Current Status Introducing Body:Senate Bill Number:1067 Ratification Number:268 Act Number:259 Primary Sponsor:Setzler Type of Legislation:GB Subject:Student loans, cancellation Date Bill Passed both Bodies:Feb 11, 1992 Computer Document Number:BBM/9588.SD Governor's Action:S Date of Governor's Action:Feb 19, 1992 Introduced Date:Jan 14, 1992 Date of Last Amendment:Jan 21, 1992 Last History Body:------ Last History Date:Feb 19, 1992 Last History Type:Act No. 259 Scope of Legislation:Statewide All Sponsors:Setzler Rose Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
1067 ------ Feb 19, 1992 Act No. 259
1067 ------ Feb 19, 1992 Signed by Governor
1067 ------ Feb 13, 1992 Ratified R 268
1067 House Feb 11, 1992 Read third time, enrolled for
ratification
1067 House Feb 06, 1992 Read second time
1067 House Feb 05, 1992 Committee Report: Favorable 21
1067 House Jan 23, 1992 Introduced, read first time, 21
referred to Committee
1067 Senate Jan 22, 1992 Read third time, sent to House
1067 Senate Jan 21, 1992 Amended, read second time,
ordered to third reading with
notice of general amendments
1067 Senate Jan 15, 1992 Committee Report: Favorable 04
with amendment
1067 Senate Jan 14, 1992 Introduced, read first time, 04
referred to Committee
1067 Senate Sep 30, 1991 Prefiled, referred to 04
Committee
View additional legislative information at the LPITS web site.
(A259, R268, S1067)
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.