Purpose:
To create opportunities for college students to reduce their debt in exchange for volunteer work, benefiting communities and public services.
Section 1: Findings
The Legislature finds that:
- Student debt is a growing financial burden.
- Community support in afterschool programs and senior care facilities is vital for social welfare.
- Engaging students in volunteer service offers mutual benefits for students and communities.
Section 2: Debt Reduction Program
- Eligibility: College students with federal or state student loans may apply to participate.
- Volunteer Service: Students may volunteer in approved community programs, including:
- Afterschool Programs: Assisting in tutoring, mentorship, and recreational activities.
- Senior Care: Providing companionship, assistance with daily tasks, and wellness activities in senior homes.
- Debt Forgiveness: For every 100 hours of documented volunteer service, students will receive a set reduction in their student loan balance, capped annually.
Section 3: Program Administration
- The program will be managed by the Department of Education in partnership with local community organizations.
- Approved organizations will provide documentation of service hours and feedback on student contributions.
Section 4: Funding and Oversight
- A designated fund within the Department of Education will manage reimbursements for loan reductions.
- An oversight committee will review program success, compliance, and community impact.
Section 5: Effective Date
This Act shall take effect on July 1 following enactment.