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 Bill Text - AB-700 Student loans: public service educational loan forgiveness program.

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 |Add To My Favorites |Track Bill | Version: 02/14/25 - Introduced

 AB-700 Student loans: public service educational loan forgiveness program.(2025-2026)

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 Date Published: 02/14/2025 09:00 PM

AB700:v99#DOCUMENTBill Start

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 700

Introduced by Assembly Member Caloza

February 14, 2025

 An act to add Section 69518.5 to the Education Code, relating to student loans.

LEGISLATIVE COUNSEL'S DIGEST

AB 700, as introduced, Caloza.
 Student loans: public service educational loan forgiveness program.

Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.

The federal Public Service Loan Forgiveness Program was created in 2007 by the federal College Cost Reduction and Access Act and requires certain student loans to be forgiven after 10 years of public service, as provided.

This bill would require the commission to establish a public service educational loan forgiveness program of up to $10,000 per applicant, as specified. The bill would require applicants for the program to have made continuous payments on their debt and be active employees of a state agency, local government agency, or nonprofit organization, as defined, who have
 served for a minimum of 10 years. The bill would require an applicant to provide proof of full-time employment and for the applicant’s supervisor, manager, or a nonprofit organization board member to attest, under penalty of perjury, that the applicant is in good standing with the respective agency or nonprofit organization for which they serve. By expanding the crime of perjury, and to the extent that the bill would otherwise impose additional duties on local government officials, the bill would impose a state-mandated local program. The bill would create the Public Service Education Loan Forgiveness Fund and authorize the commission to accept donations for purposes of the program and deposit them in the fund. The bill would require the commission to monitor the program for fraud and to annually report to the Legislature on the program, as specified. The bill would make the operation of the program contingent upon an appropriation in the annual Budget Act or another statute.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 YES 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 69518.5 is added to the Education Code, to read:

69518.5.

 (a) It is the intent of the Legislature in enacting this section to provide an alternative path to public service loan forgiveness for individuals working in public service in this state if the federal Public Service Loan Forgiveness Program that was created in 2007 by the federal College Cost Reduction and Access Act (Public Law 110-84) is repealed or made otherwise obsolete.

(b) The commission shall establish a public service education loan forgiveness program.

(c) The commission shall develop guidelines and materials for the implementation of this program. All guidelines and materials shall be posted to the commission’s internet website.

(d) The commission shall award each applicant who qualifies for educational loan forgiveness an amount that does not exceed reasonable educational loan amounts, and who has made continuous payments on their debt, as determined by the commission, not to exceed ten thousand dollars ($10,000).

(e) Applicants shall be an active employee of any state agency, local government agency, or nonprofit organization who has served for a minimum of 10