S.F. 2179 Section 1. NEW SECTION . 261.113 Teacher loan forgiveness 1 match program. 2 1. A teacher loan forgiveness match program is established 3 to be administered by the college student aid commission. 4 A teacher is eligible for the program if the teacher is 5 practicing in Iowa and is a graduate of the university of 6 northern Iowa. For purposes of this section, “teacher” means 7 an individual holding a practitioner’s license issued under 8 chapter 272, who is employed in a nonadministrative position in 9 Iowa by a school district or area education agency pursuant to 10 a contract issued by a board of directors under section 279.13. 11 2. The annual amount of teacher loan forgiveness shall not 12 exceed the resident tuition rate established for the university 13 of northern Iowa for the first year following the teacher’s 14 graduation from an approved practitioner preparation program, 15 or twenty percent of the teacher’s total federally guaranteed 16 Stafford loan amount under the federal family education loan 17 program or the federal direct loan program, including principal 18 and interest, whichever amount is less. A teacher shall be 19 eligible for the teacher loan forgiveness match program for not 20 more than five years. However, practice by an eligible teacher 21 in Iowa pursuant to subsection 1 must be completed within ten 22 years following graduation from the approved practitioner 23 preparation program. 24 3. If an applicant receives loan forgiveness through other 25 sources or other forms of financial assistance, the full 26 amount of that loan forgiveness or financial assistance shall 27 be considered part of the applicant’s financial resources 28 available in determining the amount of the applicant’s 29 financial need for teacher loan forgiveness. 30 4. a. The director of the department of education shall 31 establish by rule each fiscal year a scaled proportion of 32 funding for the teacher loan forgiveness match program which 33 shall be matched by a school district for each teacher newly 34 employed by the school district during that fiscal year. A 35 -1- LSB 5655SS (3) 84 je/sc 1/ 5

S.F. 2179 school district’s match percentage shall increase by at least 1 two percentage points for each fiscal year a teacher remains 2 employed by the district and a participant in the program. A 3 school district shall only provide such funds as long as a 4 program participant remains employed by the district. 5 b. In establishing by rule a proportion for matching funds 6 by school districts pursuant to paragraph “a” , the director 7 shall consider all of the following factors and include such 8 consideration as part of the rule: 9 (1) Moneys available in the teacher loan forgiveness match 10 program fund. 11 (2) The number of applicants for and participants in the 12 program. 13 (3) Teacher shortages across the state, particularly in 14 underserved school districts and high-demand subject areas. 15 (4) The long-term financial viability of the program. 16 (5) The availability of other state or local funding sources 17 fulfilling similar functions to the program. 18 (6) Any feedback received from school districts, program 19 applicants and participants, the general assembly, or other 20 interested persons. 21 5. Each applicant for the teacher loan forgiveness match 22 program shall, in accordance with the rules of the commission, 23 do the following: 24 a. Complete and file an application for teacher loan 25 forgiveness. The individual shall be responsible for 26 the prompt submission of any information required by the 27 commission. 28 b. File a new application and submit information as 29 required by the commission, annually, on the basis of which the 30 applicant’s eligibility for the renewed loan forgiveness will 31 be evaluated and determined. 32 c. Complete and return on a form approved by the commission 33 an affidavit of practice verifying that the applicant is a 34 teacher practicing in Iowa. 35 -2- LSB 5655SS (3) 84 je/sc 2/ 5

S.F. 2179 6. A teacher loan forgiveness match program fund is 1 created for deposit of moneys appropriated to or received 2 by the college student aid commission for use under the 3 program. Notwithstanding section 8.33, moneys deposited in 4 the fund shall not revert to any fund of the state at the 5 end of any fiscal year but shall remain in the fund and be 6 continuously available for loan forgiveness under the program. 7 Notwithstanding section 12C.7, subsection 2, interest or 8 earnings on moneys deposited in the fund shall be credited to 9 the fund. 10 7. The college student aid commission shall submit in a 11 report to the general assembly by January 1, annually, the 12 number of individuals who received loan forgiveness pursuant to 13 this section, the amount paid to each program participant, and 14 other information identified by the commission as indicators 15 of outcomes from the program. 16 8. The college student aid commission and the department of 17 education shall jointly adopt rules pursuant to chapter 17A to 18 administer this section. 19 Sec. 2. STATE MANDATE FUNDING SPECIFIED. In accordance 20 with section 25B.2, subsection 3, the state cost of requiring 21 compliance with any state mandate included in this Act shall 22 be paid by a school district from state school foundation aid 23 received by the school district under section 257.16. This 24 specification of the payment of the state cost shall be deemed 25 to meet all of the state funding-related requirements of 26 section 25B.2, subsection 3, and no additional state funding 27 shall be necessary for the full implementation of this Act 28 by and enforcement of this Act against all affected school 29 districts. 30 EXPLANATION 31 This bill establishes a teacher loan forgiveness match 32 program to be administered by the college student aid 33 commission. A teacher is eligible for the program if the 34 teacher is practicing in Iowa and is a graduate of the 35 -3- LSB 5655SS (3) 84 je/sc 3/ 5

S.F. 2179 university of northern Iowa. For purposes of the bill, 1 “teacher” is defined as an individual holding a practitioner’s 2 license issued under Code chapter 272, who is employed in a 3 nonadministrative position in Iowa by a school district or area 4 education agency pursuant to a contract issued by a board of 5 directors under Code section 279.13. 6 The bill provides that the annual amount of teacher loan 7 forgiveness shall not exceed the resident tuition rate 8 established for the university of northern Iowa for the first 9 year following the teacher’s graduation from an approved 10 practitioner preparation program, or 20 percent of the 11 teacher’s total federally guaranteed Stafford loan amount 12 under the federal family education loan program or the federal 13 direct loan program, whichever amount is less. The bill 14 provides that a teacher shall be eligible for the teacher loan 15 forgiveness match program for not more than five years. The 16 bill provides that practice by an eligible teacher in Iowa must 17 be completed within 10 years following graduation from the 18 approved practitioner preparation program. 19 The bill provides that if an applicant receives loan 20 forgiveness through other sources or other forms of financial 21 assistance, the full amount of that loan forgiveness or 22 financial assistance shall be considered part of the 23 applicant’s financial resources available in determining the 24 amount of the applicant’s financial need for loan forgiveness 25 assistance. 26 The bill requires the director of the department of 27 education to establish by rule each fiscal year a scaled 28 proportion of funding for the teacher loan forgiveness match 29 program which shall be matched by a school district for each 30 teacher newly employed by the school district during that 31 fiscal year. The bill provides that a school district’s match 32 percentage shall increase by at least 2 percentage points for 33 each fiscal year a teacher remains employed by the district 34 and a participant in the program. The bill provides that a 35 -4- LSB 5655SS (3) 84 je/sc 4/ 5

S.F. 2179 school district shall only provide such funds as long as a 1 program participant remains employed by the district. The bill 2 provides that in establishing by rule a proportion for matching 3 funds by school districts, the director must consider various 4 factors and include such consideration as part of the rule. 5 The bill establishes requirements for applicants for the 6 teacher loan forgiveness match program, including completing 7 and filing an initial application for teacher loan forgiveness 8 and other required information, filing a new application 9 and other required information annually, and completing and 10 returning an affidavit of practice verifying that the applicant 11 is a teacher practicing in Iowa. 12 The bill creates a teacher loan forgiveness match program 13 fund for deposit of moneys appropriated to or received by the 14 college student aid commission for use under the program. 15 The bill requires the college student aid commission to 16 submit an annual report on the teacher loan forgiveness match 17 program to the general assembly by January 1 stating the number 18 of individuals who received loan forgiveness pursuant to this 19 section, the amount paid to each program participant, and 20 other information identified by the commission as indicators 21 of outcomes from the program. 22 The bill directs the college student aid commission and the 23 department of education to adopt rules to administer the bill. 24 The bill may include a state mandate as defined in Code 25 section 25B.3. The bill requires that the state cost of 26 any state mandate included in the bill be paid by a school 27 district from state school foundation aid received by the 28 school district under Code section 257.16. The specification 29 is deemed to constitute state compliance with any state mandate 30 funding-related requirements of Code section 25B.2. The 31 inclusion of this specification is intended to reinstate the 32 requirement of political subdivisions to comply with any state 33 mandates included in the bill. 34 -5- LSB 5655SS (3) 84 je/sc 5/ 5