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House File 18 - IntroducedA Bill ForAn Act 1establishing a worker shortage loan forgiveness program
2to be administered by the college student aid commission.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.2, subsection 8, Code 2019, is
2amended to read as follows:
38. Submit by January 15 annually a report to the general
4assembly which provides, by program, the number of individuals
5who received loan forgiveness or loan repayment in the previous
6fiscal year, the amounts paid to or on behalf of individuals
7under sections 261.73, 261.112, and 261.116, and 261.118,
8 and the institutions from which individuals graduated, any
9other information specified under sections 261.73, 261.112,
10261.116, and 261.118, and that includes any proposed statutory
11changes relating to loan forgiveness or loan repayment programs
12administered by the commission, and the commission’s findings
13and recommendations.
14 Sec. 2. NEW SECTION. 261.118 Worker shortage loan
15forgiveness program.
161. A worker shortage loan forgiveness program is
17established to be administered by the commission. An
18individual is eligible for the program if the individual
19graduated from a school district or accredited nonpublic school
20in this state on or after January 1, 2018, is a resident of
21the state who successfully completed a career and technical
22education program or a career option program, or graduated
23with an associate degree from a community college established
24pursuant to chapter 260C or graduated with a baccalaureate
25degree or postbaccalaureate degree from an institution of
26higher education governed by the state board of regents or from
27an accredited private institution, and meets either of the
28following conditions:
29a. Is employed and residing in this state and has been
30employed and residing in this state for not less than two
31consecutive years within three years of successfully completing
32a career and technical education program or a career option
33program or receiving an associate degree from a community
34college.
35b. Is employed and residing in this state and has been
-1-1employed and residing in this state for not less than four
2consecutive years within five years of graduating with a
3baccalaureate degree or postbaccalaureate degree from an
4institution of higher learning governed by the state board of
5regents or from an accredited private institution.
62. Each applicant for loan forgiveness shall, in accordance
7with the rules of the commission, do the following:
8a. Complete and file an application for worker shortage
9loan forgiveness. The individual shall be responsible for
10the prompt submission of any information required by the
11commission.
12b. File a new application and submit information as
13required by the commission annually on the basis of which the
14applicant’s eligibility for the renewed loan forgiveness will
15be evaluated and determined.
16c. Complete and return on a form approved by the commission
17an affidavit of eligibility verifying that the applicant meets
18the requirements of subsection 1.
193. The annual amount of worker shortage loan forgiveness
20shall not exceed the following:
21a. For an individual who meets the conditions of
22subsection 1, paragraph “a”, the combined resident tuition
23rate established for the two years following the individual’s
24successful program completion or graduation from the community
25college, or one hundred percent of the individual’s total
26federally guaranteed Stafford loan amount under the federal
27family education loan program or the federal direct loan
28program and any private student loan issued by a lender
29that meets standards prescribed by the commission including
30principal and interest, whichever amount is less.
31b. For an individual who meets the conditions of
32subsection 1, paragraph “b”, the combined resident tuition
33rate established for institutions of higher learning governed
34by the state board of regents for the four years following
35the individual’s graduation from the regents university or
-2-1accredited private institution, or one hundred percent of the
2individual’s total federally guaranteed Stafford loan amount
3under the federal family education loan program or the federal
4direct loan program and any private student loan issued by
5a lender that meets standards prescribed by the commission
6including principal and interest, whichever amount is less.
74. The commission shall submit in a report to the general
8assembly by January 1, annually, the number of individuals
9who received loan forgiveness pursuant to this section, the
10postsecondary institutions from which the individuals graduated
11or successfully completed a career and technical education
12program or career option program, where in the state program
13participants are employed, program participants’ employment
14classifications or types of employment, the amount paid to each
15program participant, and other information identified by the
16commission as indicators of outcomes from the program.
175. The commission shall adopt rules pursuant to chapter 17A
18to administer this section.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill creates a worker shortage loan forgiveness program
23to be administered by the college student aid commission. The
24program is open to individuals who graduated from an Iowa high
25school in 2018 or later, are employed and reside in the state,
26and successfully completed a career and technical education
27program or career option program or received a degree from an
28accredited postsecondary institution in the state.
29The individual must also have been employed in and a resident
30of this state for a period of two consecutive years within
31three years of successfully completing a career and technical
32education program or career option program or receiving an
33associate degree from a community college, or must have been
34employed in and a resident of this state for a period of four
35consecutive years within five years of graduating with a
-3-1baccalaureate degree or postbaccalaureate degree from a regents
2university or accredited private institution.
3In the case of an individual who attended a community
4college, the total amount of worker shortage loan forgiveness
5shall not exceed the combined resident tuition rate established
6for the two years following the individual’s successful program
7completion or graduation from the community college, or 100
8percent of the individual’s total federal loan program and
9private student loan amount including principal and interest,
10whichever amount is less.
11In the case of an individual who attended a regents
12university or accredited private institution, the annual
13amount of worker shortage loan forgiveness shall not exceed
14the combined resident tuition rate established for regents
15universities for the four years following the individual’s
16graduation, or 100 percent of the individual’s total federal
17loan program and private student loan amount including
18principal and interest, whichever amount is less. The
19individual is eligible for the loan forgiveness program for not
20more than four consecutive years.
21The bill requires the commission to submit a report to the
22general assembly by January 1, annually, with information
23identified as indicators of outcomes from the program.
24The bill makes corresponding changes relating to a current
25loan forgiveness reporting requirement.
-4-kh/jh
2to be administered by the college student aid commission.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.2, subsection 8, Code 2019, is
2amended to read as follows:
38. Submit by January 15 annually a report to the general
4assembly which provides, by program, the number of individuals
5who received loan forgiveness or loan repayment in the previous
6fiscal year, the amounts paid to or on behalf of individuals
7under sections 261.73, 261.112, and 261.116, and 261.118,
8 and the institutions from which individuals graduated, any
9other information specified under sections 261.73, 261.112,
10261.116, and 261.118, and that includes any proposed statutory
11changes relating to loan forgiveness or loan repayment programs
12administered by the commission, and the commission’s findings
13and recommendations.
14 Sec. 2. NEW SECTION. 261.118 Worker shortage loan
15forgiveness program.
161. A worker shortage loan forgiveness program is
17established to be administered by the commission. An
18individual is eligible for the program if the individual
19graduated from a school district or accredited nonpublic school
20in this state on or after January 1, 2018, is a resident of
21the state who successfully completed a career and technical
22education program or a career option program, or graduated
23with an associate degree from a community college established
24pursuant to chapter 260C or graduated with a baccalaureate
25degree or postbaccalaureate degree from an institution of
26higher education governed by the state board of regents or from
27an accredited private institution, and meets either of the
28following conditions:
29a. Is employed and residing in this state and has been
30employed and residing in this state for not less than two
31consecutive years within three years of successfully completing
32a career and technical education program or a career option
33program or receiving an associate degree from a community
34college.
35b. Is employed and residing in this state and has been
-1-1employed and residing in this state for not less than four
2consecutive years within five years of graduating with a
3baccalaureate degree or postbaccalaureate degree from an
4institution of higher learning governed by the state board of
5regents or from an accredited private institution.
62. Each applicant for loan forgiveness shall, in accordance
7with the rules of the commission, do the following:
8a. Complete and file an application for worker shortage
9loan forgiveness. The individual shall be responsible for
10the prompt submission of any information required by the
11commission.
12b. File a new application and submit information as
13required by the commission annually on the basis of which the
14applicant’s eligibility for the renewed loan forgiveness will
15be evaluated and determined.
16c. Complete and return on a form approved by the commission
17an affidavit of eligibility verifying that the applicant meets
18the requirements of subsection 1.
193. The annual amount of worker shortage loan forgiveness
20shall not exceed the following:
21a. For an individual who meets the conditions of
22subsection 1, paragraph “a”, the combined resident tuition
23rate established for the two years following the individual’s
24successful program completion or graduation from the community
25college, or one hundred percent of the individual’s total
26federally guaranteed Stafford loan amount under the federal
27family education loan program or the federal direct loan
28program and any private student loan issued by a lender
29that meets standards prescribed by the commission including
30principal and interest, whichever amount is less.
31b. For an individual who meets the conditions of
32subsection 1, paragraph “b”, the combined resident tuition
33rate established for institutions of higher learning governed
34by the state board of regents for the four years following
35the individual’s graduation from the regents university or
-2-1accredited private institution, or one hundred percent of the
2individual’s total federally guaranteed Stafford loan amount
3under the federal family education loan program or the federal
4direct loan program and any private student loan issued by
5a lender that meets standards prescribed by the commission
6including principal and interest, whichever amount is less.
74. The commission shall submit in a report to the general
8assembly by January 1, annually, the number of individuals
9who received loan forgiveness pursuant to this section, the
10postsecondary institutions from which the individuals graduated
11or successfully completed a career and technical education
12program or career option program, where in the state program
13participants are employed, program participants’ employment
14classifications or types of employment, the amount paid to each
15program participant, and other information identified by the
16commission as indicators of outcomes from the program.
175. The commission shall adopt rules pursuant to chapter 17A
18to administer this section.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill creates a worker shortage loan forgiveness program
23to be administered by the college student aid commission. The
24program is open to individuals who graduated from an Iowa high
25school in 2018 or later, are employed and reside in the state,
26and successfully completed a career and technical education
27program or career option program or received a degree from an
28accredited postsecondary institution in the state.
29The individual must also have been employed in and a resident
30of this state for a period of two consecutive years within
31three years of successfully completing a career and technical
32education program or career option program or receiving an
33associate degree from a community college, or must have been
34employed in and a resident of this state for a period of four
35consecutive years within five years of graduating with a
-3-1baccalaureate degree or postbaccalaureate degree from a regents
2university or accredited private institution.
3In the case of an individual who attended a community
4college, the total amount of worker shortage loan forgiveness
5shall not exceed the combined resident tuition rate established
6for the two years following the individual’s successful program
7completion or graduation from the community college, or 100
8percent of the individual’s total federal loan program and
9private student loan amount including principal and interest,
10whichever amount is less.
11In the case of an individual who attended a regents
12university or accredited private institution, the annual
13amount of worker shortage loan forgiveness shall not exceed
14the combined resident tuition rate established for regents
15universities for the four years following the individual’s
16graduation, or 100 percent of the individual’s total federal
17loan program and private student loan amount including
18principal and interest, whichever amount is less. The
19individual is eligible for the loan forgiveness program for not
20more than four consecutive years.
21The bill requires the commission to submit a report to the
22general assembly by January 1, annually, with information
23identified as indicators of outcomes from the program.
24The bill makes corresponding changes relating to a current
25loan forgiveness reporting requirement.
-4-kh/jh