ARTICLE 5.5. Graduate Assumption Program of Loans for Education [69618. - 69619.]

Cal. Education Code - EDC 5.5.

in effect

Cal. Education Code - EDC § 69618. Section 69618.

(a) The Legislature hereby recognizes the growing need for new faculty members at California’s colleges and universities. This need will be fueled largely by two factors: (1) the large number of current faculty approaching retirement age who will need to be replaced; and (2) the expected growth in enrollment demand in California. (b) The Legislature finds that the rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in student’s decision to pursue a graduate education. (c) It is the intent of the Legislature that the Graduate Assumption Program of Loans for Education be designed to encourage persons to complete their graduate educations and serve as faculty at an accredited California college or university. (d) As used in this article, “commission” means the Student Aid Commission.

Cal. Education Code - EDC § 69618.1. Section 69618.1.

(a) Program participants shall meet all of the following eligibility criteria prior to selection in the program and shall continue to meet these criteria, as appropriate, during the payment periods: (1) The participant shall be a United States citizen or eligible noncitizen. (2) The participant shall be a California resident attending an eligible school or college. (3) The participant shall be making satisfactory academic progress. (4) The participant shall have complied with United States Selective Service requirements. (5) The participant shall not owe a refund on any state or federal educational grant or have delinquent or defaulted student loans. (b) Any person enrolled in an institution of postsecondary education and participating in the loan assumption program set forth in this article may be eligible to receive a conditional warrant for loan assumption, to be redeemed pursuant to Section 69618.2 upon becoming employed as a full-time faculty member at a California college or university or the equivalent of full-time service as a faculty member employed part-time at two or more California colleges or universities. (c) (1) The commission shall award warrants to students with demonstrated academic ability and financial need, as determined by the commission pursuant to Article 1.5 (commencing with Section 69503). (2) The applicant shall have completed a baccalaureate degree program or be enrolled in an academic program leading to a baccalaureate level or a graduate level degree. (3) The applicant shall be currently enrolled in or admitted to a program in which he or she will be enrolled on at least a half-time basis each academic term as defined by an eligible institution. The applicant shall agree to maintain satisfactory academic progress. (4) The applicant shall have been judged by his or her postsecondary institution to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following: (A) Grade point average. (B) Test scores. (C) Faculty evaluations. (D) Interviews. (E) Other recommendations. (5) In order to meet the costs of obtaining a graduate degree, the applicant shall have received, or be approved to receive, a loan under one or more of the following designated loan programs: (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.). (B) Any loan program approved by the commission. (6) The applicant shall have agreed to teach on a full-time basis at one or more accredited California colleges or universities for at least three consecutive years after obtaining a graduate degree. (7) An applicant who teaches on less than a full-time basis may participate in the program, but is not eligible for loan repayment until that person teaches for the equivalent of a full-time academic year. (d) A person participating in the program pursuant to this section shall not receive more than one warrant.

Cal. Education Code - EDC § 69618.2. Section 69618.2.

The commission shall redeem an applicant’s warrant and commence loan assumption payments as specified in Section 69618.3 upon verification that the applicant has fulfilled all of the following: (a) The applicant has received a graduate degree from an accredited, participating institution. (b) The applicant has provided the equivalent of full-time instruction at one or more regionally accredited California colleges or universities for one academic year or the equivalent. (c) The applicant has met the requirements of the warrant and all other conditions of this article.

Cal. Education Code - EDC § 69618.3. Section 69618.3.

The terms of the loan assumptions granted under this article shall be as follows, subject to the specific terms of each warrant: (a) After a program participant has completed one academic year, or the equivalent of full-time teaching, at one or more regionally accredited, eligible California colleges or universities, the Student Aid Commission shall assume up to two thousand dollars ($2,000) of the participant’s outstanding liability under one or more of the designated loan programs. The initial year of eligible teaching shall begin within 10 years of receiving an initial conditional warrant from the commission. (b) After the program participant has completed two consecutive academic years, or the equivalent of full-time teaching, at one or more regionally accredited California colleges or universities, the commission shall assume up to an additional two thousand dollars ($2,000) of the participant’s outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to four thousand dollars ($4,000). (c) After a program participant has completed three consecutive academic years, or the equivalent of full-time teaching, at one or more regionally accredited California colleges or universities, the commission shall assume up to an additional two thousand dollars ($2,000) of the participant’s outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to six thousand dollars ($6,000).

Cal. Education Code - EDC § 69618.4. Section 69618.4.

(a) Except as provided in subdivision (b), in the event that a program participant fails to complete a minimum of three consecutive academic years of teaching as required by this article, under the terms of the agreement pursuant to paragraph (6) of subdivision (c) of Section 69618.1, the participant shall assume full liability for all student loan obligations remaining after the commission’s assumption of loan liability for the last academic year of qualifying instruction pursuant to Section 69618.3. (b) Notwithstanding subdivision (a), in the event that a program participant becomes unable to complete one of the three consecutive years of teaching service due to a serious illness, pregnancy, or other natural causes, the participant shall receive a deferral of the resumption of full liability for the loan for a period not to exceed one academic year.

Cal. Education Code - EDC § 69618.5. Section 69618.5.

(a) The commission shall accept nominations from accredited colleges and universities made pursuant to Section 69618.1. (b) The commission shall choose from among those nominations deemed financially needy with outstanding student loans pursuant to Article 1.5 (commencing with Section 69503) based upon criteria that may include the following: (1) Grades at the undergraduate level in the subject field in which the student intends to complete graduate work. (2) Grades in the undergraduate program. (3) Aptitude for graduate work in the subject fields. (4) General aptitude for graduate study. (5) Critical human resource needs. (c) The commission may develop additional criteria for the selection of award recipients consistent with the purposes of this article.

Cal. Education Code - EDC § 69618.6. Section 69618.6.

The commission shall administer this article, and shall adopt rules and regulations for that purpose. The rules and regulations shall include, but need not be limited to, provisions regarding the period of time for which a warrant shall remain valid and the development of projections for funding purposes. In developing these rules and regulations, the commission shall solicit the advice of representatives from postsecondary education institutions.

Cal. Education Code - EDC § 69618.7. Section 69618.7.

The commission shall work in conjunction with lenders participating in the Federal Family Education Loan Program to develop a streamlined application process for participation in the program set forth in this article.

Cal. Education Code - EDC § 69618.9. Section 69618.9.

Commencing with the 1998–99 fiscal year, the commission shall issue warrants for the assumption of up to 500 student loans for program participants eligible under this article. The issuance of warrants shall be subject to funding to be provided in the annual Budget Act for each fiscal year. Notwithstanding any other provision of law, no warrants for the assumption of loans under this article shall be issued in the 2003–04 fiscal year.

Cal. Education Code - EDC § 69619. Section 69619.

It is the intent of the Legislature that, commencing with the 1998–99 fiscal year, funding necessary for the administration of this student loan assumption program shall be included within the annual budget of the commission in an amount necessary to meet the student loan obligations incurred by the commission.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026