BILL ANALYSIS �
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: SB 212
AUTHOR: Pavley
AMENDED: April 11, 2013
FISCAL COMM: Yes HEARING DATE: May 1, 2013
URGENCY: Yes CONSULTANT: Lynn Lorber
SUBJECT : Assumption Program of Loans for Education.
SUMMARY
This bill appropriates $5 million, from an unspecified
source, for 7,200 new warrants for the assumption of school
loans for teachers in identified areas of a shortage of
teachers.
BACKGROUND
The Assumption Program of Loans for Education (APLE),
administered by the California Student Aid Commission, was
established in 1983 to provide loan assumption benefits to
credentialed teachers. Generally, APLE warrants are given
to credential candidates (e.g. students); the warrants are
then redeemed for the loan assumption benefit once the
candidate has earned a credential and completed a year of
eligible teaching. The program is designed to increase the
number of qualified teachers in disadvantaged schools or
high-priority subject areas. The program "forgives" up to
$11,000 of college loan debt for a person who teaches for
four consecutive years in a qualifying school or subject
area (paying $2,000 for the first year of teaching service
and $3,000 for each of the next three years of teaching).
Qualifying schools include those with high proportions of
low-income youth or emergency permit teachers and those
located in rural areas. The subject area shortages are
annually determined by the Superintendent of Public
Instruction and may vary from year to year; math, science
and special education have been listed consistently for
many years. (Education Code � 69612)
Additional loan forgiveness of $1,000 per year for up to
four years is provided for those who teach math, science or
SB 212
Page 2
special education (for a total of $15,000) and an
additional $1,000 is provided for those who teach math,
science or special education in schools with an academic
performance index (API) of 1 or 2 (for a total of $19,000).
(EC � 69613.8)
The Student Aid Commission is prohibited from awarding a
greater number of agreements than is authorized in the
annual Budget Act. (EC � 69615.8)
Other loan assumption programs include:
1) Graduate APLE. (EC � 696618)
2) California Physician Assistant Loan Assumption
Program. (EC � 69660)
3) Public Interest Attorney Loan Repayment Program. (EC
� 69740)
4) State Nursing Assumption Program of Loans for
Education. (EC � 70100)
ANALYSIS
This bill appropriates $5 million, from an unspecified
source, for 7,200 new warrants for the assumption of school
loans for teachers in identified areas of a shortage of
teachers. Specifically, this bill:
1) For the 2013-14 fiscal year, requires the Student Aid
Commission to award 7,200 new warrants for the
assumption of loans pursuant to the Assumption Program
of Loans for Education (APLE).
2) Appropriates $5 million from the General Fund to the
Student Aid Commission for the funding of warrants for
the 2013-14 fiscal year.
3) Deletes language that links APLE funding to the annual
Budget Act.
SB 212
Page 3
4) Includes an urgency clause, based on the need to
adequately fund APLE for the 2013-14 fiscal year.
STAFF COMMENTS
1) Need for the bill . According to the author,
"California currently faces a critical shortage of
teachers. Despite the current need for more teachers
and the financial assistance APLE provided, the
Governor removed APLE funding for new applicants from
the 2012-13 budget. As such, students who wish to
become teachers but do not receive other financial aid
packages must shoulder the entirety of their student
loan burden."
1) Status of funding . Current law links the award of
warrants for loan assumption to funding provided in
the annual Budget Act. The Governor vetoed language
in the 2012-13 Budget that would have authorized a
total of 7,300 warrants for loan assumption (100 were
for nursing). The Governor's proposed 2013-14 Budget
does not include funding for loan assumption warrants,
and there does not appear to be an effort by the
Legislature to pursue such funding in the Budget Act.
2) Why a bill ? This measure makes no significant
underlying policy changes to the APLE program. The
contemplated action of this measure is better suited
for deliberation and action in the Budget Committee.
3) Related legislation . SB 705 (Block) appropriates $50
million, from an unspecified source, to the Board of
Governors of the California Community Colleges to be
allocated (1) $25 million for Disabled Students
Programs and Services, and (2) $25 million for
Extended Opportunity Programs and Services. SB 705 is
scheduled to be heard by this Committee on May 1,
2013.
SB 285 (De Leon) provides for the use of funds from the
College Access Tax Credit Fund to increase the amount
of the Cal Grant B Access Award up to a maximum of
$5,000 per award per academic year. SB 285 is pending
in the Senate Appropriations Committee.
SB 212
Page 4
SUPPORT
None on file.
OPPOSITION
None on file.