House
Study
Bill
570
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
EDUCATION
BILL
BY
CHAIRPERSON
JORGENSEN)
A
BILL
FOR
An
Act
authorizing
the
college
student
aid
commission
to
write
1
off
certain
defaulted
student
loan
debt
as
uncollectible.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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_____
Section
1.
Section
261.2,
Code
2016,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
13.
Adopt
rules
establishing
standards
3
for
the
disposition
of
uncollectible
student
loan
debt
in
4
accordance
with
this
subsection.
Under
such
rules,
if
the
5
commission
is
unable
to
collect
a
defaulted
student
loan
owed
6
to
the
commission
under
a
program
the
commission
administers
7
under
this
chapter
and
the
program
has
been
inactive
or
8
unfunded
for
fifteen
or
more
years,
and
if
any
portion
of
the
9
defaulted
student
loan
remains
uncollected
after
fifteen
years
10
from
the
date
the
loan
was
authorized,
the
commission
may
write
11
off
the
defaulted
student
loan
debt
as
uncollectible.
The
12
commission
shall
prepare
a
report
that
includes
information
13
on
the
length
of
time
the
student
loan
debt
that
meets
the
14
criteria
established
under
this
subsection
has
been
in
default.
15
The
report
shall
include
the
amounts
collected
by
public
16
and
private
collection
designees,
the
distribution
of
those
17
amounts,
and
the
amount
of
the
fee
paid
to
the
collection
18
designee.
In
addition,
the
report
shall
include
the
amounts
19
written
off,
by
program
administered.
The
commission
shall
20
submit
the
report
to
the
general
assembly
by
December
15
of
21
each
year.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
authorizes
the
college
student
aid
commission
to
26
write
off
certain
defaulted
student
loan
debt
as
uncollectible
27
and
requires
the
commission
to
submit
a
report
on
the
defaulted
28
student
loan
debt
to
the
general
assembly.
29
The
commission
must
adopt
rules
to
establish
standards
for
30
the
disposition
of
the
uncollectible
student
loan
debt
that
31
may
be
written
off
under
the
bill.
Under
the
rules,
if
the
32
commission
is
unable
to
collect
a
defaulted
student
loan
under
33
a
program
the
commission
administers
and
the
program
has
been
34
inactive
or
unfunded
for
15
or
more
years,
and
if
any
portion
35
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_____
of
the
defaulted
student
loan
remains
uncollected
after
15
1
years
from
the
date
the
loan
was
authorized,
the
commission
2
may
write
the
debt
off
as
uncollectible.
The
commission
must
3
prepare
a
report
that
includes
information
on
the
length
of
4
time
the
defaulted
student
loan
debt
that
meets
this
criteria
5
has
been
in
default,
and
include
in
the
report
the
amounts
6
collected
by
public
and
private
collection
designees,
the
7
distribution
of
those
amounts,
the
amount
of
the
fee
paid
8
to
the
collection
designee,
and
the
amounts
written
off,
by
9
program
administered.
The
commission
shall
submit
the
report
10
to
the
general
assembly
by
December
15
of
each
year.
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