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General Assembly Raised Bill No. 953
January Session, 2021
LCO No. 3910
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT ESTABLISHING THE LEARN, WORK, PAY PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2021) (a) As used in this section: 1
(1) "Eligible graduate" means a person who (A) graduates on or after 2
January 1, 2022, with a bachelor's degree from a public institution of 3
higher education in the state, (B) is a resident of the state, (C) is 4
employed by any corporation or organization licensed to operate a 5
business in the state, and (D) has a student loan on which such person 6
has paid or will pay not less than the first twelve monthly payments; 7
(2) "Student loan" means any loan in repayment status that was 8
issued by a private or governmental lender to finance attendance at a 9
public institution of higher education in the state; and 10
(3) "Participation year" means a twelve-month period commencing 11
from the thirteenth month in which a student loan payment is due or 12
the first full calendar month after an application to participate in the 13 Raised Bill No. 953
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Learn, Work, Pay Program is approved, whichever is later, and each 14
succeeding twelve-month period thereafter, for ten years or until 15
withdrawal from the program. 16
(b) Not later than January 1, 2022, the Comptroller shall establish a 17
Learn, Work, Pay Program for the purpose of providing student loan 18
reimbursements to eligible graduates. The Comptroller may (1) adopt 19
rules, procedures and forms necessary to implement such program, or 20
(2) enter into a contract with a third-party administrator to provide 21
administrative services for the program. Any such third-party 22
administrator shall be required under such contract to charge such 23
third-party administrator's lowest available rate for such services. 24
(c) On or after January 1, 2022, an eligible graduate may apply, in the 25
form and manner prescribed by the Comptroller, to participate in the 26
Learn, Work, Pay Program. An eligible graduate shall submit, with an 27
initial application, proof of (1) graduation with a bachelor's degree from 28
a public institution of higher education in the state, (2) residency and 29
employment in the state, and (3) the repayment status of a student loan. 30
For each participation year, an eligible graduate shall (A) submit 31
documentation of the amount paid and the amount due on a student 32
loan during the preceding twelve-month period, (B) submit proof of 33
continued eligibility under the program, and (C) receive a student loan 34
reimbursement from the Comptroller in accordance with the payment 35
schedule provided in subsection (d) of this section, provided such 36
eligible graduate continues to meet the eligibility requirements of this 37
section. 38
(d) An eligible graduate who participates in the Learn, Work, Pay 39
Program shall receive annual student loan reimbursements in an 40
amount not to exceed ten per cent of the amount paid on a student loan 41
during the preceding twelve-month period for the first participation 42
year, twenty per cent of such amount for the second participation year, 43
thirty per cent of such amount for the third participation year, forty per 44
cent of such amount for the fourth participation year, fifty per cent of 45
such amount for the fifth participation year, sixty per cent of such 46 Raised Bill No. 953
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amount for the sixth participation year, seventy per cent of such amount 47
for the seventh participation year, eighty per cent of such amount for 48
the eighth participation year, ninety per cent of such amount for the 49
ninth participation year and one hundred per cent of such amount for 50
the tenth participation year. For any participation year in which a 51
program participant ceases to reside or work in the state or no longer 52
owes student loan payments, such participant shall be deemed to have 53
withdrawn from the program and be ineligible to receive any 54
subsequent student loan reimbursements. 55
(e) There is established an account to be known as the "Learn, Work, 56
Pay account" which shall be a separate, nonlapsing account within the 57
General Fund. The account shall contain any moneys required by law to 58
be deposited in the account. Moneys in the account shall be expended 59
by the Comptroller for the purposes of the Learn, Work, Pay Program. 60
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 New section
HED Joint Favorable C/R APP