HB 563 -- MISSOURI CRITICAL TEACHER SHORTAGE FORGIVABLE LOAN
PROGRAM

CO-SPONSORS:  Auer, Carter, Kennedy, Boykins, Dougherty,
Hilgemann, Thompson (72)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Higher
Education by a vote of 18 to 0.

This bill establishes the Missouri Critical Teacher Forgivable
Loan Program, to provide undergraduate and graduate scholarships
for eligible students entering college teaching programs leading
to a degree in a critical teacher shortage area.  To be
eligible, an individual must be a full-time student in an upper
division undergraduate or graduate program which leads to
certification as a teacher, and which is approved by the
Department of Education.  Students must declare their intent to
teach in a public elementary or secondary school in Missouri in
a critical teacher shortage area, as identified by the State
Board of Education, and maintain certain academic standards
during their undergraduate or graduate work.  Undergraduate
forgivable loans may be awarded for 2 years, not to exceed
$4,000 per year, or for up to 3 years for programs requiring a
fifth year of instruction to obtain initial teaching
certification.  Graduate forgivable loans may be awarded for 2
years, not to exceed $8,000 per year.  Loans may be forgiven
based on years of teaching service:  for each full year of
eligible teaching service, $4,000 in loan principal plus accrued
interest may be forgiven; for each full year of eligible
teaching service at a high population density, low-economic
condition urban school, or at a low population density, low--
economic condition rural school, $8,000 in loan principal plus
accrued interest may be forgiven.  The State Board of Education
is to adopt rules to establish repayment schedules.  Forgivable
loans must be repaid within 10 years of the completion of the
program of studies.  The amount of the loan plus annual interest
of 8% must be repaid if a student does not teach in a public
school as required by the conditions of the forgivable loan
program.  The State Board of Education, in coordination with
local school districts, is to develop rules to implement the
provisions of this bill.

FISCAL NOTE:  Cost to General Revenue Fund of $6,211,718 in FY
2000, $12,176,769 in FY 2001, and $12,178,570 in FY 2002.

PROPONENTS:  Supporters say that the loan program will help
address the severe teacher shortage in Missouri.

Testifying for the bill were Representative Auer; St. Louis
Public School Board of Education; and Associated Students of the
University of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Debra Cheshier, Senior Legislative Analyst

HB 563 -- Missouri Critical Teacher Shortage Forgivable Loan
Program

Co-Sponsors:  Auer, Carter, Kennedy, Boykins, Dougherty,
Hilgemann, Thompson (72)

This bill establishes the Missouri Critical Teacher Forgivable
Loan Program, to provide undergraduate and graduate scholarships
for eligible students entering college teaching programs leading
to a degree in a critical teacher shortage area.  To be
eligible, an individual must be a full-time student in an upper
division undergraduate or graduate program which leads to
certification as a teacher, and which is approved by the
Department of Education.  Students must declare their intent to
teach in a public elementary or secondary school in Missouri in
a critical teacher shortage area, as identified by the State
Board of Education, and maintain certain academic standards
during their undergraduate or graduate work.  Undergraduate
forgivable loans may be awarded for 2 years, not to exceed
$4,000 per year, or for up to 3 years for programs requiring a
fifth year of instruction to obtain initial teaching
certification.  Graduate forgivable loans may be awarded for 2
years, not to exceed $8,000 per year.  Loans may be forgiven
based on years of teaching service:  for each full year of
eligible teaching service, $4,000 in loan principal plus accrued
interest may be forgiven; for each full year of eligible
teaching service at a high population density, low-economic
condition urban school, or at a low population density, low--
economic condition rural school, $8,000 in loan principal plus
accrued interest may be forgiven.  The State Board of Education
is to adopt rules to establish repayment schedules.  Forgivable
loans must be repaid within 10 years of the completion of the
program of studies.  The amount of the loan plus annual interest
of 8% must be repaid if a student does not teach in a public
school as required by the conditions of the forgivable loan
program.  The State Board of Education, in coordination with
local school districts, is to develop rules to implement the
provisions of this bill.