July 23, 2008, Introduced by Reps. Ebli, Bieda, Accavitti, Byrum, Griffin, Lahti, Simpson, Angerer, Wojno, Miller, Valentine, Espinoza and McDowell and referred to the Committee on Education.
A bill to establish a grant program for the repayment of
interest on state and federal student loans of eligible technology
degree holders; to establish a fund for payment of grants awarded
under this act; to provide for administration of the fund; and to
prescribe certain powers and duties of certain state officers,
agencies, and departments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "jobs
of the future education act".
Sec. 2. As used in this act:
(a) "Authority" means the Michigan higher education assistance
authority created by 1960 PA 77, MCL 390.951 to 390.961.
(b) "Eligible debt" means the interest paid by an individual
on any state and federal student loans obtained during his or her
first 5 years of enrollment in a bachelor or associate degree
program at a public university or at a community college or junior
college in this state. The term does not include any of the
following:
(i) Any penalties, charges, or additional interest charges
imposed on the individual because of his or her default of a state
or federal student loan.
(ii) Interest paid by the individual if the individual has
already received a grant under this act with respect to that
interest.
(c) "Eligible technology program" means a bachelor degree
program in any of the following academic fields:
(i) Computer and information sciences and support services.
(ii) Engineering.
(iii) Engineering technology or technicians.
(iv) Biological and biomedical sciences.
(v) Science technology or technicians.
(d) "Fund" means the jobs of the future education fund created
in section 6.
(e) "Grant" means money awarded to an individual under this
act in an amount determined under section 5.
(f) "Public university" means a university described in
section 4, 5, or 6 of article VIII of the state constitution of
1963.
Sec. 3. (1) The jobs of the future education program is
created, to be administered by the authority. Subject to
appropriation, the authority shall do all of the following:
(a) Award grants to eligible individuals under this act for
the repayment of eligible debt.
(b) Develop an application form and application process for
individuals applying for grants under this act.
(c) Publicize the grant program established in this act.
(d) Promulgate any rules necessary to implement this act
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
(2) The department of education shall notify each public
university and each community college and junior college in this
state of the availability of the grant program established in this
act.
Sec. 4. The authority may award a grant under section 5 to an
individual determined by the authority to meet all of the following
eligibility criteria at the time of application:
(a) Has eligible debt.
(b) Obtained a bachelor's degree from a public university for
completion of an eligible technology program after the 2005-2006
academic year.
(c) Is a legal resident of this state and has been a legal
resident of this state since obtaining the bachelor degree
described in subdivision (b).
(d) Has not previously defaulted and is not currently in
default on a state or federal student loan.
(e) Has submitted a grant application to the authority. The
grant application shall include at least all of the following:
(i) A certification from the applicant that he or she meets the
eligibility criteria described in this section.
(ii) A description of the applicant's outstanding state and
federal student loans that includes for each loan the name,
address, and telephone number of the lender and loan originator,
the name of the loan program, and the interest payments made by the
individual on the loan.
(iii) A certification from the applicant that he or she has
applied for all state or federal loan repayment programs applicable
to his or her outstanding state and federal student loans.
(f) Has met any other requirements established by the
authority.
Sec. 5. (1) Subject to reduction under subsection (2) or
adjustment under subsection (3), the authority shall award an
individual eligible under section 4 a grant in an amount equal to
the individual's eligible debt.
(2) A grant under subsection (1) shall be reduced by an amount
equal to the amount the individual is entitled to receive from any
state or federal loan repayment program applicable to the
applicant's outstanding state or federal student loans.
(3) In any state fiscal year, the authority may adjust the
amount of a grant under subsection (1) on a pro rata basis, based
upon its determination of money available from the fund and from
appropriations in that fiscal year. If it makes an adjustment under
this subsection, the authority shall notify each grant recipient of
his or her obligation to continue to make payments of principal and
interest on his or her eligible debt in the manner described in his
or her student loan documents.
Sec. 6. (1) The jobs of the future education fund is created
as a separate fund in the state treasury, to be administered by the
department of treasury. The department of treasury may accept money
for the fund from any source. The state treasurer shall deposit
that money and credit the amount to the fund. The department of
treasury shall use the fund only to provide money to the authority
for grants awarded under this act.
(2) The state treasurer shall direct the investment of the
fund money and shall credit earnings to the fund.
(3) Money in the fund at the end of a fiscal year shall not
revert to the general fund but shall be carried over in the fund to
the next fiscal year.