House Journal: Page 1546: Wednesday, April 21, 1999

13   eight five hundred forty dollars for scholarships.

14     3.  There is appropriated from the general fund of
15   the state to the commission for each fiscal year the
16   sum of two million two four hundred forty-four eighty-
17   two thousand one four hundred ninety-seven dollars for
18   vocational-technical tuition grants.
19     Sec. 25.  Section 261.25, subsection 4, Code 1999,
20   is amended by striking the subsection.
21     Sec. 26.  Section 261.71, subsection 1, paragraph
22   c, Code 1999, is amended to read as follows:
23     c.  The student practices agrees to practice in an
24   underserved area in the state of Iowa for a period of
25   time to be determined by the commission at the time
26   the loan is awarded.
27     Sec. 27.  Section 261.71, subsections 2 and 3, Code
28   1999, are amended to read as follows:
29     2. Of the moneys loaned to an eligible 
student,
30   for each year of up to and including 
four years of
31   practice in Iowa, an amount equal to 
twenty-five
32   percent of the original principal and the
33   proportionate share of accrued interest, or 
one
34   thousand one hundred dollars, whichever is 
greater,
35   shall be forgiven.  If a student fails to 
complete a
36   year of practice in the state, as practice 
is defined
37   by the college student aid commission, the 
loan amount
38   for that year shall not be forgiven. The 
contract for
39   the loan repayment shall stipulate the time period the
40   chiropractor shall practice in an underserved area in
41   this state.  In addition, the contract shall stipulate
42   that the chiropractor repay any funds paid on the
43   chiropractor's loan by the commission if the
44   chiropractor fails to practice in an underserved area
45   in this state for the required period of time.
46   Forgivable loans made to eligible students shall not
47   become due, for repayment purposes, until one year
48   after the student has graduated.  A loan that has not
49   been forgiven may be sold to a bank, savings and loan
50   association, credit union, or nonprofit agency
Page 24
 1   eligible to participate in the guaranteed student loan
 2   program under the federal Higher Education Act of
 3   1965, 20 U.S.C. § 1071 et seq., by the commission when
 4   the loan becomes due for repayment.
 5     3.  For purposes of this section "graduate student"
 6   means a student who has completed at least ninety
 7   semester hours, or the trimester or quarter
 8   equivalent, of postsecondary course work at a public
 9   higher education institution or at an accredited
10   private institution, as defined under section 261.9.
11   "Underserved area" means a geographical area included

© 1999 Cornell College and League of Women Voters of Iowa

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