An Act To Amend the Educators for Maine Program
Maine Legislature, Session 121, LD 1340
Committee: Business, Research and Economic Development
Amends: 20-A MRSA §12501, 20-A MRSA §12501-A, 20-A MRSA §12502, 20-A MRSA §12503, 20-A MRSA §12504, 20-A MRSA §12505, 20-A MRSA §12508, 20-A MRSA §12511

Legislative Document 
No. 1340 
H.P.985 
House of Representatives, March 12,2003 
An Act To Amend the Educators for Maine Program 
Submitted by the Finance Authority of Maine pursuant to Joint Rule 204. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representati ve CUMMINGS of Portland. 
Prilllt'J un recyckoJ paper 
'77/~ frl.Il!d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §12501, as amended by PL 1999, c. 783, §2, 
is repealed. 
Sec. 2. 20-A MRSA §12501-A is enacted to read: 
§12501-A. 
Definitions 
As 
used in this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Academic 
achievement. 
"Academic 
achievement" 
means 
earning a grade point average of 3.0 or more, based on a 4. a 
grade point system, or the eguivalent, based upon the most recent 
cumulative grade point average. 
2. 
Authority. 
"Authority" means the Finance Authority of 
Maine. 
3. 
Chief executive officer. 
"Chief 
executive officer" 
means the chief executive officer of the Finance Authority of 
Maine. 
4. 
Chil.d care. 
"Child care" means a regular service of 
care and protection provided for compensation for any part of a 
day less than 24 hours to a child or children under 13 years of 
age whose parents work outside the home, attend an educational 
program or are otherwise unable to care for their children. 
5. 
Chil.d care facil.ity. 
"Child care facility" means 
a 
child care center or a home day care provider as defined in Title 
22, section 830l-A. 
6. 
Chil.d 
care 
provider 
qual.ifications. 
"Child 
care 
provider gualifications" means a degree or certificate in child 
development or 
a 
related area as determined by rule of the 
authority. 
7. 
Cost of attendance. 
"Cost of attendance" has the same 
meaning as in 20 United States Code, 
Section 108711 and the 
regulations, 
guidelines and procedures promulgated under that 
section except, for students attending less than half-time, cost 
of attendance is determined on the same basis as for students 
attending half-time. 
8. 
Dul.y 
enrol.l.ed. 
"Duly 
enrolled" 
means, 
for 
an 
undergraduate, enrolled full-time and, for a graduate student. 
enrolled 
at 
least 
part-time 
at 
an 
institution 
of 
higher 
education, as evidenced in a form satisfactory to the authority. 
Page l-LR1808(1) 
9. 
Eligible individual. 
"Eligible individual" 
means 
a 
student who meets the eligibility requirements of section 12505. 
10. 
Graduating high school senior. 
"Graduating high school 
senior" means a student who is a resident of the State, who 
graduates from a secondary school approved pursuant to section 
2901 
and 
who 
is entering that student's first year 
in 
an 
institution of higher education at the beginning of the next 
academic 
year. 
An 
academic 
year 
for 
graduating high 
school 
seniors is considered to be from September to June. 
11. 
Institution of higher 
education. 
"Institution of 
higher 
education" 
means 
an 
institution of 
higher 
education 
located within this State, another state or a foreign country 
that meets the requirements of and conforms to the definitions 
contained in the 
federal 
Higher 
Education 
Act 
of 
1965, 
as 
amended, 
United 
States 
Code, 
Section 
100l( a) 
and 
the 
regulations, 
guidelines 
and 
procedures 
promulgated 
by 
the 
Secretary of Education pursuant to these sections of the law. 
12. 
Return service. 
"Return service" means 
service in 
public elementary or secondary school or private school in this 
State approved for tuition purposes for a full school year as a 
certified teacher or 
a 
speech pathologist or service for 
q 
12-month period in a child care facility by an individual who has 
attained child care provider qualifications. 
13. 
Student 
pursuing 
postbaccalaureate 
certification. 
"Student 
pursuing 
postbaccalaureate 
certification" 
means 
a 
student who has earned a baccalaureate degree or its equivalent 
and is pursuing a program of study leading to certification as a 
teacher or speech pathologist or to the attainment of child care 
provider qualifications. 
14. 
Undergraduate. 
"Undergraduate" means an individual who 
has 
not 
been 
awarded 
any 
baccalaureate 
degree 
and 
who 
is 
currently enrolled or accepted for enrollment as 
a 
full time 
student at 
an 
institution of 
higher 
education, 
including 
a 
graduating high school senior. 
15. 
Underserved subject areas. 
"Underserved subject areas" 
means those subjects or programs, required or authorized to be 
taught in the public schools, for which there is an insufficient 
supply of teachers or speech pathologists as determined by the 
chief executive officer in consultation with the commissioner. 
Sec. 3. 20-A MRSA §12502, as repealed and replaced by PL 
1999, c. 783, §3, is amended to read: 
§12502. 
Educators for Maine Program 
There is established the Educators for Maine 
Program to 
provide 
financial 
assistance 
for 
postsecondary 
education 
to 
ee~~e~e undergraduate 
studentsT-~~aa&i~-~~-£~£~--seBieFs 
and 
students 
pursuing 
postbaccalaureate 
certificationT--€Ri~a 
aeye~epffieB~-~~~-ee~&i~iea&ieB-~-~-a££e€ia~e~£-~~-iB 
eai~a-~yelepffieB~ who 
demonstrate academic achievement and an 
interest in pursuing a career in teaching, speech pathology or 
child care in this State 
feF--pG-s-~aGa-l'-y----ed-1.HJ..a..t...,i~-a£Q--~e 
~eaeaeFS-a~Q-£~~~~~~~~~~Y&~~-e~-eeB~iByea 
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asseeia~e~s-~~-...,i~-~h~~Q--aeyelepffieB~. 
The chief executive 
officer shall administer the program and shall establish by-£yle 
pursuant to rules of the authority the rates of interest or fees 
to be charged. 
Sec. 4. 20-A MRSA §12503, as amended by PL 1999, c. 441, §7, 
is further amended to read: 
§12503. 
Educators for Maine loan recipients 
Each year graduating high school seniors, 
eelle~e-£~.yQeB~s 
undergraduates 
and 
students 
pursuing 
postbaccalaureate 
certification who 
show evidence of academic achievement may be 
considered 
for 
recognition 
as 
Educators 
for 
Maine 
loan 
recipients. 
Applications 
must 
be 
submitted 
to 
the 
chief 
executive officer at a time and in a format to be determined by 
rule of the 
eaie~-~...,i-ve--e~~ieeF authority. 
In determining 
loan 
recipients, 
the 
chief executive officer 
shall 
consider 
candidates 
in 
categories: 
graduating high 
school 
seniors; 
undergraduates, other than graduating high school seniors; and 
students pursuing postbaccalaureate certification. 
The Governor, after consultation with the chief executive 
officer, shall announce the names of those individuals selected 
by the chief executive officer to be Educators for Maine loan 
recipients. 
Sec. 5. 20-A MRSA §12504, as amended by PL 2001, c. 417, §25, 
is further amended to read: 
§12504. 
Allocation of funds 
The 
eaief-~...,i-ve--effieeF authority shall establish by 
rule the allocation of funds available under this chapter. 
Loans of up to $;h§99 $2,000 per academic year or $sT999 
$8,000 total may be made to students pursuing postbaccalaureate 
certification. 
Loans 
of 
up 
to 
$3,000 
per 
academic 
year 
or 
$12,000 total may be made to eligible 
'9Faeh~a1;.ia<§J--h-i-gh--6eRee± 
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yeaF-~--$&r~~~-~e~a~-~-ae-~-~-€~J~Jb~€-~~~-eevelepmeBt 
stHeeBts-p~~6~iH'9-a£-~~~~~~~-~-&ai~-aeve~epffieB1;.r-aBe 
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PHF6HiB~----a---~~~---~~----a££e€Jat€----eeFtiEieatieB 
undergraduate students. 
An individual who has received _-&_ an 
Educators for Maine loan eF-a-~~~~~b&B&-~F~Fam-leaB 
a6-a-~~~~-h-iqh---s-GhG-G-1--6eBieF-e~--as---a---eG-1-~-6tHaeBt as an 
undergraduate 
may 
also 
receive 
a 
loan for 
students pursuing 
postbaccalaureate 
certification 
eF--a£---a--~~---eF--6peeea 
pataele~ist----e~~ea----~---gr-aduat-e----edu£~~-ffi}---e~---eeBtiBHiB~ 
eeHeatieB. 
In no 
event mayan individual receive more 
than 
$lgTGGG $20,000 in total Educators for Maine loans. 
Loans EeF 
HBeeFEJFaeHate--&~~a~&r-~~~~~-~~~~~~-a£e--eRile 
eeve lepmeBt - -&&Haeat& - -~1H'-&u-i~ - -an- ---a-6-&O()--i-at-e-'~ - .a~-r-€€- - iH.- -eRi le 
aevelepment 
are 
for 
one 
academic 
year 
and 
are 
aHtematieally 
FeBewee 
renewable 
if the 
recipient maintains 
a 
grade 
point 
average of at least 2.5 based on a 4.0 grade point system or the 
equivalent and submits 
a 
complete 
renewal application by the 
deadline annually. 
Sec. 6. 20-A MRSA §12505, sub-§l, as amended by PL 1999, c. 
441, §9, is further amended to read: 
1. 
Eligibility for loans for undergraduate education. 
- A 
pe5t5eeeBaaFY-BB~€~~B£--~-ffiay-b€-~i~-&a1-y-te-~~iqh--5eaee± 
EJFaeHateT-e~-~~~i~1-ent,-~-i&-a--r€£J.a€£~-~-~~-S~a~r-wae 
aa5-~~~~-a&-a-~~~-~F-MaiBe-~~-~~~~-aBe 
wae-aa6-m€t-~£€-r-~~~~~~~~~~~~~~~~~~~-F~1-e-e~-tae 
aHtaeFitYT 
An 
Educators for Maine loan recipient must be an 
undergraduate at an institution of higher education. Preference 
must be given to students enrolled in a program that has been 
determined to be an underserved subject area. 
Sec. 7. 20-A MRSA §12505, sub-§2, as amended by PL 1999, c. 
441, §9, is repealed. 
Sec. 8. 20-A MRSA §12505, sub-§3, as amended by PL 1999, c. 
441, §9, is further amended to read: 
3. 
Eligibility for postbaccalaureate certification. 
A loan 
to 
a 
student pursuing postbaccalaureate certification may 
be 
given only to a resident of the State who has shown academic 
achievement, who has a baccalaureate degree, who is Bet-e±iEJiale 
EeF-a-~ea£-~B-r-~~-e-~~~-~~~~~~a~iea-p~F&~aat-te 
sQbsee~ieR--6T 
~p~u~r~s~u~i~n~g~~a~~c~o~u~r~s~e~~o~f~~s~t~u~d;y~~t~h~a~t~~w~i~l~l~~l~e~a~d~~t~o 
certification as a teacher, to licensure as a speech pathologist 
or to attainment of child care provider qualifications and who 
has met other eligibility criteria established by rule of the 
authority. 
Sec. 9. 20·A MRSA §12506, 2nd~, as enacted by PL 1989, c. 7, 
Pt. 0, §5, is amended to read: 
These loans shall must only be used to substitute or replace 
the 
family 
contribution or 
interest-accruing 
loans. 
A 
loan 
recipient may not receive student financial assistance in excess 
of the cost of attendance. 
Sec. 10. 20·A MRSA §12507, as amended by PL 1999, c. 783, §5, 
is further amended to read: 
§12507. 
Repayment and return service provisions 
Each 
EJFaElQa1;iBEJ-hl~-s-e-hG-G-1--£eR-ie.£---o-r--ee±±eEJe student who 
receives 
a 
loan may cancel.the total amount of the loan by 
completing one year of return seFviees service in the public 
schools or private schools approved for tuition purposes in the 
State 
for 
each 
year 
the 
individual 
receives 
a 
loan. 
An 
individual 
who 
received that individual's first program 
loan 
after January 1. 
2000 may also cancel the total amount of the 
loan by completing one year of return service by working in a 
child care facility. 
The return service requirement is one year 
for every 2 years or less that the individual receives a loan if 
return service is performed in an underserved subject aFeas-eF-ia 
eElQeat.eF--sho-r-t-aqe--aFeas area. 
Return service for this purpose 
must 
be 
performed 
within 
years 
of 
graduation 
from 
the 
institution of higher education. If the chief executive officer 
grants a deferment, the time period for performance of return 
service may be extended for the same period as the deferment. 
Return service may not be credited for the same semester for 
which an individual receives a loan pursuant to this chapter. 
Pro rata loan forgiveness may be granted for part-time return 
service as determined by rule of the authority. 
Failure to 
fulfill the return service option necessitates repayment to the 
authority as follows. 
1. 
Debt calculation. 
The 
debt 
amount of the loan and interest at the 
of 
the 
authority, 
less 
the 
amount, 
cancelled by return service. 
must 
rate 
if 
include 
the total 
established by rule 
any, 
that 
has 
been 
2. 
Time for repayment. 
The total debt must be repaid to 
the 
authority 
within 
lQ 
years 
of 
graduation 
from 
the 
institution 
of 
higher 
education 
according 
to 
a 
schedule 
established 
by 
the 
chief 
executive officer. 
Due 
dates 
for 
repayments are set by the chief executive officer and may be 
extended for the same period of any deferment granted by the 
chief executive officer. 
3. 
Deferment. 
A recipient of a loan may seek a deferment 
of the annual payments for a period or periods as established by 
rule of the authority. 
A request for deferment must be made to 
the chief executive officer who shall make a determination on a 
case-by-case basis. 
The chief executive officer may grant a 
deferment in the event that a 
recipient of 
a 
loan evidences 
intent to teach and inability to secure employment necessary to 
obtain forgiveness of the loan at the time the deferment is 
sought. 
The chief executive officer shall require certification 
of the intent annually and grant a eae-yea!' deferment for each 
successful request for deferment for a period not to exceed one 
year. 
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ae~e!'meatsT 
The aeeisiea-e~-tRe chief executive officer is-fiaal 
may establish limits to the number of deferments that may be 
granted to any recipient by rule of the authority. 
4T--~hi~d-deve~apmeB~-6~QdeB~6T--A--€£J~~~~t,.-staaeat 
may-~~~~~~-a-~~~~-&&~~~&&--£€~~~-£€ffie£~-~~-~Ri6-~-~-BY 
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ea~e-F~eviae!'T-as-ae~iaea-ia-~itle-66T-seetiea-8~G±-AT 
5. 
Death or disability. 
The authority may forgive loans of 
loan recipients who 
have died or who have become permanently 
disabled, as determined by the chief executive officer. 
Sec. 11. 20-A MRSA §12508, as amended by PL 1999, c. 441, 
§ll, is repealed. 
Sec. 12. 20-A MRSA §12511 is enacted to read: 
§1251l. 
Rules 
Rules adopted by the authority pursuant to this chapter are 
routine technical rules 
as defined in Title 5, 
chapter 
375, 
subchapter 2-A. 
Sec. 13. Promissory note. 
Educators for Maine loans under the 
Maine Revised Statutes, Title 20-A, chapter 428 may be originated 
using a master promissory note that allows all Educators for 
Maine 
loans provided over 
a 
period of up to 
years to be 
originated on the same promissory note. 
SUMMARY 
This bill makes modifications to the Educators for Maine 
Program administered by the Finance Authority of Maine. 
The 
modifications allow for uniform adminis.tration of the program by 
integrating and coordinating amendments that have been made over 
several years. 
The changes allow for consistent treatment for 
all undergraduate candidates, 
notwithstanding their 
course of 
study. 
It repeals the existing definition section and replaces it 
with updated definitions. 
New definitions are added for "child 
care 
provider 
qualifications," 
"cost 
of 
attendance" 
and 
"undergraduate." 
The 
definition 
of 
"preservice" 
was 
removed 
because all loan recipients now are required to show an interest 
in providing return service. 
It eliminates distinctions in program participants other 
than as undergraduate and postbaccalaureate students. 
It increases the maximum loan amounts available to students 
pursuing 
postbaccalaureate 
teacher 
certification 
from 
$1,500 
annually to $2,000 and from 
up to $6,000 total to 
a 
maximum 
aggregate loan of $8,000. 
It clarifies that there are only 2 categories of eligible 
students: 
undergraduate and postbaccalaureate. 
It clarifies that no loan recipient may receive loan funds 
that result in making the total financial aid award exceed the 
amount it costs the recipient to attend the school. 
It provides that individuals may provide return service as a 
child care worker if they received their first loan after January 
1, 
2000, 
the first year that Educators for 
Maine 
funds 
were 
available to students pursuing a career in child care. 
The bill 
also clarifies that the authority may allow for partial loan 
forgiveness 
for 
individuals 
who 
are 
teaching 
part-time. 
A 
reference to educator 
shortage areas 
is 
removed 
because 
the 
Department of Education no longer designates educator shortage 
areas. 
It changes the maximum time to repay the debt to 11 years, 
to provide for the period between graduation and commencement of 
the repayment period. 
It provides that the authority may limit 
by rule the number of deferments granted to anyone student. 
It allows the authority to forgive loans made to individuals 
who die or become permanently disabled. 
It repeals forgiveness provisions that are now incorporated 
into other provisions. 
It provides 
promissory note 
program. 
that the authority may 
use 
for multiple disbursement of 
a 
single master 
loans under the