2020 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Plum
UVA - Loan Forgiveness Program

Item 203 #1h

Item 203 #1h

First Year - FY2021 Second Year - FY2022
Education: Higher Education
University of Virginia FY2021 $5,500,000 FY2022 $0 GF
FY2021 $5,500,000 FY2022 $0 NGF

Page 207, line 38, strike "$767,207,739" and insert "$778,207,739".

Page 210, after line 4, insert:

"N. Out of this appropriation in the first year, $5,500,000 from the general fund is provided as the state share of a quasi-endowment to be held by the University of Virginia, combined with matching funds of $5,500,000 from private giving. Earnings from the endowment shall fund a Public Service Loan Forgiveness Pilot Program to promote public service and entrepreneurship in the Commonwealth. The University of Virginia shall develop a detailed implementation plan for the pilot to include eligibility criteria, maximum loan forgiveness amounts per student, income limitations, administrative costs and processes, and evaluation criteria. Such plan shall be submitted by October 1, 2020 to the Secretary of Education, the chair of the Senate Finance Committee and the chair of the House Appropriations Committee for review. Disbursement of state general funds for the pilot shall be contingent upon approval of the plan.”


(This amendment provides funding to create the University of Virginia Public Service Loan Forgiveness Pilot Program. The objective of the program is to: (1) promote public service and entrepreneurship within the Commonwealth; (2) encourage out-of-state students at the University of Virginia to live and work in the Commonwealth upon graduation; and (3) make the University of Virginia more affordable and therefore more attractive to the widest group possible of talented students. Students who live in Virginia and enter public service jobs in Virginia or Washington, D.C., start a business in Virginia, or move to rural Virginia could receive up to $10,000 of loan forgiveness for three years of public service. The state funds of $5.5 million would be placed in a quasi-endowment and matched with private funds. Earnings from the fund would be used to administer the program and cover loan repayment. Prior to disbursement of the funds, the University of Virginia would develop a detailed implementation plan for review and approval by the Secretary of Education and the chairs of the Senate Finance Committee and House Appropriations Committee.)