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LB 408

Adopt the Special Education Teacher Forgivable Loan Program Act

109th Legislature (2025-2026) Introduced by Danielle Conrad and 1 co-sponsor

Nebraska creates a forgivable-loan program for future special education teachers; in-state tuition covered, with a 5-year Nebraska teaching requirement and 20% forgiveness per year.

Title printed. Carryover bill
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Bill Summary · LB 408

Summary of LB 408 – Special Education Teacher Forgivable Loan Program Act

Purpose and intent

  • LB 408 proposes creating the Special Education Teacher Forgivable Loan Program to address shortages of special education teachers in Nebraska.
  • The program aims to attract individuals pursuing or beginning teacher education with an endorsement in special education by offering forgivable loans contingent on teaching service in Nebraska.

Key provisions and mechanics

  • Administration and eligibility

    • The program would be created and administered by the Nebraska Department of Education.
    • Eligible institutions: not-for-profit colleges or universities located in Nebraska, accredited, with a special education teacher education program (specifically includes Nebraska State Colleges and the University of Nebraska).
    • Eligible students: U.S. citizens or eligible noncitizens who are high school graduates, in good standing at a Nebraska state college or the University of Nebraska, pursuing initial certification with a special education endorsement, and who have applied for federal/state financial aid to cover tuition and fees.

  • Program limits

    • The Department may award forgivable loans to up to 25 students per eligible institution per academic year.
    • Loans cover in-state tuition or the equivalent at an eligible institution.

  • Contract and conditions of forgiveness

    • Students must sign a contract with the Department before funds are dispersed.
    • Terms include:
    • The loan is for the first five years of enrollment in a teacher education program.
    • Funds cover remaining tuition after applying all federal and state aid.
    • The recipient must begin teaching special education in a Nebraska elementary or secondary school within one year after graduation.
    • The recipient must teach in Nebraska for five consecutive years after graduation, or for the equivalent number of years as the loans taken.

  • Forgiveness schedule and limits

    • For each year after graduation in which the recipient complies with the contract, 20% of the total amount of forgivable loans paid to the recipient is forgiven.
    • After five consecutive compliant years, the Department notifies the recipient that the total forgiven amount under this program is forgiven.
    • If a recipient receives fewer than five years of loans, forgiveness is proportional: for each year of compliance, one year’s worth of the loan is forgiven; after completing the number of years equal to the loans received, the remainder is forgiven.
    • If a recipient fails to comply, they may be eligible for a deferment from repayment; if not granted for deferment, they must repay the remaining loan balance with simple interest of 5% per year.

  • Post-program repayment

    • Any remaining loan balance not forgiven and not deferred must be repaid to the State Treasurer for credit to the General Fund.

  • Communication and rules

    • The Department must provide each recipient with a description of obligations under the contract.
    • The State Board of Education may adopt and promulgate rules and regulations to govern the program.

Who would be affected

  • Eligible students pursuing a degree or certification in special education at Nebraska-based institutions (in-state tuition considerations apply).
  • Nebraska elementary or secondary schools in need of special education teachers, as graduates may fill vacancies.
  • Nebraska Department of Education, which would administer the program, track compliance, forgive amounts, and enforce repayment rules.

Procedural and timeline notes

  • Introduced: January 17, 2025.
  • Hearing: Notice of hearing scheduled for February 11, 2025, before the Education Committee (Chair: Senator Dave Murman).
  • Status: Bill introduced and undergoing committee review; specific fiscal impact and implementation timelines would be clarified in committee discussions and rulemaking if enacted.

Overall impact

  • Provides a targeted, incentive-based pathway to recruit and retain special education teachers in Nebraska.
  • Balances loan forgiveness with service commitments, ensuring graduates contribute to Nebraska schools for a defined period.
  • Establishes a framework for program eligibility, funding caps per institution, and post-graduation forgiveness schedules, along with optional deferment and a fixed interest repayment option for non-compliance.

Compiled from official sources — confirm details with the bill’s official record.

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