Introduced by Representatives Hosford of Waitsfield, Johnson of South Hero, Bartlett of Dover, Botzow of Pownal, Branagan of Georgia, Clarkson of Woodstock, Evans of Essex, Haas of Rochester, Jewett of Ripton, Lawrence of Lyndon, Malcolm of Pawlet, Martin of Wolcott, McLaughlin of Royalton, Orr of Charlotte, Otterman of Topsham, Severance of Colchester, Smith of New Haven and Zuckerman of Burlington
Subject: Education; Vermont student assistance corporation; education loans; deferment of payment; farmers
Statement of purpose: This bill proposes to defer loan repayment for a person who earns a degree in farming and makes a living as a farmer for one year; and to stipulate that following the first year, the farmer shall pay no more than three percent of gross income for loan repayment.
AN ACT RELATING TO DEFERRAL OF EDUCATION LOAN REPAYMENTS FOR FARMERS
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 16 V.S.A. § 2870 is added to read:
§ 2870. LOAN REPAYMENT DEFERRED; FARMERS
(a) In this section, "farmer" means a person who earns at least one-half of his or her annual gross income from the business of farming as that term is defined in Regulation 1.175-3 issued under the Internal Revenue Code of 1954. The secretary of the agency of agriculture, food and markets shall assist the board in making determinations of eligibility for a loan deferment under this section.
(b) A Vermont farmer who has borrowed money from the corporation under this section shall not be required to make a repayment for the first year following graduation from a postsecondary institution in which the farmer majored in farming or a farming-related subject. For the second year following graduation, and each year thereafter as long as the person continues to be a farmer, a person shall be required to pay for principal and interest on the loan in an amount which is no more than three percent of the person's annual gross income for the previous year.
The Vermont General Assembly
115 State Street