SENATE BILL No. 381
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-12-22.5.
Synopsis: Repayment of student loans. Provides that an individual
who: (1) obtained student loans to pay for postsecondary education
from an institution located in Indiana; and (2) resides and works in
Indiana after graduating from a postsecondary institution; may enter
into an agreement with the state student assistance commission to have
the commission assume the repayment of 25% of the principal and
interest due on the student loan each year the individual resides and
works in Indiana. Limits the repayment program to those students who
graduate after June 30, 2006.
Effective: July 1, 2006.
January 11, 2006, read first time and referred to Committee on Education and Career
Second Regular Session 114th General Assembly (2006)
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SENATE BILL No. 381
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-12-22.5; (06)IN0381.1.1. -->
SECTION 1. IC 20-12-22.5 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 22.5. Student Loan Repayment for Eligible Indiana
Sec. 1. As used in this chapter, "commission" refers to the state
student assistance commission established by IC 20-12-21-4.
Sec. 2. As used in this chapter, "eligible individual" refers to an
(1) obtains one (1) or more student loans to attend a qualified
institution located in Indiana;
(2) graduates after June 30, 2006, from a qualified institution
located in Indiana; and
(3) following graduation, resides and is employed in Indiana.
Sec. 3. As used in this chapter, "qualified institution" has the
meaning set forth in IC 20-12-21.1-1(e).
Sec. 4. (a) The commission shall enter into a written agreement
with an eligible individual that provides that for each year:
(1) the eligible individual resides; and
(2) during which the eligible individual is employed;
in Indiana, the commission shall assume the repayment of
twenty-five percent (25%) of the principal and interest due on any
student loans the eligible individual received to attend a qualified
institution, following the eligible individual's graduation from the
(b) An eligible individual may annually enter into an agreement
under this section for each year the eligible individual resides and
is employed in Indiana following the eligible individual's
graduation from a qualified institution.
Sec. 5. The commission may adopt rules under IC 4-22-2 to
carry out this chapter. Rules adopted under this section may
require an eligible individual to provide proof that the eligible
individual resides and is employed in Indiana.