KRS § 164.769 — KY Code / Title XIII / Chapter 164 / Section 164.769
164.769 Teacher scholarships for eligible persons agreeing to render qualified teaching service in Kentucky -- Definitions -- Cancellation or repayment of notes -- Annual report
Status: in_force

164.769 Teacher scholarships for eligible persons agreeing to render qualified

teaching service in Kentucky -- Definitions -- Cancellation or repayment of

notes -- Annual report.

(1) It is the intent of the General Assembly to establish a teacher scholarship program

to assist highly qualified individuals to become certified Kentucky teachers and

render teaching service in Kentucky schools.

(2) For purposes of this section, the terms listed below shall have the following

meanings:

(a) "Critical shortage area" means an understaffing of teachers in particular

subject matters at the secondary level, in grade levels, or in geographic

locations at the elementary and secondary level, as determined by the

commissioner of education in consultation with the authority. The

commissioner and the authority may use any source considered reliable,

including but not limited to local education agencies, to identify the critical

shortage areas;

(b) "Dual credit" has the same meaning as in KRS 158.007;

(c) "Eligible program of study" means an undergraduate or graduate program of

study which is preparatory to teacher certification;

(d) "Participating institution" means an institution of higher education located in

Kentucky which offers an eligible program of study and has in force an

agreement with the authority providing for administration of this program;

(e) "Qualified teaching service" means teaching the major portion of each school

day for at least seventy (70) days each semester in a public school of the

Commonwealth or a private school certified pursuant to KRS 156.160(2),

except that an individual having a disability defined by Title II of the

Americans with Disabilities Act, 42 U.S.C. sec. 12131 et seq., or serious and

extended illness, whose disability or illness, certified by a licensed physician,

prevents that individual from teaching a major portion of each school day,

shall be deemed to perform qualified teaching service by teaching the

maximum time permitted by the attending physician;

(f) "Semester" means a period of about eighteen (18) weeks, which usually

makes up one-half (1/2) of a school year or one-half (1/2) of a participating

institution's academic year; and

(g) "Summer term" means an academic period consisting of one (1) or more

sessions of instruction between a spring and a fall semester.

(3) The authority may, to the extent of appropriations and other funds available to it

pursuant to subsection (9) of this section, award teacher scholarships to persons

eligible under subsection (4) of this section, who initially demonstrate financial

need in accordance with standards and criteria established by the authority or

received teacher scholarships pursuant to this section prior to July 1, 1996. Each

teacher scholarship shall be evidenced by a promissory note that requires repayment

or cancellation pursuant to subsection (6) of this section.

(4) Kentucky residents who are United States citizens and enrolled or accepted for

enrollment in an eligible program of study at a participating institution shall be

eligible to apply for and be awarded teacher scholarships. Teacher scholarships

shall first be awarded to highly qualified eligible students who meet standards and

requirements established by the Education Professional Standards Board pursuant

to KRS 161.028 for admission to a teacher education program at a participating

institution in pursuit of initial teacher certification. If funds are not depleted after

awarding teacher scholarships to students who meet the preceding criteria, then

awards shall be made to any otherwise eligible students.

(5) The authority shall establish, by administrative regulation, the maximum amount of

scholarship to be awarded for each semester and summer term under this section.

The amount of each scholarship to be awarded shall not exceed the applicant's total

cost of education minus other financial assistance received or expected to be

received by the applicant during the academic period.

(6) (a) The authority shall disburse teacher scholarships to eligible students who

agree to render qualified teaching service as certified teachers, and are

unconditionally admitted and enrolled in an eligible program of study.

(b) A teacher scholarship shall not be awarded or a promissory note cancellation

shall not be granted to any person who is in default on any obligation to the

authority under any program administered by the authority pursuant to KRS

164.740 to 164.785 until financial obligations to the authority are satisfied,

except that ineligibility for this reason may be waived by the authority for

cause.

(c) Recipients shall render one (1) semester of qualified teaching service for each

semester or summer term of scholarship received, except that recipients who

teach in a critical shortage area designated by the authority or teach dual

credit coursework in a certified Kentucky high school shall render one (1)

semester of qualified teaching service as repayment for two (2) semesters or

summer terms of scholarships received. Upon completion of each semester of

qualified teacher service, the authority shall cancel the appropriate number of

promissory notes.

(d) If the recipient of a teacher scholarship fails to complete an eligible program

of study at a participating institution or fails to render qualified teaching

service in any semester following certification or recertification, unless the

failure is temporarily waived for cause by the authority, the recipient shall

immediately become liable to the authority for repayment of the sum of all

outstanding promissory notes and accrued interest. Persons liable for

repayment of scholarships under this paragraph shall be liable for interest

accruing from the dates on which the teacher scholarships were disbursed.

(e) Recipients who have outstanding loans or scholarships under KRS 156.611,

156.613, 164.768, or 164.770 respectively, and who render qualified teaching

service, shall have their notes canceled in accordance with subsection (6)(c) of

this section.

(f) The authority shall establish, by administrative regulation, the terms and

conditions for the award, cancellation, and repayment of teacher scholarships

including, but not limited to, the selection criteria, eligibility for renewal

awards, amount of scholarship payments, deferments, the rate of repayment,

and the interest rate thereon.

(g) Notwithstanding any other statute to the contrary, the maximum interest rate

applicable to repayment of a promissory note under this section shall be eight

percent (8%) per annum, except that if a judgment is rendered to recover

payment, the judgment shall bear interest at the rate of five percent (5%)

greater than the rate actually charged on the promissory note.

(7) A repayment obligation imposed by this section shall not be voidable by reason of

the age of the recipient at the time of receiving the teacher scholarship.

(8) Failure to meet repayment obligations imposed by this section shall be cause for the

revocation of a person's teaching certificate, subject to the procedures set forth in

KRS 161.120.

(9) All moneys repaid to the authority under this section shall be added to the

appropriations made for purposes of this section, and the funds and unobligated

appropriations shall not lapse.

(10) The authority may execute appropriate contracts and promissory notes for

administering this section.

(11) Notwithstanding any other statute to the contrary, if available funds are insufficient

for all requested scholarships for eligible applicants during any fiscal year, the

authority shall give priority consideration to eligible applicants who previously

received teacher scholarships and, until June 30, 2018, to loan forgiveness for

teachers who have outstanding loan balance eligibility for Best in Class loans issued

prior to June 30, 2008. If funds are insufficient to make all requested renewal

scholarships to eligible applicants, the authority shall reduce all scholarship awards

to the extent necessary to provide scholarships to all qualified renewal applicants.

If, after awarding all eligible renewal applicants, funds are not depleted, initial

applications shall be ranked according to regulatory selection criteria, which may

include application date, and awards shall be made to highly qualified applicants

until funds are depleted.

(12) The authority shall submit a report on the number of teacher scholarships provided

in each fiscal year, the program of study in which recipients are enrolled, recipient

retention rates, total number of applications, and scholarship recruitment strategies

to the Interim Joint Committee on Education by December 1 of each year.