Bill Text: MS SB2475 | 2017 | Regular Session | Introduced
Bill Title: Mississippi Dyslexia Education Forgivable Loan Program; authorize repayment with part-time employment in small school districts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-01-31 - Died In Committee [SB2475 Detail]
Download: Mississippi-2017-SB2475-Introduced.html
MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Education; Appropriations
By: Senator(s) Burton
Senate Bill 2475
AN ACT TO AMEND SECTION 37-106-53, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A RECIPIENT OF A MISSISSIPPI DYSLEXIA EDUCATION FORGIVABLE LOAN TO REPAY THE LOAN WITH SERVICE AS A PART-TIME DYSLEXIA THERAPIST IN SMALL SCHOOL DISTRICTS WHICH DO NOT HAVE FUNDING FOR FULL-TIME THERAPISTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-106-53, Mississippi Code of 1972, is amended as follows:
37-106-53. (1) Forgivable loans shall be made and based upon the following options for repayment or conversion to interest-free scholarships:
(a) Payment in full of principal plus a penalty of five percent (5%) of the principal and interest on the combined principal and penalty must be made in monthly installments, the maximum number of which will be determined by the board, unless set forth in this chapter. Interest will begin to accrue at the date of separation from the approved program of study at a rate equal to the unsubsidized Federal Stafford loan rate at the time of separation. Repayment will commence one (1) month after separation from the program of study, unless the recipient is granted a grace period or deferment by the board. The availability and length of a grace period will be determined by the board. The availability and length of any deferments will be determined by the board.
(b) In lieu of payment
in full of both principal and interest, a loan recipient may elect to repay by
entry into service employment. Service requirements for each forgivable loan
program will be determined by the board, unless set forth in this chapter.
Unless excepted by this chapter, repayment under this option shall convert loan
to scholarship, and discharge the same, on the basis of one (1) year's full-time
service for one (1) year's loan amount or its equivalent if the recipient
attended part-time, or the appropriate proportion of the total outstanding
balance of principal and interest, all as shall be established by rule and
regulation of the board. The period of service shall in no event be less than
one (1) year. Provided, however, that a recipient of a Mississippi Dyslexia
Education Forgivable Loan under Section 37-106-71 may repay and convert the
loan into a scholarship with service as a part-time dyslexia therapist (one-half
(1/2) day for four (4) years) at any Mississippi school district which does not
have the financial resources to employ a full-time dyslexia therapist. If
at any time prior to the repayment in full of the total obligation the recipient
abandons or abrogates repayment by this option, the provisions of * * * paragraph
(c) of this subsection shall apply.
(c) In the event of
abandonment or abrogation of the option for repayment as provided for in * * * paragraph
(b) of this subsection, the remaining balance of unpaid or undischarged
principal plus a penalty of five percent (5%) of the unpaid or undischarged
principal and interest on the combined principal and penalty shall become due
and payable over the remaining period of time as if the option provided for in * * * paragraph
(a) of this subsection had been elected upon separation and the conclusion
of any applicable grace and deferment periods.
(2) Any person failing to complete a program of study which will enable that person to enter service employment, or failing to obtain any required licensure or additional credentials necessary for that person to enter service employment shall become liable to the board for the sum of all forgivable loan awards made to that person plus a penalty of five percent (5%) of the loan awards and interest on the combined amount accruing at the current unsubsidized Federal Stafford loan rate at the time the person abrogates his participation in the program.
(3) If a claim for payment under this subsection is placed in the hands of a collection agency or an attorney for collection, the obligor shall be liable for an additional amount equal to a reasonable collection commission or attorney's fee as well as any court costs.
(4) The obligations made by the recipient of a forgivable loan award shall not be voidable by reason of the age of the student at the time of receiving the scholarship.
SECTION 2. This act shall take effect and be in force from and after July 1, 2017.
