2017 -- H 5169

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO EDUCATION - GET ON YOUR FEET LOAN FORGIVENESS PROGRAM

     Introduced By: Representatives Morin, Phillips, Casey, Carson, and Johnston

     Date Introduced: January 19, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended

by adding thereto the following chapter:

CHAPTER 62.2.

THE GET ON YOUR FEET LOAN FORGIVENESS PROGRAM

     16-62.2-1. Short title.

     This chapter shall be known and may be cited as "The Get on Your Feet Loan

Forgiveness Program."

     16-62.2-2. Legislative findings and purpose.

     (a) Studies show that students who graduate with high debt from loans for higher

education are less likely to start a small business, or a family, or to purchase a home, and the

consequences of defaulting on student loans can prevent a person from ever realizing their goals.

Managing the burden in the first years out of college is crucial to starting out strong. Helping

students at the start can have lasting effects.

     (b) The Get on Your Feet Loan Forgiveness Program is designed to help eligible Rhode

Island state residents who graduate from post-secondary educational institutions and continue to

live in the state to pay nothing on their student loans for the first two (2) years out of school. This

will supplement the federal Pay As You Earn (PAYE) income-based loan repayment program.

     (c) As used in this chapter, the term "program" shall refer to the Get on Your Feet Loan

Forgiveness Program, except where the context clearly indicates otherwise.

     16-16.2-3. Program provisions.

     For an individual who meets the requirements established in this chapter, the state of

Rhode Island will pay the difference between what the federal government covers and the

individual's total loan payment. The state will ensure that one hundred percent (100%) of a

graduate's loan payments for the first two (2) years are covered so the graduate is not

overwhelmed with debt repayments while working to get situated in today's competitive job

market. The program shall be administered through the Rhode Island student loan authority

established pursuant to chapter 62 of title 16.

     16-62.2-4. Program requirements.

     (a) To be eligible for participation in the Get on Your Feet Loan Forgiveness Program, a

student must:

      (1) Attend a college or university in Rhode Island for at least two (2) years and graduate

from the college or university;

     (2) Continue to reside in the state following graduation from the college or university for

a period of at least two (2) years and at all times while the person is participating in the program;

     (3) Participate in the federal Pay as You Earn Repayment Program (PAYE), 20 U.S.C. §

1098 e (e); and

     (4) Earn less than fifty thousand dollars ($50,000) annually for each calendar year in

which a student must repay the student's loans.

      (b) Any person who obtains a deferment on the payment of a student loan shall not be

entitled to participate in the Get on Your Feet Loan Forgiveness Program for so long as the

deferment is in effect.

     16-62.2-5. Application and continued eligibility.

     (a) Application. Any individual seeking to participate in the program pursuant to the

provisions of this chapter shall apply to the Rhode Island student loan authority on forms

prescribed by the authority containing any information that the authority deems advisable to

fulfill the provisions of this program. The authority's executive director, or that individual's

designee, shall determine the eligibility of each applicant.

     (b) Continued eligibility. Any individual deemed eligible to participate in the program

shall, not less than annually, submit to the authority any information that the authority may

prescribe to determine the individual's continued eligibility for the program in regard to that

individual's eligible loan(s).

     (c) Penalty for failure to maintain eligibility. In the event the authority determines that an

individual is no longer eligible for participation in the program as provided in this chapter, that

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individual shall be required to immediately pay the holder of the student's loan, all accrued

principal, interest, and any late payment penalties which have accrued during the period of the

ineligibility.

     16-62.2-6. Regulations.

     The authority may promulgate any rules and regulations that it deems necessary to

implement the provisions of the program established pursuant to this chapter.

     16-62.2-7. Severability of provisions.

     The provisions of this chapter are severable. If any provisions are deemed invalid by a

court of competent jurisdiction, that determination shall not affect the validity of the remaining

provisions.

     SECTION 2. This act shall take effect upon passage

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION - GET ON YOUR FEET LOAN FORGIVENESS PROGRAM

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     This act would establish "The Get On Your Feet Loan Forgiveness Program" in Rhode

Island, to assist recent college and university graduates in the repayment of their student loans, by

providing a grace period for the first 2 years after graduation.

     This act would take effect upon passage.

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