SB 3368 Summary

• Establishes a teacher loan forgiveness program administered by the Department of Education in partnership with a Hawaii-based financial institution to provide loans to teachers committing to two years of full-time service in Hawaii public schools.

• Prioritizes loan applications from teachers agreeing to teach in rural areas as determined by the superintendent.

• Requires applicants to obtain a Hawaii teachers standard board license prior to applying for the program.

• Cancels loan liability upon borrower death or permanent total disability.

• Imposes repayment obligations on borrowers who fail to complete the two-year teaching commitment, including return of awarded funds, monthly penalties, and interest charges.

• Appropriates unspecified general revenue funds for fiscal year 2024-2025 to support the program, with an accompanying expenditure ceiling waiver.

• Takes effect July 1, 2024.