SF 287 (LSB 2254XS (2) 86)

SENATE FILE 287

BY  DANIELSON

A BILL FOR

An Act establishing a certified nonprofit professional loan forgiveness program and fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  261.118  Certified nonprofit professional loan forgiveness program.
   1.  As used in this section, “eligible nonprofit organization” includes but is not limited to a nonprofit organization in this state whose purpose is to assist homeless or formerly homeless individuals and their family members, victims of family and domestic violence, or very low-income individuals and their families in meeting their mental health, physical health, dental, child care, nutrition, or housing needs.
   2.  A certified nonprofit professional loan forgiveness program is established to be administered by the commission. An individual who holds a certified nonprofit professional credential issued by the university of northern Iowa is eligible for the program if the individual resides in this state and is employed by an eligible nonprofit organization in this state.
   3.  Each applicant for loan forgiveness under this section shall, in accordance with the rules of the commission, complete and annually file with the commission an application for certified nonprofit professional loan forgiveness or renewal of the loan forgiveness, as applicable, and annually file an affidavit verifying that the applicant is a certified nonprofit professional employed by an eligible nonprofit organization. The applicant shall be responsible for the prompt submission of any information required by the commission. 
   4.  A certified nonprofit professional who meets the requirements of this section is eligible for loan forgiveness payments for not more than five consecutive years. The annual amount of loan forgiveness awarded under this section to a certified nonprofit professional employed by an eligible nonprofit organization shall not exceed the resident tuition rate established for the first year following the certified nonprofit professional’s graduation from the university of northern Iowa, or twenty percent of the certified nonprofit professional’s total federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program, including principal and interest, whichever amount is less.
   5.  A certified nonprofit professional loan forgiveness fund is created as a separate fund in the state treasury under the control of the commission for deposit of moneys appropriated to or moneys received by the commission for use under the program. Moneys credited to the fund are appropriated to the commission for purposes of the certified nonprofit professional loan forgiveness program. Notwithstanding section 8.33, moneys deposited in the fund shall not revert to any fund of the state at the end of any fiscal year but shall remain in the loan forgiveness fund and be continuously available for loan forgiveness under the program. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.
   6.  The commission shall submit in a report to the general assembly by January 1, annually, the number of certified nonprofit professionals who received loan forgiveness payments pursuant to this section, the eligible nonprofit organizations in which the certified nonprofit professionals were employed, the amount paid to each certified nonprofit professional under this section, and other information identified by the commission as indicators of outcomes from the program.
   7.  The commission shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill establishes a certified nonprofit professional loan forgiveness program under the administration of the college student aid commission. Under the program, a certified nonprofit professional who resides in this state, graduates from the university of northern Iowa, and is employed by an eligible nonprofit organization is eligible for loan forgiveness payments for up to five years. The bill provides that an “eligible nonprofit organization” includes but is not limited to a nonprofit organization in this state whose purpose is to assist homeless or formerly homeless individuals and their family members, victims of family and domestic violence, or very low-income individuals and their families in meeting their mental health, physical health, dental, child care, nutrition, or housing needs.
   Applicants for loan forgiveness payments are required to annually submit an application for certified nonprofit professional loan forgiveness or renewal of the loan forgiveness, as applicable, and an affidavit verifying that the applicant is a certified nonprofit professional employed by an eligible nonprofit organization. The annual amount of loan forgiveness awarded to an individual under the program shall not exceed the resident tuition rate established at the university for the first year following the certified nonprofit professional’s graduation, or 20 percent of the certified nonprofit professional’s total federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program, including principal and interest, whichever amount is less.
   The bill creates a certified nonprofit professional loan forgiveness fund in the state treasury under the control of the commission for deposit of moneys appropriated to or received by the commission for use under the program.
   The commission shall submit a report to the general assembly by January 1, annually, detailing the number of certified nonprofit professionals who received loan forgiveness payments and the amount paid to each recipient, the eligible nonprofit organizations in which the certified nonprofit professionals were employed, and other information identified by the commission as indicators of outcomes from the program.