AR SB27

Establishes the Teacher Candidate Loan Forgiveness Program administered by the Department of Higher Education to provide loans to Arkansas residents pursuing teacher licensure in high-needs subject areas.

Eligible borrowers must be enrolled as full-time juniors or seniors at Arkansas higher education institutions and majoring in degree programs leading to teacher licensure; loans capped at $5,000 per academic year with a $10,000 total lifetime limit.

Borrowers must sign written agreements to teach for five consecutive years in critical teacher shortage areas identified by the Department of Education immediately upon obtaining licensure.

Loan forgiveness accrues at 20% per year for each year of qualifying teaching in a critical shortage area; borrowers must repay loans with interest if they fail to meet service requirements or cease enrollment.

Repayment obligations are triggered if borrowers do not obtain licensure within one year of graduation, do not begin teaching immediately after licensure, or do not teach in designated shortage areas; deferment available if no qualified employment positions exist.