H 4210 Session 109 (1991-1992)
H 4210 General Bill, By Phillips and Kirsh
A Bill to amend Section 59-26-20, as amended, Code of Laws of South Carolina,
1976, relating to the duties of the State Board of Education and the
Commission on Higher Education, so as to revise the areas of need which
justify cancellation of a South Carolina student loan at a specified rate, to
provide that beginning July 1, 1989, recipients of these loans may have their
loans canceled at an accelerated rate if they teach in both an academic
critical need area and in a geographic need area, and to provide for the
cancellation at an accelerated rate beginning July 1, 1990, of loans granted
under the Governor's Teaching Scholarship Loan Program under certain
conditions.
01/16/92 House Introduced and read first time HJ-33
01/16/92 House Referred to Committee on Education and Public
Works HJ-33
A BILL
TO AMEND SECTION 59-26-20, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES OF
THE STATE BOARD OF EDUCATION AND THE COMMISSION
ON HIGHER EDUCATION, SO AS TO REVISE THE AREAS OF
NEED WHICH JUSTIFY CANCELLATION OF A SOUTH
CAROLINA STUDENT LOAN AT A SPECIFIED RATE, TO
PROVIDE THAT BEGINNING JULY 1, 1989, RECIPIENTS OF
THESE LOANS MAY HAVE THEIR LOANS CANCELED AT AN
ACCELERATED RATE IF THEY TEACH IN BOTH AN ACADEMIC
CRITICAL NEED AREA AND IN A GEOGRAPHIC NEED AREA,
AND TO PROVIDE FOR THE CANCELLATION AT AN
ACCELERATED RATE BEGINNING JULY 1, 1990, OF LOANS
GRANTED UNDER THE GOVERNOR'S TEACHING
SCHOLARSHIP LOAN PROGRAM UNDER CERTAIN
CONDITIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-26-20(k) of the 1976 Code is amended to
read:
"(k) The Commission on Higher Education, in consultation
with the State Department of Education and the staff of the S. C. Student
Loan Corporation, shall develop a loan program whereby talented and
qualified state residents may be provided loans to attend public or
private colleges and universities for the sole purpose and intent of
becoming certified teachers employed in the State in areas of critical
need. Areas of critical need shall include both rural areas and areas of
teacher certification and shall must be defined annually
for that purpose by the State Board of Education. The recipient of a loan
shall be is entitled to have up to one hundred percent of
the amount of the loan plus the interest thereon canceled if he
becomes certified and teaches in an area of critical need. The loan
shall must be canceled at the rate of twenty percent of
the total principal amount of the loan plus interest on the unpaid balance
for each complete year of teaching service in an area of critical
need. either an academic critical need area or in a geographic
need area. Beginning July 1, 1989, the loan must be canceled at the rate
of thirty-three and one-third percent of the total principal amount of the
loan plus interest on the unpaid balance for each complete year of
teaching service in both an academic critical need area and a geographic
need area. In case of failure to make a scheduled repayment of any
installment, failure to apply for cancellation of deferment of the loan on
time, or noncompliance by a borrower with the intent of the loan, the
entire unpaid indebtedness including accrued interest due
and accrued thereon shall, at the option of the commission,
shall become immediately due and payable. The recipient shall
execute the necessary legal documents to reflect his obligation and the
terms and conditions of the loan. The loan program, if implemented,
pursuant to the South Carolina Education Improvement Act of
1984, is to be administered by the S. C. Student Loan Corporation.
Funds generated from repayments to the loan program shall
must be retained in a separate account and utilized as a
revolving account for the purpose that the funds were originally
appropriated. Appropriations for loans and administrative costs incurred
by the corporation are to be provided in annual amounts, recommended
by the Commission on Higher Education, to the State Treasurer for use
by the corporation. The select committee will shall
review the loan program annually and report to the General
Assembly."
SECTION 2. Section 59-26-20(o) of the 1976 Code is amended to
read:
"(o) The Commission on Higher Education in consultation
with the State Department of Education and the staff of the South
Carolina Student Loan Corporation, shall develop a Governor's
Teaching Scholarship Loan Program to provide talented and qualified
state residents loans not to exceed five thousand dollars a year to attend
public or private colleges and universities for the purpose of becoming
certified teachers employed in the public schools of this State. The
recipient of a loan is entitled to have up to one hundred percent of the
amount of the loan plus the interest on the loan canceled if he becomes
certified and teaches in the public schools of this State for at least five
years. The loan is canceled at the rate of twenty percent of the total
principal amount of the loan plus interest on the unpaid balance for each
complete year of teaching service in a public school. However,
beginning July 1, 1990, the loan is canceled at the rate of thirty-three
and one-third percent of the total principal amount of the loan plus
interest on the unpaid balance for each complete year of teaching service
in both an academic critical need area and a geographic need area as
defined annually by the State Board of Education. In case of failure
to make a scheduled repayment of any installment, failure to apply for
cancellation or deferment of the loan on time, or noncompliance by a
borrower with the purpose of the loan, the entire unpaid indebtedness
plus interest is, at the option of the commission, immediately due and
payable. The recipient shall execute the necessary legal documents to
reflect his obligation and the terms and conditions of the loan. The loan
program must be administered by the South Carolina Student Loan
Corporation. Funds generated from repayments to the loan program must
be retained in a separate account and utilized as a revolving account for
the purpose of making additional loans. Appropriations for loans and
administrative costs must come from the Education Improvement Act of
1984 Fund, on the recommendation of the Commission on Higher
Education to the State Treasurer, for use by the corporation. The select
committee shall review this scholarship loan program annually and
report its findings and recommendations to the General Assembly. For
purposes of this item, a `talented and qualified state resident' includes
freshmen students who graduate in the top ten percentile of their high
school class, or who receive a combined verbal plus mathematics
Scholastic Aptitude Test score of at least eleven hundred and enrolled
students who have completed one year (two semesters or the equivalent)
of collegiate work and who have earned a cumulative grade point
average of at least 3.5 on a 4.0 scale. To remain eligible for the loan
while in college, the student must maintain at least a 3.0 grade point
average on a 4.0 scale."
SECTION 3. This act takes effect upon approval by the Governor.
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