S.B. 388 Summary

• Establishes a teacher loan program administered by the Department of Education in partnership with a Hawaii-based financial institution to provide financial support to teachers in hard-to-fill positions.

• Provides loans up to $5,000 per borrower for teachers who relocate to Hawaii or accept positions in different complex areas, with priority for those moving to the state or transferring schools.

• Forgives loans for borrowers who become licensed teachers in Hawaii or commit to teach full-time for seven years at Hawaii public schools or charter schools in special education, shortage categories, Title 1 schools, or rural areas.

• Requires borrowers who fail to meet forgiveness conditions to repay loans with terms, interest rates, and repayment periods to be determined by the board before the loan is made.

• Creates a teacher loan program revolving fund to be capitalized by legislative appropriations, private contributions, and loan repayments, with up to five percent available for administrative expenses.