H.F. 18 Section 1. Section 261.2, subsection 8, Code 2019, 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 or loan repayment in the previous 5 fiscal year, the amounts paid to or on behalf of individuals 6 under sections 261.73 , 261.112 , and 261.116 , and 261.118, 7 and the institutions from which individuals graduated, any 8 other information specified under sections 261.73, 261.112, 9 261.116, and 261.118, and that includes any proposed statutory 10 changes relating to loan forgiveness or loan repayment programs 11 administered by the commission, and the commission’s findings 12 and recommendations. 13 Sec. 2. NEW SECTION . 261.118 Worker shortage loan 14 forgiveness program. 15 1. A worker shortage loan forgiveness program is 16 established to be administered by the commission. An 17 individual is eligible for the program if the individual 18 graduated from a school district or accredited nonpublic school 19 in this state on or after January 1, 2018, is a resident of 20 the state who successfully completed a career and technical 21 education program or a career option program, or graduated 22 with an associate degree from a community college established 23 pursuant to chapter 260C or graduated with a baccalaureate 24 degree or postbaccalaureate degree from an institution of 25 higher education governed by the state board of regents or from 26 an accredited private institution, and meets either of the 27 following conditions: 28 a. Is employed and residing in this state and has been 29 employed and residing in this state for not less than two 30 consecutive years within three years of successfully completing 31 a career and technical education program or a career option 32 program or receiving an associate degree from a community 33 college. 34 b. Is employed and residing in this state and has been 35 -1- LSB 1409YH (4) 88 kh/jh 1/ 4

H.F. 18 employed and residing in this state for not less than four 1 consecutive years within five years of graduating with a 2 baccalaureate degree or postbaccalaureate degree from an 3 institution of higher learning governed by the state board of 4 regents or from an accredited private institution. 5 2. Each applicant for loan forgiveness shall, in accordance 6 with the rules of the commission, do the following: 7 a. Complete and file an application for worker shortage 8 loan forgiveness. The individual shall be responsible for 9 the prompt submission of any information required by the 10 commission. 11 b. File a new application and submit information as 12 required by the commission annually on the basis of which the 13 applicant’s eligibility for the renewed loan forgiveness will 14 be evaluated and determined. 15 c. Complete and return on a form approved by the commission 16 an affidavit of eligibility verifying that the applicant meets 17 the requirements of subsection 1. 18 3. The annual amount of worker shortage loan forgiveness 19 shall not exceed the following: 20 a. For an individual who meets the conditions of 21 subsection 1, paragraph “a” , the combined resident tuition 22 rate established for the two years following the individual’s 23 successful program completion or graduation from the community 24 college, or one hundred percent of the individual’s total 25 federally guaranteed Stafford loan amount under the federal 26 family education loan program or the federal direct loan 27 program and any private student loan issued by a lender 28 that meets standards prescribed by the commission including 29 principal and interest, whichever amount is less. 30 b. For an individual who meets the conditions of 31 subsection 1, paragraph “b” , the combined resident tuition 32 rate established for institutions of higher learning governed 33 by the state board of regents for the four years following 34 the individual’s graduation from the regents university or 35 -2- LSB 1409YH (4) 88 kh/jh 2/ 4

H.F. 18 accredited private institution, or one hundred percent of the 1 individual’s total federally guaranteed Stafford loan amount 2 under the federal family education loan program or the federal 3 direct loan program and any private student loan issued by 4 a lender that meets standards prescribed by the commission 5 including principal and interest, whichever amount is less. 6 4. The commission shall submit in a report to the general 7 assembly by January 1, annually, the number of individuals 8 who received loan forgiveness pursuant to this section, the 9 postsecondary institutions from which the individuals graduated 10 or successfully completed a career and technical education 11 program or career option program, where in the state program 12 participants are employed, program participants’ employment 13 classifications or types of employment, the amount paid to each 14 program participant, and other information identified by the 15 commission as indicators of outcomes from the program. 16 5. The commission shall adopt rules pursuant to chapter 17A 17 to administer this section. 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 creates a worker shortage loan forgiveness program 22 to be administered by the college student aid commission. The 23 program is open to individuals who graduated from an Iowa high 24 school in 2018 or later, are employed and reside in the state, 25 and successfully completed a career and technical education 26 program or career option program or received a degree from an 27 accredited postsecondary institution in the state. 28 The individual must also have been employed in and a resident 29 of this state for a period of two consecutive years within 30 three years of successfully completing a career and technical 31 education program or career option program or receiving an 32 associate degree from a community college, or must have been 33 employed in and a resident of this state for a period of four 34 consecutive years within five years of graduating with a 35 -3- LSB 1409YH (4) 88 kh/jh 3/ 4

H.F. 18 baccalaureate degree or postbaccalaureate degree from a regents 1 university or accredited private institution. 2 In the case of an individual who attended a community 3 college, the total amount of worker shortage loan forgiveness 4 shall not exceed the combined resident tuition rate established 5 for the two years following the individual’s successful program 6 completion or graduation from the community college, or 100 7 percent of the individual’s total federal loan program and 8 private student loan amount including principal and interest, 9 whichever amount is less. 10 In the case of an individual who attended a regents 11 university or accredited private institution, the annual 12 amount of worker shortage loan forgiveness shall not exceed 13 the combined resident tuition rate established for regents 14 universities for the four years following the individual’s 15 graduation, or 100 percent of the individual’s total federal 16 loan program and private student loan amount including 17 principal and interest, whichever amount is less. The 18 individual is eligible for the loan forgiveness program for not 19 more than four consecutive years. 20 The bill requires the commission to submit a report to the 21 general assembly by January 1, annually, with information 22 identified as indicators of outcomes from the program. 23 The bill makes corresponding changes relating to a current 24 loan forgiveness reporting requirement. 25 -4- LSB 1409YH (4) 88 kh/jh 4/ 4