A student must maintain continuous enrollment, which is defined as successful completion of at least twenty-four credit hours during the first twelve month period of enrollment and at least twenty-four credit hours each subsequent twelve month period of enrollment to receive renewed scholarship benefits. This act permits a student to maintain eligibility for a scholarship based on participation in an educational enrichment opportunity. An eligible student who is unable to successfully complete at least twenty-four semester credit hours in a twelve month period may seek a waiver from this requirement due to serious and unusual personal circumstances by appealing to the designated person or committee at the student's institution.

This act repeals language permitting an eligible student to renew Bright Flight scholarships for as long as the recipient is in compliance with the criteria to be a renewal student. Instead, a student may only renew for the second, third, and fourth years of postsecondary education.

This act expands Bright Flight to include forgivable loans in addition to academic scholarships. An eligible student or a renewal student may choose to receive forgivable loans for up to ten semesters or their equivalent. The amount of forgivable loans a student may receive depends on the type of institution a student attends. An eligible student or renewal student enrolled at a public four-year college or university, State Technical College of Missouri, or an approved private institution may elect to receive a loan of up to five thousand dollars per academic year. An eligible student or renewal student enrolled at a public community college may elect to receive a loan of up to two thousand dollars per academic year. Each loan is payable in no less than two payments. An eligible student or renewal student cannot receive more than twenty thousand dollars in forgivable loans in total. The loan amount, when combined with all other aid received by the student, cannot exceed the cost of attendance for the institution in which the eligible borrower is enrolled.

Eligible borrowers may qualify for loan forgiveness through Bright Flight by agreeing to be employed in the state of Missouri within one calendar year of stopping full-time school attendance, including graduate and professional education programs. Eligible borrowers must also enter into a contract with the Coordinating Board and satisfy the terms of the contract to have their loans forgiven.

The Coordinating Board must approve loan forgiveness on an annual basis. Each twelve months of qualifying employment authorizes the forgiveness of the loan or loans received within one academic year. Eligible borrowers that cease to be employed in Missouri and students that elect not to comply with the employment requirements or fail to comply with them, are required to repay all outstanding loan balances with interest.

Each contract between the Coordinating Board and an eligible borrower must include the following: the terms and conditions of the loan and repayment; a stipulation that no interest will be assessed on a forgivable loan while the student is enrolled full time, or part time with approval of the Coordinating Board; a provision that funds for forgivable loans are contingent on an appropriation; and the amount of any interest or penalties assessed if a student fails to maintain eligibility or meet the requirements of the program.

The Coordinating Board has authority to defer interest and principal payments under certain circumstances, including service in any branch of the Armed Forces of the United States.

This act is similar to SB 299 (2015), HCS/HB 1308 (2014) and a provision contained in SS/SB 494 (2014).

MICHAEL RUFF