(a) This section shall be known and may be cited as the “Tennessee Teaching Scholars Act.”

(b) The Tennessee student assistance corporation shall administer the Tennessee teaching scholars program for exemplary students who desire to enter the teaching force in this state. Participation in this program is limited to college juniors, seniors and post baccalaureate candidates admitted to teacher education programs in this state and who pledge to teach in Tennessee public schools for up to four (4) years.

(c)

(1) The Tennessee student assistance corporation, in conjunction with the state board of education and the Tennessee higher education commission, is authorized to promulgate rules and regulations for the management of the program and the selection of recipients, taking into consideration such factors as the academic record of the applicant, teacher shortage in subject areas and the balance of majority/minority representation in the teaching force. The Tennessee student assistance corporation shall provide the department of education with rosters of program participants completing teacher education programs and their areas of teaching endorsements. The department shall use these rosters for assisting in job placement and in considering waiver requests from LEAs.

(2) All scholarship loans shall be evidenced by notes made payable to the corporation that shall bear interest at the rate of nine percent (9%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient's withdrawing from school or by the recipient's not meeting the standards set by the corporation.

(d)

(1) Each program award shall be renewable up to three (3) times, contingent upon satisfactory academic performance. Persons receiving program awards who become public school teachers in this state shall receive forgiveness of the program award balance based on one (1) year's teaching service for each year an award was made. Any program award balance not forgiven in the manner prescribed in this subdivision (d)(1) shall be paid with interest by the recipient.

(2) The corporation shall also forgive the loan if, within seven (7) years after graduation, the recipient teaches for three (3) consecutive years, unless the recipient takes an approved leave of absence, at a Tennessee public school in a local school administrative unit that, at the time the recipient accepts employment with the unit, is a high priority school system or is on warning status as defined by the commissioner or board of education. The corporation shall also forgive the loan if it finds that it is impossible for the recipient to teach for four (4) years, within seven (7) years after graduation, at a Tennessee public school because of the death or permanent disability of the recipient.

(e) This program shall be available for participants beginning July 1, 1996. The availability of loans shall be subject to the appropriation of funds in each year's general appropriations act.