S*1067(Rat #0268, Act #0259 of 1992)  General Bill, By Setzler and M.T. Rose
 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.-amended title

   09/30/91  Senate Prefiled
   09/30/91  Senate Referred to Committee on Education
   01/14/92  Senate Introduced and read first time SJ-20
   01/14/92  Senate Referred to Committee on Education SJ-20
   01/15/92  Senate Committee report: Favorable with amendment
                     Education SJ-177
   01/21/92  Senate Amended SJ-28
   01/21/92  Senate Read second time SJ-29
   01/21/92  Senate Ordered to third reading with notice of
                     amendments SJ-29
   01/22/92  Senate Read third time and sent to House SJ-9
   01/23/92  House  Introduced and read first time HJ-14
   01/23/92  House  Referred to Committee on Education and Public
                     Works HJ-14
   02/05/92  House  Committee report: Favorable Education and Public
                     Works HJ-12
   02/06/92  House  Read second time HJ-45
   02/11/92  House  Read third time and enrolled HJ-14
   02/13/92         Ratified R 268
   02/19/92         Signed By Governor
   02/19/92         Effective date 02/19/92
   02/19/92         Act No. 259
   03/02/92         Copies available

AN ACT 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:

Accelerated rate cancellation

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 South Carolina 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 must be defined annually for that purpose by the State Board of Education. The recipient of a loan is entitled to have up to one hundred percent of the amount of the loan plus the interest canceled if he becomes certified and teaches in an area of critical need. The loan 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 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, 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, is to 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 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 shall review the loan program annually and report to the General Assembly."

Accelerated rate cancellation

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."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 19th day of February, 1992.