        eligible  institution  to have outstanding ability on the
25        basis of criteria that may include without limitation any
26        of the following:
27                  (A)  Grade point average.
28                  (B)  Test scores.
29                  (C)  Faculty evaluations.
30                  (D)  Interviews.
31                  (E)  Other recommendations.
32             (4)  The applicant has received or  is  approved  to
33        receive  a  loan  under  one  or  more  of  the following
34        designated loan programs:
 
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 1                  (A)  The Federal Family Education Loan  Program
 2             (20 U.S.C. 1071 and following).
 3                  (B)  Any   loan   program   approved   by   the
 4             Commission.
 5             (5)  The  applicant has agreed to teach full time in
 6        a public elementary or secondary school in this State for
 7        at least 4 consecutive school  years  after  obtaining  a
 8        teaching  certificate  (i)  in  a  subject  area  that is
 9        designated as a current or projected shortage area by the
10        State Superintendent of Education or  (ii)  at  a  school
11        that, at the time that the teacher is hired, meets any of
12        the following criteria:
13                  (A)  It  serves  a  large  population of pupils
14             from low-income families, as designated by the State
15             Superintendent of Education.
16                  (B)  It is a low-performing school.
17        (b)  An  applicant  who  has  completed  fewer  than   60
18    semester units or the equivalent at a postsecondary education
19    institution is not eligible under this Section to participate
20    in the loan assumption program set forth in this Act.
21        (c)  The  agreements  entered  into each year pursuant to
22    subsection (a) of this Section at each  eligible  institution
23    or  participating  school  district  or  regional  office  of
24    education  must  be  with  applicants  who  meet the criteria
25    specified in paragraph (3) of subsection (b) of Section 5  of
26    this Act or agree to teach in any of the subject areas listed
27    pursuant to Section 5 of this Act.  An agreement shall remain
28    valid  even  if  the  subject  area  under which an applicant
29    becomes eligible to enter into an agreement ceases  to  be  a
30    designated shortage field by the time the applicant becomes a
31    teacher.
32        (d)  A   person  participating  in  the  loan  assumption
33    program pursuant to this Section shall not  enter  into  more
34    than one agreement.
 
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 1        Section  20.   Lists  furnished  by State Superintendent.
 2    The State  Superintendent  of  Education  shall  furnish  the
 3    Commission with all of the following:
 4             (1)  Commencing  January 1, 2002 and every January 1
 5        thereafter, a list of teaching fields that have the  most
 6        critical  shortage of teachers.  The State Superintendent
 7        of Education shall review this list annually  and  revise
 8        the list as he or she deems necessary.
 9             (2)  A list of schools that serve a large population
10        of  pupils  from  low-income  families, as designated for
11        purposes of the Perkins  Loan  Program  or  according  to
12        standards  the  State  Superintendent  of Education deems
13        appropriate.
14             (3)  Commencing January 1, 2002 and every January  1
15        thereafter,  a  list of schools serving rural areas.  The
16        list shall be established according to  standards  deemed
17        appropriate by the State Superintendent of Education.
18             (4)  Commencing  January 1, 2002 and every January 1
19        thereafter, a list of low-performing schools.

20        Section 25.   When  payments  commence.   The  Commission
21    shall  commence  loan  assumption  payments,  as specified in
22    Section 30 of this Act, upon verification that the  applicant
23    has fulfilled all of the following:
24             (1)  The   applicant   has   received   a   teaching
25        certificate.
26             (2)  The  applicant has provided full-time classroom
27        instruction in a public elementary or secondary school in
28        this State for the equivalent of one school year.
29             (3)  The applicant has met the requirements  of  the
30        loan   assumption   agreement  and  all  other  pertinent
31        conditions of this Act.

32        Section 30.  Terms of loan assumption.  The  terms  of  a
 
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 1    loan  assumption  granted under this Act shall be as follows,
 2    subject  to  the  specific  terms  of  each  loan  assumption
 3    agreement:
 4             (1)  After a program participant has  completed  one
 5        school  year  of  full-time  classroom  instruction  in a
 6        public elementary or secondary school in this State,  the
 7        Commission shall assume up to $2,000 of the participant's
 8        outstanding liability under one or more of the designated
 9        loan programs.
10             (2)  After  a  program  participant  has completed 2
11        consecutive   school   years   of   full-time   classroom
12        instruction in a public elementary or secondary school in
13        this  State,  the  Commission  shall  assume  up  to   an
14        additional   $3,000   of  the  participant's  outstanding
15        liability under  one  or  more  of  the  designated  loan
16        programs, for a total loan assumption of up to $5,000.
17             (3)  After  a  program  participant  has completed 3
18        consecutive   school   years   of   full-time   classroom
19        instruction in a public elementary or secondary school in
20        this State, the Commission shall assume up to  a  maximum
21        of  an additional $3,000 of the participant's outstanding
22        liability under  one  or  more  of  the  designated  loan
23        programs, for a total loan assumption of up to $8,000.
24             (4)  After  a  program  participant  has completed 4
25        consecutive   school   years   of   full-time   classroom
26        instruction in a public elementary or secondary school in
27        this State, the Commission shall assume up to  a  maximum
28        of  an additional $3,000 of the participant's outstanding
29        liability under  one  or  more  of  the  designated  loan
30        programs, for a total loan assumption of up to $11,000.

31        Section   35.   Out-of-state  teachers.   Notwithstanding
32    paragraph (3) of subsection (b) of Section 5 of this Act  and
33    notwithstanding  Section  45  of this Act, for the purpose of
 
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 1    the recruitment of teachers  from  outside  this  State,  the
 2    Commission   may   make   loan   assumption  agreements  with
 3    out-of-state teachers who fulfill the terms of Section 30  of
 4    this Act and are otherwise eligible to enter into agreements.
 5    A  teacher  who  enters  into  an  agreement pursuant to this
 6    Section shall hold  a  valid  teaching  certificate,  in  the
 7    subject  area  of  the  Illinois  teaching position, from the
 8    state in which he or she resides.

 9        Section 40.  Other loan assumption benefits.  In addition
10    to the amounts set forth in Section 30 of this Act, for  each
11    of  the 4 school years of classroom instruction referenced in
12    Section  30  of  this  Act,  the  following  loan  assumption
13    benefits shall be granted:
14             (1)  $1,000 of additional liability per  year  shall
15        be   assumed   for  a  person  who  holds  a  certificate
16        appropriate for teaching  and  who  teaches  mathematics,
17        science, or special education.
18             (2)  $1,000  of  additional liability per year shall
19        be assumed for a person who teaches in a  school  in  the
20        lowest   20th   percentile   of  low-performing  schools.
21        Eligibility for the benefit set forth in  this  paragraph
22        (2)  shall be limited to a person who holds a certificate
23        appropriate for teaching  and  who  teaches  mathematics,
24        science, or special education.
25             (3)  Not  more  than  a total of $5,000,000 shall be
26        expended in any school year  for  the  purposes  of  this
27        Section.

28        Section  45.   Distribution  of program information.  The
29    Commission   shall   distribute   loan   assumption   program
30    information and student applications to  participate  in  the
31    loan  assumption  program  authorized  under this Act to each
32    eligible institution and to each school district and regional
 
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 1    office of education.  Each eligible institution shall receive
 2    at  least  one  application,  and  the  remainder  shall   be
 3    distributed  to  eligible  institutions  proportionate to the
 4    number of  teaching  candidates  from  each  institution  who
 5    completed  the coursework required for a teaching certificate
 6    during the previous year.  In addition, the Commission  shall
 7    examine  its outreach and marketing strategies to inform both
 8    potential undergraduates  and  persons  employed  outside  of
 9    academia  about  the  availability  and  benefits of the loan
10    assumption program.  To this end, the Commission shall enlist
11    the advice and support of the  public  universities  in  this
12    State.

13        Section  50.   Institutional  agreement.   Each  eligible
14    institution,   school   district,   and  regional  office  of
15    education shall sign  an  institutional  agreement  with  the
16    Commission,  certifying  its  intent  to  administer the loan
17    assumption program authorized under this Act according to all
18    applicable published rules and guidelines and to make special
19    efforts to notify persons regarding the availability  of  the
20    program,  particularly economically disadvantaged students at
21    eligible institutions.

22        Section 55.  Coordination with other  programs.   To  the
23    extent  feasible,  each eligible institution shall coordinate
24    the loan assumption program authorized under  this  Act  with
25    other  programs  designed  to  recruit  students to enter the
26    teaching profession.

27        Section 60.  Administration; rules.
28        (a)  The Commission shall administer this Act  and  shall
29    adopt  rules  for  that  purpose.   The  rules  shall include
30    without limitation provisions regarding the  period  of  time
31    during   which   an   agreement   shall   remain  valid,  the
 
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 1    reallocation of resources in light of agreements that are not
 2    utilized  by  program  participants,  the  failure,  for  any
 3    reason, of a program participant to complete a minimum  of  4
 4    consecutive  school  years  of classroom instruction, and the
 5    development of projections for funding purposes.
 6        (b)  The  Commission  shall   solicit   the   advice   of
 7    representatives  from  postsecondary  education institutions,
 8    the State Board of Education, the State Teacher Certification
 9    Board, school districts, and regional  offices  of  education
10    regarding proposed rules.

11        Section  65.  Annual report.  The Commission shall report
12    annually  to  the  General  Assembly  regarding  all  of  the
13    following, on the basis of sex, age, and ethnicity:
14             (1)  The total number  of  loan  assumption  program
15        participants.
16             (2)  The   number   of  loan  assumption  agreements
17        entered  into  with  juniors  and  seniors  at   eligible
18        institutions.
19             (3)  The  number  of participants who agree to teach
20        in a subject matter shortage area.
21             (4)  The number of participants who agree  to  teach
22        in  schools  with  a high ratio of pupils from low-income
23        families and in low-performing schools.
24             (5)  The number of participants who agree  to  teach
25        in schools serving rural areas.
26             (6)  The  number  of participants who receive a loan
27        assumption benefit, classified by payment year.
28             (7)  The number of out-of-state teachers  who  enter
29        into the agreements.

30        Section 70.  Limits on loan assumption; priorities.
31        (a)   For the 2001-2002 school year, the Commission shall
32    issue  warrants  for  the  assumption  of up to 5,500 student
 
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 1    loans for program participants eligible under this Act.
 2        (b)  Commencing with the 2002-2003 school year  and  each
 3    school year thereafter, all of the following apply:
 4             (1)  The  Commission shall enter into agreements for
 5        the assumption of up to 6,500 student loans  for  program
 6        participants eligible under this Act.
 7             (2)  Notwithstanding   the   limitation   of   6,500
 8        warrants  set  forth  in paragraph (1) of this subsection
 9        (b), the Commission shall issue warrants  in  a  quantity
10        determined  by  the  Governor  and  the  General Assembly
11        through appropriations  for  the  assumption  of  student
12        loans under this Act.
13             (3)  Priority  for  these loan assumption agreements
14        shall be  given  to  applicants  who  are  recipients  of
15        federally  subsidized loans or other need-based loans, as
16        determined by the Commission.
17             (4)  Priority for these loan  assumption  agreements
18        shall  be  given  to  applicants  who  agree  to obtain a
19        teaching certificate to teach in mathematics or science.
20        (c)  The issuance of  warrants  under  this  Act  in  any
21    fiscal year shall be subject to appropriation.

22        Section 999.  Effective date.  This Act takes effect upon
23    becoming law.

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