An Act To Increase the Number of Science, Technology, Engineering and Mathematics Professionals in Maine
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.
§ 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.
§ 12923. Maine Science, Technology, Engineering and Mathematics Loan Fund
§ 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.
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.
| GENERAL FUND | 2015-16 | 2016-17 |
|
All Other
|
$10,000,000 | $0 |
 |
|
|
| GENERAL FUND TOTAL | $10,000,000 | $0 |
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.