An Act To Provide Student Loan Forgiveness to Maine Employees
Maine Legislature, Session 121, LD 1384
Committee: Education and Cultural Affairs
Sponsors: STRIMLING, CUMMINGS, BRENNAN, HATCH

Legislative Document 
No. 1384 
S.P.455 
In Senate, March 18, 2003 
An Act To Provide Student Loan Forgiveness to Maine Employees 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Senator STRIMLING of Cumberland. 
Cosponsored by Representative CUMMINGS of Portland and 
Senators: BRENNAN of Cumberland, HATCH of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 20-A MRSA c. 427-A is enacted to read: 
CIIAP"1ER 427-A 
M)Rp9RCE FOR MAIRE PROGRAM 
§124ll. Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
College 
students. 
"College 
students" 
means 
those 
students who graduated from a Maine high school or the equivalent 
and are residents of Maine, or who did not graduate from a Maine 
high school or the equivalent but have been residents of Maine 
for at least one year, and are attending an institution of higher 
education on a full-time basis at the time of application for 
program participation. 
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. 
Duly enrolled. 
"Duly enrolled" means in attendance at 
the first class meeting as an eligible individual. 
5. 
Eligible indiyiduals. 
"Eligible 
individuals" 
means 
students 
who 
meet eligibility requirements 
as 
determined 
in 
sections 12515 and 12517. 
6. 
Graduating high school seniors. 
"Graduating high school 
seniors" means those students who are residents of Maine 
who 
graduate from high school or its equivalent at the end of the 
academic year and who will be entering their first year in an 
institution of higher education. 
An academic year is considered 
to be a September-to-June time period. 
7. 
In-state 
eJlRlo,yment. 
"In-state 
employment" 
means 
employment in the State. 
8. 
Institution of higher education. 
"Institution of higher 
education" 
means 
an 
institution of higher 
education 
located 
within this State. another state or a foreign country. 
9. 
Students pursuing postbaccalaureate degrees. 
"Students 
pursuing 
postbaccalaureate 
degrees" 
means 
students 
who 
have 
earned a 
Bachelor of Arts degree or its equivalent and are 
pursuing programs of studies leading to postbaccalaureate degrees. 
§l24l2. 
Workforce for Maine Program 
There 
is established 
the 
Workforce 
for 
Maine 
Program, 
referred 
to 
in this 
chapter 
as 
"the 
program," 
to 
provide 
financial assistance to college students, graduating high school 
seniors 
and 
students 
pursuing 
postbaccalaureate 
degrees 
who 
demonstrate an interest in pursuing a career in this State. 
The 
program 
recognizes 
graduating 
high 
school 
seniors, 
college 
students 
and 
students 
pursuing 
postbaccalaureate 
degrees 
by 
providing loans, referred to as "Workforce for Maine loans" to be 
used 
for 
tuition 
as 
provided 
in this 
chapter. 
The 
chief 
executive 
officer 
shall 
administer 
the 
program 
and 
shall 
establish by rule the rates of interest or fees to be charged. 
§l24l3. 
Workforce for Maine lOan recipients 
Each year graduating high school seniors, college students 
and students pursuing postbaccalaureate degrees may apply for 
recognition as Workforce 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 chief executive officer. 
The Governor, after consultation with the chief executive 
officer, shall announce the names of those individuals selected 
by the chief executive officer to be Workforce for Maine loan 
recipients. 
§l24l4. 
Allocation of funds 
The chief executive officer shall establish by rule the 
allocation of funds available under this chapter. 
Workforce for Maine loans of up to $1,500 per academic year 
or 
$6,000 
total 
may 
be 
made 
to 
a 
student 
pursuing 
a 
postbaccalaureate degree. 
Loans of up to $3,000 per academic 
year or $12,000 total may be made to an eligible graduating high 
school senior or college student. 
A loan of up to $3,000 per 
academic year or $6,000 total may be made to an eligible student 
pursuing an associate degree. 
An individual who has received a 
Workforce for Maine loan or a Blaine House Scholars Program loan 
as a graduating high school senior or as a college student may 
also receive a loan for pursuing a postbaccalaureate degree. 
In 
no event mayan individual receive more than $18,000 in total. 
Workforce 
for 
Maine 
loans 
for 
an 
undergraduate 
student 
or 
postbaccalaureate recipient are for one academic year and are 
.automatically renewed if the 
average 
of 
2.5 
based 
on 
a 
recipient maintains a grade point 
4.0 
grade point 
system or 
the 
equivalent. 
§12415. 
Eligibility reqyirements 
1. 
Eligibility 
for 
postsecondary 
under 
the 
program 
education loans. 
A postsecondary education loan may be given 
under 
the 
program only to 
a 
high 
school 
graduate, 
or 
the 
equivalent, 
who 
is 
a 
resident 
of 
the 
State, 
who 
has 
been 
recognized as a Workforce for Maine loan recipient and who has 
met 
other eligibility criteria established 
by 
rule 
of 
the 
authority. 
2. 
Eligibility for postbaccalaureatE! degree. 
A Workforce 
for Maine loan for a student pursuing a postbaccalaureate degree 
may be given only to a 
resident of the State who has shown 
academic achievement, who has a baccalaureate degree and who has 
met 
other eligibility criteria established 
by 
rule 
of 
the 
authority. 
§12416. 
Payment provisions 
Payment of a Workforce for Maine loan must be made directly 
to the institution for credit to the student's account and be 
made within 60 days following evidence that the student has 
become duly enrolled at the postsecondary institution. 
A Workforce for Maine loan may be used only to SUbstitute 
for or replace the family contribution or interest-accruing loans. 
If a recipient of a Workforce for Maine loan withdraws from 
an institution and if the student is entitled to a refund of 
tuition, 
fees 
or 
other 
charges, 
the 
institution shall 
pay 
directly to the authority from that refund a sum that represents 
the portion of the loan paid to the student for the portion of 
the academic year that the student did not complete. 
§12417. 
Repayment and in-state employment provision 
Each recipient of a Workforce for Maine loan designated for 
students pursuing postbaccalaureate degrees may cancel the total 
amount of the loan by completing one year of in-state employment 
for each year a loan is received. 
In-state employment for this 
purpose must be performed within 3 years of graduation from the 
institution of higher education or completion of the course or 
courses for which the funds were given. 
In no event may in-state 
employment 
be 
credited for 
the 
same 
semester 
for 
which 
an 
individual receives a Workforce for Maine loan pursuant to this 
chapter. 
An 
individual 
receiving 
loan 
forgiveness 
for 
a 
postbaccalaureate degree Workforce for Maine loan may not receive 
loan forgiveness for any undergraduate loan simultaneously. 
If 
the chief executive officer grants a deferment. the time period 
for performance of in-state employment may be extended for the 
same period as the deferment. 
Failure to fulfill the in-state 
employment option will necessitate repayment to the authority as 
follows. 
1. 
Debt calculation. 
The 
debt must 
include the total 
amount of the Workforce for Maine loan less the amount. if any, 
that has been canceled by in-state employment. 
2. 
Time for re.pa,naent. 
The total debt of the recipient 
under the program must be repaid to the authority within 3 years 
of the recipient's graduation from the institution of higher 
education or completion of courses for which the funds were given 
or within 3 years of repayment of any other loans made pursuant 
to 
this 
chapter. 
If the 
chief 
executive officer grants 
a 
deferment. the time period may be extended up to the period of 
the deferment. 
A repayment schedule including due dates must be 
set by the chief executive officer. 
3. 
Deferment. 
A recipient of a Workforce for Maine loan 
may seek a deferment of the annual payments for a period or 
periods as established by the chief executive officer, who shall 
make 
a 
determination 
on 
a 
case-by-case 
basis. 
The 
chief 
executive officer shall grant 
a 
one-year deferment 
for 
each 
successful reg;uest for deferment. 
A recipient may not receive 
more 
than 5 one-year deferments. 
The decision of the chief 
executive officer is final. 
§124l8. 
Honlapsing revolving fund 
The 
Workforce 
for 
Maine 
fund 
is 
created 
under 
the 
jurisdiction of the authority as a nonlapsing, interest-earning, 
revolving fund to carry out the purposes of this chapter. 
Any 
unexpended balance in the Workforce for Maine fund carries over 
for continued use under this chapter. 
The authority may receive, 
invest and expend, on behalf of the funds, 
money from gifts, 
grants, beguests, 
loans, including loans obtained pursuant to 
chapter 417-8, and donations, in addition to money appropriated 
or allocated by the State. 
Loan repayments under this section or 
other 
repayments 
to 
the 
authority must 
be 
invested by 
the 
authority, as provided by law, with the earned income to be added 
to the fund. 
Money received by the authority on behalf of the 
fund, except interest income, must be used for the designated 
purpose: interest income may be used for the designated purpose 
or 
to 
pay 
student financial 
assistance administrative costs 
incurred 
by 
the 
authority as 
determined appropriate 
by 
the 
authority. 
§12419. 
Rules 
The au tho r i ty shall adopt rules to implement the prov~s~ons 
of this chapter. 
Rules adopted pursuant to this chapter are 
routine technical rules as defined in Title 5, 
chapter 
375, 
subchapter 2-A. 
SUMMARY 
This bill establishes a loan and loan forgiveness program, 
similar to that established for teachers, to provide school loans 
and loan forgiveness to students who remain in or return to Maine 
to work.