Senate File 597 - Introduced



                                       SENATE FILE       
                                       BY  ZIEMAN


    Passed Senate, Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act creating a student loan interest buy=down program
  2    administered by the college student aid commission.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1841XS 82
  5 kh/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  261.131  INTEREST BUY=DOWN
  1  2 PROGRAM FOR RESIDENTS.
  1  3    1.  If sufficient funds are appropriated by the general
  1  4 assembly, a student loan interest buy=down program is created
  1  5 to be administered by the college student aid commission.  The
  1  6 purpose of the program shall be to annually reduce by fifty
  1  7 percent the interest rate on Iowa guaranteed student loans or
  1  8 student loans guaranteed by the federal government issued to
  1  9 individuals who are residents of Iowa and who have met the
  1 10 educational requirements for a baccalaureate or graduate
  1 11 degree.  No sooner than three months after the individual has
  1 12 graduated from an accredited postsecondary institution, the
  1 13 individual may submit an application to the commission on a
  1 14 form approved by the commission.  The individual shall remain
  1 15 eligible for the program each year in which the individual
  1 16 resides in this state.
  1 17    2.  An interest buy=down revolving fund is created in the
  1 18 state treasury as a separate fund under the control of the
  1 19 college student aid commission.  All moneys deposited or paid
  1 20 into the fund are appropriated and made available to the
  1 21 commission to be used for loans as provided in this section.
  1 22 Notwithstanding section 8.33, any balance in the fund on June
  1 23 30 of each fiscal year shall not revert to the general fund of
  1 24 the state, but shall be available for the purposes of this
  1 25 section in subsequent fiscal years.
  1 26    3.  The commission shall adopt rules pursuant to chapter
  1 27 17A to administer this section.
  1 28                           EXPLANATION
  1 29    This bill creates, if sufficient funds are appropriated by
  1 30 the general assembly, a student loan interest buy=down program
  1 31 to be administered by the college student aid commission.
  1 32 Residents of Iowa who graduate with an undergraduate or
  1 33 graduate degree may have the interest on their state or
  1 34 federal guaranteed student loans reduced by 50 percent each
  1 35 year in which they reside in the state.
  2  1    The bill also creates an interest buy=down revolving fund
  2  2 in the state treasury under the control of the commission.
  2  3 Any moneys appropriated for the program and deposited in the
  2  4 fund will not revert but will be available for purposes of the
  2  5 program in subsequent fiscal years.
  2  6 LSB 1841XS 82
  2  7 kh:nh/gg/14