Subdivision 1. Definitions. (a) For purposes of this section, the terms in this subdivision have the meanings given them.
(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's or bachelor's degree preparing individuals to obtain an aviation mechanic's certificate from the Federal Aviation Administration from a postsecondary institution located in Minnesota, and (2) has obtained an aviation mechanic's certificate from the Federal Aviation Administration.
(c) "Qualified education loan" means a government, commercial, or foundation loan used by an individual for actual costs paid for tuition and reasonable educational and living expenses related to the postsecondary education of the qualified aircraft technician or qualified pilot.
(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's degree preparing individuals to obtain an airline transport pilot certificate from a postsecondary institution located in Minnesota, and (2) is in the process of obtaining or has obtained an airline transport pilot certificate.
Subd. 2. Creation of account. (a) An aviation degree loan forgiveness program account is established in the special revenue fund to provide qualified pilots and qualified aircraft technicians with financial assistance in repaying qualified education loans. The commissioner must use money from the account to establish and administer the aviation degree loan forgiveness program.
(b) Money in the aviation degree loan forgiveness program account is appropriated to the commissioner for purposes of this section, does not cancel, and is available until expended.
Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program under this section, an individual must:
(1) be a qualified pilot or qualified aircraft technician;
(2) have qualified education loans;
(3) reside in Minnesota; and
(4) submit an application to the commissioner in the form and manner prescribed by the commissioner.
(b) An applicant selected to participate must sign a contract to agree to serve a five-year full-time service obligation according to subdivision 4. To complete the service obligation, the applicant must work full time in Minnesota as a qualified pilot or qualified aircraft technician. A participant must complete one year of service under this paragraph for each year the participant receives an award under this section.
Subd. 4. Service obligation. (a) Before receiving loan repayment disbursements and as requested, a participant must verify to the commissioner that the participant is employed in a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
(b) If a participant does not fulfill the required service obligation, the commissioner must collect from the participant the total amount paid to the participant under the loan forgiveness program plus interest at a rate established according to section 270C.40. The commissioner must deposit the money collected in the aviation degree loan forgiveness account. The commissioner must allow waivers of all or part of the money owed the commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented fulfillment of the minimum service commitment.
Subd. 5. Loan forgiveness. (a) The commissioner may select eligible applicants each year for participation in the aviation degree loan forgiveness program, within the limits of available funding. Applicants are responsible for securing their own qualified education loans.
(b) For each year that the participant meets the eligibility requirements under subdivision 3, the commissioner must make annual disbursements directly to:
(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified education loans, whichever is less; and
(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's qualified education loans, whichever is less.
(c) An individual may receive disbursements under this section for a maximum of five years.
(d) The participant must provide the commissioner with verification that the full amount of the loan repayment disbursement received by the participant has been applied toward the designated qualified education loan. After each disbursement, verification must be received by the commissioner and approved before the next repayment disbursement is made.
(e) If the participant receives a disbursement in the participant's fifth year of eligibility, the participant must provide the commissioner with verification that the full amount of the participant's final loan repayment disbursement was applied toward the designated qualified education loan. If a participant does not provide the verification as required under this paragraph within 12 months of receipt of the final disbursement, the commissioner must collect from the participant the total amount paid to the participant under the loan forgiveness program plus interest at a rate established according to section 270C.40. The commissioner must deposit the money collected in the aviation degree loan forgiveness program account.
Subd. 6. Rules. The commissioner may adopt rules to implement this section.
2017 c 89 art 2 s 12; 2018 c 207 s 1; 2019 c 64 art 2 s 19-21
Structure Minnesota Statutes
Chapters 135A - 137 — Postsecondary Education
Chapter 136A — Higher Education
Section 136A.002 — Definitions.
Section 136A.01 — Office Of Higher Education.
Section 136A.03 — Executive Officers; Employees.
Section 136A.031 — Student Advisory Council.
Section 136A.0411 — Collecting Fees.
Section 136A.0412 — Acceptance Of Private Funds; Appropriation.
Section 136A.05 — Cooperation Of Institutions Of Higher Education.
Section 136A.051 — Student Records And Data.
Section 136A.055 — Developmental Education Reporting.
Section 136A.057 — Student Transfer Reporting.
Section 136A.06 — Federal Funds.
Section 136A.091 — Summer Academic Enrichment Program.
Section 136A.095 — Grants-in-aid; Purpose.
Section 136A.096 — Financial Aid Goals.
Section 136A.101 — Definitions.
Section 136A.103 — Institution Eligibility Requirements.
Section 136A.1201 — Minnesota Promise.
Section 136A.121 — State Grant Program.
Section 136A.1215 — Grants For Students With Intellectual And Developmental Disabilities.
Section 136A.123 — Mn Reconnect Program.
Section 136A.1241 — Fostering Independence Higher Education Grants.
Section 136A.125 — Child Care Grants.
Section 136A.126 — Indian Scholarships.
Section 136A.1274 — Underrepresented Student Teacher Grants.
Section 136A.1275 — Student Teacher Grants In Shortage Areas.
Section 136A.1276 — Alternative Teacher Preparation Grant Program.
Section 136A.131 — Accounting And Records.
Section 136A.1311 — Cash Flow.
Section 136A.1312 — Financial Aid Administrator, Professional Judgment.
Section 136A.1313 — Financial Aid Audits.
Section 136A.15 — Definitions.
Section 136A.155 — Additional Institution Eligibility Requirements.
Section 136A.16 — Powers And Duties Of Office.
Section 136A.162 — Classification Of Data.
Section 136A.1701 — Supplemental And Additional Loans.
Section 136A.1702 — Legislative Oversight.
Section 136A.1704 — Student Loan Refinancing.
Section 136A.171 — Revenue Bonds; Issuance; Proceeds.
Section 136A.172 — Negotiable Notes; Issuance; Conditions.
Section 136A.173 — Negotiability; Bond Anticipation Notes; Payment; Conditions.
Section 136A.174 — Security For Bonds.
Section 136A.175 — Refunding Revenue Bonds; Proceeds; Investments.
Section 136A.176 — Bonds Not State Obligations.
Section 136A.177 — Rights Of Bondholders.
Section 136A.178 — Legal Investments; Authorized Securities.
Section 136A.1785 — Loan Capital Fund.
Section 136A.1787 — Self Loan Revenue Bonds Annual Certificate Of Need.
Section 136A.1788 — Student Loan Debt Counseling.
Section 136A.1789 — Aviation Degree Loan Forgiveness Program.
Section 136A.1791 — Teacher Shortage Loan Repayment Program.
Section 136A.1792 — Promotion Of Federal Public Service Loan Forgiveness Programs.
Section 136A.1793 — Promotion Of Teacher Loan Forgiveness Programs.
Section 136A.1794 — Agricultural Education Loan Forgiveness Program.
Section 136A.1795 — Large Animal Veterinarian Loan Forgiveness Program.
Section 136A.1796 — Tribal College Supplemental Grant Assistance.
Section 136A.18 — Legislative Finding, Declaration, And Directive.
Section 136A.23 — Trustees Of Incorporated Colleges May Prescribe Course Of Study; Annual Report.
Section 136A.231 — Education; Postsecondary Students; Work-study Programs.
Section 136A.232 — Administration; Agreements With Educational Facilities.
Section 136A.233 — Work-study Grants.
Section 136A.246 — Dual Training Competency Grants.
Section 136A.26 — Memberships; Officers; Compensation; Removal.
Section 136A.28 — Definitions.
Section 136A.29 — Powers; Duties.
Section 136A.30 — Source Of Payment Of Expenses.
Section 136A.31 — Notes Of The Authority.
Section 136A.32 — Bonds Of The Authority.
Section 136A.33 — Trust Agreement.
Section 136A.34 — Revenue Refunding Bonds.
Section 136A.35 — Bonds Are Not State Obligation.
Section 136A.37 — Remedies Of Bondholders And Trustees.
Section 136A.38 — Bonds Eligible For Investment.
Section 136A.39 — Exemption From Taxes And Other Restrictions.
Section 136A.40 — Administration.
Section 136A.41 — Conflict Of Interest.
Section 136A.42 — Annual Report.
Section 136A.62 — Definitions.
Section 136A.63 — Registration.
Section 136A.64 — Information Required For Registration.
Section 136A.645 — School Closure.
Section 136A.646 — Additional Security.
Section 136A.65 — Approval Of Degrees And Name.
Section 136A.653 — Exemptions.
Section 136A.657 — Exemption; Religious Schools.
Section 136A.658 — Exemption; State Authorization Reciprocity Agreement Schools.
Section 136A.66 — List Of Registered Institutions.
Section 136A.67 — Registration Representations.
Section 136A.672 — Student Complaints.
Section 136A.675 — Risk Analysis.
Section 136A.685 — Private Institutions; Adjudication Of Fraud Or Misrepresentation.
Section 136A.821 — Definitions.
Section 136A.8225 — School Closure.
Section 136A.823 — License Renewal.
Section 136A.825 — Permits For Solicitors.
Section 136A.826 — Information To Students.
Section 136A.828 — Prohibitions.
Section 136A.829 — Revocation Of License Or Permit.
Section 136A.8295 — Student Complaints.
Section 136A.831 — Injunction.
Section 136A.833 — Exemptions.
Section 136A.834 — Exemption; Religious Schools.
Section 136A.861 — Intervention For College Attendance Program Grants.
Section 136A.87 — Planning Information For Postsecondary Education.
Section 136A.901 — Spinal Cord Injury And Traumatic Brain Injury Research Grant Program.
Section 136A.902 — Spinal Cord And Traumatic Brain Injury Advisory Council.