H.F. 23 Section 1. Section 261.2, subsection 8, Code 2017, is 1 amended to read as follows: 2 8. Submit by January 15 annually a report to the general 3 assembly which provides, by program, the number of individuals 4 who received loan forgiveness in the previous fiscal year, the 5 amount paid to individuals under sections 261.73 , 261.112 , 6 and 261.116 , and 261.118, and the institutions from which 7 individuals graduated, and that includes any other information 8 specified under sections 261.73, 261.112, 261.116, and 261.118, 9 any proposed statutory changes relating to loan forgiveness 10 programs administered by the commission, and the commission’s 11 findings and recommendations. 12 Sec. 2. NEW SECTION . 261.118 Worker shortage loan 13 forgiveness program. 14 1. A worker shortage loan forgiveness program is 15 established to be administered by the commission. An 16 individual is eligible for the program if the individual 17 graduated from a school district or accredited nonpublic school 18 in this state on or after January 1, 2016, is a resident of 19 the state who successfully completed a career and technical 20 education program or a career option program, or graduated 21 with an associate degree from a community college established 22 pursuant to chapter 260C or graduated with a baccalaureate 23 degree or postbaccalaureate degree from an institution of 24 higher education governed by the state board of regents or from 25 an accredited private institution, and meets either of the 26 following conditions: 27 a. Is employed and residing in this state and has been 28 employed and residing in this state for not less than two 29 consecutive years within three years of successfully completing 30 a career and technical education program or a career option 31 program or receiving an associate degree from a community 32 college. 33 b. Is employed and residing in this state and has been 34 employed and residing in this state for not less than four 35 -1- LSB 1812YH (2) 87 kh/nh 1/ 4

H.F. 23 consecutive years within five years of graduating with a 1 baccalaureate degree or postbaccalaureate degree from an 2 institution of higher learning governed by the state board of 3 regents or from an accredited private institution. 4 2. Each applicant for loan forgiveness shall, in accordance 5 with the rules of the commission, do the following: 6 a. Complete and file an application for worker shortage 7 loan forgiveness. The individual shall be responsible for 8 the prompt submission of any information required by the 9 commission. 10 b. File a new application and submit information as 11 required by the commission annually on the basis of which the 12 applicant’s eligibility for the renewed loan forgiveness will 13 be evaluated and determined. 14 c. Complete and return on a form approved by the commission 15 an affidavit of eligibility verifying that the applicant meets 16 the requirements of subsection 1. 17 3. The annual amount of worker shortage loan forgiveness 18 shall not exceed the following: 19 a. For an individual who meets the conditions of 20 subsection 1, paragraph “a” , the combined resident tuition 21 rate established for the two years following the individual’s 22 successful program completion or graduation from the community 23 college, or one hundred percent of the individual’s total 24 federally guaranteed Stafford loan amount under the federal 25 family education loan program or the federal direct loan 26 program and any private student loan issued by a lender 27 that meets standards prescribed by the commission including 28 principal and interest, whichever amount is less. 29 b. For an individual who meets the conditions of 30 subsection 1, paragraph “b” , the combined resident tuition 31 rate established for institutions of higher learning governed 32 by the state board of regents for the four years following 33 the individual’s graduation from the regents university or 34 accredited private institution, or one hundred percent of the 35 -2- LSB 1812YH (2) 87 kh/nh 2/ 4

H.F. 23 individual’s total federally guaranteed Stafford loan amount 1 under the federal family education loan program or the federal 2 direct loan program and any private student loan issued by 3 a lender that meets standards prescribed by the commission 4 including principal and interest, whichever amount is less. 5 4. The commission shall submit in a report to the general 6 assembly by January 1, annually, the number of individuals 7 who received loan forgiveness pursuant to this section, the 8 postsecondary institutions from which the individuals graduated 9 or successfully completed a career and technical education 10 program or career option program, where in the state program 11 participants are employed, program participants’ employment 12 classifications or types of employment, the amount paid to each 13 program participant, and other information identified by the 14 commission as indicators of outcomes from the program. 15 5. The commission shall adopt rules pursuant to chapter 17A 16 to administer this section. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill creates a worker shortage loan forgiveness program 21 to be administered by the college student aid commission. The 22 program is open to individuals who graduated from an Iowa high 23 school in 2016 or later, are employed and reside in the state, 24 and successfully completed a career and technical education 25 program or career option program or received a degree from an 26 accredited postsecondary institution in the state. 27 The individual must also have been employed in and a resident 28 of this state for a period of two consecutive years within 29 three years of successfully completing a career and technical 30 education program or career option program or receiving an 31 associate degree from a community college, or must have been 32 employed in and a resident of this state for a period of four 33 consecutive years within five years of graduating with a 34 baccalaureate degree or postbaccalaureate degree from a regents 35 -3- LSB 1812YH (2) 87 kh/nh 3/ 4

H.F. 23 university or accredited private institution. 1 In the case of an individual who attended a community 2 college, the total amount of worker shortage loan forgiveness 3 shall not exceed the combined resident tuition rate established 4 for the two years following the individual’s successful program 5 completion or graduation from the community college, or 100 6 percent of the individual’s total federal loan program and 7 private student loan amount including principal and interest, 8 whichever amount is less. 9 In the case of an individual who attended a regents 10 university or accredited private institution, the annual 11 amount of worker shortage loan forgiveness shall not exceed 12 the combined resident tuition rate established for regents 13 universities for the four years following the individual’s 14 graduation, or 100 percent of the individual’s total federal 15 loan program and private student loan amount including 16 principal and interest, whichever amount is less. The 17 individual is eligible for the loan forgiveness program for not 18 more than four consecutive years. 19 The bill requires the commission to submit a report to the 20 general assembly by January 1, annually, with information 21 identified as indicators of outcomes from the program. 22 The bill makes corresponding changes relating to a current 23 loan forgiveness reporting requirement. 24 -4- LSB 1812YH (2) 87 kh/nh 4/ 4