Bill Text: MS SB2526 | 2021 | Regular Session | Introduced

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Bill Title: State Resident Forgivable Student Loan Program; provide student loan forgiveness to residents of five years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-02-02 - Died In Committee [SB2526 Detail]

Download: Mississippi-2021-SB2526-Introduced.html

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MISSISSIPPI LEGISLATURE

2021 Regular Session

To: Universities and Colleges

By: Senator(s) Blackmon

Senate Bill 2526

AN ACT TO CREATE NEW SECTION 37-106-80, MISSISSIPPI CODE OF 1972, TO CREATE THE STATE RESIDENT FORGIVABLE STUDENT LOAN PROGRAM; TO PROVIDE THAT IN LIEU OF LOAN REPAYMENT, A LOAN RECIPIENT MAY ELECT TO BECOME A RESIDENT OF THE STATE FOR A PERIOD OF FIVE CONTINUOUS YEARS AFTER GRADUATION; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  The following shall be codified as Section 37-106-80, Mississippi Code of 1972:

     37-106-80.  (1)  There is hereby created the State Resident Forgivable Student Loan Program.  The purpose of the program shall be to enable eligible applicants who desire to stay in the state for a period of five (5) years after obtaining a degree from a standard public four-year institution of higher education of this state.

     (2)  The board shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards, which may be made not to exceed the length of five (5) years from a student's graduation date.

     (3)  Repayment and conversion terms shall be the same as those outlined in Section 37-106-53 and shall include the following:

          (a)  Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments; and

          (b)  In lieu of payment in full of both principal and interest, a loan recipient may elect to become a resident of the state for a period of five (5) continuous years after the recipient graduates from a standard public four-year institution of higher education of this state.  The recipient must live in the state for a period of five (5) continuous years before the loan shall be considered forgiven.

     (4)  The board shall establish the rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2021.