Amends TCA Title 4; Title 49, Chapter 4 and Title 49, Chapter 7.

The bill requires the Tennessee student assistance corporation (TSAC) to establish a tuition loan program for students who are eligible to receive the in-state rate at a public institution of higher education. TSAC must annually remit to each institution an amount equal to the difference between the in-state tuition rate the student received at the institution and the out-of-state tuition rate the student would have been charged by the institution if the student did not qualify for the in-state tuition rate. ELIGIBILITY A student who is not eligible to receive the in-state tuition rate at a public institution of higher education must receive the in-state tuition rate at the institution in which the student is enrolled for no more than four years if the student does the following: (1) Enrolls in an institution that has an educator preparation program that has been approved by the state board of education, or is enrolled in a two-year program at an institution that has a transfer agreement with an approved educator preparation program in this state; (2) Pursues, and makes satisfactory academic progress in, a baccalaureate degree program leading to licensure as an educator; (3) Agrees, in writing, to serve as an educator in a public school in this state for no less than five consecutive years as a condition to TSAC's forgiveness of a note obligation; (4) Executes a note payable to TSAC in which the student promises to repay the difference between the in-state tuition rate the student received at the institution for each academic year attended and the out-of-state tuition rate the student would have been charged by the institution for each academic year attended, if the student did not receive the in-state tuition rate; and (5) Signs and submits an affidavit to TSAC stating that the student is either a citizen or a lawfully present noncitizen, or, in the case of a person without lawful immigration status, that the student will file an application to legalize the student’s immigration status as soon as the student is eligible. NOTES This bill further provides that the note payable to TSAC must be executed in accordance to the rules promulgated by TSAC; accrue interest at an annual rate of interest to be determined by TSAC, which begins accruing when the tuition loan enters repayment; and enters repayment on the date on which the student either fails to complete the baccalaureate degree in four academic years or graduates from an institution after successfully completing the student's degree and is not employed as an educator in a public school in this state within one year from the day of graduation or the student does not serve the minimum of five years as a public school educator. DEBT FORGIVENESS This bill requires TSAC to forgive a debt obligation secured by the note payable to TSAC if the student graduates from a public institution of higher education after successfully completing a baccalaureate degree program, obtains an educator license to teach in this state, and teaches full time at a public school in this state for no less than five consecutive years, the service of which must begin no later than one year from the date of graduation. The student must submit an application for forgiveness and provide evidence satisfactory to TSAC to show that the student has complied with the statutory requirements under this bill. Additionally, if TSAC finds that it is impossible for the student to teach in a public school in this state for five consecutive years due to the student's death or permanent and total disability, then TSAC must forgive the debt. CONFIDENTIALITY This bill requires information obtained by application and implementation of this program to be confidential and to only be used for the purposes of administering tuition payments. An institution that receives an affidavit must treat it as an education record of the individual under the federal Family Educational Rights and Privacy Act of 1974. EXEMPTION FROM VERIFICATION The Eligibility Verification for Entitlements Act generally requires every state governmental entity to verify that each applicant 18 years of age or older, who applies for a state or local public benefit from the entity, is a United States citizen or lawfully present in the United States. If the person claims to be a citizen, then certain documentation is required. If the person claims to be a qualified alien, then certain documentation is required and verification through either the SAVE program or the SEVIS system. This bill exempts from such verification the exemption from paying out-of-state tuition authorized by this bill. RULEMAKING This bill requires TSAC to promulgate rules to effectuate this bill. APPLICABILITY This bill applies to the 2023-2024 academic year and each academic year thereafter.