HF 2176 (LSB 5512HH (4) 85)

HOUSE FILE 2176

BY  WESSEL-KROESCHELL, WINCKLER, HEDDENS, LENSING, KRESSIG, and JACOBY

A BILL FOR

An Act providing for an independent study of student debt and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  INDEPENDENT STUDY OF STUDENT DEBT —— APPROPRIATION.
   1.  There is appropriated from the general fund of the state to the college student aid commission for the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following amount, or so much thereof as is necessary, to be used for purposes of commissioning the study of student debt in accordance with this section:

.................................................. $    100,000

   2.  The college student aid commission, in collaboration with the state board of regents, the department of education, and the economic development authority, shall use funds appropriated pursuant to this section to commission an independent study of student debt at Iowa’s public postsecondary institutions and of the impact of student debt on Iowa’s citizens and economy.
   3.  The study shall include but not be limited to the following matters:
   a.  The reasons average student loan debt at Iowa’s public postsecondary institutions is generally higher than the national average.
   b.  The lifetime impact of student debt on the individual’s assets and net worth and the impact on family finances in general.
   c.  The economic impact of student debt on the economy of the state and on Iowa families, workforce, communities, housing market, and business climate.
   d.  Measures to reduce student debt levels, increase the affordability and attainment of a postsecondary education, and improve financial aid practices and financial aid funding at the state’s public postsecondary institutions.
   e.  Measures to increase consumer education and provide financial counseling to students considering education loans, along with measures to provide academic support for students at risk of dropping out.
   f.  Measures to relieve the financial burden of student debt on an individual.
   g.  Measures to encourage recent college graduates to remain in Iowa.
   h.  The demographic characteristics of student borrowers and the impact family income has on the amount of student debt incurred by college graduates.
   i.  Other issues deemed relevant by the entity conducting the study in order to fully examine the socioeconomic impact of student debt in Iowa.
   4.  The state board of regents and its universities, the department of education and the community colleges, and the economic development authority shall cooperate with the commission and with the entity conducting the study and shall provide to the entity any data requested by the entity except as limited by chapter 22 and by the federal Family Educational Rights and Privacy Act, 20 U.S.C. §1232g.
   5.  The commission shall submit a report of the findings of the study along with recommendations, if any, of the entity conducting the study, and recommendations, if any, of the commission, the state board of regents, the department of education, and the economic development authority, in a report to the general assembly by January 14, 2015.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill directs the college student aid commission, in collaboration with the state board of regents, the department of education, and the economic development authority, to use $100,000 in funds appropriated in the bill to commission an independent study of student debt at Iowa’s public postsecondary institutions and the impact of student debt on Iowa’s citizens and economy. The bill appropriates the moneys to the college student aid commission for the 2014-2015 fiscal year.
   The bill specifies issues to be studied, including any issues deemed relevant by the entity conducting the study in order to fully examine the socioeconomic impact of student debt in Iowa.
   The state board of regents and its universities and the department of education and the community colleges and the economic development authority are directed to cooperate with the commission and with the entity conducting the study and must provide to the entity any data requested by the entity except as limited by state and federal laws relating to student records.
   The commission shall submit a report of the findings of the study along with recommendations, if any, of the entity conducting the study, the commission, the state board of regents, the department of education, and the economic development authority, in a report to the general assembly by January 14, 2015.