Senate Bill 2548

AN ACT ENTITLED THE "MISSISSIPPI TARGETED STUDENT LOAN FORGIVENESS ACT"; TO ESTABLISH THE TARGETED STUDENT LOAN FORGIVENESS PROGRAM TO BE ADMINISTERED BY THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING SUBJECT TO AVAILABLE APPROPRIATION TO ALLEVIATE THE BURDEN OF STUDENT LOAN DEBT AND ATTRACT QUALIFIED WORKERS TO AREAS OF THE STATE POPULATION LOSS OR SHORTAGE OF SKILLED WORKERS; TO ESTABLISH QUALIFICATIONS AND CRITERIA FOR THE LOAN FORGIVENESS AWARD; TO DIRECT THE BOARD OF TRUSTEES TO ANNUALLY PUBLISH A LIST OF COUNTIES AND MUNICIPALITIES IN THE STATE WHERE RESIDENTS SHALL BE ELIGIBLE FOR STUDENT DEBT FORGIVENESS GRANTS; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Mississippi Targeted Student Loan Forgiveness Act."

SECTION 2. The purpose of this act and the Targeted Student Loan Forgiveness program is to alleviate the burden of student loan debt and to attract qualified workers to areas of the state experiencing population loss or a shortage of skilled workers.

SECTION 3. (1) There is hereby established the Targeted Student Loan Forgiveness program to be administered by the Board of Trustees of State Institutions of Higher Learning, subject to available appropriation therefor.

(2) To be eligible for a loan forgiveness award under this section, an applicant shall:

(a) Have graduated from high school or obtained a high school equivalency diploma;

(b) Have graduated and obtained an undergraduate degree from a college or university and apply for this program within twenty (20) years of obtaining such degree;

(d) Reside and work in the State of Mississippi, if employed; and

(e) Meet all requirements described in subsection (3) of this section.

(3) By January 1 of each year, the Board of Trustees of State Institutions of Higher Learning shall publish a list of counties and municipalities in Mississippi where residents shall be eligible for this program. The list shall include criteria designated by the board as a prerequisite for eligibility. The criteria used to determine eligibility may include:

(a) Residing in a county that experienced a seven-year net population decline over the closest prior seven-year period for which information is available;

(b) Residing in a county that experienced the highest net population loss in Mississippi over the most recent ten-year period for which information is available;

(c) Entering into a high-need field designated by the board, including, but not limited to, teaching, nursing, dentistry or primary care in rural or underserved communities, or other fields experiencing a shortage of qualified applicants;

(d) Any reasonable qualification the board deems necessary to effectuate the purposes of this program.

(4) The Board of Trustees of State Institutions of Higher Learning shall assist counties to publicize this program to potential applicants.

(5) (a) An applicant whose annual income is less than Fifty Thousand Dollars ($50,000.00) shall be eligible to receive an award equal to one hundred percent (100%) of his or her monthly federal income-driven repayment plan payments for twenty-four (24) months of repayment under the federal program. Provided, however, that the awards granted under this section shall be deferred for a recipient who has been granted a deferment or forbearance under the federal income-driven repayment plan. Upon completion of such deferment or forbearance period, such recipient shall be eligible to receive an award for the remaining time period under this subsection.

(b) A recipient who is not a resident of an eligible county or locality or otherwise does not meet the eligibility criteria established under subsection (3) of this section at the time a payment is made under this section shall be required to refund such payments to the state. The board shall be authorized to recover such payments in accordance with rules and regulations promulgated by the board.

(c) An applicant who is delinquent or in default on a student loan made under any state or federal education loan program or has failed to comply with the terms of a service condition imposed by such an award or has failed to repay an award shall be ineligible to receive an award under this program until such delinquency, default or failure is cured.

(6) The Board of Trustees of State Institutions of Higher Learning is authorized to promulgate rules and regulations necessary for the implementation of the provisions of this section.

SECTION 4. This act shall take effect and be in force from and after July 1, 2021.