Text: HF00529 Text: HF00531 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 261.25, subsection 4, Code 1999, is 1 2 amended to read as follows: 1 3 4. There is appropriated from the general fund of the 1 4 state to the commission for each fiscal year the sum ofninety1 5 two hundred fifty thousand dollars for theindustrial1 6technologyteacher shortage forgivable loan program 1 7 established in section 261.111. 1 8 Sec. 2. Section 261.111, Code 1999, is amended by striking 1 9 the section and inserting in lieu thereof the following: 1 10 261.111 TEACHER SHORTAGE AREA FORGIVABLE LOAN PROGRAM. 1 11 1. A teacher shortage area forgivable loan program is 1 12 established to be administered by the college student aid 1 13 commission. An individual is eligible for the forgivable loan 1 14 program if the individual is a resident of this state who is 1 15 enrolled in an approved practitioner preparation program or an 1 16 approved graduate practitioner preparation program in a 1 17 designated area in which teacher shortages are anticipated, at 1 18 an institution of higher learning under the control of the 1 19 state board of regents or an accredited private institution as 1 20 defined in section 261.9. 1 21 2. The director of the department of education shall 1 22 annually designate the areas in which teacher shortages are 1 23 anticipated. 1 24 3. Each applicant shall, in accordance with the rules of 1 25 the commission, do the following: 1 26 a. Complete and file an application for a teacher shortage 1 27 area forgivable loan. The individual shall be responsible for 1 28 the submission of the parents' confidential statement, if 1 29 appropriate, for processing to both the commission and the 1 30 institution in which the applicant is enrolling. 1 31 b. Report promptly to the commission any information 1 32 requested. 1 33 c. File a new application and, if appropriate, a parents' 1 34 confidential statement, annually on the basis of which the 1 35 applicant's eligibility for the renewed forgivable loan will 2 1 be evaluated and determined. 2 2 4. Forgivable loans to eligible students shall not become 2 3 due until after the student graduates or leaves school. The 2 4 individual's total loan amount, including principal and 2 5 interest, shall be reduced by twenty percent for each year in 2 6 which the individual remains an Iowa resident and is employed 2 7 by a school district or an accredited nonpublic school as a 2 8 practitioner in the area for which the loan was approved. If 2 9 the commission determines that the person does not meet the 2 10 criteria for forgiveness of the principal and interest 2 11 payments, the commission shall establish a plan for repayment 2 12 of the principal and interest over a ten-year period. If a 2 13 person required to make the repayment does not make the 2 14 required payments, the commission shall provide for payment 2 15 collection. Rules adopted by the commission for the 2 16 administration of this program shall provide for payment 2 17 postponement for individuals experiencing temporary hardship. 2 18 5. The amount of a teacher shortage area forgivable loan 2 19 shall not exceed three thousand dollars annually, or the 2 20 amount of the student's established financial need, whichever 2 21 is less. 2 22 6. The interest rate for the forgivable loan shall be 2 23 equal to the interest rate collected by an eligible lender 2 24 under the Iowa guaranteed student loan program for the year in 2 25 which the forgivable loan is made. 2 26 7. A teacher shortage area forgivable loan repayment fund 2 27 is created for deposit of payments made by forgivable loan 2 28 recipients who do not fulfill the conditions of the forgivable 2 29 loan program and any other moneys appropriated to or received 2 30 by the commission for deposit in the fund. Notwithstanding 2 31 section 8.33, moneys deposited in the fund shall not revert to 2 32 the general fund of the state at the end of any fiscal year 2 33 but shall remain in the teacher shortage area forgivable loan 2 34 repayment fund and be continuously available to make 2 35 additional loans under the program. Notwithstanding section 3 1 12C.7, subsection 2, interest or earnings on moneys deposited 3 2 in the fund shall be credited to the fund. 3 3 8. For purposes of this section, unless the context 3 4 otherwise requires, "teacher" means the same as defined in 3 5 section 272.1. 3 6 Sec. 3. Section 261.112, Code 1999, is amended by striking 3 7 the section and inserting in lieu thereof the following: 3 8 261.112 TEACHER SHORTAGE LOAN REPAYMENT PROGRAM. 3 9 1. A teacher shortage loan repayment program is 3 10 established under the control of the commission if the general 3 11 assembly makes an appropriation for that purpose. The purpose 3 12 of the program is to offer recent graduates of Iowa's 3 13 practitioner preparation programs the opportunity to qualify 3 14 for student loan repayments if the individual is a resident of 3 15 the state and is employed by a school district or an 3 16 accredited nonpublic school as a practitioner in an area 3 17 determined by the director of the department of education to 3 18 be a teacher shortage area in accordance with section 261.111, 3 19 subsection 2. 3 20 2. In addition to the requirements of subsection 1, an 3 21 individual is eligible for the program if the individual meets 3 22 all of the following conditions: 3 23 a. Attended an institution of higher learning under the 3 24 control of the state board of regents or an accredited private 3 25 institution as defined in section 261.9, successfully 3 26 completed an approved practitioner preparation program at the 3 27 institution, and received a degree from the institution not 3 28 later than June 30, 2000. 3 29 b. Obtained a student loan to pay for the costs of 3 30 attendance at the postsecondary institution from which the 3 31 degree identified in paragraph "a" was obtained. However, an 3 32 individual who received a forgivable loan pursuant to section 3 33 261.111 is ineligible for loan repayments under this section. 3 34 c. Enters into a student loan repayment agreement with the 3 35 commission. 4 1 3. Once an individual has been determined to be eligible 4 2 for the program, the individual who is employed by a school 4 3 district or an accredited nonpublic school in this state shall 4 4 not lose eligibility for student loan repayments under the 4 5 program solely because the director of the department of 4 6 education ceases to identify as a teacher shortage area the 4 7 area in which the individual is employed to teach. 4 8 4. However, an individual shall be ineligible for the 4 9 student loan repayment program and any agreement entered into 4 10 as specified in subsection 2 is null and void if after 4 11 entering into a student loan repayment agreement, the 4 12 individual accepts employment outside of the state of Iowa or 4 13 in an area not identified by the director of the department of 4 14 education as a teacher shortage area. 4 15 5. The commission shall make loan repayments on behalf of 4 16 an individual who meets the qualifications of subsection 2 in 4 17 the amount of twenty-five percent of the individual's total 4 18 loan amount, including principal and interest, or three 4 19 thousand dollars, whichever is less, for every year in which 4 20 the individual remains an Iowa resident and is employed by a 4 21 school district or accredited nonpublic school in Iowa in an 4 22 area identified by the director of the department of education 4 23 as a teacher shortage area. The maximum period for which loan 4 24 repayments can be made on behalf of an individual who meets 4 25 the requirements of this section is four years. 4 26 6. A teacher shortage loan repayment fund is created for 4 27 deposit of moneys appropriated by the general assembly. 4 28 Moneys in the fund shall be distributed by the commission upon 4 29 the receipt of agreements as provided for in subsection 2, 4 30 paragraph "c". If the fund is depleted during a fiscal year, 4 31 agreements shall not be serviced until the subsequent fiscal 4 32 year. Notwithstanding section 8.33, moneys deposited in the 4 33 loan repayment fund shall not revert to the general fund of 4 34 the state at the end of any fiscal year but shall remain in 4 35 the loan repayment fund and be continuously available to make 5 1 additional loan repayments under the program. Notwithstanding 5 2 section 12C.7, subsection 2, interest or earnings on moneys in 5 3 the fund shall be credited to the fund. 5 4 7. The commission shall adopt rules pursuant to chapter 5 5 17A to administer this section and section 261.111. 5 6 8. This section is repealed July 1, 2004. 5 7 Sec. 4. REMAINING INDUSTRIAL TECHNOLOGY FORGIVABLE LOAN 5 8 PROGRAM BALANCE. Notwithstanding section 8.33 or section 5 9 261.25, subsection 4, Code 1999, section 261.111, subsection 5 10 3, Code 1999, or any other provision to the contrary, 5 11 unencumbered or unobligated funds remaining on June 30, 1999, 5 12 for purposes of the industrial technology forgivable loan 5 13 program established in section 261.111, Code 1999, shall be 5 14 available to the college student aid commission for 5 15 expenditure for the fiscal year beginning July 1, 1999, and 5 16 for succeeding fiscal years for the purpose of providing 5 17 teacher shortage loan repayments as provided in section 5 18 261.112. 5 19 Sec. 5. EFFECTIVE DATE. This section of this Act and 5 20 section 4 of this Act, relating to the remaining industrial 5 21 technology forgivable loan program, being deemed of immediate 5 22 importance, take effect upon enactment. 5 23 EXPLANATION 5 24 This bill creates a teacher shortage loan repayment program 5 25 and fund under the control of the college student aid 5 26 commission if the general assembly makes an appropriation for 5 27 that purpose, strikes and replaces the industrial technology 5 28 shortage forgivable loan program and fund with a teacher 5 29 shortage forgivable loan program and fund and a teacher 5 30 shortage loan repayment program, provides that the moneys 5 31 appropriated for the industrial technology shortage forgivable 5 32 loan program that remain at the end of FY 1999-2000 will be 5 33 available to the college student aid commission for future 5 34 years for the teacher shortage loan repayment program, and 5 35 provides for an annual appropriation of $250,000 from the 6 1 general fund of the state for the teacher shortage forgivable 6 2 loan program. 6 3 TEACHER SHORTAGE FORGIVABLE LOAN PROGRAM. The teacher 6 4 shortage forgivable loan program, subject to an appropriation 6 5 of sufficient funds by the general assembly, will be available 6 6 to Iowa residents who are enrolled in approved practitioner 6 7 preparation programs in a designated area in which teacher 6 8 shortages are anticipated, at a regents university or an 6 9 accredited private institution. 6 10 The bill requires the director of the department of 6 11 education to annually designate the areas in which teacher 6 12 shortages are anticipated. 6 13 Forgivable loans to eligible students shall not become due 6 14 until after the student graduates or leaves school. The 6 15 individual's total loan amount, including principal and 6 16 interest, shall be reduced by 20 percent for each year in 6 17 which the individual remains an Iowa resident and is employed 6 18 by a school district or an accredited nonpublic school as a 6 19 teacher in the area for which the loan was approved. If the 6 20 commission determines that the person does not meet the 6 21 criteria for forgiveness of the principal and interest 6 22 payments, the commission shall establish a plan for repayment 6 23 of the principal and interest over a 10-year period. If a 6 24 person required to make the repayment does not make the 6 25 required payments, the commission shall provide for payment 6 26 collection. 6 27 The amount of a teacher shortage area forgivable loan shall 6 28 not exceed $3,000 annually, or the amount of the student's 6 29 established financial need, whichever is less. The interest 6 30 rate for the forgivable loan shall be equal to the interest 6 31 rate collected by an eligible lender under the Iowa guaranteed 6 32 student loan program for the year in which the forgivable loan 6 33 is made. 6 34 A teacher shortage area forgivable loan repayment fund is 6 35 created for deposit of payments made by forgivable loan 7 1 recipients who do not fulfill the conditions of the forgivable 7 2 loan program. Moneys deposited in the forgivable loan 7 3 repayment fund shall not revert to the general fund of the 7 4 state at the end of any fiscal year. 7 5 TEACHER SHORTAGE LOAN REPAYMENT PROGRAM AND FUND. The 7 6 purpose of the teacher shortage loan repayment program is to 7 7 offer recent graduates of Iowa's practitioner preparation 7 8 programs the opportunity to qualify for student loan 7 9 repayments if the student is a resident of the state and is 7 10 employed by a school district or an accredited nonpublic 7 11 school as a practitioner in an area determined by the director 7 12 of the department of education to be a teacher shortage area. 7 13 An individual is eligible for the program if the individual 7 14 attended a regents university or an accredited private 7 15 institution, successfully completed an approved practitioner 7 16 preparation program at the institution, and received a degree 7 17 from the institution by June 30, 2000; acquired a student loan 7 18 for attendance at the institution; and entered into a student 7 19 loan repayment agreement with the commission. 7 20 An individual employed by a school district or an 7 21 accredited nonpublic school will remain eligible for student 7 22 loan repayments if the person was employed in a teacher 7 23 shortage area but the director of the department of education 7 24 ceases to identify as a teacher shortage area the area in 7 25 which the individual is employed to teach. 7 26 An individual is ineligible for the student loan repayment 7 27 program, however, if the individual accepts employment outside 7 28 of the state of Iowa or in an area not identified by the 7 29 director of the department of education as a teacher shortage 7 30 area. 7 31 The commission shall make loan repayments on behalf of an 7 32 individual who meets the qualifications for the program which 7 33 equal 25 percent of the individual's total loan amount, 7 34 including principal and interest, or $3,000, whichever is 7 35 less, for every year in which the individual remains an Iowa 8 1 resident and is employed by a school district or accredited 8 2 nonpublic school in Iowa in an area identified by the director 8 3 of the department of education as a teacher shortage area. 8 4 The maximum period for which loan repayments can be made on 8 5 behalf of an individual who meets the requirements of this 8 6 section is four years. 8 7 If the program fund is depleted during a fiscal year, 8 8 agreements shall not be serviced until the subsequent fiscal 8 9 year. The bill provides that moneys in the fund shall not 8 10 revert to the general fund of the state at the end of any 8 11 fiscal year but shall remain in the fund and be continuously 8 12 available to make additional loan repayments under the 8 13 program. 8 14 The bill requires that moneys appropriated for purposes of 8 15 the industrial technology forgivable loan program which remain 8 16 unencumbered or unobligated on June 30, 1999, shall be 8 17 available to the college student aid commission for 8 18 expenditure under the teacher shortage loan repayment program. 8 19 The teacher shortage loan repayment program is repealed 8 20 effective July 1, 2004. 8 21 LSB 2765HH 78 8 22 kh/sc/14
Text: HF00529 Text: HF00531 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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