15-1782. Arizona teacher student loan program; requirements; report

A. The Arizona teacher student loan program is established within the commission for postsecondary education to support the recruitment of teachers in public schools in this state. The commission may grant loans from the Arizona teacher student loan fund established by section 15-1784 to defray the costs of tuition, instructional materials and mandatory fees of the education of students who are pursuing either a teaching degree or a teaching certificate through an alternative teacher certification program at a qualifying postsecondary institution and who are deemed qualified by the commission to receive these loans. A student who is in an alternative teacher certification program after obtaining a bachelor's degree is not disqualified from eligibility for a loan issued pursuant to this article. Loans shall be granted on such terms and conditions as may be imposed by the commission and shall be distributed on a first-come, first-served basis.

B. The commission shall grant loans to qualified applicants who agree to provide instruction in the area of mathematics, science or special education in a public school in this state or to provide instruction in a public school in this state that is a low-income school, a rural school or a school that is located on an Indian reservation. The commission shall allocate at least forty percent of the annual amount appropriated for loans issued pursuant to this article to applicants who agree to provide instruction in a public school that is a low-income school, a rural school or a school that is located on an Indian reservation.

C. The loans granted by the commission shall be used to cover the costs of tuition and mandatory fees for each loan recipient and may also defray the cost of instructional materials, but shall not exceed seven thousand dollars each year, excluding all grants, scholarships and tuition benefits such as military, tribal and employee grants, scholarships and benefits.

D. The commission shall adopt policies for screening qualified applicants based on ability and financial need, including requiring all applicants to complete a free application for federal student aid.

E. The commission shall grant loans on the terms and conditions the commission imposes. The commission shall establish procedures for the timely repayment of loans plus interest at a rate determined by the commission. The commission is responsible for the collection of loan repayments.

F. The commission may partner with qualifying postsecondary institutions to administer these loans. The commission shall provide initial public notice of the availability of the loans and collect the application forms directly from each qualified applicant. The commission shall forward a request for verification of attendance, satisfactory academic progress, financial need and enrollment in a qualified program to the institution.

G. On or before December 1 of each year, the commission shall submit an approved report to the governor, the speaker of the house of representatives, the president of the senate and the joint legislative budget committee. The commission shall provide a copy of this report to the secretary of state. The report shall include the number of applicants, the number of loan recipients, the qualifying postsecondary institution each loan recipient attends, the name of the school at which each loan recipient is employed, the number of good cause repayment exceptions granted by the commission, the reason for each good cause exception granted and teacher retention data. The commission shall collect and maintain data on the retention of teachers who received loans pursuant to this article. The commission shall collect this data for at least five years after each loan recipient completes the recipient's service commitment.