Today's Law As Amended


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AB-140 California Kickstart My Future Loan Forgiveness Program. (2019-2020)



As Amends the Law Today


SECTION 1.

 Article 16 (commencing with Section 69820) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:

Article  16. California Kickstart My Future Loan Forgiveness Program
69820.
 (a) The California Kickstart My Future Loan Forgiveness Program is hereby established under the administration of the Student Aid Commission.
(b) The purpose of the program is to provide grants to eligible applicants to help alleviate the burden of federal student loan debt for recent California college graduates.
(c) The commission shall develop an application process with criteria consistent with requirements of this article, and may adopt rules and regulations for the implementation of the program consistent with this article.
69821.
 For purposes of this article, the following definitions shall apply:
(a) “Commission” means the Student Aid Commission.
(b) “Eligible applicant” means an applicant who meets the requirements of Section 69822.
(c) “Income” means the total adjusted gross income of the applicant and the applicant’s spouse, if applicable.
(d) “Program” means the California Kickstart My Future Loan Forgiveness Program.
69822.
 In order to be eligible for an award described in Section 69823, an applicant shall meet all of the following requirements:
(a) Be a California resident or meet the requirements of Section 68130.5.
(b) Have graduated and obtained an undergraduate degree from a college or university with its headquarters located in California in or after the 2018–19 academic year.
(c) Have applied for this program within two years of obtaining the degree described in subdivision (b).
(d) Be a participant in a federal income-driven repayment plan whose payment amount is generally 10 percent of discretionary income.
(e) Have income of less than fifty thousand dollars ($50,000).
(f) Work in California, if employed.
(g) Not be in default in the repayment of any state or federal student loan.
(h) Not have failed to comply with the terms of any service or repayment condition imposed by an award made pursuant to this chapter.
69823.
 (a) Subject to an available and sufficient appropriation, an eligible applicant shall be eligible for a student loan forgiveness award equal to 100 percent of his or her monthly federal income-driven repayment plan payments for 24 months of repayment under the federal program.
(b) (1) An award granted under this section shall be deferred for a recipient who has been granted a deferment or forbearance under the federal income-driven repayment plan.
(2) Upon the completion of the deferment or forbearance period, the recipient shall be eligible to receive an award for the remaining time period under this section.
(c) (1) A recipient who no longer meets the requirements of Section 69822 at the time any payment is made under this program shall be required to refund that payment to the state.
(2) The Franchise Tax Board may recover payments owed pursuant to paragraph (1) in accordance with rules and regulations adopted by the commission.