House Bill 637

AN ACT TO CREATE THE MISSISSIPPI TUITION SUBSIDY FORGIVABLE LOAN; TO PROVIDE THAT SUCH LOAN SHALL BE ADMINISTERED BY THE POSTSECONDARY EDUCATION FINANCIAL ASSISTANCE BOARD; TO PROVIDE THE CRITERIA FOR ELIGIBILITY FOR THE FORGIVABLE LOAN; TO PROVIDE THE CRITERIA FOR FORGIVENESS OF THE FORGIVABLE LOAN; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is created the Mississippi Tuition Subsidy Forgivable Loan for college or university freshman, sophomores, juniors and seniors to be administered by the Postsecondary Education Financial Assistance Board created in Section 37-106-9, which shall set the dates and deadlines for applying for an award under this section. The board shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

(2) The board shall approve forgivable loans to full-time freshmen, sophomore, junior and senior Mississippi residents who meet the general requirements for student eligibility as provided in subsection (4) of this section.

(3) Mississippi Tuition Subsidy Forgivable Loans shall be for Mississippi resident students from any Mississippi family whose prior year adjusted gross income (AGI) is at or below the federal poverty level. The forgivable loan shall be applied to tuition for freshman, sophomore, junior and senior students attending state institutions of higher learning in Mississippi or public community or junior colleges in Mississippi.

(4) The general requirements for initial eligibility of students for Mississippi Tuition Subsidy Forgivable Loans consist of the following:

(a) Member of a Mississippi family whose prior year adjusted gross income (AGI) is at or below the federal poverty level.

(b) Acceptance for enrollment at any state institution of higher learning or public community or junior college located in Mississippi, or any Mississippi public community or junior college.

(c) Graduation from high school verified by the institution before disbursement of award with a minimum grade point average of 2.5 calculated on a 4.0 scale after seven (7) semesters as certified by the high school counselor or other authorized school official on the application.

(e) Any student currently enrolled in any qualified institution shall have to only meet the same requirements as students who are applying for a renewal award.

(5) By accepting a Mississippi Tuition Subsidy Forgivable Loan, the student is attesting to the accuracy, completeness and correctness of information provided to demonstrate the student's eligibility. Falsification of such information shall result in the denial of any pending forgivable loan and revocation of any forgivable loan currently held to the extent that no further payments shall be made. Any student knowingly making false statements in order to receive a forgivable loan shall be guilty of a misdemeanor punishable, upon conviction thereof, by a fine of up to Ten Thousand Dollars ($10,000.00), a prison sentence of up to one (1) year in the county jail, or both, and shall be required to return all Mississippi Tuition Subsidy Forgivable Loans wrongfully obtained.

(6) Eligibility for renewal of Mississippi Tuition Subsidy Forgivable Loans shall be evaluated at the end of each semester, or term, of each academic year. As a condition for renewal, a student shall:

(a) Make steady academic progress toward a certificate or degree, as outlined in the school Satisfactory Academic Progress Standards and certified by the institution's registrar.

(b) Maintain continuous enrollment for not less than two (2) semesters or three (3) quarters in each successive academic year, unless granted an exception for cause by the administering board; examples of cause may include student participation in a cooperative program, internship program or foreign study program. If a student fails to maintain continuous enrollment, and is not granted an exception for cause by the administering board, the student is ineligible to receive the Mississippi Tuition Subsidy Forgivable Loan during the following semester or trimester or term of the regular academic year.

(c) Have a cumulative grade point average of at least 2.50 calculated on a 4.0 scale at the end of each semester or trimester or term.

(7) Each student, each year, must complete a Free Application for Federal Student Aid form or a Statement of Certification as designed by the administering board to determine his/her eligibility for a Mississippi Tuition Subsidy Forgivable Loan.

(8) (a) The amount of the Mississippi Tuition Subsidy Forgivable Loan awarded to any one (1) student, shall be the difference of the student's tuition cost at his university or college of choice and the amount of grants, scholarships and other state and federal aid such student may receive.

(b) Payment of the Mississippi Tuition Subsidy Forgivable Loan shall be made payable to the recipient and the educational institution and mailed directly to the institution, to be applied to tuition.

(9) In order for an institution to remain eligible for its students to participate in the Mississippi Tuition Subsidy Forgivable Loan, the institution shall comply with the following requirements:

(a) A complete and accurate roster of the eligibility status of each awarded student shall be made to the board for each term, semester or quarter of the academic year the student receives a Mississippi Tuition Subsidy Forgivable Loan.

(b) The institution is required to make refunds to the Mississippi Tuition Subsidy Forgivable Loan for any funds which have not been disbursed to the recipient, in the case of students who have received a forgivable loan but who terminate enrollment during the academic term, semester or quarter of the academic year if an institution's refund policies permit a student to receive a refund in such instance. The recipient shall be responsible for the refund of any funds which have been disbursed by the institution in such instance.

(c) If a student drops below full-time status but does not terminate all enrollment during the term, semester or quarter of the academic year no refund will be required for that term. However, that student is ineligible to receive the Mississippi Tuition Subsidy Forgivable Loan during the following term, semester or quarter of the regular academic year.

(d) The board may conduct its own annual audits of any institution participating in the Mississippi Tuition Subsidy Forgivable Loan. The board may suspend or revoke an institution's eligibility to receive future monies under the program if it finds that the institution has not complied with the provisions of this section. In determining a student's initial eligibility, the number of prior semesters enrolled will not be counted against the student.

(10) No student may receive a Mississippi Tuition Subsidy Forgivable Loan for more than the equivalent semesters or quarters required to complete one (1) baccalaureate degree or one (1) certificate or associate degree program per institution.

(11) To qualify for forgiveness of the Mississippi Tuition Subsidy Forgivable Loan, a recipient must graduate from the institution or institutions at which he or she was awarded the forgivable loan and be employed in a public service occupation. One (1) year of the forgivable loan amount and any interest is forgiven for each one (1) year of employment in a public service occupation.

SECTION 2. This act shall take effect and be in force from and after July 1, 2015.