HF 2181 (LSB 5786YH (3) 89)

HOUSE FILE 2181

BY  STAED, BROWN-POWERS, ABDUL-SAMAD, HANSEN, JACOBY, EHLERT, HUNTER, MASCHER, DONAHUE, B. MEYER, WILBURN, and STECKMAN

A BILL FOR

An Act establishing the teacher student loan repayment program and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  261.109  Teacher student loan repayment program.
   1.  For purposes of this section:
   a.  “Eligible institution” means an institution of higher learning governed by the state board of regents or an accredited private institution as defined in section 261.9.
   b.  “Eligible loan” means the teacher’s total federally guaranteed Stafford loan amount under the federal family education loan program or the federal direct loan program, the teacher’s federal direct plus loan, or the teacher’s federal Perkins loan, including principal and interest.
   c.  “Teacher” means the same as defined in section 272.1.
   2.  A teacher student loan repayment program is established for the purpose of providing loan repayments to select teachers. The college student aid commission shall administer the teacher student loan repayment program in collaboration with the department of education.
   3.  A teacher shall be eligible for the teacher student loan repayment program if the teacher meets all of the criteria specified under, or established in accordance with, subsection 4. A teacher is ineligible for the teacher student loan repayment program if the teacher received a grant under section 261.110, a forgivable loan under section 261.111, or loan forgiveness under section 261.112.
   4.  Criteria for eligibility shall be established by the college student aid commission and shall include all of the following:
   a.  The teacher completed and filed an application for student loan repayment under the teacher student loan repayment program. The teacher shall be responsible for the prompt submission of any information required by the college student aid commission and for filing a new application and submitting information as required by the college student aid commission annually on the basis of which the teacher’s eligibility under the teacher student loan repayment program will be evaluated and determined.
   b.  The teacher completed a teacher preparation program approved by the state board of education pursuant to section 256.7, subsection 3, offered by an eligible institution.
   c.  The teacher’s cumulative grade point average upon graduation from an eligible institution is at least two and three quarters on a four-point scale, or its equivalent, as determined by the eligible institution.
   5.  A selected teacher who meets all of the eligibility requirements of this section shall be eligible for awards from the teacher student loan repayment program for each year of full-time employment completed in this state as a teacher for a school district, accredited nonpublic school, or an area education agency. A teacher student loan repayment grant shall not exceed the lesser of four thousand dollars per year per recipient or the total remaining balance of the teacher’s eligible loans at the end of each annual full-time employment obligation. Grants awarded under this section shall not exceed a total of twenty thousand dollars per recipient over a five-year period.
   6.  A teacher who receives a grant under the teacher student loan repayment program and who refinances an eligible loan by obtaining a private educational loan may continue to receive grants under this section if the amount of the teacher student loan repayment grant does not exceed the lesser of the amount specified in subsection 5 or the balance of the loan repayment amount the teacher qualified to receive with the eligible loan.
   7.  A teacher student loan repayment program fund is created in the state treasury as a separate fund under the control of the college student aid commission for deposit of moneys appropriated to or received by the college student aid commission for use under the program. Notwithstanding section 8.33, moneys deposited in the teacher student loan repayment program fund shall not revert to any fund of the state at the end of any fiscal year but shall remain in the teacher student loan repayment program fund and be continuously available for loan repayment under the program. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the teacher student loan repayment program fund shall be credited to the fund.
   8.  The college student aid commission shall submit in a report to the general assembly by January 1, annually, the number of individuals who received a grant from the teacher student loan repayment program pursuant to this section, the amount paid to each teacher who received a grant, and other information identified by the college student aid commission as indicators of outcomes from the teacher student loan repayment program.
   9.  The college student aid commission, in collaboration with the department of education, shall adopt rules pursuant to chapter 17A to administer this section. The rules shall include a process for use by the college student aid commission to determine which eligible teachers will receive a grant under the teacher student loan repayment program. Priority shall be given to the most recent graduates of eligible institutions.
    Sec. 2.  COLLEGE STUDENT AID COMMISSION.  There is appropriated from the general fund of the state to the college student aid commission for the fiscal year beginning July 1, 2022, and ending June 30, 2023, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For purposes of the teacher student loan repayment program established pursuant to section 261.109:

   ...................................................................... $  1,000,000
    Sec. 3.  CODE EDITOR DIRECTIVE.  The Code editor shall designate section 261.109, as enacted in this Act, as a new section within chapter 261, subchapter XIII, and may redesignate preexisting subchapters, and correct internal references as necessary, including references to subchapter headnotes.
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 the teacher student loan repayment program.
   The bill requires the program to provide grants to select teachers. The bill also requires the college student aid commission (commission) to administer the program in collaboration with the department of education.
   The bill provides that the criteria for eligibility for a teacher student loan repayment grant shall be established by the commission and shall include that the teacher completed an application for student loan repayment under the program, the teacher completed a teacher preparation program approved by the state board of education offered by an eligible institution, and the teacher’s cumulative grade point average upon graduation from an eligible institution is at least 2.75 on a 4.0 scale. The bill provides that an eligible institution is an institution of higher learning governed by the state board of regents or an accredited private institution located in Iowa. Additionally, the bill provides that a teacher is ineligible for the program if the teacher receives a grant under Code section 261.110 (teach Iowa scholar program), a forgivable loan under Code section 261.111 (teacher shortage forgivable loan program), or loan forgiveness under Code section 261.112 (teacher shortage loan forgiveness program).
   The bill provides that a selected teacher who meets all of the eligibility requirements shall be eligible for awards from the program for each year of full-time employment completed in this state as a teacher for a school district, accredited nonpublic school, or an area education agency. The bill restricts the amount of the awards to the lesser of $4,000 per year per recipient or the total remaining balance of the teacher’s eligible loans at the end of each annual full-time employment obligation. The bill provides that grants awarded under the program shall not exceed a total of $20,000 per recipient over a five-year period. The bill authorizes a teacher to continue to receive grants under the program if the teacher refinances an eligible loan by obtaining a private educational loan.
   The bill establishes a grant program fund in the state treasury. The bill requires the commission to administer the fund. The bill provides that moneys in the fund at the close of the fiscal year shall not revert but shall remain available for expenditure for the program. The bill also provides that interest or earnings on moneys in the fund shall be credited to the fund.
   The bill requires the commission to submit a report to the general assembly by January 1, annually, related to the program. The bill describes what the commission is required to include in the report.
   The bill requires the commission and the department of education to adopt rules to administer the program. The bill provides that the rules shall include a process to determine which teachers will receive a grant under the program. The bill requires that priority be given to the most recent graduates of eligible institutions.
   The bill appropriates $1 million to the commission in fiscal year 2022-2023 for purposes of the program.
   The bill defines “eligible institution”, “eligible loan”, and “teacher”.