Title: Student Loan Forgiveness Program

Summary: Creates Student Loan Forgiveness Program; provides for administration of program, eligibility requirements, funding, payment of student loan, & loan requirements; provides that payment under the program is not taxable income.

Full Text:
An act relating to the Student Loan Forgiveness Program; creating s. 1009.951, F.S.; creating the Student Loan Forgiveness Program; providing for administration of the program; providing eligibility requirements; providing for application for program participation and funding and loan payment distribution for the program; providing that a student loan must meet certain criteria; providing that a payment under the program is not taxable income; providing for rulemaking; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 1009.951, Florida Statutes, is created to read: 1009.951 Student Loan Forgiveness Program.-Upon appropriation by the Legislature, there is established the Student Loan Forgiveness Program to be administered by the Department of Education. (1) To be eligible for the program, an individual: (a) Must be a resident of th estate. (b) Must earn less than $50,000 annually, as reported to the United States Internal Revenue Service. (c) Must have graduated from a Florida College System HB 2017 institution or state university with an associate's degree or higher no earlier than Jul y1, 2012. (d) Must be enrolled in a federal income-based student loan repayment program. (e) May not be enrolled in any other loan forgiveness program. (2) An individual that meets the requirements of subsection (1) may apply to the department for a cceptance into the program. Individuals shall be accepted on a first-come, first-served basis. Upon acceptance into the program, and from the funds appropriated for the program, the department shall make a payment to the individual in an amount equal to hi sor her student loan. If funds appropriated for the program are insufficient to provide adequate funds for each individual accepted into the program, the department shall prorate payments by an equal percentage reduction. (3) Only loans that are not in default and issued pursuant to the Higher Education Act of 1965, as amended, to pay the costs of a postsecondary education shall be covered under the program. (4) A payment under this section is not taxable income and shall be made dire ctly to the holder of the loan. (5) The State Board of Education shall adopt rules to administer the program. Section 2. This act shall take effect July 1, 2017.