Text: HSB00593 Text: HSB00595 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 261.111 TEACHER SHORTAGE LOAN
1 2 PAYMENT PROGRAM.
1 3 1. A teacher shortage loan payment program is established
1 4 to be administered by the college student aid commission as
1 5 provided in this section. The purpose of the loan payment
1 6 program is to increase the number of qualified teachers in
1 7 areas of the state experiencing a shortage of teachers. An
1 8 individual is eligible for the program if the individual meets
1 9 all of the following conditions:
1 10 a. Is a resident of this state who is enrolled at an
1 11 institution of higher learning under the control of the state
1 12 board of regents or an accredited private institution as
1 13 defined in section 261.9.
1 14 b. Is enrolled in one or more of the subject areas
1 15 determined by the department of education and recognized by
1 16 the United States department of education as experiencing a
1 17 shortage of teachers.
1 18 c. Has filed a loan application with the commission.
1 19 d. Meets the requirements for a teacher shortage loan
1 20 established in this chapter and by administrative rule.
1 21 2. A teacher shortage loan shall be awarded for not more
1 22 than the equivalent of two years and may be awarded to an
1 23 eligible individual under this section if the student agrees
1 24 to teach for two years in an area in this state that the
1 25 department of education has determined, and the United States
1 26 department of education recognizes, is experiencing a shortage
1 27 of teachers. A loan issued in accordance with this section,
1 28 and the interest that accrues on the loan, shall not become
1 29 due and payable until one year after the individual graduates.
1 30 If a recipient submits evidence to the commission that the
1 31 recipient was employed as a teacher in a teacher shortage area
1 32 for a school year in accordance with this section, fifty
1 33 percent of the principal amount of the loan and any interest
1 34 accruing on fifty percent of the principal amount of the loan
1 35 are canceled. If the recipient continues employment as a
2 1 teacher in a teacher shortage area as provided in this section
2 2 during the next succeeding school year and submits evidence to
2 3 the commission of the continuation of teaching employment, the
2 4 recipient is not required to commence repayment during that
2 5 school year and at the end of that school year the remaining
2 6 fifty percent of the principal amount of the loan, and any
2 7 interest accruing on the principal amount of the loan, are
2 8 canceled.
2 9 3. The interest rate on the loan shall be equal to the
2 10 interest rate collected by an eligible lender under the Iowa
2 11 guaranteed student loan program for the year in which the loan
2 12 is made.
2 13 4. The commission shall prescribe by rule the terms of
2 14 repayment. The commission shall set a final date for
2 15 submission of applications each year and shall review the
2 16 applications and inform the recipients within a reasonable
2 17 time after the deadline.
2 18 5. The maximum loan a student is eligible to receive
2 19 annually is an amount equal to the annual resident
2 20 undergraduate tuition rate established for institutions of
2 21 higher learning under the control of the state board of
2 22 regents. Eligible students may receive both a tuition grant
2 23 and a teacher shortage loan.
2 24 6. A teacher shortage loan payment fund is established in
2 25 the office of the treasurer of state for deposit of payments
2 26 made by loan recipients who do not fulfill the cancellation
2 27 conditions of the loan program. Payments made by recipients
2 28 on the loans shall be used to supplement moneys appropriated
2 29 to the teacher shortage loan payment program. Notwithstanding
2 30 section 8.33, moneys deposited in the teacher shortage loan
2 31 payment fund shall not revert to the general fund of the state
2 32 at the end of any fiscal year, but shall remain in the teacher
2 33 shortage loan payment fund and be continuously available to
2 34 make additional loans under the program.
2 35 EXPLANATION
3 1 This bill creates and provides for the administration of a
3 2 teacher shortage loan program and fund by the college student
3 3 aid commission. An individual qualifies for a loan if the
3 4 student is a resident of the state and is enrolled at an
3 5 accredited postsecondary institution within the state, and
3 6 agrees to teach in an area determined to be a teacher shortage
3 7 area in the state. If the individual remains an Iowa resident
3 8 and is employed for two years in an area determined by the
3 9 department of education to be a shortage area, the individual
3 10 is not responsible for payment of the loan principal or the
3 11 interest on the loan.
3 12 LSB 4205HC 77
3 13 kh/jl/8
Text: HSB00593 Text: HSB00595 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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