2007 California Education Code Article 5. Assumption Program Of Loans For Education

CA Codes (edc:69612-69615.6)

69612.  (a) The Legislature finds and declares all of the following:

   (1) There is a growing shortage of high-quality classroom
teachers, and there is a need for qualified teachers throughout
California.
   (2) One of the most important elements in a pupil's success at
learning is the quality of the teacher.
   (3) The teacher shortage is most serious in particular subject
areas, partly due to the shortage of students in these fields who
enter the teaching profession.
   (4) Many school districts have difficulty recruiting and retaining
high-quality teachers for high-priority schools, for pupils with
special needs, for schools serving rural areas or large populations
of pupils from low-income and linguistic minority families, and for
schools with a high percentage of teachers holding emergency permits.

   (5) The rising costs of higher education, coupled with a shift in
available financial aid from scholarships and grants to loans, make
loan repayment options an important consideration in a student's
decision to pursue a postsecondary education.
   (6) The availability of financial aid and loan repayment
assistance are important considerations for many students, especially
economically disadvantaged students, in making their educational
decisions.
   (b) It is, therefore, the intent of the Legislature that all of
the following occur:
   (1) The Assumption Program of Loans for Education be designed to
encourage persons to enter into the teaching profession in designated
subject matter shortage areas and in schools serving large
populations of pupils from low-income families, schools serving rural
areas, schools with a high percentage of teachers holding emergency
permits, or schools with any or all of these characteristics.
   (2) That the enactment of this article accomplish all of the
following:
   (A) Providing outstanding postsecondary students, particularly
economically disadvantaged students, with the assurance of financial
assistance to encourage them to complete postsecondary education
programs leading to teaching credentials, and to seek employment as
teachers.
   (B) Providing persons who agree to become teacher trainees or
teacher interns in a subject matter shortage area with the assurance
of financial assistance to encourage them to complete the additional
coursework necessary to obtain a teaching credential.
   (C) Identifying subject matter areas or schools in which there are
shortages of fully credentialed teachers and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those areas.
   (D) Identifying schools serving rural areas, schools serving large
populations of students from low-income families, or both, and
schools with a high percentage of teachers holding emergency permits,
and provide incentives for persons to obtain teaching credentials
and seek teaching positions in those schools.
   (E) Identifying high-priority schools and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those schools.  For the purpose of this article, " high-priority
school" means a school in the bottom half of the Academic Performance
Index rankings established pursuant to subdivision (a) of Section
52056 at the time that a teacher is hired.
   (3) Commencing with the 2000-01 school year, all persons eligible
to enter into agreements for loan assumption pursuant to this article
shall be persons who need to complete training or coursework in
order to be fully credentialed, and who agree to obtain a credential
and teach in a designated subject matter shortage area or in a school
that, at the time that the teacher is hired, meets any of the
following criteria:
   (A) Serves a large population of pupils from low-income families.

   (B) Has a high percentage of teachers holding emergency permits.
For the purposes of this article, a school with a "high percentage of
teachers holding emergency permits" is a school in which 20 percent
or more of the teachers hold emergency permits, teach pursuant to
waivers of credential requirements, or are interns.
   (C) Is a high-priority school.
   (4) Funding necessary for the administration of this article shall
be included within the annual budget of the commission in an amount
necessary to meet the student loan obligations incurred by the
commission.


69613.  (a) (1) Any person enrolled in an eligible institution, or
any person who agrees to participate in a teacher trainee or teacher
internship program, may be eligible to enter into an agreement for
loan assumption, to be redeemed pursuant to Section 69613.2 upon
becoming employed as a teacher.  In order to be eligible to enter
into an agreement for loan assumption, an applicant shall satisfy all
of the conditions specified in subdivision (b).
   (2) As used in this article, "eligible institution" means a
postsecondary institution that is determined by the Student Aid
Commission to meet both of the following requirements:
   (A) The institution is eligible to participate in state and
federal financial aid programs.
   (B) The institution maintains a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
   (b) (1) The applicant has completed at least 60 semester units, or
the equivalent, and is enrolled in an academic program leading to a
baccalaureate degree at an eligible institution, has agreed to
participate in a teacher trainee program or teacher internship
program, or has been admitted to a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
   (2) The applicant is currently enrolled, or has been admitted to a
program in which he or she will be enrolled on at least a half-time
basis, as determined by the participating institution.  The applicant
shall agree to maintain satisfactory academic progress and a minimum
of half-time enrollment, as defined by the participating eligible
institution.
   (3) The applicant has been judged by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but need not be limited to, any of the following:
   (A) Grade point average.
   (B) Test scores.
   (C) Faculty evaluations.
   (D) Interviews.
   (E) Other recommendations.
   (4) The applicant has received, or is approved to receive, a loan
under one or more of the following designated loan programs:
   (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
   (B) Any loan program approved by the Student Aid Commission.
   (5) The applicant has agreed to teach full time for at least four
consecutive academic years after obtaining a teaching credential in a
public elementary or secondary school in this state, in a subject
area that is designated as a current or projected shortage area by
the Superintendent of Public Instruction, or at a school that, at the
time that the teacher is hired, meets any of the following criteria:

   (A) It serves a large population of pupils from low-income
families, as designated by the Superintendent of Public Instruction.

   (B) It has 20 percent or more teachers holding emergency permits.
For the purposes of this paragraph,  "teachers holding emergency
permits" includes persons who teach pursuant to waivers of credential
requirements or who are interns.
   (C) It is a low-performing school.
   (c) No applicant who has completed fewer than 60 units, or the
equivalent, shall be eligible under this section to participate in
the loan assumption program set forth in this article.
   (d) The agreements entered into each year pursuant to subdivision
(b) at each eligible institution or participating school district or
county office of education shall be with applicants who meet the
criteria specified in paragraph (3) of subdivision (b) of Section
69612 or agree to teach in any of the subject areas listed pursuant
to that section.  An agreement shall remain valid even if the subject
area under which an applicant becomes eligible to enter into an
agreement ceases to be a designated shortage field by the time the
applicant becomes a teacher.
   (e) For the purposes of calculating eligible years of teaching for
the redemption of an award, the designation by the Superintendent of
Public Instruction of a newly-opened school pursuant to Section
52056 shall apply retroactively from the time of opening the school.

   (f) A person participating in the program pursuant to this section
shall not enter into more than one agreement.



69613.1.  The Superintendent of Public Instruction shall furnish the
commission with all of the following:
   (a) Every January 1 thereafter, a list of teaching fields that
have the most critical shortage of teachers.  The superintendent
shall review this list annually and revise the list as he or she
deems necessary.  Commencing January 1, 2001, the list of shortage
areas furnished pursuant to this subdivision shall include the state
special schools as a category separate from special education.
   (b) A list of schools that serve a large population of pupils from
low-income families, as designated for purposes of the Perkins Loan
Program, or according to standards the superintendent deems
appropriate.
   (c) Commencing January 31, 2001, and every January 1 thereafter, a
list of schools with a high percentage of teachers holding emergency
permits.  The list shall be established according to criteria
determined by the superintendent.
   (d) Commencing January 31, 2001, and every January 1 thereafter, a
list of schools serving rural areas.  The list shall be established
according to standards deemed appropriate by the superintendent.
   (e) Commencing January 31, 2001, and every January 1 thereafter, a
list of high-priority schools.



69613.2.  The commission shall commence loan assumption payments, as
specified in Section 69613.4, upon verification that the applicant
has fulfilled all of the following:
   (a) The applicant has received a teaching credential requiring a
baccalaureate degree, other than an emergency teaching permit,
authorizing service for kindergarten or any of grades 1 to 12,
inclusive.
   (b) The applicant has provided full-time classroom instruction in
a public elementary or secondary school for the equivalent of one
school year.
   (c) The applicant has met the requirements of the agreement and
all other pertinent conditions of this article.




69613.4.  (a) The terms of a loan assumption granted under this
article shall be as follows, subject to the specific terms of each
agreement:
   (1) After a program participant has completed one school year of
classroom instruction pursuant to Section 69613.2, the commission
shall assume up to two thousand dollars (,000) of the participant's
outstanding liability under one or more of the designated loan
programs.
   (2) After a program participant has completed two consecutive
school years of instruction, the commission shall assume up to an
additional three thousand dollars (,000) of the participant's
outstanding liability under one or more of the designated loan
programs, for a total loan assumption of up to five thousand dollars
(,000).
   (3) After a program participant has completed three consecutive
school years of teaching service, the commission shall assume up to a
maximum of an additional three thousand dollars (,000) of the
participant's outstanding liability under one or more of the
designated loan programs, for a total loan assumption of up to eight
thousand dollars (,000).
   (4) After a program participant has completed four consecutive
school years of teaching service, the commission shall assume up to a
maximum of an additional three thousand dollars (,000) of the
participant's outstanding liability under one or more of the
designated loan programs, for a total loan assumption of up to eleven
thousand dollars (,000).
   (b) For purposes of this section, "school year" means at least 175
school days or its equivalent.


69613.5.  Notwithstanding paragraph (3) of subdivision (b) of
Section 69612 and Section 69614, for the purposes of the recruitment
of teachers from outside California, the commission may make
agreements available to out-of-state teachers who fulfill the terms
of Section 69613.4 and are otherwise eligible to enter into
agreements.  A teacher who enters into an agreement pursuant to this
section shall hold a valid teaching credential, in the subject area
of the California teaching position, from the state in which he or
she resides.


69613.6.  (a) Except as provided in subdivision (b), if a program
participant fails to complete a minimum of four consecutive school
years of classroom instruction as required by this article, under the
terms of the agreement pursuant to paragraph (5) of subdivision (b)
of Section 69613, the participant shall assume full liability for all
student loan obligations remaining after the commission's assumption
of loan liability for the last year of qualifying teaching service
pursuant to Section 69613.
   (b) Notwithstanding subdivision (a), if a program participant
becomes unable to complete one of the four consecutive years of
teaching service due to serious illness, pregnancy, or other natural
causes, the participant shall receive a deferral of the resumption of
full liability for the loan for a period not to exceed one calendar
year.


69613.7.  (a) For the purposes of this article, "subject matter
shortage area" may not be construed to include teaching in a
self-contained classroom or teaching pursuant to a multiple subject
credential.
   (b) The list, furnished by the Superintendent of Public
Instruction pursuant to Section 69613.1 and relating to teaching
fields that have the most critical shortage of teachers, shall not
include teaching in a self-contained classroom or teaching pursuant
to a multiple subject credential.



69613.8.  In addition to the amounts set forth in subdivision (a) of
Section 69613.4, for each of the four years of classroom instruction
referenced in subdivision (a) of Section 69613.4, the following loan
assumption benefits shall be granted:
   (a) One thousand dollars (,000) of additional liability per year
shall be assumed for a person who holds a credential appropriate for
teaching, and who teaches, mathematics, science, or special
education.
   (b) One thousand dollars (,000) of additional liability per year
shall be assumed for a person who teaches in a school in the lowest
20 percentile of Academic Performance Index rankings.  Eligibility
for the benefit set forth in this subdivision shall be limited to a
person who holds a credential appropriate for teaching, and who
teaches, mathematics, science, or special education.
   (c) Not more than a total of five million dollars (,000,000)
shall be expended in any academic year for the purposes of this
section.



69614.  (a) The commission shall distribute program information and
student applications to participate in the loan assumption program to
each eligible institution and to each school district or county
office of education operating a district intern program pursuant to
Section 44381.  Each eligible institution shall receive at least one
application, and the remainder shall be distributed to eligible
institutions proportionate to the number of teaching candidates from
each institution who completed the coursework required for a teaching
credential during the previous year.  In addition, the commission
shall reexamine its outreach and marketing strategies to inform both
potential undergraduates and persons employed outside of academia
about the availability and benefits of the loan assumption program.
To this end, the commission shall enlist the advice and support of
the California Center for the Teaching Profession, the University of
California, the California State University, the Association of
Independent California Colleges and Universities, and private
employers and their associations throughout the state.
   (b) Each eligible institution, school district, and county office
of education shall sign an institutional agreement with the
commission, certifying its intent to administer the loan assumption
program according to all applicable published rules, regulations, and
guidelines, and to make special efforts to notify students regarding
the availability of the program, particularly economically
disadvantaged students.
   (c) To the extent feasible, each eligible institution shall
coordinate the loan assumption program with other programs designed
to recruit students to enter the teaching profession.



69615.  (a) The commission shall administer this article, and shall
adopt rules and regulations for that purpose.  The rules and
regulations shall include, but need not be limited to, provisions
regarding the period of time during which an agreement shall remain
valid, the reallocation of resources in light of agreements that are
not utilized by program participants, the failure, for any reason, of
a program participant to complete a minimum of four consecutive
years of classroom instruction, and the development of projections
for funding purposes.
   (b) The commission shall solicit the advice of representatives
from postsecondary education institutions, the State Department of
Education, the Commission on Teacher Credentialing, school districts,
and county offices of education regarding proposed rules and
regulations.



69615.4.  The commission shall report annually to the Legislature
regarding all of the following, on the basis of sex, age, and
ethnicity:
   (a) The total number of program participants.
   (b) The number of agreements entered into with juniors, seniors,
students enrolled in teacher training programs, and persons who agree
to enroll in teacher trainee programs or teacher internship
programs.
   (c) The number of participants who agree to teach in a subject
matter shortage area.
   (d) The number of participants who agree to teach in schools with
a high ratio of pupils from low-income families and in high-priority
schools.
   (e) The number of participants who agree to teach in schools
serving rural areas.
   (f) The number of participants who agree to teach in schools with
a high percentage of teachers holding emergency permits.
   (g) The number of participants who receive a loan assumption
benefit, classified by payment year.
   (h) The number of participants who have participated in the
Science, Mathematics, and Technology Teacher Pipeline Program
established by Chapter 1271 of the Statutes of 1993.
   (i) The number of out-of-state teachers who enter into agreements.

   (j) The number of participants who have participated in teacher
trainee programs or teacher internship programs, classified by school
district or county office of education.



69615.6.  (a) Beginning no later than the 1986-87 school year, and
each school year thereafter up to and including the 1997-98 school
year, the commission shall issue warrants for the assumption of up to
500 student loans for program participants eligible under this
article.
   (b) For the 1998-99 school year, the commission shall issue
warrants for the assumption of up to 4,500 student loans for program
participants eligible under this article.
   (c) For the 1999-2000 school year the commission shall issue
warrants for the assumption of up to 5,500 student loans for program
participants eligible under this article.
   (d) Commencing with the 2000-01 school year, and each school year
thereafter, all of the following shall apply:
   (1) The commission shall enter into agreements for the assumption
of up to 6,500 student loans for program participants eligible under
this article.
   (2) Notwithstanding the limitation of 6,500 warrants set forth in
paragraph (1), the commission shall issue warrants in a quantity
determined by the Governor and the Legislature in the annual Budget
Act for the assumption of student loans.
   (3) Priority for these agreements shall be given to applicants who
are recipients of federally subsidized loans or other need-based
loans, as determined by the commission.
   (4) Priority for these agreements shall be given to applicants who
agree to obtain a teaching credential in mathematics or science.
   (e) In any school year, the commission may enter into no more than
500 agreements with applicants who participate in a district intern
program operated by a school district or a county office of
education.
   (f) The issuance of warrants under this article in any fiscal year
shall be subject to the provision of funding therefor in the annual
Budget Act.