An Act To Increase the Number of Science, Technology, Engineering and Mathematics Professionals in Maine
Maine Legislature, Session 127, LD 1360
Committee: Education and Cultural Affairs
Sponsors: VOLK, POULIOT, CUSHING, LANGLEY, MASON, THIBODEAU, KORNFIELD

Legislative Document 
No. 1360 
S.P. 493 
In Senate, April 21, 2015 
An Act To Increase the Number of Science, Technology, 
Engineering and Mathematics Professionals in Maine 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator VOLK of Cumberland. 
Cosponsored by Representative POULIOT of Augusta and 
Senators: CUSHING of Penobscot, LANGLEY of Hancock, MASON of Androscoggin, 
President THIBODEAU of Waldo, Representative: KORNFIELD of Bangor. 
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 the Federal Student Assistance Program, 
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; and 
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 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 or 
withdrawal from 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 this chapter agrees to live and work in the State or be 
employed in the field of science, computer science, technology, engineering or 
mathematics and that loan recipient does not remain living or 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 contract 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 the 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 subchapter.  Rules adopted pursuant to this section 
are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 2.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
FINANCE AUTHORITY OF MAINE 
Maine Science, Technology, Engineering and Mathematics Loan Program 
Initiative:  Provides funds for the Maine Science, Technology, Engineering and 
Mathematics Loan Fund. 
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 employment: loans with 0% interest rates 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% 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.  This bill appropriates 
$10,000,000 to fund the program for fiscal year 2015-16. 
GENERAL FUND 
2015-16
2016-17
All Other 
$10,000,000
$0
GENERAL FUND TOTAL 
$10,000,000
$0