Text: HF00763                           Text: HF00765
Text: HF00700 - HF00799                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 764

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 261.17, subsection 3, unnumbered
  1  2 paragraph 1, Code 1999, is amended to read as follows:
  1  3    A qualified full-time student may receive vocational-
  1  4 technical tuition grants for not more than four semesters,
  1  5 eight quarters or the trimester or quarter equivalent of two
  1  6 full years of study.  The amount of a vocational-technical
  1  7 tuition grant to a A qualified part-time student enrolled in a
  1  8 course of study including at least three semester hours but
  1  9 fewer than twelve semester hours or the trimester or quarter
  1 10 equivalent shall be equal to the amount of a tuition grant
  1 11 that would be paid to a full-time student times a number which
  1 12 represents the number of hours in which the part-time student
  1 13 is actually enrolled divided by twelve semester hours, may
  1 14 receive vocational-technical tuition grants for not more than
  1 15 eight semesters or the trimester or quarter equivalent of two
  1 16 full years of full-time study.
  1 17    Sec. 2.  Section 261.17, subsection 4, Code 1999, is
  1 18 amended to read as follows:
  1 19    4.  a.  The amount of a vocational-technical tuition grant
  1 20 to a qualified full-time student shall not exceed the lesser
  1 21 of six hundred dollars per year or the amount of the student's
  1 22 established financial need.
  1 23    b.  The amount of a vocational-technical tuition grant to a
  1 24 qualified part-time student enrolled in a course of study
  1 25 including at least three semester hours but fewer than twelve
  1 26 semester hours or the trimester or quarter equivalent shall be
  1 27 equal to the amount of a vocational-technical tuition grant
  1 28 that would be paid to a full-time student, except that the
  1 29 commission shall prorate the amount in a manner consistent
  1 30 with the federal Pell grant program proration.
  1 31    Sec. 3.  Section 261.38, subsection 1, Code 1999, is
  1 32 amended to read as follows:
  1 33    1.  The commission shall establish a loan reserve account
  1 34 from which any default on a guaranteed student loan shall be
  1 35 paid and an agency operating account as authorized by the
  2  1 federal Higher Education Act of 1965.  The commission shall
  2  2 credit to this account these accounts all moneys designated
  2  3 exclusively for the reserve fund provided for the state
  2  4 student loan program by the United States, the state of Iowa,
  2  5 or any of their agencies, departments or instrumentalities, as
  2  6 well as any funds accruing to the program which are not
  2  7 required for current administrative expenses.  The department
  2  8 of management shall determine the actuarially sound reserve
  2  9 requirement for the amount of guaranteed loans outstanding
  2 10 commission may expend moneys in the loan reserve and agency
  2 11 operating accounts as authorized by the federal Higher
  2 12 Education Act of 1965.
  2 13    Sec. 4.  Section 261.38, subsection 2, Code 1999, is
  2 14 amended by striking the subsection.
  2 15    Sec. 5.  Section 261.38, subsections 3, 4, and 5, Code
  2 16 1999, are amended to read as follows:
  2 17    3.  The payment of any funds for the default on a
  2 18 guaranteed student loan shall be solely from the loan reserve
  2 19 account and agency operating accounts.  The general assembly
  2 20 shall not be obligated to appropriate any moneys to pay for
  2 21 any defaults or to appropriate any moneys to be credited to
  2 22 the loan reserve account.  The commission shall not give or
  2 23 lend the credit of the state of Iowa.
  2 24    4.  Funds Notwithstanding section 8.33, funds on deposit in
  2 25 the loan reserve account or in the administrative account and
  2 26 operating accounts shall not revert to the state general fund
  2 27 at the close of any fiscal year.
  2 28    5.  The treasurer of state shall invest any funds,
  2 29 including those in the loan reserve account and operating
  2 30 accounts, and, notwithstanding section 12C.7, the interest
  2 31 income earned shall be credited back to the loan reserve
  2 32 appropriate account.
  2 33    Sec. 6.  Section 261.38, subsection 6, Code 1999, is
  2 34 amended by striking the subsection.
  2 35    Sec. 7.  Section 261.38, subsection 7, unnumbered paragraph
  3  1 1, Code 1999, is amended to read as follows:
  3  2    The commission may expend funds in the reserve account and
  3  3 enter into agreements with the Iowa student loan liquidity
  3  4 corporation in order to increase access for students to
  3  5 education loan programs that the commission determines meet
  3  6 the education needs of Iowa residents.  The agreements shall
  3  7 permit the establishment, funding, and operation of
  3  8 alternative education loan programs, as described in section
  3  9 144(b)(1)(B) of the Internal Revenue Code of 1986 as amended,
  3 10 as defined in section 422.3, in addition to programs permitted
  3 11 under the federal Higher Education Act of 1965.  In accordance
  3 12 with those agreements, the Iowa student loan liquidity
  3 13 corporation may issue bonds, notes, or other obligations to
  3 14 the public and others for the purpose of funding the
  3 15 alternative education loan programs.  This authority to issue
  3 16 such bonds, notes, or other obligations shall be in addition
  3 17 to the authority established in the articles of incorporation
  3 18 and bylaws of the Iowa student loan liquidity corporation.  
  3 19                           EXPLANATION 
  3 20    This bill reflects a change in federal law that prohibits
  3 21 the state from asserting control over the loan reserve account
  3 22 of the state student loan program, which is currently funded
  3 23 with federal moneys.  Current Code language provides that the
  3 24 general assembly appropriates moneys from the loan reserve
  3 25 account to the college student aid commission for state
  3 26 student loan program operating costs.
  3 27    The bill also authorizes the commission to issue
  3 28 vocational-technical tuition grants to qualified part-time
  3 29 students equal to the grant amount received by a full-time
  3 30 student, but prorated in a manner consistent with the federal
  3 31 Pell grant program.  Currently, the vocational-technical
  3 32 tuition grant amount issued to part-time students is equal to
  3 33 the amount paid to a full-time student times a number number
  3 34 of hours in which the part-time student is enrolled, divided
  3 35 by 12 semester hours.
  4  1    The federal Higher Education Amendments of 1998, Pub. L.
  4  2 No. 105-244, states that the guaranty agency, and the college
  4  3 student aid commission, shall deposit all assets contained in
  4  4 the current loan reserve account into a federal student loan
  4  5 reserve fund.  This fund, according to the federal law, is the
  4  6 sole property of the federal government and the guaranty
  4  7 agency may use moneys from the fund to pay lender claims or
  4  8 pay into the agency operating fund.
  4  9    The bill authorizes the college student aid commission to
  4 10 establish a loan reserve account and an agency operating
  4 11 account for the deposit of moneys provided by the state
  4 12 student loan program by the United States and the state of
  4 13 Iowa or any of their agencies, departments or
  4 14 instrumentalities, as well as any funds accruing to the
  4 15 program which are not required for current administrative
  4 16 expenses.  The bill permits the commission to expend moneys in
  4 17 the loan reserve and agency operating accounts as authorized
  4 18 by the federal Higher Education Act of 1965.
  4 19    The bill strikes a subsection that permits the commission
  4 20 to exceed the full-time equivalent positions authorized and
  4 21 expend moneys in the loan reserve account in excess of the
  4 22 amounts appropriated by the general assembly, in order to
  4 23 maintain loan guarantee operations.  The subsection stricken
  4 24 also requires the commission to notify the chairpersons and
  4 25 ranking members of the standing appropriations committees of
  4 26 the general assembly and the co-chairpersons and ranking
  4 27 members of the education appropriations subcommittee of the
  4 28 proposed adjustment or transfer.  
  4 29 LSB 1276HZ 78
  4 30 kh/gg/8
     

Text: HF00763                           Text: HF00765
Text: HF00700 - HF00799                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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