SF 2246 (LSB 6282XS (4) 88)

SENATE FILE 2246

BY  MATHIS, WAHLS, KINNEY, RAGAN, JOHNSON, and GREENE

A BILL FOR

An Act establishing a rural teacher shortage area loan forgiveness program and fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  261.109  Rural teacher shortage area loan forgiveness program —— fund.
   1.  For purposes of this section: 
   a.  “High-demand area” means a rural county designated by the department of education as a geographic area experiencing teacher shortages in specific content areas. 
   b.  “Rural county” means a county that satisfies all of the following:
   (1)  The county does not include any urbanized area. 
   (2)  Less than twenty-five percent of persons residing in the county are employed in another county that includes an urbanized area.
   (3)  Less than twenty-five percent of persons employed in the county reside in another county that includes an urbanized area.
   c.  “Urbanized area” means a geographic area with a population of fifty thousand or more, as determined by the most recent population estimates issued by the United States bureau of census.
   2.  A rural teacher shortage area loan forgiveness program is established to be administered by the college student aid commission. The department of education shall periodically conduct a survey of school districts, accredited nonpublic schools, and approved practitioner preparation programs to determine current high-demand areas.
   3.  A student is eligible for the loan forgiveness program if the student meets all of the following requirements:
   a.  Is a resident of this state enrolled at least part-time as a sophomore, junior, or senior in an approved practitioner preparation program, in a designated content area in which teacher shortages are anticipated, at an institution of higher learning under the control of the state board of regents or an accredited private institution as defined in section 261.9.
   b.  Maintains a cumulative grade point average of at least three point zero on a four point zero grade scale or the equivalent.
   4.  The commission may issue a loan to a student that is eligible for a federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program or the recipient’s federal Perkins loan of up to ten thousand dollars annually for not more than three years. The maximum loan amount a student may be issued under this subsection is thirty thousand dollars.
   5.  a.  A loan issued in accordance with subsection 4 shall not become due until after the student graduates or leaves school.
   b.  Except as provided in paragraph “c”, loans issued in accordance with subsection 4 shall be repaid at an annual interest rate of five percent.
   c.  The commission shall forgive twenty-five percent of the loan issued in accordance with subsection 4 and twenty-five percent of the interest on the loan for each school year the loan recipient is employed as a full-time teacher in a high-demand area by a school district or accredited nonpublic school.
   6.  A rural teacher shortage area loan forgiveness fund is created in the state treasury under the control of the commission and shall consist of moneys appropriated by the general assembly and any other moneys received by the commission for deposit in the fund. The commission shall deposit in the rural teacher shortage area loan forgiveness fund all repayments of loans made under this section and the interest on such loans. The moneys in the fund are appropriated to the commission for the rural teacher shortage area 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 rural teacher shortage 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.
   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 rural teacher shortage area loan forgiveness program to be administered by the college student aid commission to provide loan forgiveness for persons who are employed as teachers in high-demand areas by a school district or accredited nonpublic school. 
   The department of education is directed to periodically conduct a survey of school districts, accredited nonpublic schools, and approved practitioner preparation programs to determine current high-demand areas. 
   The bill defines “high-demand area” as a rural county designated by the department as a geographic area experiencing teacher shortages in specific content areas. “Rural county” means a county that does not include any urbanized area, less than 25 percent of its residents are employed in another county that includes an urbanized area, and less than 25 percent of persons employed in the county reside in another county that includes an urbanized area. “Urbanized area” means a geographic area with a population of 50,000 or more. 
   To be eligible for a loan from the commission, a resident student must be enrolled at least part-time as a sophomore, junior, or senior in an approved practitioner preparation program at a regents university or an accredited private institution in a designated content area in which teacher shortages are anticipated, maintain a 3.0 grade point average on a 4.0 grade scale, and be eligible for a federal educational loan. The loan does not come due until after the student graduates or leaves school. Such a student is eligible for a loan of up to $10,000 annually for not more than three years. Such a loan must be repaid at an annual interest rate of 5 percent, but the commission shall forgive 25 percent of the loan and interest on the loan for each school year the loan recipient is employed as a full-time teacher by a school district or accredited nonpublic school in a high-demand area.
   The bill also establishes a rural teacher shortage area loan forgiveness fund in the state treasury to be administered by the commission. The fund consists of moneys appropriated by the general assembly and any other moneys received by the commission for deposit in the fund, including moneys repaid by loan recipients. Moneys in the fund carry forward to be continuously available for loan forgiveness under the program. 
   The commission is directed to adopt administrative rules for purposes of administering the program.