Arizona Commission for Postsecondary Education … expanding access and increasing success in postsecondary education for Arizonans Annual Report for Math, Science, and Special Education Teacher Loan Forgiveness Program (MSSE) Fiscal Year 2011 - 2012 Arizona Commission for Postsecondary Education 2020 North Central, Suite 650 Phoenix, Arizona 85004 Tel: (602) 258-2435 | Fax: (602) 258-2483 Email: acpe@azhighered.gov | Website: http://www.azhighered.gov December 1, 2012 The Honorable Janice K. Brewer, Governor The Honorable Steve Pierce, President of the Senate The Honorable Andy Tobin, Speaker of the House of Representatives The Honorable Ken Bennett, Secretary of State Mr. Vincent Alascia, State Documents Librarian, AZ Library, Archives, and Public Records I respectfully submit the enclosed annual report on the Math, Science, and Special Education Teacher Loan Forgiveness Program (MSSE) on behalf of the Arizona Commission for Postsecondary Education (ACPE). The ACPE Commissioners and staff remain committed to investing themselves in the work of higher education through their mission of increasing access and expanding success in postsecondary education for Arizonans. This report reflects that commitment. Elements of this report include a description of the program, the number of applicants, the number of loan recipients, the qualifying institutions they attended, the name of the K-12 school where MSSE graduates are employed and the number of good cause exceptions requested/granted. In the conclusion the Commission makes a request for increased funding. Established in the 2007 legislative session, the MSSE Program was designed to solve two problems: (1) an Arizona teacher shortage in specific areas and (2) novice teachers leaving the profession due to a burdensome loan debt and modest pay. In FY 2012 the MSSE program transferred to the Commission and that same year the program was expanded to include the over 7,000 education majors attending private colleges and universities in addition to the more than 7,600 education majors in the public universities which are already part of the program. Unfortunately, the annual appropriation was cut to $176,000 in FY 2011 from over $2.2M in FY 2010 thus drastically limiting the number of students that can be served. A copy of the annual report and more detailed information about the Arizona Commission for Postsecondary Education, its administrative functions, initiatives and its collaboration and partnerships is available from the website www.azhighered.gov or by contacting our office at 602.258.2435. Respectfully Submitted, Dr. April L. Osborn, Executive Director Arizona Commission for Postsecondary Education cc: Reed Spangler, Senate Education Research Analyst Tom Ritland, JLBC Fiscal Analyst Illya Riske, OSPB Budget Analyst Brooke White, House Education Committee Research Analyst The Arizona Commission for Postsecondary Education (ACPE) Math, Science, and Special Education Teacher Loan Forgiveness (MSSE) Program FY 2011-2012 Annual Report Submitted December 1, 2012 Dr. April L. Osborn, Executive Director Introduction and Description of the Program The Math, Science, and Special Education Teacher Loan Forgiveness Program (MSSE) was created in 2007. This student-centered, need-based forgivable loan was designed to increase the number of math, science and special education teachers in the public K-12 system in Arizona by financially supporting and encouraging Arizona resident college students to pursue a teaching career in these identified high need fields and to remain in the State after graduation. Forgivable loans are granted to eligible students attending a qualifying public university or private college/university in the State to help defray the cost of tuition, fees and instructional materials. To have the loan forgiven, students must sign a promissory note each year agreeing to teach in these subject areas in a public K-12 school in Arizona for the number of years they received the loan funding plus one year. Students who do not meet the forgiveness criteria must repay the loan funds plus any interest. Statutory modifications were made to the MSSE Program in the 2010 legislative session. Two significant changes were made. First, eligibility was extended to students attending any regionally or nationally accredited private institution. Second, the administration of the MSSE program was moved to the Commission in FY 2012. This administrative transfer included all elements including the awarding of forgivable loans and the administration of all promissory notes/contracts between the Arizona Board of Regents (ABOR) and the loan recipients since the inception of the program. Additional legislative changes included:     Capping the annual loan amount at $7,000 Fixing the interest rate to 7% Requiring that all applicants have a Free Application for Federal Student Aid (FAFSA) on file Adding the teaching shortage area of elementary education in a specified geographic area Due to the limited funding in FY 2012 of $176,000, the Commission added additional administrative requirements:    Loan eligibility reduced to three years. Students must be a junior or senior (completed at least 60 college credit hours) at the time of application. The Federal Pell Grant must be a part of their financial aid package. 3 Who Benefited from the Forgivable Loan? In FY 2012 thirty-three MSSE loans were disbursed, 13 loans to initial recipients and 20 loans to continuing recipients. The loan recipients attended both public and private postsecondary institutions for a total disbursement of $159,068. The table below provides a student profile for those who received loans in FY 2012. MSSE FY 2012 Student Profile Total Applicants Total Recipients 36 33 Total Average Loan Disbursement Amount $159,068 $4,820 Average Age Initial Continuing of Recipients Recipients Recipients 28 13 20 The following pie charts represent a breakout of the institutions the thirty-three loan recipients attended and the recipient’s degree programs. Recipients by Institution Distribution: Grand Canyon University, 2 Ottawa University, 3 University of Arizona, 3 Arizona Christian University, 2 Arizona State University 8 Math 7 Science University of Phoenix, 1 Arizona State University, 15 Northern Arizona University 5 Math 2 Special Education University of Arizona 2 Math 1 Special Education Ottawa University 3 Math Arizona Christian University 2 Math Northern Arizona University, 7 Grand Canyon University 1 Science 1 Special Education University of Phoenix 1 Elementary Education In FY 2012 nearly a quarter of the MSSE recipients attended private postsecondary institutions, this is remarkable because it is the first year that the private sector was included in the program. Seven thousand private sector undergraduate education majors will help the MSSE Program reach its goals. 4 Recipients by Degree Program Elementary Ed. in a Geographic Area Exp. a Shortage of Teachers, 1 Special Education, 4 Math, 20 Science, 8 Status of Recipients in MSSE Program from Inception Through FY 2012 Tracking responsibilities are significant for the MSSE Program for each loan recipient is required to be tracked between seven to eleven years. For students who enter into repayment, the relationship can increase to 15 years. With the conclusion of FY 2012, 195 students have participated in the MSSE Program. Below is a listing of the current status of the recipients.        19 are still enrolled in a postsecondary institution 19 are in their twelve month grace period (allowed by statue) 103 are currently teaching in a public K-12 school in Arizona 30 have had their loan forgiven for completing their teaching service 10 are currently in repayment 3 have paid their loan balance in full 11 may potentially be placed in repayment Although allowed by statue, in FY 2012 the Commission did not receive any requests for good cause exceptions to student loan repayments; therefore, none were granted. FY 2013 will be the first year the Commission begins collecting the five year teacher retention data for the 30 individuals whose loans have been forgiven through teaching. The following is a list of the public K-12 schools at which the 103 loan recipients were employed. 5 K-12 Schools were MSSE Graduates are Serving their Teaching Obligation in FY 2012 Alhambra Traditional School Lattie Coor Legacy Traditional Charter Amy L. Houston Academy School Apache Junction High School Liberty Elementary School Liberty Traditional Charter Barry Goldwater High School School Bicentennial North School Lowell School Bowie High School Luke School Buckeye Union High School Marcos de Niza High School Cambridge Academy East Maricopa High School Campo Verde High School Maricopa Wells Middle School Chandler High School Maryvale High School Chino Valley High School Maxwell Middle School Circle Cross Ranch K8 School Maya High School Connolly Middle School Millennium High School Desert Ridge High Mingus Union High School Desert Star Mountain Pointe High School Dobson High School Newell Barney Middle School Dos Rios Elementary Nogales High School Dysart Elementary School North High School EDUPrize School Osborn Middle School Flowing Wells High School Palo Christi Elementary Frank Borman School Palo Verde High Magnet School Gateway Pointe Elementary Goals Achievement Center Granada Primary School Hillcrest Middle School J. O. Combs Middle School Kino Junior High School Kofa High School Lakeview Elementary School Patterson Elementary School Payne Junior High School Payson High School Peach Spring School Peoria High School Peralta Trail Elementary School Perry High School Pinnacle High School Pomeroy Elementary School Poston Butte High School Primavera Technical Learning Center Ranch Elementary School Rancho Viejo Elementary School Rattlesnake Ridge Elementary Ray Borane Middle School Rincon High School Rio Rico High School Riverview High School Sahuarita Intermediate School San Luis High School San Luis Middle School San Tan Elementary Scales Technology Academy Sierra Middle School South Mountain High School Sundance Elementary School Sunnyside High School Sunnyside Charter and Montessori School Supai Middle School Sycamore Elementary School Tombstone High School Val Vista Lakes Elementary School Washington Elementary School Western Peaks Elementary William C. Jack School To help meet the challenges of the intensive tracking and student loan repayment obligations, the Commission is developing an automated application in the AZ Grants System and a companion tracking and repayment module. The automation of the granting, tracking, and repayment module(s) will allow the small ACPE staff to better handle these time intensive processes. 6 Conclusion The Commission believes the MSSE program provides a vehicle to shape student choices in order to meet Arizona’s needs in teacher shortage areas. Additionally, the Commission is enthused to provide financial aid to this cadre of teachers who are critical to the success of the Common Core Standards and Arizona’s focus on Science, Technology, Engineering and Math (STEM) programs. The State of Arizona is still facing a shortage of teachers in the areas of mathematics, science, and special education according to the Arizona Department of Education. This was confirmed by a recent poll undertaken in November of 2012 by the Arizona School Administrators. One hundred and nine districts responded, some districts indicated multiple shortage areas. The results indicate the following teacher shortages.      55 indicated a shortage of Math, Science, and Special Education teachers 22 indicated a shortage of Math teachers 11 indicated a shortage of Science teachers 12 indicated a shortage of Special Education teachers 12 indicated no shortage of teachers in any of the three subjects Unfortunately, the current level of appropriations for the MSSE program will not solve the shortage nor will it support the Arizona Ready Education Reform Plan goals. Therefore, the Commission has requested the restoration of $2M in FY 2014 for the MSSE program. Full funding will allow 71 students to be supported through four years of their teaching education. Furthermore, the Commission believes the addition of the private postsecondary institutions help reach the State goal of doubling the number of students receiving a baccalaureate degree by 2020. The inclusion of private postsecondary institutions has the potential to make a major contribution to the State’s workforce. The Commissioners and staff look forward to helping increase the number of teachers in Arizona. The return of full funding for this program will aid the State meet both the goals of the Arizona Ready Education Reform Plan and the Common Core Standards. 7