MN HF2175

Creates TeachMN program (section 122A.80) providing fixed-rate forgivable loans to teacher candidates in high-needs areas and schools, with loan forgiveness after four years of teaching service and up to five years to fulfill the teaching obligation.

Creates Stepping Up for Kids program (section 122A.81) providing financial assistance to paraprofessionals enrolled in Minnesota teacher licensure programs, with four-year service commitment requirement in Minnesota school districts.

Modifies existing American Indian teacher preparation grants (section 122A.63) to emphasize scholarships while allowing loans for additional living expenses based on congressional methodology for financial needs determination.

Appropriates $10 million annually for fiscal years 2016-2017 for TeachMN loans, $2 million annually for Stepping Up for Kids, and $280,000 annually for American Indian teacher preparation grants.

Excludes loan forgiveness amounts from income calculations for child care subsidy eligibility and adds tax subtraction for loan forgiveness under both new teacher programs for taxable years beginning after December 31, 2014.