|Date Requested:January 24, 2012
Time Requested:03:21 PM
| FUND(S) |
Sources of Revenue
Legislation creates:A New Program
Effect this measure will have on costs and revenues of state government.
|Senate Bill 196, if approved, would authorize the State of West Virginia to make loans to students in accredited programs for dental hygiene and dentistry, and to award loan forgiveness to these students if they practice in a medically underserved area or in a specialty that has a shortage. Students who do not meet the forgiveness criteria would repay their loans. If 245 awards were provided at $5,000 each, the annual cost of the program would be about $2,250,000 and $2,152,500 upon full implementation. If the loans were cancelled for employment service in underserved areas,|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||2,260,000||2,152,500|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The West Virginia School of Dentistry enrolled 199 students in the fall 2011 semester. The number of student enrolled in dental hygiene programs at West Virginia public institutions was 316. Based upon a survey conducted by the West Virginia University Health Sciences Center, an estimated 16.4 percent of Dentistry students and 67.3 percent of dental hygiene students are interested in participating in the program. Applying these percentages to the statewide population, an estimated 245 students would participate in the program. The annual cost to provide the $5,000 awards would be $2,250,000. Dental hygiene students are eligible for the Higher Education Grant (up to $2,400) and Dental students are eligible for institutional aid and federal grants and loans.
It is estimated that about 30% of the students participating in the program would meet the cancellation requirements of the program. Given this estimate, about $675,000 of an annual $2,250,000 disbursement would be cancelled. Consequently, $1,575,000 would need to be repaid. It is anticipated that a 10 year repayment period would be permitted and $157,500 would be collected each year. About $10,000 would need to be paid to contract for accounting services. It is estimated that about five percent of the annual loan disbursements or $50,000 would be uncollectible.