An Act To Increase the Number of Science, Technology, Engineering and Mathematics Professionals in the State
Maine Legislature, Session 127, LD 1655
Committee: Education and Cultural Affairs
Sponsors: ALFOND
Amends: 20-A MRSA §15689-A

Legislative Document 
No. 1655 
S.P. 676 
In Senate, March 16, 2016 
An Act To Increase the Number of Science, Technology, 
Engineering and Mathematics Professionals in the State 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator ALFOND of Cumberland.  (GOVERNOR'S BILL) 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA c. 439 is enacted to read: 
CHAPTER 439 
MAINE SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS 
LOAN AND LOAN REPAYMENT PROGRAMS 
§12921.  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.  Fund.  "Fund" means the Maine Science, Technology, Engineering and 
Mathematics Loan Fund established in section 12923. 
3.  Program.  "Program" means the Maine Science, Technology, Engineering and 
Mathematics Loan Program established in section 12922. 
4.  STEM student.  "STEM student" means an undergraduate or graduate student 
who is a resident of the State and is engaged in the study of science, computer science, 
technology, engineering or mathematics at an accredited institution of higher education 
eligible to receive federal assistance under a federal student assistance program 
authorized under the federal Higher Education Act of 1965, Title IV and has been 
selected by the authority pursuant to section 12922 to receive a loan. 
§12922.  Maine Science, Technology, Engineering and Mathematics Loan Program 
The Maine Science, Technology, Engineering and Mathematics Loan Program is 
established to increase the number of students in this State pursuing undergraduate and 
graduate degrees in the fields of science, computer science, technology, engineering and 
mathematics.  The authority shall provide loans in amounts up to $7,500 per year for a 
maximum of 4 years to selected STEM students. 
1.  Annual interest rate of 0%.  A STEM student may receive a loan bearing an 
annual interest rate of 0% if the student upon graduation: 
A.  Remains in or returns to the State to live and work; and 
B.  Is employed in the field of science, computer science, technology, engineering or 
mathematics. 
2.  Annual interest rate of 5%.  A STEM student may receive a loan bearing an 
annual interest rate of 5% if the student upon graduation: 
A.  Remains in or returns to the State to live and work; and 
B.  Is not employed in the field of science, computer science, technology, engineering 
or mathematics. 
3.  Annual interest rate of 8%.  A STEM student may receive a loan bearing an 
annual interest rate of 8% if the student upon graduation: 
A.  Does not remain in or return to the State to live and work; and 
B.  Is not employed in the field of science, computer science, technology, engineering 
or mathematics. 
§12923.  Maine Science, Technology, Engineering and Mathematics Loan Fund 
1.  Fund established.  The Maine Science, Technology, Engineering and 
Mathematics Loan Fund is created as a nonlapsing, interest-earning, revolving fund to 
carry out the purposes of this chapter. 
2.  Funds.  The authority may receive, invest and expend on behalf of the fund 
money from gifts, grants, bequests and donations, in addition to money appropriated or 
allocated by the State, funds granted by the commissioner pursuant to section 15689-A, 
subsection 27 and any federal funds received by the State for the benefit of students in 
this State who have outstanding education loans.  Money received by the authority on 
behalf of the fund must be used for the purposes of this chapter.  Interest income may be 
used for the designated purpose or to pay administrative costs incurred by the authority as 
determined appropriate by the authority.  Any unexpended balance in the fund carries 
forward for continued use under this chapter. 
§12924.  Loan agreement; repayment 
A STEM student applying for a loan under section 12922 shall enter into an 
agreement with the authority that includes the following provisions. 
1.  Principal; interest.  Upon completion of postsecondary education, the STEM 
student shall repay the entire principal of the loan plus simple interest.  Interest does not 
begin to accrue until 6 months following completion of the loan recipient's education, 
withdrawal from school or discontinuance in school. 
2.  Term of loan.  Loans must be repaid over a term no longer than 10 years, except 
that the authority may extend a loan recipient's term as necessary to ensure repayment of 
the loan. 
Repayment must commence within 6 months following completion of the loan recipient's 
education, withdrawal from school or discontinuance in school. 
§12925.  Default 
If a recipient of a loan under the program agrees to live and work in the State or be 
employed in the field of science, computer science, technology, engineering or 
mathematics and that recipient does not remain living and working in the State or does 
not remain employed in such a field, the interest rate on the loan held by that recipient is 
subject to change in accordance with the interest rates set forth in section 12922.  A 
recipient who fails to pay the loan is liable to the authority for an amount equal to the sum 
of the total amount paid by or on behalf of the authority to or on behalf of the recipient 
under the agreement under section 12924 plus interest at a rate determined by the 
authority.  Exceptions may be made by the authority for good cause. 
§12926.  Deferments 
The authority may grant deferments on the repayment of a loan under the program for 
causes established by rule.  Interest at a rate to be determined by rule of the authority may 
be assessed during a deferment.  The student's total debt to the authority, including 
principal and interest, must be repaid.  The authority shall make determinations of 
deferment on a case-by-case basis.  The decision of the authority regarding deferment is 
final. 
§12927.  Administration; rules 
The authority shall administer the program and the fund.  The authority shall adopt 
rules to carry out the purposes of this chapter.  Rules adopted pursuant to this section are 
routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 2.  20-A MRSA §15689-A, sub-§27 is enacted to read: 
27.  Undergraduate STEM student and graduate STEM student debt reduction.  
The commissioner may grant funds that become available to the Maine Science, 
Technology, Engineering and Mathematics Loan Fund established under section 12923. 
SUMMARY 
The purpose of this bill is to increase the number of students pursuing graduate and 
undergraduate degrees in the fields of science, computer science, technology, engineering 
and mathematics.  This bill creates the Maine Science, Technology, Engineering and 
Mathematics Loan Program administered by the Finance Authority of Maine.  Under the 
bill, loans with varying interest rates will be provided to participating students depending 
on their future residency and employment: loans bearing an interest rate of 0% annually 
will be available to students who remain in or return to the State and work in the fields of 
science, computer science, technology, engineering and mathematics upon graduation; 
loans bearing an interest rate of 5% annually will be available to students who remain in 
or return to the State upon graduation but are not employed in the fields of science, 
computer science, technology, engineering and mathematics; and loans bearing an 
interest rate of 8% annually will be available for students who live and work outside the 
State upon graduation.  The bill also authorizes the Commissioner of Education to grant 
funds to the program's Maine Science, Technology, Engineering and Mathematics Loan 
Fund if they become available.