Text: HF02227 Text: HF02229 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 261.74 EDUCATION PROFESSIONAL
1 2 FORGIVABLE LOAN PROGRAM.
1 3 An education professional forgivable loan program is
1 4 established, to be administered by the college student aid
1 5 commission. An individual is eligible to apply for acceptance
1 6 in the forgivable loan program if the individual meets all of
1 7 the following conditions:
1 8 1. Is an Iowa resident student enrolled at an eligible
1 9 institution located in Iowa as defined in section 261.35,
1 10 subsection 3.
1 11 2. Has received a loan from moneys appropriated to the
1 12 college student aid commission for this program.
1 13 3. Is enrolled in a program at an eligible institution
1 14 that will qualify the individual for loan forgiveness pursuant
1 15 to section 261.76.
1 16 Sec. 2. NEW SECTION. 261.75 FORGIVABLE LOAN
1 17 ADMINISTRATION.
1 18 The college student aid commission shall administer the
1 19 education professional forgivable loan program in the same
1 20 manner as specified in section 261.15. The maximum loan that
1 21 an individual is eligible to receive for each year of
1 22 participation in the program shall be allocated for loans
1 23 under the program. An individual may receive forgivable loans
1 24 each year for not more than four years. A student is eligible
1 25 to receive both a tuition grant and a forgivable loan.
1 26 Sec. 3. NEW SECTION. 261.76 ELIGIBILITY FOR LOAN
1 27 FORGIVENESS.
1 28 1. An individual who meets all of the following criteria
1 29 is eligible for loan forgiveness over a period of the four
1 30 years and at the end of the four-year period, the total
1 31 amounts of the loans are forgiven:
1 32 a. Is a teacher employed on a full-time basis under
1 33 sections 279.13 through 279.19 or is a teacher employed in an
1 34 approved nonpublic school.
1 35 b. Is a resident of Iowa.
2 1 c. Is employed in a teaching position in an endorsement
2 2 area in which a teaching shortage exists, as determined by the
2 3 board of educational examiners. Annually, the board of
2 4 educational examiners shall determine the areas of shortage
2 5 and an individual receiving a forgivable loan for one year of
2 6 study may continue to receive the forgivable loan for not more
2 7 than four years of study pursuant to this section.
2 8 2. Of the moneys loaned to an eligible individual, for
2 9 each year of up to and including four years of employment in
2 10 Iowa in accordance with subsection 1, paragraph "b", an amount
2 11 equal to twenty-five percent of the original principal and the
2 12 proportionate share of accrued interest shall be forgiven. If
2 13 an individual fails to complete a school year of employment as
2 14 provided in subsection 1, paragraph "b", the loan amount for
2 15 that year shall not be forgiven. Forgivable loans made to
2 16 eligible individuals shall not become due, for repayment
2 17 purposes, until one year after the individual has graduated.
2 18 A loan that has not been forgiven may be sold to a bank,
2 19 savings and loan association, credit union, or nonprofit
2 20 agency eligible to participate in the guaranteed student loan
2 21 program under the federal Higher Education Act of 1965, 20
2 22 U.S.C. } 1071 et seq., by the commission when the loan becomes
2 23 due for repayment.
2 24 3. The commission shall adopt rules which provide
2 25 standards, guidelines, and procedures for the receipt,
2 26 processing, and administration of applications and loans under
2 27 this section.
2 28 Sec. 4. NEW SECTION. 261.77 EDUCATION PROFESSIONAL LOAN
2 29 REVOLVING FUND.
2 30 An education professional loan revolving fund is created in
2 31 the state treasury as a separate fund under the control of the
2 32 commission. The commission shall deposit payments made by
2 33 education professional loan recipients and the proceeds from
2 34 the sale of education professional loans, less costs of
2 35 collection of delinquent education professional loans, into
3 1 the education professional loan revolving fund. Moneys
3 2 credited to the fund shall be used to supplement moneys
3 3 appropriated for the education professional forgivable loan
3 4 program, for loan forgiveness to eligible education
3 5 professionals, and to pay for loan or interest repayment
3 6 defaults by eligible education professionals. Notwithstanding
3 7 section 8.33, any balance in the fund on June 30 of any fiscal
3 8 year shall not revert to the general fund of the state.
3 9 EXPLANATION
3 10 This bill establishes an education professional forgivable
3 11 loan program, to be administered by the college student aid
3 12 commission for Iowa residents who are enrolled in eligible
3 13 postsecondary institutions located in Iowa. The bill also
3 14 establishes an education professional revolving loan fund.
3 15 An eligible postsecondary institution is any postsecondary
3 16 educational institution that meets the requirements of the
3 17 provisions of the Higher Education Act of 1965 for student
3 18 participation in the federal interest subsidy program and the
3 19 requirements prescribed by rule of the commission.
3 20 To be eligible for loan forgiveness under the program, the
3 21 student shall have graduated from an eligible institution
3 22 located in Iowa, have received a loan from moneys appropriated
3 23 to the college student aid commission for this program, and be
3 24 employed on a full-time basis in an endorsement area in which
3 25 the board of educational examiners has determined there is a
3 26 shortage.
3 27 Of the moneys loaned to an eligible student, for each year
3 28 of up to and including four years of employment in Iowa in
3 29 accordance with subsection 1, an amount equal to 25 percent of
3 30 the original principal and the proportionate share of accrued
3 31 interest shall be forgiven. If a loan recipient fails to
3 32 complete a school year of employment as provided in subsection
3 33 1, paragraph "b", the loan amount for that year shall not be
3 34 forgiven. Forgivable loans shall not become due for repayment
3 35 until one year after the loan recipient has graduated. A loan
4 1 that has not been forgiven may be sold to a bank, savings and
4 2 loan association, credit union, or nonprofit agency eligible
4 3 to participate in the guaranteed student loan program under
4 4 the federal Higher Education Act of 1965, 20 U.S.C. } 1071 et
4 5 seq., by the commission when the loan becomes due for
4 6 repayment.
4 7 The bill creates the revolving fund in the state treasury
4 8 as a separate fund under the control of the commission. The
4 9 commission shall deposit payments made by education
4 10 professional loan recipients and the proceeds from the sale of
4 11 education professional loans, less costs of collection of
4 12 delinquent education professional loans, into the education
4 13 professional loan revolving fund. Moneys credited to the fund
4 14 shall be used to supplement moneys appropriated for the
4 15 education professional forgivable loan program, for loan
4 16 forgiveness to eligible education professionals, and to pay
4 17 for loan or interest repayment defaults by eligible education
4 18 professionals. Any balance in the fund on June 30 of any
4 19 fiscal year shall not revert to the general fund of the state.
4 20 LSB 3936HH 76
4 21 kh/jw/5
Text: HF02227 Text: HF02229 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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