Senate File 365 - Introduced
SENATE FILE
BY BEALL
(COMPANION TO LSB 2630HH
BY MASCHER)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to forgivable loans for individuals enrolled in
2 approved nursing education programs.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2630SS 82
5 kh/gg/14
PAG LIN
1 1 Section 1. Section 261.23, subsection 1, Code 2007, is
1 2 amended to read as follows:
1 3 1. A registered nurse recruitment program is established
1 4 to be administered by the college student aid commission. The
1 5 program shall consist of a forgivable loan program and a
1 6 tuition scholarship program for students and a loan repayment
1 7 program for registered nurses. The commission shall regularly
1 8 adjust the registered nurse service requirement under each
1 9 aspect of the program to provide, to the extent possible, an
1 10 equal financial benefit for each period of service required.
1 11 From funds appropriated for purposes of the program by the
1 12 general assembly, the commission shall pay a fee to schools of
1 13 nursing, accredited by the board of nursing, for the
1 14 administration of the program. A portion of the fee shall be
1 15 based upon the number of registered nurses recruited under
1 16 subsection 4.
1 17 Sec. 2. NEW SECTION. 261.23A NURSE EDUCATOR FORGIVABLE
1 18 LOAN PROGRAM.
1 19 1. A nurse educator forgivable loan program is established
1 20 to be administered by the commission.
1 21 2. An individual is eligible for the program if the
1 22 individual is an Iowa resident; is a registered nurse seeking
1 23 to become qualified as a nurse educator in Iowa; is enrolled
1 24 on a full=time or part=time basis in a postbaccalaureate
1 25 course of study in an advanced formal academic nursing
1 26 education program approved by the board of nursing pursuant to
1 27 section 152.5, and offered by an accredited private
1 28 institution or an institution of higher education governed by
1 29 the state board of regents; and agrees to teach in an
1 30 accredited private institution or an institution of higher
1 31 education governed by the state board of regents.
1 32 3. Each applicant shall, in accordance with the rules of
1 33 the commission, do the following:
1 34 a. Complete and file an application for a nurse educator
1 35 forgivable loan. The individual shall be responsible for the
2 1 prompt submission of any information required by the
2 2 commission.
2 3 b. File a new application and submit information as
2 4 required by the commission annually on the basis of which the
2 5 applicant's eligibility for the renewed forgivable loan will
2 6 be evaluated and determined.
2 7 4. Forgivable loans to eligible individuals shall not
2 8 become due until after the individual graduates or leaves
2 9 school. The individual's total loan amount, including
2 10 principal and interest, shall be reduced by twenty percent for
2 11 each year in which the individual remains an Iowa resident and
2 12 is employed in Iowa as a nurse educator. If the commission
2 13 determines that the individual does not meet the criteria for
2 14 forgiveness of the principal and interest payments, the
2 15 commission shall establish a plan for repayment of the
2 16 principal and interest over a ten=year period. If the
2 17 individual does not make the payments as required, the
2 18 commission shall provide for payment collection.
2 19 5. The annual amount of a nurse educator forgivable loan
2 20 shall not exceed the resident tuition rate established for
2 21 institutions of higher education governed by the state board
2 22 of regents, or the amount of the student's established
2 23 financial need, whichever is less.
2 24 6. The commission shall prescribe by rule the interest
2 25 rate for the forgivable loan.
2 26 7. A nurse educator forgivable loan repayment fund is
2 27 created for deposit of payments made by forgivable loan
2 28 recipients who do not fulfill the conditions of the forgivable
2 29 loan program and any other moneys appropriated to or received
2 30 by the commission for deposit in the fund. Notwithstanding
2 31 section 8.33, moneys deposited in the fund shall not revert to
2 32 the general fund of the state at the end of any fiscal year
2 33 but shall remain in the forgivable loan repayment fund and be
2 34 continuously available to make additional loans under the
2 35 program. Notwithstanding section 12C.7, subsection 2,
3 1 interest or earnings on moneys deposited in the fund shall be
3 2 credited to the fund.
3 3 8. For purposes of this section, unless the context
3 4 otherwise requires, "nurse educator" means a registered nurse
3 5 who holds a master's degree or doctorate degree, or is a
3 6 certified clinical nurse specialist, and is employed by a
3 7 faculty member who teaches nursing as provided in 655 IAC
3 8 2.6(152) at an accredited private institution or an
3 9 institution of higher education governed by the state board of
3 10 regents.
3 11 9. The commission shall submit in a report to the general
3 12 assembly by January 1, annually, the number of individuals who
3 13 received forgivable loans pursuant to this section, which
3 14 institutions the individuals were enrolled in, and the amount
3 15 paid to each of the institutions on behalf of the individuals
3 16 who received forgivable loans pursuant to this section.
3 17 10. The commission shall adopt rules pursuant to chapter
3 18 17A to administer this section.
3 19 EXPLANATION
3 20 This bill strikes language that requires the college
3 21 student aid commission to pay a fee to schools of nursing for
3 22 administration of the registered nurse recruitment program,
3 23 and establishes a nurse educator forgivable loan program to be
3 24 administered by the commission for purposes of providing
3 25 forgivable loans to registered nurses who are seeking to
3 26 become qualified as a nurse educator in Iowa, are enrolled on
3 27 a full=time or part=time basis in a postbaccalaureate course
3 28 of study in an approved advanced formal academic nursing
3 29 education program, and agree to teach in an accredited private
3 30 postsecondary institution or state university. For each year
3 31 the individual is a resident of Iowa and is employed as a
3 32 nurse educator by an accredited Iowa college or university, 20
3 33 percent of the individual's loan amount is forgiven.
3 34 The annual amount of a forgivable loan is limited to no
3 35 more than the resident tuition rate established for state
4 1 universities, or the amount of the student's established
4 2 financial need, whichever is less.
4 3 If the loan recipient does not meet the criteria for
4 4 forgiveness of the principal and interest payments, the
4 5 commission shall establish a plan for repayment of the
4 6 principal and interest over a 10=year period. If the
4 7 individual does not make the payments as required, the
4 8 commission is authorized to provide for payment collection.
4 9 A nurse educator forgivable loan repayment fund is created
4 10 for deposit of payments made by forgivable loan recipients who
4 11 do not fulfill the conditions of the forgivable loan program.
4 12 Moneys in the fund do not revert to the state's general fund,
4 13 but remain in the fund to be continuously available to make
4 14 additional loans under the program.
4 15 The commission must submit in a report to the general
4 16 assembly by January 1, annually, the number of individuals who
4 17 received forgivable loans, which institutions the individuals
4 18 were enrolled in, and the amount paid to each of the
4 19 institutions on behalf of the individuals who received
4 20 forgivable loans.
4 21 LSB 2630SS 82
4 22 kh:nh/gg/14