S.F. 287 Section 1. NEW SECTION . 261.118 Certified nonprofit 1 professional loan forgiveness program. 2 1. As used in this section, “ eligible nonprofit 3 organization” includes but is not limited to a nonprofit 4 organization in this state whose purpose is to assist homeless 5 or formerly homeless individuals and their family members, 6 victims of family and domestic violence, or very low-income 7 individuals and their families in meeting their mental health, 8 physical health, dental, child care, nutrition, or housing 9 needs. 10 2. A certified nonprofit professional loan forgiveness 11 program is established to be administered by the commission. 12 An individual who holds a certified nonprofit professional 13 credential issued by the university of northern Iowa is 14 eligible for the program if the individual resides in this 15 state and is employed by an eligible nonprofit organization in 16 this state. 17 3. Each applicant for loan forgiveness under this section 18 shall, in accordance with the rules of the commission, complete 19 and annually file with the commission an application for 20 certified nonprofit professional loan forgiveness or renewal 21 of the loan forgiveness, as applicable, and annually file an 22 affidavit verifying that the applicant is a certified nonprofit 23 professional employed by an eligible nonprofit organization. 24 The applicant shall be responsible for the prompt submission of 25 any information required by the commission. 26 4. A certified nonprofit professional who meets the 27 requirements of this section is eligible for loan forgiveness 28 payments for not more than five consecutive years. The annual 29 amount of loan forgiveness awarded under this section to a 30 certified nonprofit professional employed by an eligible 31 nonprofit organization shall not exceed the resident tuition 32 rate established for the first year following the certified 33 nonprofit professional’s graduation from the university of 34 northern Iowa, or twenty percent of the certified nonprofit 35 -1- LSB 2254XS (2) 86 kh/nh 1/ 3

S.F. 287 professional’s total federally guaranteed Stafford loan 1 amount under the federal family education loan program or the 2 federal direct loan program, including principal and interest, 3 whichever amount is less. 4 5. A certified nonprofit professional loan forgiveness fund 5 is created as a separate fund in the state treasury under the 6 control of the commission for deposit of moneys appropriated 7 to or moneys received by the commission for use under the 8 program. Moneys credited to the fund are appropriated to the 9 commission for purposes of the certified nonprofit professional 10 loan forgiveness program. Notwithstanding section 8.33, moneys 11 deposited in the fund shall not revert to any fund of the 12 state at the end of any fiscal year but shall remain in the 13 loan forgiveness fund and be continuously available for loan 14 forgiveness under the program. Notwithstanding section 12C.7, 15 subsection 2, interest or earnings on moneys deposited in the 16 fund shall be credited to the fund. 17 6. The commission shall submit in a report to the general 18 assembly by January 1, annually, the number of certified 19 nonprofit professionals who received loan forgiveness payments 20 pursuant to this section, the eligible nonprofit organizations 21 in which the certified nonprofit professionals were employed, 22 the amount paid to each certified nonprofit professional 23 under this section, and other information identified by the 24 commission as indicators of outcomes from the program. 25 7. The commission shall adopt rules pursuant to chapter 17A 26 to administer this section. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill establishes a certified nonprofit professional 31 loan forgiveness program under the administration of the 32 college student aid commission. Under the program, a certified 33 nonprofit professional who resides in this state, graduates 34 from the university of northern Iowa, and is employed by 35 -2- LSB 2254XS (2) 86 kh/nh 2/ 3

S.F. 287 an eligible nonprofit organization is eligible for loan 1 forgiveness payments for up to five years. The bill provides 2 that an “eligible nonprofit organization” includes but is not 3 limited to a nonprofit organization in this state whose purpose 4 is to assist homeless or formerly homeless individuals and 5 their family members, victims of family and domestic violence, 6 or very low-income individuals and their families in meeting 7 their mental health, physical health, dental, child care, 8 nutrition, or housing needs. 9 Applicants for loan forgiveness payments are required 10 to annually submit an application for certified nonprofit 11 professional loan forgiveness or renewal of the loan 12 forgiveness, as applicable, and an affidavit verifying that 13 the applicant is a certified nonprofit professional employed 14 by an eligible nonprofit organization. The annual amount of 15 loan forgiveness awarded to an individual under the program 16 shall not exceed the resident tuition rate established at the 17 university for the first year following the certified nonprofit 18 professional’s graduation, or 20 percent of the certified 19 nonprofit professional’s total federally guaranteed Stafford 20 loan amount under the federal family education loan program 21 or the federal direct loan program, including principal and 22 interest, whichever amount is less. 23 The bill creates a certified nonprofit professional loan 24 forgiveness fund in the state treasury under the control of the 25 commission for deposit of moneys appropriated to or received by 26 the commission for use under the program. 27 The commission shall submit a report to the general assembly 28 by January 1, annually, detailing the number of certified 29 nonprofit professionals who received loan forgiveness payments 30 and the amount paid to each recipient, the eligible nonprofit 31 organizations in which the certified nonprofit professionals 32 were employed, and other information identified by the 33 commission as indicators of outcomes from the program. 34 -3- LSB 2254XS (2) 86 kh/nh 3/ 3