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House approves $15,000 teacher loan program with forgiveness schedule
Summary
The House passed first‑substitute House Bill 416 to create a $15,000 low‑interest loan for new teachers with partial forgiveness after five years and full forgiveness after 10; the measure passed 45‑27 and will go to the Senate.
Representative Lynn Hemingway, sponsor of the first substitute to House Bill 416, said the bill is designed to help retain new teachers by offering low‑cost mortgage loans of $15,000 to teachers in their first five years. "If they stay in the school district and teach for 5 years, we would forgive $5,000 of the loan," Hemingway said. "If they stay in the school districts and teach for another 5 years, so they have taught for 10 years, we would forgive the entire amount of the loan." He said borrowers would pay interest during the period and a state servicing unit is in place to handle origination and servicing.
Members praised the concept for retention but raised questions about overlap with existing programs. Representative Snow and others noted the T. H. Bell scholarship program and asked how this loan program would differ; Representative Menlove explained the difference in timing and purpose — TH Bell funds tuition while the Hemingway loan would provide post‑graduation housing assistance and would require coordination to avoid double counting years of service.
Representative Freuer and others asked about servicing and origination capacity; Hemingway said a department exists to service such loans. Supporters said similar programs in other states had success keeping teachers.
The House voted to pass First Substitute House Bill 416; the clerk recorded 45 yes votes and 27 no votes. The bill will be referred to the Senate for further consideration.
