Senate Study Bill 1007
SENATE FILE
BY (PROPOSED COMMITTEE ON
VETERANS AFFAIRS BILL
BY CHAIRPERSON BEALL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing an Iowa veterans college loan repayment
2 program and making an appropriation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1209SC 83
5 kh/nh/8
PAG LIN
1 1 Section 1. NEW SECTION. 261.23A IOWA VETERANS COLLEGE
1 2 LOAN REPAYMENT PROGRAM == FUND.
1 3 1. An Iowa veterans college loan repayment program is
1 4 established to be administered by the college student aid
1 5 commission, in consultation with the department of veterans
1 6 affairs, to encourage veterans to establish careers in Iowa.
1 7 2. A veteran is eligible for the program if the veteran
1 8 meets all of the following qualifications:
1 9 a. Is a resident of this state at the time of application
1 10 for a payment under this section and was a resident of this
1 11 state for at least three consecutive years immediately prior
1 12 to the time of application.
1 13 b. Applies to the commission in a format determined by the
1 14 commission and submits with the application proof of military
1 15 service, and, where applicable, proof of residency and a
1 16 statement from the United States veterans administration that
1 17 the veteran has exhausted or is not entitled to federal
1 18 military college loan repayment program benefits.
1 19 c. Is employed in this state for wages by an employer.
1 20 3. a. The amount of Iowa veterans college loan repayment
1 21 an applicant may receive shall not exceed the following:
1 22 (1) Eighteen thousand dollars or the remainder of the
1 23 veteran's outstanding college debt, whichever is less, if the
1 24 veteran was a resident of this state for not less than ten
1 25 consecutive years immediately prior to the time of application
1 26 for payment under this section. If the veteran qualified for
1 27 repayment under subparagraphs (2) and (3), the amount of
1 28 repayment the veteran is eligible for under this subparagraph
1 29 (1) shall be reduced by an amount equivalent to the total
1 30 amount received under subparagraphs (2) and (3).
1 31 (2) Eight thousand dollars or the remainder of the
1 32 veteran's outstanding college debt, whichever is less, if the
1 33 veteran was a resident of this state for not less than five
1 34 consecutive years immediately prior to the time of application
1 35 for payment under this section. If the veteran qualified for
2 1 repayment under subparagraph (3), the amount of repayment the
2 2 veteran is eligible for under this subparagraph (2) shall be
2 3 reduced by the amount received under subparagraph (3).
2 4 (3) Three thousand dollars or the remainder of the
2 5 veteran's outstanding college debt, whichever is less, if the
2 6 veteran was a resident of this state for not less than three
2 7 consecutive years immediately prior to the time of application
2 8 for payment under this section.
2 9 4. Eligible loans include the federally guaranteed loans
2 10 under the federal family education loan program or the federal
2 11 direct loan program, and subsidized and unsubsidized Stafford
2 12 loans and consolidated loans, including principal and
2 13 interest.
2 14 5. An Iowa veterans college loan repayment fund is created
2 15 in the state treasury as a separate fund under the control of
2 16 the commission. The fund is created for deposit of moneys
2 17 appropriated to or received by the commission for use under
2 18 the program. Notwithstanding section 8.33, any balance in the
2 19 fund on June 30 of any fiscal year shall not revert to the
2 20 general fund of the state but shall remain in the fund for
2 21 additional loan repayment in accordance with this section.
2 22 Notwithstanding section 12C.7, subsection 2, interest or
2 23 earnings on moneys in the fund shall be credited to the fund.
2 24 6. The commission shall adopt rules pursuant to chapter
2 25 17A to administer this section.
2 26 7. For purposes of this section, "veteran" means the same
2 27 as defined in section 35.1.
2 28 Sec. 2. COLLEGE STUDENT AID COMMISSION == IOWA VETERANS
2 29 COLLEGE LOAN REPAYMENT PROGRAM. There is appropriated from
2 30 the general fund of the state to the college student aid
2 31 commission for the fiscal year beginning July 1, 2009, and
2 32 ending June 30, 2010, the following amount, or so much thereof
2 33 as is necessary, to be used for the purposes designated:
2 34 For purposes of the Iowa veterans college loan repayment
2 35 program established pursuant to section 261.23A, if enacted:
3 1 .................................................. $ 2,000,000
3 2 EXPLANATION
3 3 This bill establishes an Iowa veterans college loan
3 4 repayment program to be administered by the college student
3 5 aid commission, in consultation with the department of
3 6 veterans affairs, to encourage veterans to establish careers
3 7 in Iowa. The bill appropriates $2 million for the program for
3 8 FY 2009=2010.
3 9 A veteran is eligible for the program if the veteran is a
3 10 resident, was a resident for not less than three years at the
3 11 time of application, and is employed in Iowa for wages by an
3 12 employer; and has exhausted, or is not entitled to, benefits
3 13 under the federal military college loan repayment program.
3 14 The amount of loan repayment an applicant may receive is
3 15 the lesser of the remainder of the veteran's outstanding
3 16 college debt or $3,000 for a veteran who has lived in the
3 17 state for not less than three years, $8,000 for a veteran who
3 18 has lived in the state for not less than five years, and
3 19 $18,000 for a veteran who has lived in the state for not less
3 20 than 10 years.
3 21 The Iowa veterans college loan repayment fund is created in
3 22 the state treasury under the control of the commission. The
3 23 fund is created for deposit of moneys appropriated to or
3 24 received by the commission for use under the program. Moneys
3 25 in the fund do not revert to the general fund at the end of a
3 26 fiscal year but remain in the fund for additional loan
3 27 repayment under the program. Interest or earnings on moneys
3 28 in the fund are credited to the fund.
3 29 LSB 1209SC 83
3 30 kh/nh/8.1