House File 2420 - Introduced HOUSE FILE BY HUNTER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a worker shortage loan forgiveness program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5929HH 82 4 kh/nh/14 PAG LIN 1 1 Section 1. NEW SECTION. 261.115 WORKER SHORTAGE LOAN 1 2 FORGIVENESS PROGRAM. 1 3 1. A worker shortage loan forgiveness program is 1 4 established to be administered by the commission. An 1 5 individual is eligible for the program if the individual 1 6 graduated from a school district or accredited nonpublic 1 7 school in this state in or after 2008, is a resident of the 1 8 state, and successfully completed a vocational=technical or 1 9 career option program or graduated with an associate degree 1 10 from a community college established pursuant to chapter 260C 1 11 or graduated with a baccalaureate degree or postbaccalaureate 1 12 degree from an institution of higher education governed by the 1 13 state board of regents or from an accredited private 1 14 institution, and the individual meets either of the following 1 15 conditions: 1 16 a. Is employed and residing in this state and has been 1 17 employed and residing in this state for a period of two 1 18 consecutive years within three years of successfully 1 19 completing a vocational=technical or career option program or 1 20 achieving an associate degree from a community college. 1 21 b. Is employed and residing in this state and has been 1 22 employed and residing in this state for a period of four 1 23 consecutive years within five years of graduating with a 1 24 baccalaureate degree or postbaccalaureate degree from an 1 25 institution of higher education governed by the state board of 1 26 regents or from an accredited private institution. 1 27 2. Each applicant for loan forgiveness shall, in 1 28 accordance with the rules of the commission, do the following: 1 29 a. Complete and file an application for worker shortage 1 30 loan forgiveness. The individual shall be responsible for the 1 31 prompt submission of any information required by the 1 32 commission. 1 33 b. File a new application and submit information as 1 34 required by the commission annually on the basis of which the 1 35 applicant's eligibility for the renewed loan forgiveness will 2 1 be evaluated and determined. 2 2 c. Complete and return on a form approved by the 2 3 commission an affidavit of eligibility verifying that the 2 4 applicant met the requirements of subsection 1. 2 5 3. The annual amount of worker shortage loan forgiveness 2 6 shall not exceed the following: 2 7 a. For an individual who meets the conditions of 2 8 subsection 1, paragraph "a", the combined resident tuition 2 9 rate established for the two years following the individual's 2 10 successful program completion or graduation from the community 2 11 college, or one hundred percent of the individual's total 2 12 federally guaranteed Stafford loan amount under the federal 2 13 family education loan program or the federal direct loan 2 14 program and any private student loan issued by a lender that 2 15 meets standards prescribed by the commission including 2 16 principal and interest, whichever amount is less. 2 17 b. For an individual who meets the conditions of 2 18 subsection 1, paragraph "b", the combined resident tuition 2 19 rate established for institutions of higher learning governed 2 20 by the state board of regents for the four years following the 2 21 individual's graduation from the regents university or 2 22 accredited private institution, or one hundred percent of the 2 23 individual's total federally guaranteed Stafford loan amount 2 24 under the federal family education loan program or the federal 2 25 direct loan program and any private student loan issued by a 2 26 lender that meets standards prescribed by the commission 2 27 including principal and interest, whichever amount is less. 2 28 4. The commission shall submit in a report to the general 2 29 assembly by January 1, annually, the number of individuals who 2 30 received loan forgiveness pursuant to this section, the 2 31 postsecondary institutions from which the individuals 2 32 graduated or successfully completed a vocational=technical or 2 33 career options program, where in the state program 2 34 participants are employed, program participants' employment 2 35 classifications or types of employment, the amount paid to 3 1 each program participant, and other information identified by 3 2 the commission as indicators of outcomes from the program. 3 3 5. The commission shall adopt rules pursuant to chapter 3 4 17A to administer this section. 3 5 EXPLANATION 3 6 This bill creates a worker shortage loan forgiveness 3 7 program to be administered by the college student aid 3 8 commission. The program is open to individuals who graduated 3 9 from an Iowa high school in 2008 or later, are employed and 3 10 reside in the state, and successfully completed a 3 11 vocational=technical or career option program or received a 3 12 degree from an accredited postsecondary institution in the 3 13 state. 3 14 The individual must also have been employed and resided in 3 15 this state for a period of two consecutive years within three 3 16 years of successfully completing a vocational=technical or 3 17 career option program or achieving an associate degree from a 3 18 community college, or must have been employed and resided in 3 19 this state for a period of four consecutive years within five 3 20 years of graduating with a baccalaureate degree or 3 21 postbaccalaureate degree from a regents university or 3 22 accredited private institution. 3 23 In the case of an individual who attended a community 3 24 college, the total amount of worker shortage loan forgiveness 3 25 shall not exceed the combined resident tuition rate 3 26 established for the two years following the individual's 3 27 successful program completion or graduation from the community 3 28 college, or 100 percent of the individual's total federal loan 3 29 program and private student loan amount including principal 3 30 and interest, whichever amount is less. 3 31 In the case of an individual who attended a regents 3 32 university or accredited private institution, the annual 3 33 amount of worker shortage loan forgiveness shall not exceed 3 34 the combined resident tuition rate established for regents 3 35 universities for the four years following the individual's 4 1 graduation, or 100 percent of the individual's total federal 4 2 loan program and private student loan amount including 4 3 principal and interest, whichever amount is less. The 4 4 individual is eligible for the loan forgiveness program for 4 5 not more than four consecutive years. 4 6 The bill requires the commission to submit a report to the 4 7 general assembly by January 1, annually, with information 4 8 identified as indicators of outcomes from the program. 4 9 LSB 5929HH 82 4 10 kh/nh/14.1