Text: SF02169 Text: SF02171 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 261.112 FOSTERING ACHIEVEMENT
1 2 FORGIVABLE LOAN PROGRAM.
1 3 1. A fostering achievement forgivable loan program is
1 4 established to be administered by the college student aid
1 5 commission for eligible persons. For purposes of this
1 6 section, unless the context otherwise requires, "eligible
1 7 person" means a person who meets both of the following
1 8 conditions:
1 9 a. The person was subject to a court order under chapter
1 10 232, division III or IV, which transferred the custody of the
1 11 person to the department of human services and the person was
1 12 in a foster care placement or another out-of-home placement
1 13 for a period of six months or longer any of the following
1 14 times in the person's life:
1 15 (1) The day of the person's eighteenth birthday.
1 16 (2) The day of the person's fourteenth birthday, if the
1 17 person was eligible for adoption on or after that date.
1 18 (3) The day on which the person graduated from high school
1 19 or received the equivalent of a high school diploma.
1 20 b. The person enrolls in an undergraduate course of study
1 21 at a community college as defined in section 260C.2, an
1 22 institution of higher learning under the control of the state
1 23 board of regents, or an accredited private institution as
1 24 defined in section 261.9 on or before the third anniversary of
1 25 the date the person was discharged from foster care, graduated
1 26 from high school, or received the equivalent of a high school
1 27 diploma.
1 28 2. The amount of a fostering achievement forgivable loan
1 29 shall not exceed the resident tuition rate established for
1 30 institutions of higher learning under the control of the state
1 31 board of regents.
1 32 3. Forgivable loans to eligible persons shall not become
1 33 due until after the eligible person graduates or leaves
1 34 school. Interest on the loans shall begin to accrue the day
1 35 following the person's graduation date. If the person remains
2 1 a resident of the state and is employed in the state, the
2 2 person's total loan amount, including principal and interest,
2 3 shall be reduced by twenty-five percent for each year in which
2 4 the person remains an Iowa resident and is employed in Iowa.
2 5 If the commission determines that the person does not meet the
2 6 criteria for forgiveness of the principal and interest
2 7 payments, the commission shall establish a plan for repayment
2 8 of the principal and interest. If the person required to make
2 9 repayment fails to make the required payments, the commission
2 10 shall provide for payment collection.
2 11 4. A fostering achievement forgivable loan revolving fund
2 12 is created in the state treasury as a separate fund under the
2 13 control of the commission. The commission shall deposit
2 14 payments made by fostering achievement forgivable loan
2 15 recipients and the proceeds from the sale of fostering
2 16 achievement forgivable loans into the fostering achievement
2 17 forgivable loan revolving fund. Moneys credited to the fund
2 18 shall be used to supplement moneys appropriated for the
2 19 fostering achievement forgivable loan program.
2 20 Notwithstanding section 8.33, any balance in the fund on June
2 21 30 of any fiscal year shall not revert to the general fund of
2 22 the state.
2 23 5. The commission shall adopt rules pursuant to chapter
2 24 17A to administer this section.
2 25 EXPLANATION
2 26 This bill establishes a fostering achievement forgivable
2 27 loan program for persons who were placed in foster care or
2 28 another out-of-home placement.
2 29 Under the program, which is administered by the college
2 30 student aid commission, persons who were in the custody of the
2 31 department of human services under a child in need of
2 32 assistance or termination of parental rights court order and
2 33 in foster care placement for a period of six months or longer
2 34 the day prior to their eighteenth birthday, the day of their
2 35 fourteenth birthday if eligible for adoption, or the day of
3 1 high school graduation or the receipt of an equivalency
3 2 diploma, are eligible for the program. The eligible person
3 3 must enroll in an undergraduate course of study at a community
3 4 college, regents university, or accredited private
3 5 postsecondary institution in Iowa and the amount of the loan
3 6 shall not exceed the resident tuition rate established for
3 7 regents universities.
3 8 Forgivable loans become due after the person graduates or
3 9 leaves school. Upon graduation, the person's total loan
3 10 amount, including principal and interest, is reduced by 25
3 11 percent for each year in which the person remains an Iowa
3 12 resident and is employed in Iowa. If the person fails to meet
3 13 the loan criteria, the commission is directed to establish a
3 14 plan for repayment of the principal and interest and to
3 15 provide for debt collection if the person fails to make the
3 16 required payments.
3 17 The bill creates a fostering achievement forgivable loan
3 18 revolving fund in the state treasury for the deposit of such
3 19 payments. Moneys in the fund are to be used to supplement
3 20 moneys in the program.
3 21 LSB 5885XS 80
3 22 kh/gg/14
Text: SF02169 Text: SF02171 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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