MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Universities and Colleges; Appropriations
By: Senator(s) Polk
AN ACT TO AMEND THE TERMS OF LOAN FORGIVENESS AND SCHOLARSHIP PROGRAMS ADMINISTERED BY THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING; TO REQUIRE INTEREST TO ACCRUE ON LOANS OR SCHOLARSHIPS WHILE THE RECIPIENT ATTENDS SCHOOL; TO REDUCE THE SERVICE CREDIT APPLIED TO A LOAN OR SCHOLARSHIP WHEN A RECIPIENT FAILS TO COMPLETE THE LENGTH OF SERVICE REQUIRED UNDER THE PROGRAM; TO ADD A PENALTY IN THE AMOUNT OF FIVE PERCENT OF THE SUMS RECEIVED UNDER A LOAN FORGIVENESS OR SCHOLARSHIP PROGRAM WHEN A RECIPIENT FAILS TO CONTRIBUTE ANY TIME TOWARD THE LENGTH OF SERVICE REQUIRED UNDER THE PROGRAM; TO AMEND SECTIONS 37-143-5, 37-143-6, 37-143-7, 37-143-9, 37-143-11, 37-143-12, 37-143-13, 37-143-14, 37-159-3, 37-159-9 AND 37-159-51, MISSISSIPPI CODE OF 1972, IN CONFORMITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-143-5, Mississippi Code of 1972, is amended as follows:
[With regard to students applying for loans or scholarships before July 1, 2013, this section shall read as follows:]
37-143-5. (1) There is hereby created the medical loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become physicians to obtain a medical education in the University of Mississippi School of Medicine, which will qualify them to become licensed, practicing physicians and surgeons.
(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards which may be made not to exceed the length of time required to complete the degree requirements and internship or residency.
(3) Loans made to applicants under this program may be made under similar terms and conditions as then current provisions of the Federal Guaranteed Student Loan Program, or its successor, as to the repayment of principal and interest. Such loans shall be eligible for deferment during attendance as a full-time student in an approved course of training. No interest shall accrue on such loan during the time the recipient is in such attendance. Such loans may be eligible for other deferments for such other causes as may be established by the board by rule and regulations not inconsistent with the foregoing.
(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:
(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation and internship or residency, or termination of attendance as a full-time student;
(b) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into public health work at a state health institution as defined in
Section 37-143-13(2), or community health centers that are grantees under
Section 330 of the United States Public Health Service Act. Repayment under
this option shall convert loan to scholarship, and discharge the same, on the
basis of one (1) year's service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. If at any time prior to the repayment in full of the total
obligation the recipient abandons or abrogates repayment by this option, the
provisions of * * * paragraph (d) of this subsection (4)
shall apply;
(c) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into the practice of medicine in a primary health care field in an area
outside of a metropolitan statistical area, as defined and established by the
United States Census Bureau, and within a region ranking between 1 and 54,
inclusively, on the Relative Needs Index of Five Factors for Primary Care
Physicians, as annually determined by the State Board of Health, for a period
of five (5) years. Repayment under this option shall convert loan to
scholarship, and discharge the same on the basis of one (1) year's service for
one (1) year's loan amount, or the appropriate proportion of the total
outstanding balance of principal and interest, all as shall be established by
rule and regulation of the board of trustees. If at any time prior to the
repayment in full of the total obligation the recipient abandons or abrogates
repayment by this option, the provisions of * * * paragraph
(d) of this subsection (4) shall apply;
(d) In the event of
abandonment or abrogation of the options for repayment as provided for in * * * paragraphs
(b) and (c) of this subsection (4), the remaining balance of unpaid or
undischarged principal and interest shall become due and payable over the
remaining period of time as if the option provided for in * * * paragraph
(a) of this subsection (4) had been elected upon graduation and
internship or residency.
(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
[With regard to students applying for loans or scholarships from and after July 1, 2013, this section shall read as follows:]
37-143-5. (1) There is hereby created the medical loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become physicians to obtain a medical education in the University of Mississippi School of Medicine, which will qualify them to become licensed, practicing physicians and surgeons.
(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards which may be made not to exceed the length of time required to complete the degree requirements and internship or residency.
(3) Loans made to applicants under this program may be made under similar terms and conditions as then current provisions of the Federal Guaranteed Student Loan Program, or its successor, as to the repayment of principal and interest. Such loans shall be eligible for deferment during attendance as a full-time student in an approved course of training. Unless the provisions of paragraph (d) of this subsection (4) apply, no interest shall accrue on such loan during the time the recipient is in such attendance. Such loans may be eligible for other deferments for such other causes as may be established by the board by rule and regulations not inconsistent with the foregoing.
(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:
(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation and internship or residency, or termination of attendance as a full-time student;
(b) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into public health work at a state health institution as defined in
Section 37-143-13(2), or community health centers that are grantees under
Section 330 of the United States Public Health Service Act. Repayment
under this option shall convert loan to scholarship, and discharge the same, on
the basis of one (1) year's service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the
board of trustees. If at any time prior to the repayment in full of the total
obligation the recipient abandons or abrogates repayment by this option, the
provisions of * * * paragraph (d) of this subsection (4)
shall apply;
(c) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into the practice of medicine in a primary health care field in an area
outside of a metropolitan statistical area, as defined and established by the
United States Census Bureau, and within a region ranking between 1 and 54,
inclusively, on the Relative Needs Index of Five Factors for Primary Care
Physicians, as annually determined by the State Board of Health, for a period
of five (5) years. Repayment under this option shall convert loan to
scholarship, and discharge the same on the basis of one (1) year's service for
one (1) year's loan amount, or the appropriate proportion of the total
outstanding balance of principal and interest, all as shall be
established by rule and regulation of the board of trustees. If at any time
prior to the repayment in full of the total obligation the recipient abandons
or abrogates repayment by this option, the provisions of * * * paragraph
(d) of this subsection (4) shall apply;
(d) * * * The abandonment or
abrogation of the options for repayment as provided for in * * *
paragraph
(b) * * * or
(c) * * * of
this subsection (4) shall convert loan to scholarship and discharge the same on
the basis of two (2) years' service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. Interest on the remaining balance of unpaid or undischarged
principal * * * shall be computed from
the date of each disbursement until the date repaid and shall be compounded
annually. If a loan recipient graduates but does not elect to repay as
provided for in paragraph (b) or (c) of this subsection (4), a penalty of five
percent (5%) of the amount borrowed shall be assessed, and the penalty and
shall be capitalized. Payment in full of principal, interest and any
applicable penalty must be made in sixty (60) or less equal monthly
installments, commencing one (1) month after abandonment or abrogation of the
options for repayment provided in paragraphs (b) and (c) of this subsection
(4).
(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
SECTION 2. Section 37-143-6, Mississippi Code of 1972, is amended as follows:
[With regard to students applying for scholarships or loans before July 1, 2013, this section shall read as follows:]
37-143-6. (1) There is established a Medical Education Scholarship and Loan Repayment Program, which shall be administered by the Board of Trustees of State Institutions of Higher Learning. Each year, the program shall provide a certain number of eligible applicants, if the applicant meets the conditions upon which the scholarship or loan repayment is granted, with: (a) a full scholarship to obtain a medical education at the University of Mississippi School of Medicine at no cost to the recipient; or (b) funds for repaying state and federal medical education loans.
(2) The program shall provide scholarships or loan repayments to up to twenty (20) new recipients each year, of which no more than ten (10) may be recipients of loan repayments. The program shall be funded from monies appropriated from the Health Care Expendable Fund established under Section 43-13-407. The amounts that may be expended annually for scholarships and loan repayments under the program shall not exceed the following: Five Hundred Thousand Dollars ($500,000.00) in fiscal year 2001; One Million Dollars ($1,000,000.00) in fiscal year 2002; One Million Five Hundred Thousand Dollars ($1,500,000.00) in fiscal year 2003; and Two Million Dollars ($2,000,000.00) in fiscal year 2004 and in any later fiscal year.
(3) A scholarship awarded under this program shall be in an amount that will pay the full cost of attendance, as defined by federal law and regulation, at the University of Mississippi School of Medicine for the entire time necessary for the recipient to complete the requirements for a medical degree. The actual amount of the scholarship shall be determined by the Office of Financial Aid of the University of Mississippi Medical Center.
(4) Before being granted a scholarship, each applicant shall enter into a contract with the board of trustees, which shall be deemed a contract with the State of Mississippi, agreeing to the terms and conditions upon which the scholarship will be granted. In order to receive a scholarship under the program, the recipient must agree in the contract to practice family medicine for a period of not less than six (6) years after completion of his or her residency in an area of the state that is a critical needs area for primary medical care at the time of the recipient's entry into medical practice. The determination and designation of the areas of the state that are critical needs areas for primary medical care in which scholarship recipients may practice shall be made by a committee to be known as the Medical Care Critical Needs Committee, which shall be composed of the following persons: the Vice-Chancellor for Health Affairs of the University of Mississippi Medical Center, who shall be chairman of the committee; the Executive Director of the State Department of Health; the Executive Director of the Division of Medicaid; the President of the Mississippi State Medical Association or his designee; the President of the Mississippi State Hospital Association or his designee; the President of the Mississippi Academy of Family Physicians; and the Executive Director of the Mississippi Primary Health Care Association. The committee shall meet at least once annually to determine and designate the areas of the state that are critical needs areas for primary medical care in which scholarship recipients may practice family medicine in order to fulfill their contractual obligation.
(5) (a) Beginning on July 1, 2001, the Board of Trustees of State Institutions of Higher Learning may use any funds available under the Medical Education Scholarship and Loan Repayment Program for repaying state and federal medical education loans made to licensed family medicine physicians who agree to practice family medicine for a period of not less than two (2) years in an area of the state that is a critical needs area for primary medical care, as designated by the Medical Care Critical Needs Committee. For the first two (2) years of practice of family medicine in a critical needs area for primary medical care, the recipient shall receive a state loan repayment in the amount of Forty Thousand Dollars ($40,000.00). For each additional year of family medicine practice in that area after two (2) years, for a maximum of four (4) additional years, the recipient shall receive a state loan repayment in the amount of Ten Thousand Dollars ($10,000.00) for each additional year of practice. The board of trustees shall use any funds available under the Medical Education Scholarship and Loan Repayment Program to apply for and receive federal matching funds from the National Health Service Corps to assist in the repayment of qualified educational loans for primary health care clinicians, including dentists and nurse-practitioners, who agree to practice in a critical needs area for primary medical care. In order to receive a state loan repayment under this section, an applicant must enter into a contract with the board of trustees, which shall be deemed a contract with the State of Mississippi, agreeing to the terms and conditions upon which the loan repayment will be granted. The contract must include all conditions specified under subsection (4) of this section for scholarship recipients; however, for a loan repayment, the minimum period of service required in an area of the state that is a critical needs area for primary medical care at the time the contract is executed is two (2) years. The contract also must specify the total amount of the loan repayment and a schedule for making payments to the recipient, based upon the recommendation of the Medical Care Critical Needs Committee.
(b) The board of trustees shall give priority in awarding loan repayments to family medicine physicians according to the following:
(i) University of Mississippi School of Medicine graduates or persons who have completed successfully a full three-year family medicine residency training program in the State of Mississippi;
(ii) Persons who were born in Mississippi who have completed training in a certified family medicine residency program outside the State of Mississippi; and
(iii) Physicians who are practicing outside the State of Mississippi who received training at a medical school outside the state and who are board certified in family practice.
(c) The Medical Care Critical Needs Committee shall meet at least once annually to determine and designate the areas of the state that are critical needs areas for primary medical care in which loan repayment recipients may practice family medicine and other primary care health professional disciplines in order to fulfill their contractual obligation. The committee also shall determine the priority of additional primary health care clinicians who are eligible to participate in the state loan repayment program using any National Health Service Corps matching funds or other funds excluding funds appropriated by the Legislature.
(6) If a scholarship
recipient leaves the University of Mississippi School of Medicine before
graduation, or leaves his or her residency before completion, or fails to
practice family medicine for a period of six (6) years in a critical needs area
for primary medical care as designated by the Medical Care Critical Needs
Committee under subsection (4) of this section, the full amount that the
recipient received under the scholarship shall be due and payable within ninety
(90) days, together with interest. If a loan repayment recipient fails to
practice family medicine for a period of two (2) years in a critical needs area
for primary medical care as designated by the Medical Care Critical Needs
Committee under subsection (5)(c) of this section, the full amount that the
recipient received for loan repayments shall be due and payable within ninety
(90) days, together with interest. The amount of interest due shall be equal
to the annual rate of return on the Health Care Trust Fund established under
Section 43-13-405 for each year from the time the recipient received the
scholarship or loan repayment money until the time the scholarship or loan
repayment money is repaid. The board of trustees * * * shall pursue debt collection
measures bringing suit against any scholarship or loan repayment up to
and including recipient to recover the amount due to the state under this
section for the recipient's failure to comply with the conditions upon which
the scholarship or loan repayment was granted, as provided in this section and
in the contract between the recipient and the board of trustees. The board of
trustees is authorized to postpone or forgive the repayment of all or part of
the amount that a recipient received under the scholarship or for loan
repayments and the interest that would otherwise be due under this subsection
if the recipient's failure to comply with the conditions upon which the
scholarship or loan repayment was granted was due to circumstances beyond the recipient's
control that caused the recipient to be physically unable to comply with those
conditions, such as suffering a severe illness, injury or other disabling
condition.
(7) The board of trustees shall establish such rules and regulations, based upon recommendations submitted by the Medical Care Critical Needs Committee, which it deems necessary and proper to carry out the purposes and intent of this section.
[With regard to students applying for scholarships or loans from and after July 1, 2013, this section shall read as follows:]
37-143-6. (1) There is established a Medical Education Scholarship and Loan Repayment Program, which shall be administered by the Board of Trustees of State Institutions of Higher Learning. Each year, the program shall provide a certain number of eligible applicants, if the applicant meets the conditions upon which the scholarship or loan repayment is granted, with: (a) a full scholarship to obtain a medical education at the University of Mississippi School of Medicine at no cost to the recipient; or (b) funds for repaying state and federal medical education loans.
(2) The program shall provide scholarships or loan repayments to up to twenty (20) new recipients each year, of which no more than ten (10) may be recipients of loan repayments. The program shall be funded from monies appropriated from the Health Care Expendable Fund established under Section 43-13-407. The amounts that may be expended annually for scholarships and loan repayments under the program shall not exceed the following: Five Hundred Thousand Dollars ($500,000.00) in fiscal year 2001; One Million Dollars ($1,000,000.00) in fiscal year 2002; One Million Five Hundred Thousand Dollars ($1,500,000.00) in fiscal year 2003; and Two Million Dollars ($2,000,000.00) in fiscal year 2004 and in any later fiscal year.
(3) A scholarship awarded under this program shall be in an amount that will pay the full cost of attendance, as defined by federal law and regulation, at the University of Mississippi School of Medicine for the entire time necessary for the recipient to complete the requirements for a medical degree. The actual amount of the scholarship shall be determined by the Office of Financial Aid of the University of Mississippi Medical Center.
(4) Before being granted a scholarship, each applicant shall enter into a contract with the board of trustees, which shall be deemed a contract with the State of Mississippi, agreeing to the terms and conditions upon which the scholarship will be granted. In order to receive a scholarship under the program, the recipient must agree in the contract to practice family medicine for a period of not less than six (6) years after completion of his or her residency in an area of the state that is a critical needs area for primary medical care at the time of the recipient's entry into medical practice. The determination and designation of the areas of the state that are critical needs areas for primary medical care in which scholarship recipients may practice shall be made by a committee to be known as the Medical Care Critical Needs Committee, which shall be composed of the following persons: the Vice-Chancellor for Health Affairs of the University of Mississippi Medical Center, who shall be chairman of the committee; the Executive Director of the State Department of Health; the Executive Director of the Division of Medicaid; the President of the Mississippi State Medical Association or his designee; the President of the Mississippi State Hospital Association or his designee; the President of the Mississippi Academy of Family Physicians; and the Executive Director of the Mississippi Primary Health Care Association. The committee shall meet at least once annually to determine and designate the areas of the state that are critical needs areas for primary medical care in which scholarship recipients may practice family medicine in order to fulfill their contractual obligation.
(5) (a) Beginning on July 1, 2001, the Board of Trustees of State Institutions of Higher Learning may use any funds available under the Medical Education Scholarship and Loan Repayment Program for repaying state and federal medical education loans made to licensed family medicine physicians who agree to practice family medicine for a period of not less than two (2) years in an area of the state that is a critical needs area for primary medical care, as designated by the Medical Care Critical Needs Committee. For the first two (2) years of practice of family medicine in a critical needs area for primary medical care, the recipient shall receive a state loan repayment in the amount of Forty Thousand Dollars ($40,000.00). For each additional year of family medicine practice in that area after two (2) years, for a maximum of four (4) additional years, the recipient shall receive a state loan repayment in the amount of Ten Thousand Dollars ($10,000.00) for each additional year of practice. The board of trustees shall use any funds available under the Medical Education Scholarship and Loan Repayment Program to apply for and receive federal matching funds from the National Health Service Corps to assist in the repayment of qualified educational loans for primary health care clinicians, including dentists and nurse-practitioners, who agree to practice in a critical needs area for primary medical care. In order to receive a state loan repayment under this section, an applicant must enter into a contract with the board of trustees, which shall be deemed a contract with the State of Mississippi, agreeing to the terms and conditions upon which the loan repayment will be granted. The contract must include all conditions specified under subsection (4) of this section for scholarship recipients; however, for a loan repayment, the minimum period of service required in an area of the state that is a critical needs area for primary medical care at the time the contract is executed is two (2) years. The contract also must specify the total amount of the loan repayment and a schedule for making payments to the recipient, based upon the recommendation of the Medical Care Critical Needs Committee.
(b) The board of trustees shall give priority in awarding loan repayments to family medicine physicians according to the following:
(i) University of Mississippi School of Medicine graduates or persons who have completed successfully a full three-year family medicine residency training program in the State of Mississippi;
(ii) Persons who were born in Mississippi who have completed training in a certified family medicine residency program outside the State of Mississippi; and
(iii) Physicians who are practicing outside the State of Mississippi who received training at a medical school outside the state and who are board certified in family practice.
(c) The Medical Care Critical Needs Committee shall meet at least once annually to determine and designate the areas of the state that are critical needs areas for primary medical care in which loan repayment recipients may practice family medicine and other primary care health professional disciplines in order to fulfill their contractual obligation. The committee also shall determine the priority of additional primary health care clinicians who are eligible to participate in the state loan repayment program using any National Health Service Corps matching funds or other funds excluding funds appropriated by the Legislature.
(6) (a) (i) If a
scholarship recipient leaves the University of Mississippi School of Medicine
before graduation, * * *
leaves his or her residency before completion, or * * * graduates but does not
begin the contractual obligation required under subsection (4) of this
section, the full amount that the recipient received under the scholarship
shall be due and payable within ninety (90) days, together with penalty and
interest.
(ii) If a scholarship recipient fails to practice family medicine for a period of six (6) years in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of this section, the full amount that the recipient received under the scholarship shall be due and payable within ninety (90) days, together with interest.
(iii) If a loan repayment recipient fails to practice family medicine for a period of two (2) years in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (5)(c) of this section, the full amount that the recipient received for loan repayments shall be due and payable within ninety (90) days, together with interest.
(b) The penalty due from recipients repaying under paragraph (a)(i) of this subsection (6) shall be equal to five percent (5%) of the amount received under the scholarship, and that penalty shall be capitalized.
(c) The * * * interest rate due from
recipients repaying under this subsection (6) shall be equal to the annual
rate of return on the Health Care Trust Fund established under Section 43-13-405
for each year. The interest shall accrue from the time the recipient
received the scholarship or loan repayment money until the time the scholarship
or loan repayment money is repaid and shall be compounded annually.
(d) The board
of trustees * * *
shall pursue debt collection measures bringing suit against any
scholarship or loan repayment up to and including recipient to recover
the amount due to the state under this section for the recipient's failure to
comply with the conditions upon which the scholarship or loan repayment was
granted, as provided in this section and in the contract between the recipient
and the board of trustees. The board of trustees is authorized to postpone or
forgive the repayment of all or part of the amount that a recipient received
under the scholarship or for loan repayments and the interest that would
otherwise be due under this subsection if the recipient's failure to comply
with the conditions upon which the scholarship or loan repayment was granted
was due to circumstances beyond the recipient's control that caused the
recipient to be physically unable to comply with those conditions, such as
suffering a severe illness, injury or other disabling condition.
(7) The board of trustees shall establish such rules and regulations, based upon recommendations submitted by the Medical Care Critical Needs Committee, which it deems necessary and proper to carry out the purposes and intent of this section.
SECTION 3. Section 37-143-7, Mississippi Code of 1972, is amended as follows:
[With regard to students applying for loans or scholarships before July 1, 2013, this section shall read as follows:]
37-143-7. (1) There is hereby created the dental loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become dentists to obtain a standard four-year education in the study of dentistry in the University of Mississippi School of Dentistry, which will qualify them to become licensed, practicing dentists.
(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards, which may be made not to exceed the length of time required to complete the degree requirements.
(3) Loans made to applicants under this program may be made under similar terms and conditions as then current provisions of the Federal Guaranteed Student Loan Program, or its successor, as to the repayment of principal and interest. Such loans shall be eligible for deferment during attendance as a full-time student in an approved course of training. No interest shall accrue on such loan during the time the recipient is in such attendance. Such loans may be eligible for other deferments for such other causes as may be established by the board by rule and regulations not inconsistent with the foregoing.
(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:
(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation or termination of attendance as a full-time student;
(b) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into public health work at a state health institution as defined in
Section 37-143-13(2), or community health centers that are grantees under
Section 330 of the United States Public Health Service Act. Repayment under
this option shall convert loan to scholarship, and discharge the same, on the
basis of one (1) year's service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. If at any time prior to the discharge in full of the total
obligation the recipient abandons or abrogates repayment by this option, the
provisions of * * * paragraph (d) of this subsection
(4) shall apply;
(c) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into the practice of dentistry in an area outside of a metropolitan
statistical area, as defined and established by the United States Census
Bureau, and within a region ranking between 1 and 54, inclusively, on the
Relative Needs Index of Four Factors for Dentists, as annually determined by
the State Board of Health, for a period of five (5) years. Repayment under
this option shall convert loan to scholarship and discharge the same on the
basis of one (1) year's service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. If at any time prior to the repayment in full of the total
obligation the recipient abandons or abrogates repayment by this option, the
provisions of * * * paragraph (d) of this subsection
(4) shall apply;
(d) In the event of
abandonment or abrogation of the options for repayment as provided for in * * * paragraphs
(b) and (c) of this subsection (4), the remaining balance of unpaid or
undischarged principal and interest shall become due and payable over the
remaining period of time as if the option provided for in * * * paragraph
(a) of this subsection (4) had been elected upon graduation.
(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
[With regard to students applying for loans or scholarships from and after July 1, 2013, this section shall read as follows:]
37-143-7. (1) There is hereby created the dental loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become dentists to obtain a standard four-year education in the study of dentistry in the University of Mississippi School of Dentistry, which will qualify them to become licensed, practicing dentists.
(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards, which may be made not to exceed the length of time required to complete the degree requirements.
(3) Loans made to applicants under this program may be made under similar terms and conditions as then current provisions of the Federal Guaranteed Student Loan Program, or its successor, as to the repayment of principal and interest. Such loans shall be eligible for deferment during attendance as a full-time student in an approved course of training. Unless the provisions of subsection (4)(d) of this section apply, no interest shall accrue on such loan during the time the recipient is in such attendance. Such loans may be eligible for other deferments for such other causes as may be established by the board by rule and regulations not inconsistent with the foregoing.
(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:
(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation or termination of attendance as a full-time student;
(b) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into public health work at a state health institution as defined in
Section 37-143-13(2), or community health centers that are grantees under
Section 330 of the United States Public Health Service Act. Repayment under
this option shall convert loan to scholarship, and discharge the same, on the
basis of one (1) year's service for one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. If at any time prior to the discharge in full of the total
obligation the recipient abandons or abrogates repayment by this option, the
provisions of * * * paragraph (d) of this subsection
(4) shall apply;
(c) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into the practice of dentistry in an area outside of a metropolitan statistical
area, as defined and established by the United States Census Bureau, and within
a region ranking between 1 and 54, inclusively, on the Relative Needs Index of
Four Factors for Dentists, as annually determined by the State Board of Health,
for a period of five (5) years. Repayment under this option shall convert loan
to scholarship and discharge the same on the basis of one (1) year's service
for one (1) year's loan amount, or the appropriate proportion of the total
outstanding balance of principal and interest, all as shall be established by
rule and regulation of the board of trustees. If at any time prior to the
repayment in full of the total obligation the recipient abandons or abrogates
repayment by this option, the provisions of * * * paragraph
(d) of this subsection (4) shall apply;
(d) * * * The abandonment or
abrogation of the options for repayment as provided for in * * * paragraphs
(b) and (c) of this subsection (4) shall convert loan to scholarship and discharge
the same on the basis of two (2) years' service for one (1) year's loan amount,
or the appropriate proportion of the total outstanding balance of principal and
interest, all as shall be established by rule and regulation of the board of
trustees. If a loan recipient contributes no repayment under paragraph (b) or
(c) of this subsection (4), a penalty of five percent (5%) of the amount
borrowed shall be assessed, and the penalty shall be capitalized. Interest on
the remaining balance of unpaid or undischarged principal shall be computed
from the date of each loan disbursement until the date repaid and shall be
compounded annually. Payment in full of principal, interest and any applicable
penalty must be made in sixty (60) or less equal monthly installments,
commencing one (1) month after abandonment or abrogation of the options for
repayment provided in paragraphs (b) and (c) of this subsection (4).
(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
SECTION 4. Section 37-143-9, Mississippi Code of 1972, is amended as follows:
[With regard to students applying for scholarships or loans before July 1, 2013, this section shall read as follows:]
37-143-9. There is created a program for advanced study in nursing. Scholarships are established and shall be allocated to students who: (a) have graduated from an accredited high school and from a school of nursing and are licensed registered nurses in Mississippi; and (b) are approved by the Board of Trustees of State Institutions of Higher Learning; and (c) enter into contract with the board of trustees and its successors in office, obligating themselves to pursue to completion the course of study agreed upon, and immediately following the completion of such work, to spend a period of time, equal to the period of study provided under the scholarship, in teaching nursing at any accredited school of nursing in Mississippi, approved by the board of trustees, or in performing other work in the interest of public health in the state, to be approved by the board of trustees. Such period of service, after completion of study under a scholarship, shall in no event be less than one (1) year.
In addition to a scholarship,
any such student may be allocated a loan not to exceed One Thousand Dollars
($1,000.00) per month for each month of full-time study in a graduate nursing
program. The repayment of the principal and interest of such loans shall be
eligible for deferment during attendance as a full-time student in an approved
program for advanced study in an accredited school of nursing. For any student
who receives this loan, the student's contract with the board of trustees shall
obligate the student, immediately following completion of the course of study,
to repay the loan by teaching nursing for not less than two (2) years at any
accredited school of nursing in Mississippi approved by the board of trustees.
Such teaching service shall convert the loan to an interest-free scholarship,
and discharge the same, on the basis of two (2) years of service for * * * one (1) year's loan
amount, or the appropriate proportion of the total outstanding balance of
principal and interest, all as established by rule and regulation of the board
of trustees. Any such student who fails to complete all of the teaching
service obligation shall be liable to the board of trustees for the remaining
balance of the principal and interest that remains undischarged.
The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
[With regard to students applying for scholarships or loans from and after July 1, 2013, this section shall read as follows:]
37-143-9. (1) (a) There is created a program for advanced study in nursing. Scholarships are established and shall be allocated to students who:
( * * *i) Have graduated from an accredited
high school and from a school of nursing and are licensed registered nurses in
Mississippi; * * *
( * * *ii) Are approved by the Board of
Trustees of State Institutions of Higher Learning; and
( * * *iii) Enter into contract with the
board of trustees and its successors in office, obligating themselves to pursue
to completion the course of study agreed upon, and immediately following the
completion of such work, to spend a period of time, equal to the period of
study provided under the scholarship, in teaching nursing at any accredited school
of nursing in Mississippi, approved by the board of trustees, or in performing
other work in the interest of public health in the state, to be approved by the
board of trustees. Such period of service, after completion of study under a
scholarship, shall in no event be less than one (1) year.
(b) (i) If a scholarship recipient fails to complete the obligations in paragraph (a) of this subsection (1), the full amount received under the scholarship less any service credit shall be repaid, together with interest, within the length of time the recipient agreed to serve under the contract. The length of time served toward the obligation shall be subtracted from the amount due on the basis of two (2) years' service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as established by rule and regulation of the board of trustees.
(ii) If a scholarship recipient serves no time toward the obligations in paragraph (a) of this subsection (1), the full amount received under the scholarship shall be repaid, together with penalty and interest, within the length of time the recipient agreed to serve under the contract.
(c) For scholarships repaid under paragraph (b)(ii) of this subsection (1), a penalty of five percent (5%) shall be assessed on the amount received under the scholarship, and that penalty shall be capitalized.
(d) For scholarships repaid under this subsection, interest on the remaining balance of unpaid or undischarged principal shall be computed from the date of each scholarship disbursement until the date repaid and shall be compounded annually.
(2) (a) In addition
to a scholarship, any such student may be allocated a loan not to exceed One
Thousand Dollars ($1,000.00) per month for each month of full-time study in a
graduate nursing program. The repayment of the principal and interest of such
loans shall be eligible for deferment during attendance as a full-time student
in an approved program for advanced study in an accredited school of nursing.
For any student who receives this loan, the student's contract with the board
of trustees shall obligate the student, immediately following completion of the
course of study, to repay the loan by teaching nursing for not less than two
(2) years at any accredited school of nursing in Mississippi approved by the
board of trustees. Unless the provisions of paragraph (b) of this
subsection (2) apply, such teaching service shall convert the loan to an
interest-free scholarship, and discharge the same, on the basis of two (2)
years of service for * * * one (1) year's loan amount, or the
appropriate proportion of the total outstanding balance of principal and
interest, all as established by rule and regulation of the board of trustees. * * *
(b) (i) If a loan recipient fails to complete the obligations in paragraph (a) of this subsection (2), the loan amount less any service credit shall be repaid, together with interest, within the length of time the recipient agreed to serve under the contract. Any service credit shall convert loan to scholarship and discharge the same on the basis of four (4) years' service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as established by rule and regulation of the board of trustees.
(ii) If a loan recipient serves no time toward the obligations in paragraph (a) of this subsection (2), the loan amount shall be repaid, together with penalty and interest, within the length of time the recipient agreed to serve under the contract.
(c) For loans repaid under paragraph (b)(ii) of this subsection (2), a penalty of five percent (5%) of the loan amount shall be assessed, and the penalty shall be capitalized.
(d) For loans repaid under this subsection, interest on the remaining balance of unpaid or undischarged principal shall be computed from the date of each disbursement until the date repaid and shall be compounded annually.
(3) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.
SECTION 5. Section 37-143-11, Mississippi Code of 1972, is amended as follows:
[With regard to students applying for loans or scholarships before July 1, 2013, this section shall read as follows:]
37-143-11. (1) It is the intention of the Legislature to attract and retain qualified teachers by awarding incentive loans to persons declaring an intention to serve in the teaching field and who actually render service to the state while possessing an appropriate teaching license.
(2) There is established the "William F. Winter Teacher Scholar Loan Program."
(3) To the extent of appropriations available, students who are enrolled in any baccalaureate degree-granting institution of higher learning in the State of Mississippi accredited by the Southern Association of Colleges and Schools and approved by the Mississippi Commission on College Accreditation, or any accredited nonprofit community or junior college, and who have expressed in writing a present intention to teach in Mississippi, shall be eligible for student loans to be applied to the costs of their college education. Persons who have been admitted to a teacher education program or a nontraditional teacher internship licensure program authorized under Section 37-3-2(6)(b), as approved by the State Board of Education, shall also qualify for loans at approved institutions. The Board of Trustees of State Institutions of Higher Learning shall provide that teacher education majors and noneducation majors shall have equal access to scholarship/loans under authority of this section.
(4) A freshman establishing initial eligibility shall be eligible for a maximum of four (4) annual loans, and a senior shall be eligible for one (1) annual loan.
(5) The maximum annual loan shall be set by the Board of Trustees of State Institutions of Higher Learning at an amount not to exceed the cost of attendance at any baccalaureate degree-granting institution of higher learning in the State of Mississippi. However, it is the intent of the Legislature that the maximum annual loan amounts under the William F. Winter Teacher Scholar Loan Program shall not be of such amounts that would compete with the Critical Needs Teacher Scholarship Program.
(6) The loans of persons who actually render service as licensed teachers or nontraditional teacher interns authorized under Section 37-3-2(6)(b) in a public school in Mississippi for a major portion of the school day for at least seventy-eight (78) school days during each of eight (8) school semesters of the ten (10) immediately after obtaining a baccalaureate degree, shall be converted to interest-free scholarships. Conversion shall be based on two (2) semesters of service for each year a loan was received, and the Board of Trustees of State Institutions of Higher Learning shall not authorize the conversion of loans into interest-free scholarships at any other ratio, except as follows: Participants in the William F. Winter Teacher Scholar Loan Program may have their loans converted into interest-free scholarships at the same ratio as under the Critical Needs Teacher Scholarship Program if they render service as a licensed teacher or nontraditional teacher intern authorized under Section 37-3-2(6)(b) in a public school district in a geographical area of the state where there is a critical shortage of teachers, as designated by the State Board of Education.
(7) Persons failing to complete an appropriate program of study shall immediately become liable to the Board of Trustees of State Institutions of Higher Learning for the sum of all outstanding loans, except in the case of a deferral of debt for cause by the board, after which period of deferral, study may be resumed. Persons failing to meet teaching requirements in any required semester shall immediately be in breach of contract and become liable to the board for the amount of the corresponding loan received, with interest accruing at the current Stafford Loan rate at the time the breach occurs, except in the case of a deferral of debt for cause by the board, after which period of deferral, teaching duties required hereunder will be resumed. If the claim for payment of such loan is placed in the hands of an attorney for collection after default, then the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(8) A loan made pursuant to this section shall not be voidable by reason of the age of the borrower at the time of receiving the loan.
(9) Failure to repay any loan and interest that becomes due shall be cause for the revocation of a person's teaching license by the State Department of Education.
(10) All monies repaid to the Board of Trustees of State Institutions of Higher Learning hereunder shall be added to the appropriations made for purposes of this section, and those appropriations shall not lapse.
(11) The Board of Trustees of State Institutions of Higher Learning with the concurrence of the State Board of Education shall jointly promulgate regulations necessary for the proper administration of this section.
(12) If insufficient funds are available for requested loans to a qualified student during any fiscal year, the Board of Trustees of State Institutions of Higher Learning shall make pro rata reductions in the loans made to qualifying applicants. Priority consideration shall be given to persons receiving previous loans and participating in the program.
(13) The Board of Trustees of State Institutions of Higher Learning shall make an annual report to the Legislature. Each report shall contain a complete enumeration of the board's activities, loans or scholarships granted, names of persons to whom granted and the institutions attended by those receiving the same, names of persons to whom loans or scholarships were granted who were not education majors, the teaching location of applicants who have received their education and become licensed teachers within this state as a result of the loans and/or scholarships. The board shall make a full report and account of receipts and expenditures for salaries and expenses incurred under the provisions of this section. The board shall, upon its records and any published reports, distinguish between those recipients who have breached their contracts but with the board's permission who have paid their financial obligations in full, and those recipients who have breached their contracts and remain financially indebted to the state.
[With regard to students applying for loans or scholarships from and after July 1, 2013, this section shall read as follows:]
37-143-11. (1) It is the intention of the Legislature to attract and retain qualified teachers by awarding incentive loans to persons declaring an intention to serve in the teaching field and who actually render service to the state while possessing an appropriate teaching license.
(2) There is established the "William F. Winter Teacher Scholar Loan Program."
(3) To the extent of appropriations available, students who are enrolled in any baccalaureate degree-granting institution of higher learning in the State of Mississippi accredited by the Southern Association of Colleges and Schools and approved by the Mississippi Commission on College Accreditation, or any accredited nonprofit community or junior college, and who have expressed in writing a present intention to teach in Mississippi, shall be eligible for student loans to be applied to the costs of their college education. Persons who have been admitted to a teacher education program or a nontraditional teacher internship licensure program authorized under Section 37-3-2(6)(b), as approved by the State Board of Education, shall also qualify for loans at approved institutions. The Board of Trustees of State Institutions of Higher Learning shall provide that teacher education majors and noneducation majors shall have equal access to scholarship/loans under authority of this section.
(4) A freshman establishing initial eligibility shall be eligible for a maximum of four (4) annual loans, and a senior shall be eligible for one (1) annual loan.
(5) The maximum annual loan shall be set by the Board of Trustees of State Institutions of Higher Learning at an amount not to exceed the cost of attendance at any baccalaureate degree-granting institution of higher learning in the State of Mississippi. However, it is the intent of the Legislature that the maximum annual loan amounts under the William F. Winter Teacher Scholar Loan Program shall not be of such amounts that would compete with the Critical Needs Teacher Scholarship Program.
(6) The loans of persons who complete service as licensed teachers or nontraditional teacher interns authorized under Section 37-3-2(6)(b) in a public school in Mississippi for a major portion of the school day for at least seventy-eight (78) school days during each of eight (8) school semesters of the ten (10) immediately after obtaining a baccalaureate degree, shall be converted to interest-free scholarships. Conversion shall be based on two (2) semesters of service for each year a loan was received, and the Board of Trustees of State Institutions of Higher Learning shall not authorize the conversion of loans into interest-free scholarships at any other ratio, except as provided in subsection (7) of this section and as follows: Participants in the William F. Winter Teacher Scholar Loan Program may have their loans converted into interest-free scholarships at the same ratio as under the Critical Needs Teacher Scholarship Program if they render service as a licensed teacher or nontraditional teacher intern authorized under Section 37-3-2(6)(b) in a public school district in a geographical area of the state where there is a critical shortage of teachers, as designated by the State Board of Education.
(7) * * *
(a) Unless the board grants a deferral of debt
for cause, after which period of deferral an appropriate program of study will
be resumed, a person who fails to complete the program of study shall be in
breach of contract. A person who completes an appropriate program of study but
fails to begin the obligations under subsection (6) of this section shall be in
breach of contract. Persons in breach of contract under this paragraph shall
repay loans received under the program as follows:
(i) A penalty of five percent (5%) of the sum of loans issued under this section shall be assessed, and the penalty shall be capitalized to calculate the principal balance; and
(ii) Interest shall accrue on the principal balance from the date of each loan disbursement until the date repaid and shall be compounded annually. The interest rate shall be the same as the Stafford Loan interest rate on the date the breach occurs.
(b) Unless the board grants a deferral of debt for cause, after which period of deferral the required teaching duties will be resumed, a person who fails to meet teaching requirements in any semester shall be in breach of contract and shall repay loans received under the program as follows:
(i) Such loans shall convert to scholarships and be discharged on the basis of four (4) semesters of service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as established by rule and regulation of the board of trustees; and
(ii) Interest on the remaining balance of undischarged principal shall be computed from the date of each loan disbursement until the date repaid and shall be compounded annually. The interest rate shall be the same as the Stafford Loan interest rate on the date the breach occurs.
(c) If the claim for payment of such loan is placed in the hands of an attorney for collection after default, then the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(8) A loan made pursuant to this section shall not be voidable by reason of the age of the borrower at the time of receiving the loan.
(9) Failure to repay any loan and interest that becomes due shall be cause for the revocation of a person's teaching license by the State Department of Education.
(10) All monies repaid to the Board of Trustees of State Institutions of Higher Learning hereunder shall be added to the appropriations made for purposes of this section, and those appropriations shall not lapse.
(11) The Board of Trustees of State Institutions of Higher Learning with the concurrence of the State Board of Education shall jointly promulgate regulations necessary for the proper administration of this section.
(12) If insufficient funds are available for requested loans to a qualified student during any fiscal year, the Board of Trustees of State Institutions of Higher Learning shall make pro rata reductions in the loans made to qualifying applicants. Priority consideration shall be given to persons receiving previous loans and participating in the program.
(13) The Board of Trustees of State Institutions of Higher Learning shall make an annual report to the Legislature. Each report shall contain a complete enumeration of the board's activities, loans or scholarships granted, names of persons to whom granted and the institutions attended by those receiving the same, names of persons to whom loans or scholarships were granted who were not education majors, the teaching location of applicants who have received their education and become licensed teachers within this state as a result of the loans and/or scholarships. The board shall make a full report and account of receipts and expenditures for salaries and expenses incurred under the provisions of this section. The board shall, upon its records and any published reports, distinguish between those recipients who have breached their contracts but with the board's permission who have paid their financial obligations in full, and those recipients who have breached their contracts and remain financially indebted to the state.
SECTION 6. Section 37-143-12, Mississippi Code of 1972, is amended as follows:
37-143-12. Speech-Language Pathologists Loan Forgiveness Program. (1) There is established a Speech-Language Pathologists Loan Forgiveness Program. It is the intent of the Legislature that persons declaring an intention to work in an accredited public school (K-12) located in the State of Mississippi as a speech-language pathologist shall be eligible for a loan for the purpose of acquiring a master's level education in such profession. The Board of Trustees of State Institutions of Higher Learning shall enter into contracts with applicants, providing that such loans may be discharged by working as a master's level speech-language pathologist in an accredited public school (K-12) located in the State of Mississippi, for a period of time after graduation equal to the period of study provided under the loan. Such contracts shall provide that for each year of service, the appropriate portion of the outstanding balance of principal and interest of such loan shall be converted to interest-free scholarships and discharged.
(2) From and after July 1, 2013, loan contracts executed under the program shall include the following terms and conditions:
(a) Loan recipients who either fail to acquire a master's level degree in speech-language pathology or who acquire the required degree but fail to begin the work requirements provided in subsection (1) of this section shall repay loans received under the program as follows:
(i) A penalty of five percent (5%) of the loans issued under the program shall be assessed, and the penalty shall be capitalized; and
(ii) Interest shall accrue on the principal balance from the date of each loan disbursement until the date repaid and shall be compounded annually.
(b) Loan recipients who fail to complete the work requirements provided in subsection (1) of this section shall repay loans received under the program as follows:
(i) Such loans shall convert to scholarships and be discharged on the basis of two (2) years of service for one (1) year's loan amount, or the appropriate portion of the outstanding balance of principal and interest; and
(ii) Interest on the remaining balance of undischarged principal shall be computed from the date of each loan disbursement until the date repaid and shall be compounded annually.
( * * *3) The Board of Trustees of State
Institutions of Higher Learning, with the concurrence of the State Board of
Education, shall jointly establish rules and regulations as it deems necessary
and proper to carry out the purposes and intent of this section.
The provisions of this section shall be subject to specific appropriation therefor by the Legislature.
SECTION 7. Section 37-143-13, Mississippi Code of 1972, is amended as follows:
37-143-13. (1) There is established a health care professions' loan program. It is the intent of the Legislature that persons declaring an intention to work at certain state health institutions as nurses, nurse-practitioners, speech pathologists, psychologists, occupational therapists and physical therapists, shall be eligible for a loan for the purpose of acquiring an education in such professions. The board of trustees shall enter into contracts with applicants, providing that such loans may be discharged by working as a health care professional in a state health institution, as defined in this section, for a period of time after graduation equal to the period of study provided under the scholarship. Such contracts shall provide that for each year of service, the appropriate portion of the outstanding balance of principal and interest of such loan shall be converted to interest-free scholarships and discharged.
(2) "State health institution" shall mean any of the following: Any facility or program operated by the Department of Mental Health; the State Board of Health; mental health/intellectual disability facilities under the administration of a regional commission as established under Section 41-19-31 which are certified by the Department of Mental Health; and health care facilities under the Department of Corrections.
(3) From and after July 1, 2013, loan contracts entered under the program shall include the following conditions:
(a) Loan recipients who either fail to acquire one of the degrees specified in subsection (1) of this section or who fail to begin the work requirements in subsection (1) of this section shall repay loans received under the program as follows:
(i) A penalty of five percent (5%) of the loans issued under this section shall be assessed, and the penalty shall be capitalized; and
(ii) Interest shall accrue on the principal balance from the date of each loan disbursement until the date repaid and shall be compounded annually.
(b) Loan recipients who fail to complete the work requirements in subsection (1) of this section shall repay loans received under the program as follows:
(i) Such loans shall convert to scholarships and be discharged on the basis of two (2) years of service for one (1) year's loan amount, or the appropriate portion of the outstanding balance of principal and interest; and
(ii) Interest on the remaining balance of undischarged principal shall be computed from the date of each loan disbursement until the date repaid and shall be compounded annually.
( * * *4) The board of trustees shall
establish rules and regulations as it deems necessary and proper to carry out
the purposes and intent of this section.
SECTION 8. Section 37-143-14, Mississippi Code of 1972, is amended as follows:
37-143-14. (1) There is established a scholarship program to encourage family protection workers employed by the Department of Human Services to obtain the college education necessary to become licensed as a social worker, master social worker or certified social worker and become a family protection specialist for the department.
(2) Any person who is employed as a family protection worker for the Department of Human Services shall be eligible for a financial scholarship from the Board of Trustees of State Institutions of Higher Learning, which shall be used to pay the costs of the person's education at a state institution of higher learning in Mississippi to obtain a college degree that is necessary to become licensed as a social worker, master social worker or certified social worker and become a family protection specialist for the department. The annual amount of a scholarship award under the program shall be equal to the total cost of tuition and fees at the college or university in which the student is enrolled, not to exceed an amount equal to the highest total cost of tuition and fees assessed by a state institution of higher learning during that school year.
(3) Scholarship awards made under the program shall be available to both full-time and part-time students. Students enrolling on a full-time basis may receive a maximum of two (2) annual awards. The maximum number of scholarship awards that may be made to students attending school on a part-time basis, and the maximum time period for part-time students to complete the number of academic hours necessary to obtain the necessary degree, shall be established by rules and regulations of the Board of Trustees of State Institutions of Higher Learning. Scholarships under the program shall not be based upon an applicant's eligibility for financial aid. A student must maintain a "C" average or higher in his or her college coursework in order to continue receiving the scholarship.
(4) After a person who received a scholarship under the program has obtained a college degree that is necessary to become licensed as a social worker, master social worker or certified social worker and has received such a license from the Board of Examiners for Social Workers and Marriage and Family Therapists, the person shall render service as a family protection specialist for the Department of Human Services for a period of not less than three (3) years from the date that the person became a family protection specialist.
(5) (a) For students who entered the program before July 1, 2013, the following provisions apply.
(i) Any person who receives a scholarship under the program who fails to complete a program of study that is necessary to become licensed as a social worker, master social worker or certified social worker, or who fails to receive such a license from the Board of Examiners for Social Workers and Marriage and Family Therapists, shall become liable immediately to the Board of Trustees of State Institutions of Higher Learning for the sum of all scholarship awards made to that person, plus interest accruing at the current Stafford Loan rate at the time the person discontinues his or her participation in the program.
(ii) Any person who fails to complete his or her service obligation as a family protection specialist for the Department of Human Services for not less than three (3) years, as required under subsection (4) of this section, shall become liable immediately to the board for the sum of all scholarship awards made to that person, plus interest accruing at the current Stafford Loan rate at the time the person discontinues his or her service.
(b) For students who entered the program on or after July 1, 2013, the following provisions apply.
(i) Any person who receives a scholarship under the program who fails to complete a program of study that is necessary to become licensed as a social worker, master social worker or certified social worker, who fails to receive such a license from the Board of Examiners for Social Workers and Marriage and Family Therapists, or who fails to begin the service obligation required under subsection (4) of this section shall become liable immediately to the Board of Trustees of State Institutions of Higher Learning for the sum of all scholarship awards made to that person, plus penalty and interest. A penalty of five percent (5%) of the scholarships issued under this section shall be assessed, and the penalty shall be capitalized to calculate the principal balance. Interest shall accrue on the principal balance from the date of each scholarship disbursement until the date repaid and shall be compounded annually. The interest rate shall be the same as the Stafford Loan interest rate on the date the person discontinues his or her participation in the program.
(ii) Any person who begins but fails to complete his or her service obligation as a family protection specialist for the Department of Human Services for not less than three (3) years, as required under subsection (4) of this section, shall become liable immediately to the board for the sum of all scholarship awards made to that person, plus interest. Interest shall be computed from the date of each scholarship disbursement until the date repaid and shall be compounded annually. The interest rate shall be the same as the Stafford Loan interest rate on the date the person discontinues his or her service.
(c) If a claim for payment under this subsection is placed in the hands of an attorney for collection, the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(6) It is the intent of the Legislature that the pursuit of necessary college education by family protection workers through the scholarship program shall not interfere with the duties of the family protection workers with the Department of Human Services. The department shall promulgate regulations regarding family protection workers who participate in the scholarship program to ensure that such participation does not interfere with their duties with the department.
(7) The Board of Trustees of State Institutions of Higher Learning shall promulgate rules and regulations necessary for the proper administration of the scholarship program established under this section. The board shall be the administering agency of the program.
(8) If insufficient funds are available to fully fund scholarship awards to all eligible students, the Board of Trustees of State Institutions of Higher Learning shall make the awards to first-time students on a first-come, first-served basis; however, priority consideration shall be given to persons previously receiving awards under the program.
(9) The total amount of state funds that may be expended for this program shall not exceed Three Hundred Twenty Thousand Dollars ($320,000.00) in any fiscal year.
SECTION 9. Section 37-159-3, Mississippi Code of 1972, is amended as follows:
37-159-3. (1) There is established the "Critical Needs Teacher Scholarship Program," the purpose of which is to attract qualified teachers to those geographical areas of the state and those subject areas of the curriculum where there exists a critical shortage of teachers by awarding full scholarships to persons declaring an intention to serve in the teaching field who actually render service to the state while possessing an appropriate teaching license.
(2) Any individual who is enrolled in or accepted for enrollment at a teacher education program approved by the State Board of Education or other program at a baccalaureate degree-granting institution of higher learning in the State of Mississippi and has a passing score on the Praxis I Basic Skills Test who expresses in writing an intention to teach in a geographical area of the state or a subject area of the public school curriculum in which there exists a critical shortage of teachers, as designated by the State Board of Education, shall be eligible for a financial scholarship to be applied toward the costs of the individual's college education. The annual amount of the award shall be equal to the total cost for tuition, room and meals, books, materials and fees at the college or university in which the student is enrolled, not to exceed an amount equal to the highest total cost of tuition, room and meals, books, materials and fees assessed by a state institution of higher learning during that school year. Awards made to nonresidents of the state shall not include any amount assessed by the college or university for out-of-state tuition.
(3) Awards granted under the Critical Needs Teacher Scholarship Program shall be available to both full-time and part-time students. Students enrolling on a full-time basis may receive a maximum of two (2) annual awards. The maximum number of awards that may be made to students attending school on a part-time basis, and the maximum time period for part-time students to complete the number of academic hours necessary to obtain a baccalaureate degree in education, shall be established by rules and regulations jointly promulgated by the Board of Trustees of State Institutions of Higher Learning and the State Board of Education. Critical Needs Teacher Scholarships shall not be based upon an applicant's eligibility for financial aid.
(4) Awards granted under the Critical Needs Teacher Scholarship Program shall be made available to nontraditional licensed teachers showing a documented need for student loan repayment and employed in those school districts designated by the State Department of Education as a geographical area of the state or in a subject area of the curriculum in which there is a critical shortage of teachers. The maximum annual amount of this repayment should not exceed Three Thousand Dollars ($3,000.00) and the maximum time period for repayment shall be no more than four (4) years.
(5) Except in those cases where employment positions may not be available upon completion of licensure requirements, at the beginning of the first school year in which a recipient of a Critical Needs Teacher Scholarship is eligible for employment as a licensed teacher or a nontraditional teacher intern pursuant to Section 37-3-2(6)(b), that person shall begin to render service as a licensed teacher or nontraditional teacher intern in a public school district in a geographical area of the state or a subject area of the curriculum where there is a critical shortage of teachers, as approved by the State Board of Education. Any person who received two (2) annual awards, or who received fewer than two (2) annual awards, or the equivalent of two (2) annual awards, shall render one (1) year's service as a licensed teacher for each year that the person received a full-time student scholarship.
(6) (a) Any person
failing to complete a program of study which will enable that person to become a
licensed teacher or nontraditional teacher intern under Section 37-3-2(6)(b),
as the case may be, shall become liable immediately to the Board of Trustees of
State Institutions of Higher Learning for the sum of all Critical Needs Teacher
Scholarship awards made to that person, plus interest accruing at the current
Stafford Loan rate at the time the person abrogates his participation in the
program. Any person failing to complete his teaching obligation, as required
under subsection (4) of this section, shall become liable immediately to the
board for the sum of all scholarship awards made to that person less the
corresponding amount of any awards for which service has been rendered, plus
interest accruing at the current Stafford Loan rate at the time the person
discontinues his service * * *,.
(b) Any person applying for a scholarship on or after July 1, 2013 who fails to complete a program of study to become a licensed teacher or nontraditional teacher intern under Section 37-3-2(6)(b) or who fails to begin the teaching obligation required under subsection (4) of this section shall become liable immediately to the Board of Trustees of State Institutions of Higher Learning for the sum of the scholarship awards made under the program, plus the following:
(i) A penalty of five percent (5%) of the scholarship awards made under the program. The penalty shall be capitalized; and
(ii) Interest accruing at the current Stafford Loan rate at the time the person abrogates his participation in the program. Interest shall accrue on the sum from the date of each scholarship disbursement until the date repaid and shall be compounded annually.
(c) Any person applying for a scholarship on or after July 1, 2013 who fails to complete his teaching obligation, as required under subsection (4) of this section, shall become liable immediately to the board for the sum of all scholarship awards made under the program as follows:
(i) For one (1) year of service, the corresponding amount of one (1) annual award shall be subtracted from the sum; and
(ii) Interest at the current Stafford Loan rate at the time the person discontinues his service shall accrue until the date repaid and shall be compounded annually.
(d) The State Board of Education may grant a deferral of debt for cause when there is no employment position immediately available upon a teacher's completion of licensure requirements. After the period of such deferral, such person shall begin or resume teaching duties as required under subsection (4) of this section or shall become liable to the board.
(e) If a claim for payment under this subsection is placed in the hands of an attorney for collection, the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(7) The obligations made by the recipient of a Critical Needs Teacher Scholarship award shall not be voidable by reason of the age of the student at the time of receiving the scholarship.
(8) Any student who, prior to July 1, 2003, has been accepted into the Critical Needs Teacher Scholarship Program under the authority of Section 37-159-3(4) shall be allowed to begin or remain in the scholar loan program based upon the prescribed guidelines of the State Department of Education, and conversion for those students with fewer than four (4) annual awards shall be based on one (1) year of service in either (a) a geographic area of the state in which there exists a critical shortage of teachers as determined by the State Board of Education, or (b) a subject area of the curriculum in the public schools in which there exists a critical shortage of teachers as determined by the State Board of Education, for each year a loan was received by the student. For those students that receive the equivalent of four (4) annual awards, such students shall render three (3) years of service.
(9) The Board of Trustees of State Institutions of Higher Learning and the State Board of Education shall jointly promulgate rules and regulations necessary for the proper administration of the Critical Needs Teacher Scholarship Program. The Board of Trustees of State Institutions of Higher Learning shall be the administering agency of the program.
(10) If insufficient funds are available to fully fund scholarship awards to all eligible students, the Board of Trustees of State Institutions of Higher Learning shall make the awards to first-time students on a first-come, first-served basis; however, priority consideration shall be given to persons previously receiving awards under the Critical Needs Teacher Scholarship Program.
(11) All funds received by the Board of Trustees of State Institutions of Higher Learning from the repayment of scholarship awards by program participants shall be deposited in the Consolidated Revolving Loan Fund in accordance with Section 37-143-19.
(12) Where local school districts exhibit financial need, the State Department of Education may, subject to the availability of funds specifically appropriated therefor by the Legislature, provide financial assistance for the recruitment of certified teachers in an amount not to exceed Seventy-five Thousand Dollars ($75,000.00), annually.
SECTION 10. Section 37-159-9, Mississippi Code of 1972, is amended as follows:
37-159-9. (1) There is established the University Assisted Teacher Recruitment and Retention Grant Program within the State Department of Education. The purposes of the program shall be to attract additional qualified teachers to those geographical areas of the state where there exists a critical shortage of teachers and to retain the qualified teachers already serving as licensed teachers in geographical critical teacher shortage areas by making available scholarships to persons working towards a Master of Education degree or an Educational Specialist degree at an institution of higher learning whose teacher education program is approved by the State Board of Education.
(2) Any institution of higher learning in the State of Mississippi which offers a Master of Education degree or an Educational Specialist degree may apply to the department for participation in the program. As part of the program, participating institutions shall collaborate with the Mississippi Teacher Center to identify, recruit and place teacher education graduates, from both within the state and out-of-state, in school districts situated within those areas of the state where there exists a critical shortage of teachers, as designated by the State Board of Education.
(3) The State Department of Education shall provide funds to participating institutions of higher learning for the purpose of awarding scholarships to qualified persons pursuing a Master of Education degree or an Educational Specialist degree at such institutions while rendering service to the state as a licensed teacher in a school district in a geographical area of the state where there exists a critical shortage of teachers, as approved by the State Board of Education. The financial scholarship shall be applied to the total cost for tuition, books, materials and fees at the institution in which the student is enrolled, not to exceed an amount equal to the highest total cost of tuition, books, materials and fees assessed by a state institution of higher learning during that school year. Teachers who relocate within Mississippi from out-of-state in order to participate in the program shall be classified as residents of the state for tuition purposes.
(4) Students awarded financial scholarships under the University Assisted Teacher Recruitment and Retention Grant Program may receive such awards for a maximum of four (4) school years; however, the maximum number of awards which may be made shall not exceed the length of time required to complete the number of academic hours necessary to obtain a Master of Education degree or an Educational Specialist degree. Financial scholarships under the program shall not be based upon an applicant's eligibility for financial aid.
(5) Persons relocating to a geographical area of the state where there exists a critical shortage of teachers, as approved by the State Board of Education, to participate in the University Assisted Teacher Recruitment and Retention Grant Program shall be eligible for reimbursement for their moving expenses to the critical teacher shortage area from the State Board of Education. The State Board of Education shall promulgate rules and regulations necessary for the administration of the relocation expense reimbursement component of the University Assisted Teacher Recruitment and Retention Grant Program.
(6) Subject to the availability of funds, the State Board of Education may provide for professional development and support services as may be necessary for the retention of teachers participating in the program in those geographical areas of the state where there exists a critical shortage of teachers.
(7) (a) Any person participating in the program who fails to complete a program of study that will enable that person to obtain a Master of Education degree or Educational Specialist degree shall become liable immediately to the State Board of Education for the sum of all awards made to that person under the program, plus interest accruing at the current Stafford Loan rate at the time the person abrogates his participation in the program.
(b) From and after July 1, 2013, any person participating in the program who fails to complete a program of study that will enable that person to obtain a Master of Education degree or Educational Specialist degree or who fails to begin the employment commitment in subsection (8)(a) of this section shall become liable immediately to the State Board of Education for the sum of all awards made to that person under the program plus:
(i) A penalty of five percent (5%) of the awards made under the program. That penalty shall be capitalized; and
(ii) Interest at the current Stafford Loan rate at the time the person abrogates his participation in the program accruing from the date of each scholarship disbursement until the date repaid and compounded annually.
(8) (a) As a condition for participation in the program, a teacher shall agree to employment as a licensed teacher in a school district located in a geographical area of the state where there exists a critical shortage of teachers, as designated by the State Board of Education, for a period of not less than three (3) years, which shall include those years of service rendered while obtaining the Master of Education degree or Educational Specialist degree. However, for any person who obtained a baccalaureate degree in education with a financial scholarship under the Critical Needs Teacher Scholarship Program and who entered the University Assisted Teacher Recruitment and Retention Grant Program before rendering service as a teacher, the period of employment for the purposes of this subsection shall be two (2) years, in addition to the employment commitment required under the Critical Needs Teacher Scholarship Program. Service rendered by a participant as a licensed teacher in a school district in a geographical critical teacher shortage area before that teacher becomes a participant in the program may not be considered to fulfill the employment commitment required under this subsection.
(b) Any person who
entered the program before July 1, 2013 who * * * fails to comply with * * * the required employment commitment
in any required school year shall immediately be in breach of contract and
become liable immediately to the State Department of Education for the sum of
all scholarships awarded and relocation expenses granted to that person, less
one-third (1/3) of the amount of that sum for each year that service was
rendered, or for those persons whose required period of employment is two (2)
years, less one-half (1/2) of the amount of that sum for each year that service
was rendered, plus interest accruing at the current Stafford Loan rate at the
time the breach occurs * * *.
(c) Any person entering the program on or after July 1, 2013 who fails to comply with the required employment commitment in any required school year shall immediately be in breach of contract and become liable immediately to the State Department of Education for the sum of all scholarships awarded and relocation expenses granted to that person, less one-half (1/2) of the amount of one (1) year's loan amount for each year that service was rendered, plus interest accruing at the current Stafford Loan rate at the time the breach occurs. Such interest shall be compounded annually.
(d) The State Board
of Education may grant a deferral for cause * * * when there is
no employment position immediately available upon the teacher's obtaining of
the Master of Education degree or Educational Specialist degree. After the
period of such deferral, the person shall begin or resume the required teaching
duties or shall become liable to the board under this subsection. If a claim
for repayment under this subsection is placed in the hands of an attorney for
collection after default, then the obligor shall be liable for an additional
amount equal to a reasonable attorney's fee.
(9) All funds received by the State Department of Education from the repayment of scholarship awards and relocation expenses by program participants shall be deposited in the Mississippi Critical Teacher Shortage Fund.
(10) The State Board of Education shall promulgate rules and regulations necessary for the proper administration of the University Assisted Teacher Recruitment and Retention Grant Program.
SECTION 11. Section 37-159-51, Mississippi Code of 1972, is amended as follows:
37-159-51. (1) There is established the Mississippi Dyslexia Education Scholarship Program for the purpose of identifying and recruiting qualified university and college students from the state for schooling in education with a focus on dyslexia therapy.
(2) The receipt of a scholarship under the program shall be solely limited to those students who are enrolled in or who have been accepted for enrollment into a master's degree program of study for dyslexia therapy at any public or private institution of higher learning within the State of Mississippi at the time an application for scholarship is filed with the Board of Trustees of State Institutions of Higher Learning.
(3) The annual amount of the scholarship award shall be equal to the total cost for tuition, materials and fees at the college or university in which the student is enrolled. Awards made to nonresidents of the state shall not include any amount assessed by the college or university for out-of-state tuition.
(4) Upon completion of the master's program and licensure requirements, if the scholarship recipient has not been previously licensed by the State Department of Education, shall render service as licensed teacher of dyslexia therapy in a public school district in the state. Any person who received two (2) annual awards, or who received fewer than two (2) annual awards, or the equivalent of two (2) annual awards, shall render one (1) year's services as a licensed teacher for each year that the person received a scholarship award.
(5) (a) Any person failing
to complete a program of study which will enable that person to obtain a
master's degree in dyslexia therapy or any person failing to begin the
teaching obligation shall become liable immediately to the Board of
Trustees of State Institutions of Higher Learning for the sum of all Dyslexia
Education Scholarship awards made to the person * * * plus:
(i) A penalty of five percent (5%) of the awards made under this section, which shall be capitalized; and
(ii) Interest accruing at the current Stafford Loan rate at the time the person abrogates his or her participation in the program and compounded annually.
(b) Any person failing
to complete his or her teaching obligation, as required under subsection (4) of
this section, shall become liable immediately to the board for the sum of all
scholarship awards made to the person less the corresponding amount of * * * one (1) semester's award for * * * each year of
service, plus interest accruing at the current Stafford Loan rate at the
time the person discontinues his or her service and compounded annually.
(6) The Board of Trustees
of State Institutions of Higher Learning shall prepare and submit a report to
the Legislature by January 1, 2015, outlining in detail the number of
participants who have received scholarship funds under the program, the record
of service provided by those recipients as they transition out of the degree
program into the public school districts of this state, and the projection for
expanding the program to include more participants annually as determined by
the need for such qualified * * * professionals in the public
school setting. Additionally, the report shall include a summary of
allocations and expenditures for the administration of the program and the
total amount of funds issued to recipients of scholarships from the inception
of the program until such time as the report has been prepared and submitted to
the Legislature.
SECTION 12. This act shall take effect and be in force from and after July 1, 2013.