Text: HF02035 Text: HF02037 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. COLLEGE STUDENT AID COMMISSION – NURSING
1 2 SHORTAGE FORGIVABLE LOAN PROGRAM APPROPRIATION. There is
1 3 appropriated from the healthy Iowans tobacco trust to the
1 4 college student aid commission for the fiscal year beginning
1 5 July 1, 2002, and ending June 30, 2003, the following amount,
1 6 or so much thereof as is necessary, to be used for the purpose
1 7 designated:
1 8 For the nursing shortage forgivable loan program
1 9 established in section 261.113:
1 10 .................................................. $ 500,000
1 11 Sec. 2. NEW SECTION. 261.113 NURSING SHORTAGE FORGIVABLE
1 12 LOAN PROGRAM.
1 13 1. A nursing shortage forgivable loan program is
1 14 established to be administered by the college student aid
1 15 commission. An individual is eligible for the forgivable loan
1 16 program if the individual is a resident of this state who is
1 17 enrolled as a sophomore, junior, senior, or graduate student
1 18 in a school of nursing located in this state that is
1 19 accredited by a recognized state or national accredited agency
1 20 approved by the board of nursing.
1 21 2. Each applicant shall, in accordance with the rules of
1 22 the commission, do the following:
1 23 a. Complete and file an application for a nursing shortage
1 24 forgivable loan. The individual shall be responsible for the
1 25 prompt submission of any information required by the
1 26 commission.
1 27 b. File a new application and submit information as
1 28 required by the commission annually on the basis of which the
1 29 applicant's eligibility for the renewed forgivable loan will
1 30 be evaluated and determined.
1 31 3. Forgivable loans to eligible students shall not become
1 32 due until after the student graduates or leaves school. The
1 33 individual's total loan amount, including principal and
1 34 interest, shall be reduced by twenty percent for each year in
1 35 which the individual remains an Iowa resident and is employed
2 1 full-time in Iowa as a nurse in an institutional health
2 2 facility as defined in section 135.61. If the commission
2 3 determines that the person does not meet the criteria for
2 4 forgiveness of the principal and interest payments, the
2 5 commission shall establish a plan for repayment of the
2 6 principal and interest over a ten-year period. If a person
2 7 required to make the repayment does not make the required
2 8 payments, the commission shall provide for payment collection.
2 9 4. The amount of a nursing shortage forgivable loan shall
2 10 not exceed two thousand dollars annually, or the amount of the
2 11 student's established financial need, whichever is less.
2 12 5. The commission shall prescribe by rule the interest
2 13 rate for the forgivable loan.
2 14 6. A nursing shortage forgivable loan repayment fund is
2 15 created for deposit of payments made by forgivable loan
2 16 recipients who do not fulfill the conditions of the forgivable
2 17 loan program and any other moneys appropriated to or received
2 18 by the commission for deposit in the fund. Notwithstanding
2 19 section 8.33, moneys deposited in the fund shall not revert to
2 20 the general fund of the state at the end of any fiscal year
2 21 but shall remain in the forgivable loan repayment fund and be
2 22 continuously available to make additional loans under the
2 23 program. Notwithstanding section 12C.7, subsection 2,
2 24 interest or earnings on moneys deposited in the fund shall be
2 25 credited to the fund.
2 26 EXPLANATION
2 27 This bill establishes a nursing shortage forgivable loan
2 28 program and fund to be administered by the college student aid
2 29 commission and appropriates to the commission from the healthy
2 30 Iowans tobacco trust, for the 2002-2003 fiscal year, $500,000
2 31 for purposes of the program.
2 32 An individual is eligible for the program if the individual
2 33 is a resident enrolled as a sophomore, junior, senior, or
2 34 graduate student in an accredited Iowa school of nursing.
2 35 Under the bill, the individual's total loan amount,
3 1 including principal and interest, will be reduced by 20
3 2 percent for each year in which the individual remains an Iowa
3 3 resident employed full-time as a nurse in an Iowa
3 4 institutional health facility. The bill requires the
3 5 commission to establish a repayment plan for persons who do
3 6 not meet the criteria for forgiveness.
3 7 The amount of a forgivable loan shall not exceed $2,000
3 8 annually, or the amount of the student's established financial
3 9 need, whichever is less.
3 10 The nursing shortage forgivable loan repayment fund is
3 11 created for deposit of payments made by loan recipients who do
3 12 not fulfill the conditions of the program and for any other
3 13 moneys received by the commission for deposit in the fund.
3 14 Moneys deposited in the fund will not revert to the general
3 15 fund of the state at the end of any fiscal year but will
3 16 remain in the fund to make additional loans under the program.
3 17 LSB 5486YH 79
3 18 kh/sh/8
Text: HF02035 Text: HF02037 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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