House File 2250 - Introduced
HOUSE FILE
BY MAY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing a mathematics and science teacher forgivable
2 loan program for undergraduate and graduate students.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5761HH 81
5 kh/je/5
PAG LIN
1 1 Section 1. NEW SECTION. 261.51 MATHEMATICS AND SCIENCE
1 2 TEACHER FORGIVABLE LOAN PROGRAM.
1 3 1. A mathematics and science teacher forgivable loan
1 4 program is established to be administered by the college
1 5 student aid commission. The purpose of the forgivable loan
1 6 program is to assist individuals in attaining a baccalaureate
1 7 or graduate degree in a major course of study in mathematics
1 8 or science, or in qualifying for an endorsement in mathematics
1 9 or science issued by the board of educational examiners, or in
1 10 increasing the individual's subject area qualifications and
1 11 competency to increase student achievement in those subject
1 12 areas. In order to be eligible for the forgivable loan
1 13 program, an individual shall be a resident of this state who
1 14 is enrolled as an undergraduate or graduate student in a
1 15 community college established under chapter 260C, an
1 16 institution of higher learning under the control of the state
1 17 board of regents, or an accredited private institution as
1 18 defined in section 261.9.
1 19 2. Each applicant shall, in accordance with the rules of
1 20 the commission, do the following:
1 21 a. Complete and file an application for a mathematics and
1 22 science teacher forgivable loan. The individual shall be
1 23 responsible for the prompt submission of any information
1 24 required by the commission.
1 25 b. File a new application and submit information as
1 26 required by the commission annually on the basis of which the
1 27 applicant's eligibility for a renewed forgivable loan will be
1 28 evaluated and determined.
1 29 3. Forgivable loans to eligible students shall not become
1 30 due until after the student graduates or leaves school. The
1 31 individual's total loan amount, including principal and
1 32 interest, shall be reduced by twenty percent for each year in
1 33 which the individual remains an Iowa resident, is employed in
1 34 Iowa as a teacher by a school district or an accredited
1 35 nonpublic school, and teaches mathematics or science for more
2 1 than fifty percent of their contracted time. If the
2 2 commission determines that the person does not meet the
2 3 criteria for forgiveness of the principal and interest
2 4 payments, the commission shall establish a plan for repayment
2 5 of the principal and interest over a ten=year period. If a
2 6 person required to make the repayment does not make the
2 7 required payments, the commission shall provide for payment
2 8 collection.
2 9 4. The amount of a mathematics and science forgivable loan
2 10 shall not exceed five thousand dollars annually, or the amount
2 11 of the student's established financial need, whichever is
2 12 less.
2 13 5. The commission shall prescribe by rule the interest
2 14 rate for the forgivable loan.
2 15 6. A mathematics and science teacher forgivable loan
2 16 repayment fund is created for deposit of payments made by
2 17 forgivable loan recipients who do not fulfill the conditions
2 18 of the forgivable loan program and any other moneys
2 19 appropriated to or received by the commission for deposit in
2 20 the fund. Notwithstanding section 8.33, moneys deposited in
2 21 the fund shall not revert to the general fund of the state at
2 22 the end of any fiscal year but shall remain in the forgivable
2 23 loan repayment fund and be continuously available to make
2 24 additional loans under the program. Notwithstanding section
2 25 12C.7, subsection 2, interest or earnings on moneys deposited
2 26 in the fund shall be credited to the fund.
2 27 7. For purposes of this section, unless the context
2 28 otherwise requires, "teacher" means the same as defined in
2 29 section 272.1.
2 30 Sec. 2. Section 261.54, Code 2005, is repealed.
2 31 EXPLANATION
2 32 This bill establishes a mathematics and science teacher
2 33 forgivable loan program to be administered by the college
2 34 student aid commission. The purpose of the program is to
2 35 assist individuals in attaining a baccalaureate or graduate
3 1 degree in a major course of study in mathematics or science,
3 2 or in qualifying for an endorsement in mathematics or science
3 3 issued by the board of educational examiners, or in increasing
3 4 the individual's subject area qualifications and competency to
3 5 increase student achievement in those subject areas. To be
3 6 eligible, an individual must be a resident of this state who
3 7 is enrolled as an undergraduate or graduate student in a
3 8 community college, a state university, or an accredited
3 9 private institution as defined in Code section 261.9.
3 10 The individual's total loan amount, including principal and
3 11 interest, shall be reduced by 20 percent for each year in
3 12 which the individual remains an Iowa resident, is employed as
3 13 a teacher in Iowa by a school district or an accredited
3 14 nonpublic school, and teaches mathematics or science for more
3 15 than 50 percent of their contracted time. If the commission
3 16 determines that the person does not meet the criteria for
3 17 forgiveness of the principal and interest payments, the
3 18 commission shall establish a plan for repayment of the
3 19 principal and interest over a 10=year period. If a person
3 20 required to make the repayment does not make the required
3 21 payments, the commission shall provide for payment collection.
3 22 The amount of a mathematics and science teacher forgivable
3 23 loan shall not exceed $5,000 annually, or the amount of the
3 24 student's established financial need, whichever is less.
3 25 A mathematics and science teacher forgivable loan repayment
3 26 fund is created for deposit of payments made by forgivable
3 27 loan recipients who do not fulfill the conditions of the
3 28 forgivable loan program and any other moneys appropriated to
3 29 or received by the commission for deposit in the fund.
3 30 The bill also repeals an obsolete Code section which
3 31 provided for the repayment of loans under a similar loan
3 32 program that was repealed in 1989.
3 33 LSB 5761HH 81
3 34 kh:nh/je/5