House Journal: Page 1559: Wednesday, April 21, 1999

33   information required by the commission.

34     b.  File a new application and submit information
35   as required by the commission annually on the basis of
36   which the applicant's eligibility for the renewed
37   forgivable loan will be evaluated and determined.
38     4.  Forgivable loans to eligible students shall not
39   become due until after the student graduates or leaves
40   school.  The individual's total loan amount, including
41   principal and interest, shall be reduced by twenty
42   percent for each year in which the individual remains
43   an Iowa resident and is employed in Iowa by a school
44   district or an accredited nonpublic school as a
45   practitioner in the teacher shortage area for which
46   the loan was approved.  If the commission determines
47   that the person does not meet the criteria for
48   forgiveness of the principal and interest payments,
49   the commission shall establish a plan for repayment of
50   the principal and interest over a ten-year period.  If
Page 2  
 1   a person required to make the repayment does not make
 2   the required payments, the commission shall provide
 3   for payment collection.
 4     5.  The amount of a teacher shortage forgivable
 5   loan shall not exceed three thousand dollars annually,
 6   or the amount of the student's established financial
 7   need, whichever is less.
 8     6.  The commission shall prescribe by rule the
 9   interest rate for the forgivable loan.
10     7.  A teacher shortage forgivable loan repayment
11   fund is created for deposit of payments made by
12   forgivable loan recipients who do not fulfill the
13   conditions of the forgivable loan program and any
14   other moneys appropriated to or received by the
15   commission for deposit in the fund.  Notwithstanding
16   section 8.33, moneys deposited in the fund shall not
17   revert to the general fund of the state at the end of
18   any fiscal year but shall remain in the forgivable
19   loan repayment fund and be continuously available to
20   make additional loans under the program.
21   Notwithstanding section 12C.7, subsection 2, interest
22   or earnings on moneys deposited in the fund shall be
23   credited to the fund.
24     8.  For purposes of this section, unless the
25   context otherwise requires, "teacher" means the same
26   as defined in section 272.1."
27     2.  Page 27, by striking line 13 and inserting the
28   following:
29     "Sec. ___.  Sections 261.21 and 261.112, Code 1999,
30   are repealed."

© 1999 Cornell College and League of Women Voters of Iowa

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