What's happening
This bill creates a loan repayment program for teachers who commit to work in underserved rural school districts in New York.
Why it matters
Targeted Incentives for Hard-to-Staff Schools. By focusing loan repayment awards on teachers in rural districts that struggle to attract and retain staff, the program aims to address chronic teacher shortages that directly impact educational quality and student outcomes in underserved areas.
Significant Financial Support. The potential for up to $20,000 per year in loan repayment (capped at the teacher’s total debt) creates a powerful incentive, potentially making teaching in rural areas more financially viable for recent graduates who might otherwise be deterred by student loan burdens.
Clear Commitment and Accountability. To qualify, teachers must agree to a minimum five-year service in designated rural schools. Strict repayment rules—including a formula for recouping funds if the commitment is not met, except in cases of extreme hardship or death—ensure the program targets those truly dedicated to serving these communities.
Strategic Oversight and Flexibility. The involvement of both the state education department and the New York State Center for Rural Schools in identifying eligible districts and setting award criteria means the program can adapt to changing needs and target support where it’s most needed.
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Who cares
Headline styles
Help Rural Teachers Pay Loans
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to higher education
- Referred to higher education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4838
2019-2020 Regular Sessions
IN SENATE
March 27, 2019
Introduced by Sens. SEWARD, LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing the rural teacher education loan repayment program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 676-a to read as follows:
§ 676-a. Rural teacher education loan repayment program. 1. Definitions. For the purposes of this section:
a. "Rural school district" shall mean a school district providing services within a rural area.
b. "Rural area" shall mean a county with a population of two-hundred thousand or less; or a town with a population density of one hundred fifty or less per square mile.
c. "Student loan expenses" shall mean the aggregate total of annual student loans for the cost of attendance at an undergraduate and/or graduate institution leading to teaching certification. Interest paid or due on such loans shall be deemed to be eligible for reimbursement pursuant to this section.
2. Establishment. a. There shall be established within the department the rural teacher education loan repayment program. The department shall, in cooperation and coordination with the New York state center for rural schools, annually identify rural school districts which are having difficulty attracting and retaining teachers, and develop criteria upon which awards shall be made to teachers who become employed by such identified rural school districts who agree to provide teaching services within such rural area for not less than five years.
b. The commissioner is authorized, within amounts made available for the purposes of this section, to make awards beginning January first, two thousand twenty, to a teacher who as determined by the commissioner
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04027-01-9
S. 4838 2
to be taking employment in a rural area identified as being underserved, who is licensed to teach in this state and who agrees to for at least five years teach in such rural area. Such a teacher shall be eligible for a loan repayment award of up to twenty thousand dollars per year.
3. Awards. Rural teacher education loan repayment awards shall be awarded annually. Such awards shall be allocated by the president in accordance with the criteria established pursuant to subdivision two of this section.
4. Limit on awards. Loan repayment awards made to a teacher pursuant to subdivision two of this section shall not exceed the total qualifying outstanding debt of the teacher from student loans to cover tuition and other related educational expenses, made by or guaranteed by the federal or state government, or made by a lending or educational institution approved under title IV of the federal higher education act. Loan repayment awards shall be used solely to repay such outstanding debt.
5. Default. Within such time as the commissioner shall by regulation provide, a recipient of an award shall have practiced as a teacher in an rural area in the state. If a recipient fails to comply fully with such conditions, the president shall be entitled to receive from such recipient an amount to be determined by the formula:
A = 2B(t-s)
______
t in which "A" is the amount the president is entitled to recover, "B" is the sum of all payments made to the recipient and the interest on such amount which would be payable if at the times such awards were paid they were loans bearing interest at the maximum prevailing rate; "t" is the total number of months in the recipient's period of obligated services; and "s" is the number of months of services actually rendered by the recipient. Any amount which the president is entitled to recover under this subdivision shall be paid within the five-year period beginning on the date that the recipient failed to comply with this condition. Any obligation to comply with such provisions shall be canceled upon the death of the recipient. The commissioner shall promulgate regulations to provide for the waiver or suspension of any financial obligation when compliance would involve extreme hardship.
6. Rules. The commissioner shall consult with the New York state center for rural schools, and the commissioner, in coordination with the corporation, shall promulgate regulations to effectuate the provisions and purposes of this section.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any criteria, rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to establishing the rural teacher education loan repayment program
Purpose
To establish a rural teacher education loan repayment program to provide loans to teachers who commit to teaching in an underserved rural area of the state.
Existing law
No current program exists.
Summary of provisions
Section 1 - Adds a new section 676-a to the education law to authorize the commissioner of education in consultation with the higher education services corporation to develop a rural teacher education loan repayment program. The program would provide awards of up to $20,000 per year to teachers who commit to serve in a designated rural underserved area for a minimum five-year period. Rural areas are defined as counties with a population of 200,000 or less or towns of with a population density of 150 or less per square mile. The bill establishes a loan recapture provision should the recipient fail to fulfill the completion of his or her five-year term of service.
Section 2 - Establishes an effective date 120 days after enactment.
Justification
The bill addresses the critical need for teachers to serve in rural areas of the state. Historically, it has been difficult for rural school districts to attract and retain teachers in areas such as the Southern Tier and Western New York. The bill will grant the commissioner of education the authority to develop a loan repayment program for teachers who commit to working in underserved areas of the state for at least five years. It provides the commissioner flexibility in determining qualifying regions of the state.
Legislative history
2018: S.8302 - Referred to higher education
Fiscal implications
Undetermined.
Effective date
120 days after becoming a law provided, however, that the commissioner shall have the power to immediately promulgate any rules or regulations necessary for the implementation of this act.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.