S.F. 2011 Section 1. Section 261.113, subsection 5, paragraph b, Code 1 2020, is amended by striking the paragraph. 2 Sec. 2. Section 261.113, Code 2020, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 5A. Refinanced loans. A loan repayment 5 recipient who refinances an eligible loan by obtaining a 6 private educational loan may continue to receive loan repayment 7 under this section if the amount of loan repayment does not 8 exceed the lesser of the amount specified in subsection 5 or 9 the balance of the loan repayment amount the loan repayment 10 recipient qualified to receive with the eligible loan. 11 NEW SUBSECTION . 5B. Program agreement limitation. The 12 commission shall not enter into more than twenty program 13 agreements annually. The percentage of agreements entered 14 into by students attending eligible universities shall be 15 evenly divided. However, if there are fewer applicants at 16 one eligible university, eligible student applicants enrolled 17 in other eligible universities may be awarded the remaining 18 agreements. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill permits a loan repayment recipient under the rural 23 physician loan repayment program to continue to receive loan 24 repayment after refinancing an eligible federal loan with a 25 private educational loan. However, the loan repayment amount 26 cannot exceed the lesser of the amount of loan repayment 27 allowed under the program or the balance of the loan repayment 28 amount the loan repayment recipient qualified to receive with 29 the eligible loan. 30 The bill includes a technical change that moves to a new 31 subsection language limiting the commission to entering into 32 not more than 20 program agreements annually. 33 -1- LSB 5028XS (2) 88 kh/jh 1/ 1