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