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Senate Study Bill 2056

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 261.37, subsections 3 and 6, Code 1995,
  1  2 are amended to read as follows:
  1  3    3.  Collect an insurance premium of not more than one
  1  4 percent per annum of the principal amount of any loan
  1  5 guaranteed, beginning with the date of disbursement and ending
  1  6 one year after the date on which the borrower expects to
  1  7 complete the course of study for which the loan was made the
  1  8 amount authorized by the federal Higher Education Act of 1965.
  1  9 Such The premium shall be collected by the lender upon the
  1 10 disbursement of the loan and shall be remitted promptly to the
  1 11 commission.
  1 12    6.  To reimburse eligible lenders for one hundred percent
  1 13 of the principal and accrued interest the amount authorized by
  1 14 the federal Higher Education Act of 1965 on defaulted loans
  1 15 guaranteed by the commission upon receipt of written notice of
  1 16 such the default accompanied by evidence that the lender has
  1 17 exercised the required degree of diligence in efforts to
  1 18 collect the loan.
  1 19    Sec. 2.  Section 261.71, subsection 1, paragraph d, Code
  1 20 Supplement 1995, is amended to read as follows:
  1 21    d.  The student has made application for, using the
  1 22 procedures specified in section 261.16, and received moneys
  1 23 through the college student aid commission from the funds
  1 24 allocated for loans under this section.
  1 25    Sec. 3.  Section 261.71, subsection 2, Code Supplement
  1 26 1995, is amended to read as follows:
  1 27    2.  Of the moneys loaned to an eligible student, for each
  1 28 year of up to and including four years of practice in Iowa,
  1 29 the an amount of equal to twenty-five percent of the original
  1 30 principal and the proportionate share of accrued interest, or
  1 31 one thousand one hundred dollars, whichever is greater, shall
  1 32 be forgiven.  If a student fails to complete a year of
  1 33 practice in the state, as practice is defined by the college
  1 34 student aid commission, the loan amount for that year shall
  1 35 not be forgiven.  Forgivable loans made to eligible students
  2  1 shall not become due, for repayment purposes, until after the
  2  2 student has completed the student's residency.  A loan that
  2  3 has not been forgiven may be sold to a bank, savings and loan
  2  4 association, credit union, or nonprofit agency eligible to
  2  5 participate in the guaranteed student loan program under the
  2  6 federal Higher Education Act of 1965, 20 U.S.C. } 1071 et
  2  7 seq., by the commission when the loan becomes due for
  2  8 repayment.
  2  9    Sec. 4.  NEW SECTION.  261.72  CHIROPRACTIC LOAN REVOLVING
  2 10 FUND.
  2 11    A chiropractic loan revolving fund is created in the state
  2 12 treasury as a separate fund under the control of the
  2 13 commission.  The commission shall deposit payments made by
  2 14 chiropractic loan recipients and the proceeds from the sale of
  2 15 chiropractic loans, less costs of collection of delinquent
  2 16 chiropractic loans, into the chiropractic loan revolving fund.
  2 17 Moneys credited to the fund shall be used to supplement moneys
  2 18 appropriated for the chiropractic forgivable loan program, for
  2 19 loan forgiveness to eligible chiropractic physicians and to
  2 20 pay for loan or interest repayment defaults by eligible
  2 21 chiropractic physicians.  Notwithstanding section 8.33, any
  2 22 balance in the fund on June 30 of any fiscal year shall not
  2 23 revert to the general fund of the state.  
  2 24                           EXPLANATION
  2 25    This bill conforms Iowa Code language, relating to the
  2 26 duties of the college student aid commission, regarding the
  2 27 Iowa guaranteed loan program, to federal requirements.  The
  2 28 bill also changes the chiropractic graduate student forgivable
  2 29 loan program to make it comparable to the osteopathic
  2 30 forgivable loan program, and creates a chiropractic loan
  2 31 revolving fund.
  2 32    The bill permits the commission to collect an insurance
  2 33 premium and to reimburse eligible lenders for defaulted loans
  2 34 in the amount authorized by the federal Higher Education Act
  2 35 of 1965.  Current law sets the figure, while the bill ties the
  3  1 amount to whatever amount is authorized by the federal Higher
  3  2 Education Act of 1965.
  3  3    Language creating the chiropractic graduate student
  3  4 forgivable loan program was enacted in Senate File 266 in
  3  5 1995.  This bill makes the language of the program more
  3  6 comparable to the osteopathic forgivable loan program by
  3  7 adding a provision allowing the commission to sell unforgiven
  3  8 loans due for repayment to a financial institution eligible to
  3  9 participate in the guaranteed student loan program.
  3 10    The bill also creates a chiropractic loan revolving fund,
  3 11 the language of which differs from the osteopathic loan
  3 12 revolving fund only in that the commission may withhold from
  3 13 deposit into the fund the costs of collection on delinquent
  3 14 chiropractic loans.  The commission is directed to deposit
  3 15 payments made by loan recipients and the proceeds from the
  3 16 sale of chiropractic loans into the revolving fund, less the
  3 17 costs of collection of delinquent chiropractic loans.  
  3 18 LSB 3365SC 76
  3 19 kh/jw/5
     

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