Section 92-25-002 - Attracting Excellence to Teaching Program002.01 Purposes The purposes of the Attracting Excellence to Teaching Program are to:
002.01A Attract outstanding students to major in shortage areas at the teacher education programs of Nebraska's postsecondary educational institutions;002.01B Retain resident students and graduates as teachers in the accredited or approved public and private schools of Nebraska; and002.01C Establish a loan contract that requires a borrower to obtain employment as a teacher in this state after graduation.002.02 Definitions For purposes of the Attracting Excellence to Teaching Program:
002.02AAETP shall mean the Attracting Excellence to Teaching Program. 002.02BBoard shall mean the State Board of Education.002.02CBorrower shall mean an eligible student who receives a loan pursuant to the AETP.002.02DDepartment shall mean the State Department of Education, which is comprised of the Board and the Commissioner of Education.002.02EEligible for the AETP shall mean an eligible student who: 002.02E1 graduated in the top quarter of his or her high school class or has a minimum cumulative grade point average of 3.0 on a four-point scale in an eligible institution;002.02E2 agrees to complete a teacher education program at an eligible institution and, for applicants applying for the first time on or after April 23, 2009, to complete the major on which the applicant's eligibility is based; and002.02E3 commits to teach in an accredited or approved public or private school in Nebraska upon successful completion of the teacher education program for which the applicant is applying to the AETP and to becoming certified pursuant to Sections 79-806 to 79-815 R.R.S.;002.02FEligible institution shall mean a not-for-profit college or university which: 002.02F1 is located in Nebraska;002.02F2 is accredited by a regional accrediting agency recognized by the United States Department of Education as determined to be acceptable by the Board;002.02F3 has a teacher education program; and002.02F4 if a privately funded college or university has not opted out of the program pursuant to Section 002.04C of this Chapter.002.02GEligible student shall mean an individual who: 002.02G1 is a full-time student;002.02G2 is enrolled in an eligible institution in an undergraduate or a graduate teacher education program working toward his or her initial certificate to teach in Nebraska;002.02G3 if enrolled at a state-funded eligible institution, is a resident student as described in Section 85-502 R.R.S. or, if enrolled in a privately funded eligible institution, would be deemed a resident student if enrolled in a state-funded eligible institution;002.02G4 for applicants applying for the first time on or after April 23, 2009, is a student majoring in a shortage area; and002.02G5 for applicants applying to receive a loan during fiscal year 2011-2012 or 2012-2013, is a student who previously received a loan pursuant to the AETP in the fiscal year immediately preceding the fiscal year in which the new loan would be received.002.02HEmployed as a teacher shall mean employment equivalent to 0.5 full-time employment (FTE) or greater under one (1) or more teaching contracts with an approved or accredited Nebraska school throughout the course of one (1) school year or a period of two (2) consecutive school terms that are the equivalent of one (1) school year (e.g., one (1) spring semester and the following fall semester). Substitute teachers who meet this requirement shall be considered employed as a teacher. This term also means employment by an Educational Service Unit (ESU) as a certificated employee as defined in Section 79-1234(2) R.R.S. when the certificated employee will be functioning as a teacher throughout the course of one (1) school year or a period of two (2) consecutive school terms that are the equivalent of one (1) school year (e.g., one (1) spring semester and the following fall semester) in an approved or accredited Nebraska school pursuant to authority provided in the Educational Service Unit Act (Section 79-1201 R.R.S., et. seq.). 002.02IEmployed as a full-time teacher shall mean full-time employment (FTE) equivalent to 1.0 FTE under one (1) or more teaching contracts with an approved or accredited Nebraska school throughout the course of one (1) school year or a period of two (2) consecutive school terms that are the equivalent of one (1) school year (e.g., one (1) spring semester and the following fall semester). Substitute teachers who meet this requirement shall be considered employed as a full-time teacher. This term also means employment by an Educational Service Unit (ESU) as a certificated employee as defined in Section 79-1234(2) R.R.S. when the certificated employee will be functioning as a teacher equivalent to 1.0 FTE throughout the course of one (1) school year or a period of two (2) consecutive school terms that are the equivalent of one (1) school year (e.g., one (1) spring semester and the following fall semester) in an approved or accredited Nebraska school pursuant to authority provided in the Educational Service Unit Act (Section 79-1201 R.R.S. et. seq.).002.02JFull-time student shall mean, in the aggregate, the equivalent of a student who in a twelve-month (12) period has completed or is enrolled in twenty-four (24) semester credit hours for undergraduate students or eighteen (18) semester credit hours for graduate students of classroom, laboratory, clinical, practicum, or independent study course work.002.02KLoan shall mean an amount of money advanced under a contract to a borrower pursuant to the AETP.002.02LMajoring in a shortage area shall mean pursuing a degree which will allow an individual to be properly endorsed to teach in a shortage area.002.02MRepayment period shall mean the time during which the borrower is required to make payments on the loan or loans.002. 02NRepayment status shall mean when a borrower meets any of the conditions triggering repayment commencement described in Section 002.05A of this Chapter.002.02OSecular field of teaching shall mean teaching areas covered by teaching endorsements identified in 92 NAC 24 excluding Religious Education.002.02PShortage area shall mean a secular field of teaching for which there is a shortage, as determined by the Department, of properly endorsed teachers pursuant to Section 004 of this Chapter, at the time the borrower first receives funds pursuant to the program.002.02QTeacher shall mean an individual who holds a valid teaching certificate and who is regularly employed for the instruction of pupils pursuant to Section 79-101 R.R.S. For purposes of this Chapter, this definition does not include administrative or special services certificate holders who are employed in positions requiring these endorsements.002.02RTeacher education program shall mean a program of study approved by the State Board of Education pursuant to subdivision (5) (g) of Section 79-318 R.R.S.002.03 Application Process 002.03AApplication. In order to be considered for a loan, an eligible student must complete the appropriate application forms prescribed by the Department. 002.03A1 Incomplete applications will not be considered for a loan.002.03BDeadlines.002.03B1 Applications must be submitted to the administrator responsible for the teacher education program in which the applicant is enrolled by a date determined by the administrator. Applications recommended by the institution must be received by the Department on or before December 1 of each year in which funds are available.002.03B2 Applications recommended by the institution for reallocated funds as described in Section 002.04B of this Chapter must be received by the Department on or before February 1 of each year in which reallocated funds are available.002.03CMaximum amounts. Eligible students may apply, on an annual basis, for loans in an amount of not more than three thousand dollars ($3,000) per year. Loans awarded to an eligible student shall not exceed a cumulative period exceeding five (5) consecutive years.002.03DAwards. Loans shall only be awarded through an eligible institution and funded pursuant to Section 79-8,137.05 R.R.S. Prior to receiving any money from a loan pursuant to the AETP, an eligible student shall enter into a contract with the Department.002.03EDistribution. The Department shall allocate the funds to be distributed for the AETP to all eligible institutions according to the formula set forth in Section 002.04 of this Chapter, except that the distribution of funds for each of fiscal years 2011-2012 and 2012-2013 shall be proportional based on the amounts applied for by eligible students at each eligible institution, and that no more than one hundred percent (100%) of such amounts shall be distributed.002.03E1 Eligible institutions shall act as agents of the Department in the distribution of funds to borrowers. 002.03E2 Eligible institutions shall disburse funds directly to the borrower in a lump sum unless another manner or method of disbursement or distribution has been authorized, in writing, by the borrower.002.04 Formula The formula for the distribution of the appropriated funds to eligible institutions that have not opted out of the AETP according to Section 002.04C of this Chapter, except as provided in Section 002.03E of this Chapter, shall be based on the percentage of the most recent teacher education program completer data generated by each eligible institution. The percentage of funds allocated to each eligible institution will match the institution's percentage of the total teacher education program completers from all eligible institutions.
002.04A The allocation of available funds will be reported to each participating eligible institution at the beginning of the school year, or no later than October 15 of each year. 002.04B Funds not awarded pursuant to Section 002.03B1 of this Chapter will be reallocated to those institutions that notify the Department on or by December 1 of the institution's desire to be considered for the reallocated funds. The reallocation of available funds will be reported to eligible institutions no later than December 15 of each year that those funds are available. 002. 04COpting Out Provisions. An eligible institution may opt out of the AETP by notifying the Commissioner of Education, in writing, postmarked or emailed by May 1 prior to the academic year for which loans are available, of the institution's intent not to participate in the AETP. Such notification will be considered in force until the Commissioner is notified, in writing, of the institution's intent to recommence its participation in the AETP.002.05 Loan Contract Provisions Prior to receiving any money from a loan pursuant to the AETP, an eligible student shall enter into a contract with the Department.
002.05ARepayment Commencement.002.05A1 For eligible students who applied for the first time prior to April 23, 2009: 002.05A1a If the borrower is not employed as a teacher in Nebraska for a time period equal to the number of years required for loan forgiveness or is not enrolled as a full-time student in a graduate program within six (6) months after obtaining an undergraduate degree for which a loan from the AETP was obtained or the borrower does not complete the requirements for graduation within five (5) consecutive years after receiving the initial loan under the AETP, then the loan must be repaid, with interest at the rate fixed pursuant to Section 45-103 R.R.S. accruing as of the date the borrower signed the contract.002.05A2 For eligible students who applied for the first time on or after April 23, 2009: 002.05A2a If the borrower is not employed as a full-time teacher in an approved or accredited school in Nebraska and teaching at least a portion of the time in the shortage area for which the loan was received for a time period equal to the number of years required for loan forgiveness and is not enrolled as a full-time student in a graduate program within six (6) months after obtaining an undergraduate degree for which a loan from the AETP was obtained or the borrower does not complete the requirements for graduation within five (5) consecutive years after receiving the initial loan under the AETP, then the loan must be repaid, with interest at the rate fixed pursuant to Section 45-103 R.R.S. accruing as of the date the borrower signed the contract and actual collection costs as determined by the Department.002.05A3 If the borrower fails to remain enrolled at an eligible institution or otherwise fails to meet the requirements of an eligible student, repayment of the loan shall commence within six (6) months after such change in eligibility.002.05A4 The interest rate for the entire repayment period shall be that which is in effect under Section 45-103 R.R.S. on the date that the borrower signed the contract.002.05BRepayment Procedures. Repayment will be made on a monthly basis on a schedule which allows up to two (2) years of payments for all loans received. The borrower, at his/her option, may accelerate payment on all or any part of the loan principal plus accrued interest at any time without penalty. Monthly payments must be received at the Department no later than the 15th of each month.002.05CPenalty. In the event the borrower fails to make a scheduled payment of any installment due, the entire unpaid indebtedness including interest due shall become, at the option of the Commissioner, immediately due and payable.002.05DRepayment Exceptions.002.05D1Cancellation. The repayment obligation shall be cancelled if the Commissioner determines that: 002.05D1a The borrower is unable to teach because s/he is permanently totally disabled, on the basis of verification from the Social Security Administration; or002.05D1b The borrower has died, on the basis of a death certificate or other evidence conclusive under State law provided by next of kin or personal administrator of the estate.002.05D2Deferment. A deferment of the repayment period may be granted by the Commissioner if the borrower is in repayment status and can substantiate that s/he is: 002.05D2a engaging in a full-time course of study at an institution of higher education;002.05D2b serving on active duty as a member of the Armed Forces of the United States, for a period not in excess of three (3) years;002.05D2c temporarily totally disabled as established by the sworn affidavit of a qualified physician, for a period not in excess of three (3) years;002.05D2d unable to secure employment by reason of the care required by a disabled child, spouse, or parent for a period not in excess of twelve (12) months; or002.05D2e seeking and unable to find full-time employment for a single period not in excess of twelve (12) months.002.05D3Qualification for Exceptions. To qualify for a cancellation or deferment, the borrower must notify the Department, in writing, of his or her claim and provide supporting documentation of the claim. If the borrower's claim is accepted, s/he will not be required to make repayments nor will interest accrue on the outstanding balance during the deferment period.002.05ELoan Forgiveness.002.05E1 For eligible students who applied for the first time prior to April 23, 2009: 002.05E1a If the borrower successfully completes the teacher education program and becomes certified pursuant to Sections 79-806 to 79-815 R.R.S., becomes employed as a teacher in this state within six (6) months of becoming certified, and otherwise meets the requirements of the contract, payments shall be suspended for the number of years that the borrower is required to remain employed as a teacher in this state under the contract. For each year that the borrower teaches in Nebraska pursuant to the contract, payments shall be forgiven in an amount equal to the amount borrowed for one (1) year, except that if the borrower teaches in a school district that is in a local system classified in the very sparse cost grouping as defined in Section 79-1003 R.R.S. or teaches in a school district in which at least forty percent (40%) of the students are poverty students as provided in Section 79-1003 R.R.S., payments shall be forgiven each year in an amount equal to the amount borrowed for two (2) years.002.05E2 For eligible students who applied for the first time on or after April 23, 2009: 002.05E2a If the borrower successfully completes the teacher education program and major for which the borrower is receiving a forgivable loan pursuant to the program and becomes certified pursuant to Sections 79-806 to 79-815 R.R.S. with an endorsement in the shortage area for which the loan was received, becomes employed as a full-time teacher teaching at least a portion of the time in the shortage area for which the loan was received in an approved or accredited school in Nebraska within six (6) months of becoming certified, and otherwise meets the requirements of the contract, payments shall be suspended for the number of years that the borrower is required to remain employed as a teacher in this state under the contract. Beginning after the first two (2) years of teaching full-time in Nebraska following graduation for the degree for which the loan was received, for each year that the borrower teaches full-time in Nebraska pursuant to the contract, the loan shall be forgiven in an amount equal to three thousand dollars ($3,000), except that if the borrower teaches full-time in a school district that is in a local system classified as very sparse as defined in Section 79-1003 R.R.S., teaches in a school building that provides free meals to all students pursuant to the community eligibility provision, teaches in a school building in which at least forty percent (40%) of the formula students are poverty students as defined in Section 79-1003 R.R.S., or teaches in an accredited or approved private school in Nebraska in which at least forty percent (40%) of the enrolled students qualified for free lunches as determined by the most recent data available from the Department, payments shall be forgiven each year in an amount equal to six thousand dollars ($6,000).002.05E3 When a loan has been forgiven pursuant to Section 002.05E of this Chapter, the amount forgiven may be taxable income to the borrower and the Department shall provide notification of the amount forgiven to the borrower, the Department of Revenue, and the United States Internal Revenue Service if required by the Internal Revenue Code.002.05FDefault. Failure of a borrower to either fulfill the terms necessary for loan forgiveness according to Section 002.05E of this Chapter or repay the loan according to Section 002.05A of this Chapter shall constitute a default. Borrowers in default may be referred to a collection agency according to Section 45-623 R.R.S.92 Neb. Admin. Code, ch. 25, § 002