HCS SB 980 -- TEACHING AND NURSING SCHOLARSHIPS

SPONSOR:  Clemens (Moore)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Student Achievement and Finance by a vote of 6 to 0.

This substitute changes the laws regarding the Nursing Student
Loan Repayment Program.  "Eligible student" is redefined as a
person who has been accepted as a full-time nursing student,
rather than a person who has applied for admission.  Currently,
25% of the loan is forgiven for each year of employment; the
substitute revises the repayment provision to permit forgiveness
through employment without mention of a specific schedule.

The substitute also establishes the Urban Flight and Rural Needs
Scholarship Program for up to 100 college education students who
meet the grade point requirement and agree to teach in certain
school districts.  The scholarship may also be granted to certain
community college students or people who have completed a
bachelor's degree and make the commitment to pursue a career in
teaching.  The scholarship covers up to four years of tuition and
fees at a Missouri college or university and is forgiven at a
rate of one year of scholarship for every two years of teaching;
otherwise, the scholarship is converted to a loan which is to be
repaid at 9.5% interest a year.  The Department of Elementary and
Secondary Education will administer the program and provide 75%
of the scholarship amount, subject to appropriations.  The school
district with which the recipient contracts will provide the
remaining 25%.  The department may defer interest under certain
conditions and may sell the loan to the Missouri Higher Education
Loan Authority (MoHELA).

The Urban Flight and Rural Needs Scholarship Program Fund is
created and will consist of all moneys appropriated, gifts,
contributions, grants, or bequests which are to be used solely
for awarding scholarships under this program.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $522,000
in FY 2007, $1,075,320 in FY 2008, and $1,661,369 in FY 2009.
Subject to appropriations.  No impact on Other State Funds in
FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that these two changes to the nursing
loan program should help reduce the default rate and make the
loan more like the Primary Care Resource Initiative for Missouri
(PRIMO) loan which is available to other medical professionals.

Testifying for the bill was Senator Clemens.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:47 am