H.F. 2181 Section 1. NEW SECTION . 261.109 Teacher student loan 1 repayment program. 2 1. For purposes of this section: 3 a. “Eligible institution” means an institution of higher 4 learning governed by the state board of regents or an 5 accredited private institution as defined in section 261.9. 6 b. “Eligible loan” means the teacher’s total federally 7 guaranteed Stafford loan amount under the federal family 8 education loan program or the federal direct loan program, the 9 teacher’s federal direct plus loan, or the teacher’s federal 10 Perkins loan, including principal and interest. 11 c. “Teacher” means the same as defined in section 272.1. 12 2. A teacher student loan repayment program is established 13 for the purpose of providing loan repayments to select 14 teachers. The college student aid commission shall administer 15 the teacher student loan repayment program in collaboration 16 with the department of education. 17 3. A teacher shall be eligible for the teacher student loan 18 repayment program if the teacher meets all of the criteria 19 specified under, or established in accordance with, subsection 20 4. A teacher is ineligible for the teacher student loan 21 repayment program if the teacher received a grant under section 22 261.110, a forgivable loan under section 261.111, or loan 23 forgiveness under section 261.112. 24 4. Criteria for eligibility shall be established by the 25 college student aid commission and shall include all of the 26 following: 27 a. The teacher completed and filed an application for 28 student loan repayment under the teacher student loan repayment 29 program. The teacher shall be responsible for the prompt 30 submission of any information required by the college student 31 aid commission and for filing a new application and submitting 32 information as required by the college student aid commission 33 annually on the basis of which the teacher’s eligibility under 34 the teacher student loan repayment program will be evaluated 35 -1- LSB 5786YH (3) 89 jda/jh 1/ 5

H.F. 2181 and determined. 1 b. The teacher completed a teacher preparation program 2 approved by the state board of education pursuant to section 3 256.7, subsection 3, offered by an eligible institution. 4 c. The teacher’s cumulative grade point average upon 5 graduation from an eligible institution is at least two and 6 three quarters on a four-point scale, or its equivalent, as 7 determined by the eligible institution. 8 5. A selected teacher who meets all of the eligibility 9 requirements of this section shall be eligible for awards from 10 the teacher student loan repayment program for each year of 11 full-time employment completed in this state as a teacher for 12 a school district, accredited nonpublic school, or an area 13 education agency. A teacher student loan repayment grant 14 shall not exceed the lesser of four thousand dollars per year 15 per recipient or the total remaining balance of the teacher’s 16 eligible loans at the end of each annual full-time employment 17 obligation. Grants awarded under this section shall not 18 exceed a total of twenty thousand dollars per recipient over a 19 five-year period. 20 6. A teacher who receives a grant under the teacher student 21 loan repayment program and who refinances an eligible loan by 22 obtaining a private educational loan may continue to receive 23 grants under this section if the amount of the teacher student 24 loan repayment grant does not exceed the lesser of the amount 25 specified in subsection 5 or the balance of the loan repayment 26 amount the teacher qualified to receive with the eligible loan. 27 7. A teacher student loan repayment program fund is 28 created in the state treasury as a separate fund under the 29 control of the college student aid commission for deposit of 30 moneys appropriated to or received by the college student aid 31 commission for use under the program. Notwithstanding section 32 8.33, moneys deposited in the teacher student loan repayment 33 program fund shall not revert to any fund of the state at the 34 end of any fiscal year but shall remain in the teacher student 35 -2- LSB 5786YH (3) 89 jda/jh 2/ 5

H.F. 2181 loan repayment program fund and be continuously available for 1 loan repayment under the program. Notwithstanding section 2 12C.7, subsection 2, interest or earnings on moneys deposited 3 in the teacher student loan repayment program fund shall be 4 credited to the fund. 5 8. The college student aid commission shall submit in a 6 report to the general assembly by January 1, annually, the 7 number of individuals who received a grant from the teacher 8 student loan repayment program pursuant to this section, the 9 amount paid to each teacher who received a grant, and other 10 information identified by the college student aid commission as 11 indicators of outcomes from the teacher student loan repayment 12 program. 13 9. The college student aid commission, in collaboration 14 with the department of education, shall adopt rules pursuant 15 to chapter 17A to administer this section. The rules shall 16 include a process for use by the college student aid commission 17 to determine which eligible teachers will receive a grant under 18 the teacher student loan repayment program. Priority shall be 19 given to the most recent graduates of eligible institutions. 20 Sec. 2. COLLEGE STUDENT AID COMMISSION. There is 21 appropriated from the general fund of the state to the college 22 student aid commission for the fiscal year beginning July 1, 23 2022, and ending June 30, 2023, the following amount, or so 24 much thereof as is necessary, to be used for the purposes 25 designated: 26 For purposes of the teacher student loan repayment program 27 established pursuant to section 261.109: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 29 Sec. 3. CODE EDITOR DIRECTIVE. The Code editor shall 30 designate section 261.109, as enacted in this Act, as a 31 new section within chapter 261, subchapter XIII, and may 32 redesignate preexisting subchapters, and correct internal 33 references as necessary, including references to subchapter 34 headnotes. 35 -3- LSB 5786YH (3) 89 jda/jh 3/ 5

H.F. 2181 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes the teacher student loan repayment 4 program. 5 The bill requires the program to provide grants to 6 select teachers. The bill also requires the college student 7 aid commission (commission) to administer the program in 8 collaboration with the department of education. 9 The bill provides that the criteria for eligibility for a 10 teacher student loan repayment grant shall be established by 11 the commission and shall include that the teacher completed 12 an application for student loan repayment under the program, 13 the teacher completed a teacher preparation program approved 14 by the state board of education offered by an eligible 15 institution, and the teacher’s cumulative grade point average 16 upon graduation from an eligible institution is at least 2.75 17 on a 4.0 scale. The bill provides that an eligible institution 18 is an institution of higher learning governed by the state 19 board of regents or an accredited private institution located 20 in Iowa. Additionally, the bill provides that a teacher is 21 ineligible for the program if the teacher receives a grant 22 under Code section 261.110 (teach Iowa scholar program), a 23 forgivable loan under Code section 261.111 (teacher shortage 24 forgivable loan program), or loan forgiveness under Code 25 section 261.112 (teacher shortage loan forgiveness program). 26 The bill provides that a selected teacher who meets all of 27 the eligibility requirements shall be eligible for awards from 28 the program for each year of full-time employment completed 29 in this state as a teacher for a school district, accredited 30 nonpublic school, or an area education agency. The bill 31 restricts the amount of the awards to the lesser of $4,000 32 per year per recipient or the total remaining balance of the 33 teacher’s eligible loans at the end of each annual full-time 34 employment obligation. The bill provides that grants awarded 35 -4- LSB 5786YH (3) 89 jda/jh 4/ 5

H.F. 2181 under the program shall not exceed a total of $20,000 per 1 recipient over a five-year period. The bill authorizes a 2 teacher to continue to receive grants under the program if the 3 teacher refinances an eligible loan by obtaining a private 4 educational loan. 5 The bill establishes a grant program fund in the state 6 treasury. The bill requires the commission to administer the 7 fund. The bill provides that moneys in the fund at the close 8 of the fiscal year shall not revert but shall remain available 9 for expenditure for the program. The bill also provides that 10 interest or earnings on moneys in the fund shall be credited 11 to the fund. 12 The bill requires the commission to submit a report to 13 the general assembly by January 1, annually, related to the 14 program. The bill describes what the commission is required to 15 include in the report. 16 The bill requires the commission and the department of 17 education to adopt rules to administer the program. The bill 18 provides that the rules shall include a process to determine 19 which teachers will receive a grant under the program. The 20 bill requires that priority be given to the most recent 21 graduates of eligible institutions. 22 The bill appropriates $1 million to the commission in fiscal 23 year 2022-2023 for purposes of the program. 24 The bill defines “eligible institution”, “eligible loan”, 25 and “teacher”. 26 -5- LSB 5786YH (3) 89 jda/jh 5/ 5