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House File 2331 - IntroducedA Bill ForAn Act 1creating an attorney loan repayment program, and making
2appropriations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 256.232 Attorney loan repayment
2program — fund.
31. Program established. The college student aid commission
4shall establish an attorney loan repayment program to encourage
5attorneys to remain and practice law in this state.
62. Eligibility. An individual is eligible to apply to
7enter into a program agreement with the college student aid
8commission pursuant to subsection 3 if the individual meets all
9of the following requirements:
10a. Is a graduate of the college of law at the state
11university of Iowa.
12b. Is licensed to practice law in Iowa.
13c. Is practicing law in Iowa at the time of application or
14commits to begin practicing law in this state upon execution
15of a program agreement.
163. Program agreements. An agreement shall be entered into
17by an eligible attorney and the college student aid commission.
18Under the agreement, to receive loan repayments pursuant to
19subsection 5, an eligible attorney shall agree to and fulfill
20all of the following requirements:
21a. Remain and practice law in Iowa during each year for
22which loan repayment assistance is received.
23b. Provide not less than fifty hours per year of legal
24services as an indigent defense attorney.
254. Priority. In awarding loan repayment assistance under
26this section, the commission shall give priority to attorneys
27who practice law in rural areas of the state. For purposes
28of this section, “rural area” means a county or municipality
29that has a population of less than twenty-six thousand and is
30located more than twenty miles from a city with a population
31of at least fifty thousand, based on the most recent federal
32decennial census.
335. Loan repayment assistance. An eligible attorney
34who enters into and remains in compliance with a program
35agreement pursuant to subsection 3 shall receive loan repayment
-1-1assistance in an amount not to exceed ten thousand dollars per
2year or the outstanding balance of the attorney’s eligible
3loans, whichever is less. Loan repayment assistance may be
4provided for each year of eligible practice during a period
5of not more than six consecutive years. The total amount of
6loan repayment assistance an attorney may receive under the
7program shall not exceed the total outstanding balance of the
8attorney’s eligible student loans at the time the program
9agreement is executed. For purposes of this section, “eligible
10loan” means the attorney’s total federally guaranteed Stafford
11loan amount under the federal family education loan program
12or the federal direct loan program, the attorney’s federal
13graduate plus loans, or the attorney’s federal Perkins loan,
14including principal and interest.
156. Fund established. An attorney loan repayment program
16fund is created in the state treasury under the control of the
17college student aid commission. The commission may accept
18gifts, grants, bequests, and other private contributions, as
19well as state or federal moneys, for deposit in the fund. All
20moneys deposited in the fund are appropriated to the commission
21to be used for purposes of this section. Notwithstanding
22section 8.33, moneys in the fund that remain unencumbered or
23unobligated at the close of a fiscal year shall not revert
24but shall remain available for expenditure for the purposes
25designated. Notwithstanding section 12C.7, subsection 2,
26interest or earnings on moneys in the fund shall be credited
27to the fund.
287. Rules. The college student aid commission shall adopt
29rules to administer this section.
308. Limitation. The program shall not provide assistance for
31more than one hundred ten attorneys in a single year.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill establishes an attorney loan repayment program
-2-1to encourage attorneys to remain and practice law in Iowa.
2The program is to be administered by the college student aid
3commission.
4The bill provides that an individual is eligible to apply for
5the program if the individual is a graduate of the college of
6law at the state university of Iowa, is licensed to practice
7law in Iowa, and is practicing law in Iowa at the time of
8application or commits to begin practicing law in the state
9upon execution of a program agreement.
10The bill requires a program agreement to be entered into by
11the commission and an eligible attorney. Under the agreement,
12an attorney must agree to remain and practice law in Iowa
13during each year for which loan repayment assistance is
14received and must provide not less than 50 hours per year of
15legal services as an indigent defense attorney.
16The bill requires the commission to give priority in
17awarding loan repayment assistance to attorneys who practice
18law in rural areas of the state. The bill defines “rural area”
19as a county or municipality that has a population of less than
2026,000 and is located more than 20 miles from a city with a
21population of at least 50,000, based on the most recent federal
22decennial census.
23The bill provides that an eligible attorney who enters into
24and remains in compliance with a program agreement may receive
25loan repayment assistance in an amount not to exceed $10,000
26per year or the outstanding balance of the attorney’s eligible
27student loans, whichever is less. Loan repayment assistance
28may be provided for not more than six consecutive years, and
29the total amount of assistance may not exceed the outstanding
30balance of the attorney’s eligible student loans at the time
31the agreement is executed. The bill defines “eligible loan”
32as the attorney’s total federally guaranteed Stafford loan
33amount under the federal family education loan program or the
34federal direct loan program, the attorney’s federal graduate
35plus loans, or the attorney’s federal Perkins loan, including
-3-1principal and interest.
2The bill creates an attorney loan repayment program fund
3in the state treasury under the control of the commission.
4The fund consists of gifts, grants, bequests, private
5contributions, and state or federal moneys. Moneys in the fund
6are appropriated to the commission for purposes of the program,
7do not revert at the end of a fiscal year, and retain interest
8earnings.
9The bill requires the commission to adopt rules to
10administer the program and limits participation to not more
11than 110 attorneys in a single year.
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2appropriations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 256.232 Attorney loan repayment
2program — fund.
31. Program established. The college student aid commission
4shall establish an attorney loan repayment program to encourage
5attorneys to remain and practice law in this state.
62. Eligibility. An individual is eligible to apply to
7enter into a program agreement with the college student aid
8commission pursuant to subsection 3 if the individual meets all
9of the following requirements:
10a. Is a graduate of the college of law at the state
11university of Iowa.
12b. Is licensed to practice law in Iowa.
13c. Is practicing law in Iowa at the time of application or
14commits to begin practicing law in this state upon execution
15of a program agreement.
163. Program agreements. An agreement shall be entered into
17by an eligible attorney and the college student aid commission.
18Under the agreement, to receive loan repayments pursuant to
19subsection 5, an eligible attorney shall agree to and fulfill
20all of the following requirements:
21a. Remain and practice law in Iowa during each year for
22which loan repayment assistance is received.
23b. Provide not less than fifty hours per year of legal
24services as an indigent defense attorney.
254. Priority. In awarding loan repayment assistance under
26this section, the commission shall give priority to attorneys
27who practice law in rural areas of the state. For purposes
28of this section, “rural area” means a county or municipality
29that has a population of less than twenty-six thousand and is
30located more than twenty miles from a city with a population
31of at least fifty thousand, based on the most recent federal
32decennial census.
335. Loan repayment assistance. An eligible attorney
34who enters into and remains in compliance with a program
35agreement pursuant to subsection 3 shall receive loan repayment
-1-1assistance in an amount not to exceed ten thousand dollars per
2year or the outstanding balance of the attorney’s eligible
3loans, whichever is less. Loan repayment assistance may be
4provided for each year of eligible practice during a period
5of not more than six consecutive years. The total amount of
6loan repayment assistance an attorney may receive under the
7program shall not exceed the total outstanding balance of the
8attorney’s eligible student loans at the time the program
9agreement is executed. For purposes of this section, “eligible
10loan” means the attorney’s total federally guaranteed Stafford
11loan amount under the federal family education loan program
12or the federal direct loan program, the attorney’s federal
13graduate plus loans, or the attorney’s federal Perkins loan,
14including principal and interest.
156. Fund established. An attorney loan repayment program
16fund is created in the state treasury under the control of the
17college student aid commission. The commission may accept
18gifts, grants, bequests, and other private contributions, as
19well as state or federal moneys, for deposit in the fund. All
20moneys deposited in the fund are appropriated to the commission
21to be used for purposes of this section. Notwithstanding
22section 8.33, moneys in the fund that remain unencumbered or
23unobligated at the close of a fiscal year shall not revert
24but shall remain available for expenditure for the purposes
25designated. Notwithstanding section 12C.7, subsection 2,
26interest or earnings on moneys in the fund shall be credited
27to the fund.
287. Rules. The college student aid commission shall adopt
29rules to administer this section.
308. Limitation. The program shall not provide assistance for
31more than one hundred ten attorneys in a single year.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill establishes an attorney loan repayment program
-2-1to encourage attorneys to remain and practice law in Iowa.
2The program is to be administered by the college student aid
3commission.
4The bill provides that an individual is eligible to apply for
5the program if the individual is a graduate of the college of
6law at the state university of Iowa, is licensed to practice
7law in Iowa, and is practicing law in Iowa at the time of
8application or commits to begin practicing law in the state
9upon execution of a program agreement.
10The bill requires a program agreement to be entered into by
11the commission and an eligible attorney. Under the agreement,
12an attorney must agree to remain and practice law in Iowa
13during each year for which loan repayment assistance is
14received and must provide not less than 50 hours per year of
15legal services as an indigent defense attorney.
16The bill requires the commission to give priority in
17awarding loan repayment assistance to attorneys who practice
18law in rural areas of the state. The bill defines “rural area”
19as a county or municipality that has a population of less than
2026,000 and is located more than 20 miles from a city with a
21population of at least 50,000, based on the most recent federal
22decennial census.
23The bill provides that an eligible attorney who enters into
24and remains in compliance with a program agreement may receive
25loan repayment assistance in an amount not to exceed $10,000
26per year or the outstanding balance of the attorney’s eligible
27student loans, whichever is less. Loan repayment assistance
28may be provided for not more than six consecutive years, and
29the total amount of assistance may not exceed the outstanding
30balance of the attorney’s eligible student loans at the time
31the agreement is executed. The bill defines “eligible loan”
32as the attorney’s total federally guaranteed Stafford loan
33amount under the federal family education loan program or the
34federal direct loan program, the attorney’s federal graduate
35plus loans, or the attorney’s federal Perkins loan, including
-3-1principal and interest.
2The bill creates an attorney loan repayment program fund
3in the state treasury under the control of the commission.
4The fund consists of gifts, grants, bequests, private
5contributions, and state or federal moneys. Moneys in the fund
6are appropriated to the commission for purposes of the program,
7do not revert at the end of a fiscal year, and retain interest
8earnings.
9The bill requires the commission to adopt rules to
10administer the program and limits participation to not more
11than 110 attorneys in a single year.
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