H.F. 479 Section 1. NEW SECTION . 261.117 Nurturing Iowans loan 1 reimbursement program. 2 1. For purposes of this section: 3 a. “Eligible individual” means an individual who graduated 4 from an accredited college or university with a baccalaureate 5 or higher degree and who resides in and is employed full-time 6 in this state for at least one full year prior to receiving 7 reimbursements under subsection 3. To maintain eligibility 8 in order to continue participating beyond the first year 9 in the program, the individual shall annually reapply to 10 the commission and submit any information requested by the 11 commission as set forth in subsection 2. 12 b. “Eligible loan” means the eligible individual’s total 13 federally guaranteed Stafford loan amount under the federal 14 family education loan program or the eligible individual’s 15 federal direct loan program, the amount of the eligible 16 individual’s federal grad plus loans, or the amount of the 17 eligible individual’s federal Perkins loan, including principal 18 and interest. 19 2. Subject to an appropriation by the general assembly for 20 this purpose, a nurturing Iowans loan reimbursement program 21 is established to be administered by the college student 22 aid commission for purposes of providing loan reimbursement 23 payments for individuals who remain in Iowa and are employed in 24 the state upon graduating from an accredited public or private 25 postsecondary institution. 26 3. An individual shall be eligible for the loan 27 reimbursement program if, upon graduating from an accredited 28 public or private postsecondary institution with a 29 baccalaureate or higher degree, the individual resides in and 30 is employed full-time in this state. An eligible individual 31 may apply to the commission to participate in the program and 32 shall submit any information requested in connection with the 33 program, including but not limited to information regarding 34 the eligible individual’s outstanding loans and loan payments, 35 -1- LSB 2035YH (3) 86 kh/sc 1/ 4

H.F. 479 academic status, and employment. 1 4. An eligible individual shall receive reimbursement 2 payments under the program for each of the fiscal years 3 following the first full calendar year of residence in this 4 state as follows or until the twelve months following the 5 fiscal year in which the eligible loans are paid in full: 6 a. For the first fiscal year, an amount equivalent to five 7 percent of the amount of loan payments made by the eligible 8 individual on eligible loans in the prior fiscal year. 9 b. For the second fiscal year, an amount equivalent to ten 10 percent of the amount of loan payments made by the eligible 11 individual on eligible loans in the prior fiscal year. 12 c. For the third fiscal year, an amount equivalent to 13 fifteen percent of the amount of loan payments made by the 14 eligible individual on eligible loans in the prior fiscal year. 15 d. For the fourth fiscal year, an amount equivalent to 16 twenty percent of the amount of loan payments made by the 17 eligible individual on eligible loans in the prior fiscal year. 18 e. For the fifth fiscal year, an amount equivalent to 19 twenty-five percent of the amount of loan payments made by the 20 eligible individual on eligible loans in the prior fiscal year. 21 f. For the sixth fiscal year, an amount equivalent to thirty 22 percent of the amount of loan payments made by the eligible 23 individual on eligible loans in the prior fiscal year. 24 g. For the seventh fiscal year, an amount equivalent to 25 forty percent of the amount of loan payments made by the 26 eligible individual on eligible loans in the prior fiscal year. 27 h. For the eighth fiscal year, an amount equivalent to fifty 28 percent of the amount of loan payments made by the eligible 29 individual on eligible loans in the prior fiscal year. 30 5. A nurturing Iowans loan reimbursement fund is created 31 in the state treasury as a separate fund under the control 32 of the commission and shall consist of moneys appropriated 33 by the general assembly and any other moneys received by 34 the commission for deposit in the fund. Moneys in the fund 35 -2- LSB 2035YH (3) 86 kh/sc 2/ 4

H.F. 479 are appropriated to the commission for the purposes of the 1 program. Notwithstanding section 8.33, any balance in the 2 fund on June 30 of any fiscal year shall not revert to the 3 general fund of the state but shall remain in the fund and 4 be continuously available for loan reimbursement under the 5 program. Notwithstanding section 12C.7, subsection 2, interest 6 or earnings on moneys deposited in the fund shall be credited 7 to the fund. 8 6. The commission shall adopt rules pursuant to chapter 17A 9 to administer this section. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill establishes, subject to an appropriation by the 14 general assembly for such purpose, a nurturing Iowans loan 15 reimbursement program and fund under administration and control 16 of the college student aid commission for purposes of providing 17 loan reimbursement payments for eligible individuals who remain 18 in Iowa as residents and are employed full-time in the state 19 upon graduating with a baccalaureate degree or a higher degree 20 from an accredited public or private postsecondary institution. 21 An eligible individual may apply to the commission to 22 participate in the program and must submit any information 23 requested by the commission in connection with the program. 24 Under the program, the commission begins reimbursement 25 payments to an eligible individual following the individual’s 26 first full calendar year of residence in this state. The first 27 reimbursement payment an eligible individual qualifies for is 28 5 percent of the amount of loan payments made by the eligible 29 individual on eligible loans in the prior fiscal year. The 30 amounts increase by five percentage points per year for each of 31 the next five years for which the individual remains eligible 32 for the program, then increase by 10 percentage points per year 33 for the seventh and eighth years of eligibility, making the 34 individual eligible for reimbursement payments in the eighth 35 -3- LSB 2035YH (3) 86 kh/sc 3/ 4

H.F. 479 year equivalent to 50 percent of the amount of loan payments 1 made by the eligible individual on eligible loans in the prior 2 fiscal year. 3 Under the bill, “eligible loan” means the eligible 4 individual’s total federally guaranteed Stafford loan amount 5 under the federal family education loan program or the eligible 6 individual’s federal direct loan program, the amount of the 7 eligible individual’s federal grad plus loans, or the amount 8 of the eligible individual’s federal Perkins loan, including 9 principal and interest. 10 A nurturing Iowans loan reimbursement fund is created in 11 the state treasury as a separate fund under the control of the 12 commission for deposit of moneys appropriated by the general 13 assembly or received by the commission for deposit in the fund. 14 Moneys in the fund are appropriated to the commission for use 15 under the program. Moneys in the fund do not revert to the 16 general fund of the state, and interest earned on the fund is 17 credited to the fund, to be continuously available for loan 18 reimbursement under the program. 19 -4- LSB 2035YH (3) 86 kh/sc 4/ 4