H.F. 133 Section 1. NEW SECTION . 261.115 Worker shortage loan 1 forgiveness program. 2 1. A worker shortage loan forgiveness program is 3 established to be administered by the commission. An 4 individual is eligible for the program if the individual 5 graduated from a school district or accredited nonpublic school 6 in this state on or after January 1, 2010, is a resident of 7 the state, and successfully completed a vocational-technical 8 or career option program or graduated with an associate degree 9 from a community college established pursuant to chapter 260C 10 or graduated with a baccalaureate degree or postbaccalaureate 11 degree from an institution of higher education governed by 12 the state board of regents or from an accredited private 13 institution, and the individual meets either of the following 14 conditions: 15 a. Is employed and residing in this state and has been 16 employed and residing in this state for not less than two 17 consecutive years within three years of successfully completing 18 a vocational-technical or career option program or achieving an 19 associate degree from a community college. 20 b. Is employed and residing in this state and has been 21 employed and residing in this state for not less than four 22 consecutive years within five years of graduating with a 23 baccalaureate degree or postbaccalaureate degree from an 24 institution of higher education governed by the state board of 25 regents or from an accredited private institution. 26 2. Each applicant for loan forgiveness shall, in accordance 27 with the rules of the commission, do the following: 28 a. Complete and file an application for worker shortage 29 loan forgiveness. The individual shall be responsible for 30 the prompt submission of any information required by the 31 commission. 32 b. File a new application and submit information as 33 required by the commission annually on the basis of which the 34 applicant’s eligibility for the renewed loan forgiveness will 35 -1- LSB 1729YH (1) 84 kh/nh 1/ 4

H.F. 133 be evaluated and determined. 1 c. Complete and return on a form approved by the commission 2 an affidavit of eligibility verifying that the applicant met 3 the requirements of subsection 1. 4 3. The annual amount of worker shortage loan forgiveness 5 shall not exceed the following: 6 a. For an individual who meets the conditions of 7 subsection 1, paragraph “a” , the combined resident tuition 8 rate established for the two years following the individual’s 9 successful program completion or graduation from the community 10 college, or one hundred percent of the individual’s total 11 federally guaranteed Stafford loan amount under the federal 12 family education loan program or the federal direct loan 13 program and any private student loan issued by a lender 14 that meets standards prescribed by the commission including 15 principal and interest, whichever amount is less. 16 b. For an individual who meets the conditions of 17 subsection 1, paragraph “b” , the combined resident tuition 18 rate established for institutions of higher learning governed 19 by the state board of regents for the four years following 20 the individual’s graduation from the regents university or 21 accredited private institution, or one hundred percent of the 22 individual’s total federally guaranteed Stafford loan amount 23 under the federal family education loan program or the federal 24 direct loan program and any private student loan issued by 25 a lender that meets standards prescribed by the commission 26 including principal and interest, whichever amount is less. 27 4. The commission shall submit in a report to the general 28 assembly by January 1, annually, the number of individuals 29 who received loan forgiveness pursuant to this section, the 30 postsecondary institutions from which the individuals graduated 31 or successfully completed a vocational-technical or career 32 options program, where in the state program participants are 33 employed, program participants’ employment classifications 34 or types of employment, the amount paid to each program 35 -2- LSB 1729YH (1) 84 kh/nh 2/ 4

H.F. 133 participant, and other information identified by the commission 1 as indicators of outcomes from the program. 2 5. The commission shall adopt rules pursuant to chapter 17A 3 to administer this section. 4 EXPLANATION 5 This bill creates a worker shortage loan forgiveness program 6 to be administered by the college student aid commission. The 7 program is open to individuals who graduated from an Iowa 8 high school in 2010 or later, are employed and reside in the 9 state, and successfully completed a vocational-technical or 10 career option program or received a degree from an accredited 11 postsecondary institution in the state. 12 The individual must also have been employed and resided 13 in this state for a period of two consecutive years within 14 three years of successfully completing a vocational-technical 15 or career option program or achieving an associate degree 16 from a community college, or must have been employed and 17 resided in this state for a period of four consecutive years 18 within five years of graduating with a baccalaureate degree 19 or postbaccalaureate degree from a regents university or 20 accredited private institution. 21 In the case of an individual who attended a community 22 college, the total amount of worker shortage loan forgiveness 23 shall not exceed the combined resident tuition rate established 24 for the two years following the individual’s successful program 25 completion or graduation from the community college, or 100 26 percent of the individual’s total federal loan program and 27 private student loan amount including principal and interest, 28 whichever amount is less. 29 In the case of an individual who attended a regents 30 university or accredited private institution, the annual 31 amount of worker shortage loan forgiveness shall not exceed 32 the combined resident tuition rate established for regents 33 universities for the four years following the individual’s 34 graduation, or 100 percent of the individual’s total federal 35 -3- LSB 1729YH (1) 84 kh/nh 3/ 4

H.F. 133 loan program and private student loan amount including 1 principal and interest, whichever amount is less. The 2 individual is eligible for the loan forgiveness program for not 3 more than four consecutive years. 4 The bill requires the commission to submit a report to the 5 general assembly by January 1, annually, with information 6 identified as indicators of outcomes from the program. 7 -4- LSB 1729YH (1) 84 kh/nh 4/ 4