Arizona Commission for
Postsecondary Education
… expanding access and increasing success
in postsecondary education for Arizonans

Annual Report for the
Arizona Teacher Student Loan Program
(formerly the)

Math, Science, and Special Education Teacher Loan
Forgiveness Program

Fiscal Year 2016 - 2017

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: https://highered.az.gov

December 1, 2017
The Honorable Doug Ducey, Governor
The Honorable Steve Yarbrough, President of the Senate
The Honorable Javan Mesnard, Speaker of the House of Representatives
The Honorable Michele Reagan, Secretary of State
Susan Leach-Murray, State Documents Librarian, AZ Library, Archives, and Public Records
On behalf of the Arizona Commission for Postsecondary Education (ACPE), I respectfully submit
the enclosed annual report for the Arizona Teacher Student Loan Program formerly known as the
Math, Science, and Special Education Teacher Loan Forgiveness Program (MSSE). 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 loan recipients are employed, and the number of good cause exceptions
requested/granted. In the conclusion the Commission makes a request for increased funding of
$562,400.
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. During the 2017 Fifty-Third
Legislature, First Regular Session, Senate Bill 1040 made significant changes along with
renaming the program to the Arizona Teacher Student Loan Program. The Arizona Teacher
Student Loan Program is designed to attract quality students into teaching preparation programs
who will take on the mission of service in order to repay their obligation. The new program
changes become effective in FY 2018. This loan forgiveness program is helping in a small way
with the teacher shortages, but the $176,000 provided in FY 2017 is inadequate to successfully
provide a solution.
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 https://highered.az.gov or by contacting our office at
602.258.2435.
Respectfully Submitted,

Dr. April L. Osborn, Executive Director
Arizona Commission for Postsecondary Education
cc:

Brandi Lease, Senate Education Research Analyst
Morgan Dorcheus, JLBC Fiscal Analyst
Ashley Beason, OSPB Budget Analyst
Aaron Wonders, House Education Research Analyst

The Arizona Commission for Postsecondary Education (ACPE)
Arizona Teacher Student Loan Program
Formerly the
Math, Science, and Special Education Teacher
Loan Forgiveness (MSSE) Program
FY 2016-2017 Annual Report
Submitted December 1, 2017
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. During the 2017 Fifty-Third Legislature, First Regular Session, Senate Bill 1040
made significant changes along with renaming the program to the Arizona Teacher Student Loan
Program. Effective FY 2018, the new changes are:
1. Elimination of the service area of teaching in elementary schools that are located in
geographic areas that are experiencing a shortage of teachers and replacement with
service areas that are low-income schools, rural schools, or schools located on an Indian
reservation,
2. Inclusion of students who are pursuing a teaching certificate through an alternative
teacher certificate program as eligible students for the loan,
3. Inclusion of students who have a bachelor’s degree and are in an alternative teacher
certification program as eligible students for the loan, and
4. The allocation of forty percent of the annual amount appropriated to students who agree
to provide instruction in a low-income school, rural school, or a school located on an
Indian reservation.
During FY 2017, 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 identified high need fields and to remain in the State after graduation. Forgivable loans
were granted to eligible junior or senior students attending a qualifying public university or private
college/university in the State to help defray the cost of tuition, fees and instructional materials.
Additionally, students must complete the Free Application for Federal Student Aid (FAFSA). The
maximum forgivable loan is $7,000 per academic year for up to three years. To have the loan
forgiven, students must sign a promissory note each year agreeing to teach in select subject
areas in a public K-12 school in Arizona for the number of years they received the loan funding
plus one year. The selected subject areas in FY 2017 are math, science, special education, or
elementary education in a geographic area in the state experiencing a shortage of teachers.
Students who do not meet the forgiveness criteria must repay the amount borrowed plus any
interest.

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Who Benefited from the Forgivable Loan?
In FY 2017 MSSE loans were disbursed to 31 students, 22 loans to initial recipients (1st time
recipients) and 9 loans to continuing recipients (prior recipients). The loan recipients attended
both public and private postsecondary institutions for a total disbursement of $168,651.
The table below provides a student profile for those who received loans in FY 2017.
MSSE FY 2017 Student Profile
Total
Applicants

Total
Recipients

Total
Disbursement

Average Loan
Amount

49

31

$168,651

$5,440

Average
Initial
Continuing
Age of
Recipients Recipients
Recipients
30

22

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The difference between the total applicants and the total recipients is comprised of ten applicants
who did not meet program requirements and eight applicants not awarded due to the lack of
funds.
The following pie charts represent a breakout of the institutions the 31 loan recipients attended
and the recipient’s degree programs.
Recipients by Institution

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Recipients by Degree Program

Status of Recipients in MSSE Program from Inception through FY 2017
Tracking responsibilities are significant for the MSSE Program as each loan recipient is required
to be tracked between seven to eleven years, depending on the number of years each student
received funding. For students who enter into repayment, the relationship can increase up to 15
years. With the conclusion of FY 2017, 289 students have participated in the MSSE Program
since its inception in 2007. Below is a listing of the current status of the recipients.











23 are still enrolled in a postsecondary institution
20 are in their twelve-month grace period (as allowed by statute)
25 are currently teaching in a public K-12 school in Arizona
70 have had their loan forgiven by completing their teaching service and are teaching in
Arizona
3 have had their loan forgiven by completing their teaching service and are teaching
outside of Arizona
28 have had their loan forgiven by completing their teaching service and are no longer
teaching
29 are currently in repayment
22 have had their loan repayments referred to the Attorney General
10 have paid their loan balance in full
59 have completed the retention tracking cycle

In FY 2018 the Commission will continue collecting the five-year teacher retention data for the
101 individuals whose loans have been forgiven through teaching.

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The following is a list of the public K-12 schools in Arizona at which the 25 currently teaching loan
recipients are employed.
K-12 Schools where MSSE Graduates Served their Teaching Obligation in FY 2017
School
Four Peaks Elementary
Casteel High School
Pomeroy Elementary
Primavera Online High School
San Marcos Elementary
Mesa View Elementary
Cottonwood Elementary School
Coconino High School
Trailside Point School
Washington Elementary
Peoria Accelerated High School
Academia Del Pueblo
Amy Houston Academy
Creighton Schools
Montebello
Thunderbird High School
Cocopah Middle School
Show Low Jr High School
Tonopah Valley High School
Centennial Elementary
Cholla High School
Donaldson
Esperanza Elementary School
Rincon High School
Tucson High Magnet School

City
Apache Junction
Chandler
Chandler
Chandler
Chandler
Chinle
Cottonwood
Flagstaff
Laveen
Mesa
Peoria
Phoenix
Phoenix
Phoenix
Phoenix
Phoenix
Scottsdale
Show Low
Tonopah
Tucson
Tucson
Tucson
Tucson
Tucson
Tucson

Subject Taught
Special Education
Special Education
Special Education - Eng SLD
Math Resource
Special Education
Special Education
Elem Education -Geo Shortage
Math-Science
Special Education
Elementary Education
Math
Elementary Subjects
Special Education
Special Education
Science
Special Education
Science
Math
Science
Science
Special Education
Special Education
Special Education
Math
Math

The limited annual appropriation for the MSSE program has caused the Commission to consider
an automated application in AZ Grants System and companion tracking and repayment software.
The ACPE and staff are assessing the cost and benefits of an automated system. However, such
a system would undoubtedly allow the small ACPE staff to better handle the granting, tracking,
and repayment processes. Additionally, due to the limited annual appropriation in FY 2017 no
advertising or promotion for the program has been undertaken while the number of applications
submitted annually consistently exceeds the number of applications that can be funded.
Conclusion
The Commission staff believes that the MSSE program provided an important vehicle to shape
student choices in order to meet Arizona’s teacher shortage needs. Additionally, the staff
believes that the updated Arizona Teacher Student Loan Program will support the recruitment of
teachers in public schools and support the Governor’s investment in education.
The
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Commissioners and staff are honored to provide financial aid to this cadre of teachers who are
critical to the success of the Governor’s goal of addressing the growing teacher shortage in our
State.
Unfortunately, the FY 2017 level of appropriations for the MSSE program will not solve the
shortage. According to a report published in May 2017, 42% of Arizona teachers hired in 2013
left the profession within three years. Additionally, 74% of Arizona school administrators
surveyed indicated that their campuses are experiencing a teacher shortage.1
In FY 2018, the Commission received an increase of $250,000 for a total of $426,000 in funding
for the Arizona Teacher Student Loan Program. Additionally, the Commission has requested the
increase of $562,400 for a total of $988,400 in FY 2019. This includes one full time employee at
$60,900 and one computer for $1,500. The increased funding of $500,000 will allow an additional
82-90 recipients to receive an award.
The Commissioners and staff look forward to helping increase the number of teachers in Arizona.
The increase in funding for this program will aid the State in meeting the Governor’s education
goals.

Dan Hunting, et al., Finding & Keeping Educators for Arizona’s Classroom (Morrison Institute for Public Policy,
2017),
https://morrisoninstitute.asu.edu/sites/default/files/content/products/AZ%20TEACHERS%20REPORT%202017_0.pdf
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