An Act To Establish the Maine Graduate Retention Loan Program (AFTER DEADLINE)
Maine Legislature, Session 122, LD 1655
Committee: Education and Cultural Affairs
Sponsors: DIAMOND, BRYANT, BROMLEY, MITCHELL, SCHNEIDER, TURNER, CAIN, DAVIS, NORTON, PLUMMER

Legislative Document 
No. 1655 
S.P.614 
In Senate, May 5, 2005 
An Act To Establish the Maine Graduate Retention Loan Program 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 205. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Senator DIAMOND of Cumberland. 
Cosponsored by Representative BRYANT of Windham and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BROMLEY of Cumberland, MITCHELL of Kennebec, SCHNEIDER of Penobscot, 
TURNER of Cumberland, Representatives: CAIN of Orono, DAVIS of Falmouth, NORTON 
of Bangor, PLUMMER of Windham. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.i. 20-A MRSA c. 428-B is enacted to read: 
CHAPTER 428-B 
MAINE GRADUATE RETENTION LOAN PROGRAM 
§12541. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Authority. 
"Authority" means the Finance Authority of 
Maine. 
2. 
Eliqible 
eIDP.lo-l'Jl!ent 
po_&.it..ion. 
"Eligible 
employment 
position" means 
a 
full-time position within the State as 
an 
employee of a gualified business. 
3. 
Eligible student. 
"Eligible student" means a resident 
of 
the 
State enrolled in or 
accepted 
for 
enrollment 
in 
a 
postsecondary educational institution. 
4. 
Participant. 
"Participant" means 
an eligible student 
who has applied to and been accepted by the program. 
5. 
Postsecondary educational institution. 
"Postsecondary 
educational 
institution" 
includes 
public 
and 
private 
postsecondary 
educational 
institutions 
and 
postgraduate 
institutions. 
6. 
Program. 
"Program" means the Maine Graduate Retention 
Loan Program established pursuant to section 12542. 
7. 
Qualified 
business. 
"Qualified 
business" 
means 
a 
business that is located in the State. 
§12542. 
Maine Graduate Retention LOan Program 
1. 
Establishment; 
administration. 
The 
Maine 
Graduate 
Retention Loan Program is established to provide loans of 75% of 
tuition and 
board 
to 
certain eligible 
students 
enrolled in 
postsecondary educational institutions who agree to accept and 
maintain full time employment in the State after graduation. The 
authority shall administer the program. 
2. 
Eligibility rgg~ire~nts. 
The authority shall establish 
eligibility reguirements for participation in the program by rule. 
. Page 1-LR232l(1} 
3. 
Application. 
An application to the program must be made 
directly to the authority at a 
time 
and in a 
format to be 
determined by the authority. 
4. 
Contract with State. 
Applicants to the 
sign a contract asserting that, if accepted by the 
applicant will accept and maintain employment in 
employment 
position after 
the 
completion of 
the 
postsecondary education. 
progr am 
mus t 
program, the 
an eligible 
applicant's 
5. 
Loan repa,yment 
agJ"~ement. 
The authority shall enter 
into loan repayment agreements with participants on terms and 
conditions acceptable to the authority. 
6. 
Loan 
forgiveness. 
Following 
the 
completion 
of 
a 
participant's postsecondary education, the program shall forgive 
15% 
of 
the 
entire 
loan 
amount 
that 
was 
provided 
to 
the 
participant 
by 
the 
program 
for 
each 
full 
year 
that 
the 
participant is employed in the State. 
~12543. Nonlapsing fund 
A nonlapsing, 
interest-earning, 
revolving fund 
under the 
jurisdiction of 
the 
authority is created to 
carry out 
the 
purposes of this chapter. 
The authority may receive, invest and 
expend, on behalf of the fund, money from gifts, grants, beguests 
and donations in addition to money appropriated or allocated by 
the State. 
Money received by the authority under this chapter 
must be invested by the authority, as provided by law, with the 
earned income to be added to the fund. 
Money in the fund must be 
used for the designated purposes of the fund and for the payment 
of 
administrative 
costs 
incurred 
by 
the 
authority 
for 
the 
operation of the program. 
§12544. 
Rules 
The authority shall establish rules necessary to implement 
this chapter. 
Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
SUMMARY 
This bill establishes 
the Maine 
Graduate 
Retention 
Loan 
Program to provide loans of 75"0 of tuition and board to certain 
eligible 
students 
enrolled 
in 
postsecondary 
educational 
insti tutions 
who 
agree 
to 
accept 
and 
maintain 
full-time 
employment in the State after graduation. 
The loans may then be 
forgiven at a rate of 15% per year of eligible employment in the 
State. 
The bill directs the 
Finance Authority of Maine 
to 
administer the program.