LD 1290 LR 584(01)
An Act To Provide Student Loan Debt Relief to Maine Teachers
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Sen. Libby of Androscoggin
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Future biennium cost increase - General Fund
FY 2017-18 FY 2018-19 Projections  FY 2019-20 Projections  FY 2020-21
Net Cost (Savings)
General Fund $27,500 $22,500 $22,500 $22,500
General Fund $27,500 $22,500 $22,500 $22,500
Fiscal Detail and Notes
The Finance Authority of Maine will require General Fund appropriations of $27,500 in fiscal year 2017-18 and $22,500 in fiscal year 2018-19 to establish and administer a student loan forgiveness program for teachers to match student loan forgiveness funds awarded to teachers under the United States Department of Education's teacher loan forgiveness program.  Of these amounts, $10,000 per year is for administrative costs and $5,000 in fiscal year 2017-18 is for one-time rulemaking costs.  The balance of $12,500 per year reflects the cost of forgiving one loan each year.  The actual cost of this provision will not be known until the number of teachers who apply and are deemed eligible for this program are identified, but the cost is expected to be significant.  In order for funds to be awarded to all eligible teachers under this program, additional General Fund appropriations will be required.