HSB 558 (LSB 5028HC (3) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON DOLECHECK)

A BILL FOR

An Act relating to loan repayment for refinanced eligible loans under the rural physician loan repayment program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261.113, subsection 5, paragraph b, Code 2020, is amended by striking the paragraph.
    Sec. 2.  Section 261.113, Code 2020, is amended by adding the following new subsections:
   NEW SUBSECTION.  5A.  Refinanced loans.  A loan repayment recipient who refinances an eligible loan by obtaining a private educational loan may continue to receive loan repayment under this section if the amount of loan repayment does not exceed the lesser of the amount specified in subsection 5 or the balance of the loan repayment amount the loan repayment recipient qualified to receive with the eligible loan.
   NEW SUBSECTION.  5B.  Program agreement limitation.  The commission shall not enter into more than twenty program agreements annually. The percentage of agreements entered into by students attending eligible universities shall be evenly divided. However, if there are fewer applicants at one eligible university, eligible student applicants enrolled in other eligible universities may be awarded the remaining agreements.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill permits a loan repayment recipient under the rural physician loan repayment program to continue to receive loan repayment after refinancing an eligible federal loan with a private educational loan. However, the loan repayment amount cannot exceed the lesser of the amount of loan repayment allowed under the program or the balance of the loan repayment amount the loan repayment recipient qualified to receive with the eligible loan.
   The bill includes a technical change that moves to a new subsection language limiting the commission to entering into not more than 20 program agreements annually.