Senate
Study
Bill
1058
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
COLLEGE
STUDENT
AID
COMMISSION
BILL)
A
BILL
FOR
An
Act
relating
to
the
disposition
or
modification
of
1
uncollectible
student
debt
owed
to
the
college
student
aid
2
commission.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1239DP
(6)
87
kh/jh/rj
S.F.
_____
H.F.
_____
Section
1.
Section
261.2,
Code
2017,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
13.
Adopt
rules
pursuant
to
chapter
17A
3
establishing
standards
for
the
disposition
or
modification
of
4
uncollectible
student
debt
owed
to
the
commission,
including
5
but
not
limited
to
the
restructuring
of
troubled
debt,
6
settlement
of
debt
for
an
amount
less
than
the
amount
of
debt
7
owed,
selling
of
debt
to
a
third-party
debt
collector,
and
8
charging
off
uncollectible
debt.
The
commission
shall
not
9
charge
off
a
debt
under
this
subsection
until
the
commission
10
does
all
of
the
following:
11
a.
Attempts
to
collect
the
debt
for
not
less
than
five
12
years
after
the
student
defaulted
on
an
obligation
owed
to
or
13
collected
by
the
commission.
14
b.
Determines,
in
its
discretion,
either
that
no
person
15
liable
for
the
debt
has
the
present
or
prospective
ability
to
16
pay
the
debt
or
that
the
cost
of
collecting
the
debt
is
likely
17
to
exceed
the
amount
recoverable.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
directs
the
college
student
aid
commission
to
22
adopt
administrative
rules
establishing
standards
for
the
23
disposition
or
modification
of
uncollectible
student
debt
24
owed
to
the
commission,
including
but
not
limited
to
the
25
restructuring
of
troubled
debt,
settlement
of
debt
for
an
26
amount
less
than
the
amount
of
debt
owed,
selling
of
debt
to
27
a
third-party
debt
collector,
and
charging
off
uncollectible
28
debt.
29
The
commission
is
prohibited
from
charging
off
debt
until
it
30
has
attempted
to
collect
the
debt
for
at
least
five
years
after
31
the
student
defaulted
on
the
obligation
and
until
after,
in
its
32
discretion,
the
commission
determines
either
that
no
person
33
liable
for
the
debt
has
the
present
or
prospective
ability
to
34
pay
the
debt
or
that
the
cost
of
collecting
the
debt
is
likely
35
-1-
LSB
1239DP
(6)
87
kh/jh/rj
1/
2
S.F.
_____
H.F.
_____
to
exceed
the
amount
recoverable.
1
-2-
LSB
1239DP
(6)
87
kh/jh/rj
2/
2