HF 23 (LSB 1812YH (2) 87)

HOUSE FILE 23

BY  HUNTER

A BILL FOR

An Act establishing a worker shortage loan forgiveness program to be administered by the college student aid commission.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261.2, subsection 8, Code 2017, is amended to read as follows:
   8.  Submit by January 15 annually a report to the general assembly which provides, by program, the number of individuals who received loan forgiveness in the previous fiscal year, the amount paid to individuals under sections 261.73, 261.112, and 261.116, and 261.118, and the institutions from which individuals graduated, and that includes any other information specified under sections 261.73, 261.112, 261.116, and 261.118, any proposed statutory changes relating to loan forgiveness programs administered by the commission, and the commission’s findings and recommendations.
    Sec. 2.  NEW SECTION.  261.118  Worker shortage loan forgiveness program.
   1.  A worker shortage loan forgiveness program is established to be administered by the commission. An individual is eligible for the program if the individual graduated from a school district or accredited nonpublic school in this state on or after January 1, 2016, is a resident of the state who successfully completed a career and technical education program or a career option program, or graduated with an associate degree from a community college established pursuant to chapter 260C or graduated with a baccalaureate degree or postbaccalaureate degree from an institution of higher education governed by the state board of regents or from an accredited private institution, and meets either of the following conditions:
   a.  Is employed and residing in this state and has been employed and residing in this state for not less than two consecutive years within three years of successfully completing a career and technical education program or a career option program or receiving an associate degree from a community college.
   b.  Is employed and residing in this state and has been employed and residing in this state for not less than four consecutive years within five years of graduating with a baccalaureate degree or postbaccalaureate degree from an institution of higher learning governed by the state board of regents or from an accredited private institution.
   2.  Each applicant for loan forgiveness shall, in accordance with the rules of the commission, do the following:
   a.  Complete and file an application for worker shortage loan forgiveness. The individual shall be responsible for the prompt submission of any information required by the commission.
   b.  File a new application and submit information as required by the commission annually on the basis of which the applicant’s eligibility for the renewed loan forgiveness will be evaluated and determined.
   c.  Complete and return on a form approved by the commission an affidavit of eligibility verifying that the applicant meets the requirements of subsection 1.
   3.  The annual amount of worker shortage loan forgiveness shall not exceed the following:
   a.  For an individual who meets the conditions of subsection 1, paragraph “a”, the combined resident tuition rate established for the two years following the individual’s successful program completion or graduation from the community college, or one hundred percent of the individual’s total federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program and any private student loan issued by a lender that meets standards prescribed by the commission including principal and interest, whichever amount is less.
   b.  For an individual who meets the conditions of subsection 1, paragraph “b”, the combined resident tuition rate established for institutions of higher learning governed by the state board of regents for the four years following the individual’s graduation from the regents university or accredited private institution, or one hundred percent of the individual’s total federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program and any private student loan issued by a lender that meets standards prescribed by the commission including principal and interest, whichever amount is less.
   4.  The commission shall submit in a report to the general assembly by January 1, annually, the number of individuals who received loan forgiveness pursuant to this section, the postsecondary institutions from which the individuals graduated or successfully completed a career and technical education program or career option program, where in the state program participants are employed, program participants’ employment classifications or types of employment, the amount paid to each program participant, and other information identified by the commission as indicators of outcomes from the program.
   5.  The commission shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a worker shortage loan forgiveness program to be administered by the college student aid commission. The program is open to individuals who graduated from an Iowa high school in 2016 or later, are employed and reside in the state, and successfully completed a career and technical education program or career option program or received a degree from an accredited postsecondary institution in the state.
   The individual must also have been employed in and a resident of this state for a period of two consecutive years within three years of successfully completing a career and technical education program or career option program or receiving an associate degree from a community college, or must have been employed in and a resident of this state for a period of four consecutive years within five years of graduating with a baccalaureate degree or postbaccalaureate degree from a regents university or accredited private institution.
   In the case of an individual who attended a community college, the total amount of worker shortage loan forgiveness shall not exceed the combined resident tuition rate established for the two years following the individual’s successful program completion or graduation from the community college, or 100 percent of the individual’s total federal loan program and private student loan amount including principal and interest, whichever amount is less.
   In the case of an individual who attended a regents university or accredited private institution, the annual amount of worker shortage loan forgiveness shall not exceed the combined resident tuition rate established for regents universities for the four years following the individual’s graduation, or 100 percent of the individual’s total federal loan program and private student loan amount including principal and interest, whichever amount is less. The individual is eligible for the loan forgiveness program for not more than four consecutive years.
   The bill requires the commission to submit a report to the general assembly by January 1, annually, with information identified as indicators of outcomes from the program.
   The bill makes corresponding changes relating to a current loan forgiveness reporting requirement.