WEST virginia Legislature

2016 regular session

Introduced

Senate Bill 275

By Senators Walters, Plymale and Woelfel

[Introduced January 14, 2014;
Referred to the Committee on Education; and then to the Committee on Finance.]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §18C-8-1, relating to creating a low-interest student loan refinancing program for teachers; creating a special fund; establishing allocations to the fund; making legislative findings; establishing eligibility requirements; establishing refinancing rate; and providing for rulemaking.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §18C-8-1, to read as follows:

ARTICLE 8.  STUDENT LOAN REFINANCING PROGRAM FOR TEACHERS.

§18C-8-1.  Student loan refinancing program for teachers.

 (a) Legislative findings. -- The Legislature finds that there is a critical need to attract and keep qualified teachers in West Virginia. Therefore, there is created a low interest Student Loan Refinancing Program for Teachers to be administered by the State Treasurer.

(b) Special account. BB There is created a special revolving fund account in the State Treasury to be known as the Student Loan Refinancing Program for Teachers Fund. The fund shall be used to accomplish the purposes of this section. The fund consists of any of the following:

(1) All unexpended teaching scholarship funds on deposit in the State Treasury on the effective date of this section;

(2) Appropriations as may be provided by the Legislature; and

(3) Amounts that may become available from other sources.

Balances remaining in the fund at the end of the fiscal year do not expire or revert to the general revenue. All costs associated with the administration of this section shall be paid from the Student Loan Refinancing Program Fund for Teachers under the direction of the State Treasurer.

(c) Eligibility requirements. -- An individual who has received a baccalaureate or a graduate degree in teaching and who obtained one or more loans from the Student Loan Marketing Association or any other educational loan for the purpose of obtaining a degree in teaching and who begins or continues to teach in West Virginia after July 1, 2016, is eligible to have his or her loans refinanced by the State of West Virginia if the individual:

(1) Is a professional educator who is employed within the public school system who has been issued a professional teaching certificate, an alternative program teacher certificate, a professional administrative certificate, a teacher-in-residence permit, or another certificate or permit approved of the State Board of Education pursuant to section two-a, article three, chapter eighteen-a of this code; and

(2) Continues to have his or her certificate or permit renewed or has received a permanent certificate.

(d) Refinancing interest – The applicable interest rate for those eligible individuals shall be one-half, or fifty percent, of the interest rate or rates being paid by those individuals.

            (e)  Rule-making -- The State Treasurer shall propose rules in accordance with article three, chapter twenty-nine-a of this code to effectuate the purpose of this section.

NOTE: The purpose of this bill is to create a low interest student loan refinancing program for teachers. The bill creates a special fund. The bill establishes allocations to the fund. The bill makes legislative findings. The bill establishes eligibility requirements. The bill establishes a refinancing rate. The bill provides for rule-making.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.