Senate File 64 - IntroducedA Bill ForAn Act 1establishing a rural teacher shortage area loan
2forgiveness program and fund.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  261.109  Rural teacher shortage area
2loan forgiveness program — fund.
   31.  For purposes of this section:
   4a.  “High-demand area” means a rural county designated by
5the department of education as a geographic area experiencing
6teacher shortages in specific content areas.
   7b.  “Rural county” means a county that satisfies all of the
8following:
   9(1)  The county does not include any urbanized area.
   10(2)  Less than twenty-five percent of persons residing in
11the county are employed in another county that includes an
12urbanized area.
   13(3)  Less than twenty-five percent of persons employed in
14the county reside in another county that includes an urbanized
15area.
   16c.  “Urbanized area” means a geographic area with a
17population of fifty thousand or more, as determined by the most
18recent population estimates issued by the United States bureau
19of census.
   202.  A rural teacher shortage area loan forgiveness program
21is established to be administered by the college student aid
22commission. The department of education shall periodically
23conduct a survey of school districts, accredited nonpublic
24schools, and approved practitioner preparation programs to
25determine current high-demand areas.
   263.  A student is eligible for the loan forgiveness program if
27the student meets all of the following requirements:
   28a.  Is a resident of this state enrolled at least part-time
29as a sophomore, junior, or senior in an approved practitioner
30preparation program, in a designated content area in which
31teacher shortages are anticipated, at an institution of higher
32learning under the control of the state board of regents or an
33accredited private institution as defined in section 261.9.
   34b.  Maintains a cumulative grade point average of at least
35three point zero on a four point zero grade scale or the
-1-1equivalent.
   24.  The commission may issue a loan to a student that is
3eligible for a federally guaranteed Stafford loan amount under
4the federal family education loan program or the federal direct
5loan program or the recipient’s federal Perkins loan of up to
6ten thousand dollars annually for not more than three years.
7The maximum loan amount a student may be issued under this
8subsection is thirty thousand dollars.
   95.  a.  A loan issued in accordance with subsection 4 shall
10not become due until after the student graduates or leaves
11school.
   12b.  Except as provided in paragraph “c”, loans issued in
13accordance with subsection 4 shall be repaid at an annual
14interest rate of five percent.
   15c.  The commission shall forgive twenty-five percent of the
16loan issued in accordance with subsection 4 and twenty-five
17percent of the interest on the loan for each school year
18the loan recipient is employed as a full-time teacher in a
19high-demand area by a school district or accredited nonpublic
20school.
   216.  A rural teacher shortage area loan forgiveness fund
22is created in the state treasury under the control of the
23commission and shall consist of moneys appropriated by
24the general assembly and any other moneys received by the
25commission for deposit in the fund. The commission shall
26deposit in the rural teacher shortage area loan forgiveness
27fund all repayments of loans made under this section and
28the interest on such loans. The moneys in the fund are
29appropriated to the commission for the rural teacher shortage
30area loan forgiveness program. Notwithstanding section 8.33,
31moneys deposited in the fund shall not revert to any fund
32of the state at the end of any fiscal year but shall remain
33in the rural teacher shortage loan forgiveness fund and be
34continuously available for loan forgiveness under the program.
35Notwithstanding section 12C.7, subsection 2, interest or
-2-1earnings on moneys deposited in the fund shall be credited to
2the fund.
   37.  The commission shall adopt rules pursuant to chapter 17A
4to administer this section.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
   8This bill establishes a rural teacher shortage area loan
9forgiveness program to be administered by the college student
10aid commission to provide loan forgiveness for persons who are
11employed by a school district or accredited nonpublic school as
12teachers in high-demand areas.
   13The department of education is directed to periodically
14conduct a survey of school districts, accredited nonpublic
15schools, and approved practitioner preparation programs to
16determine current high-demand areas.
   17The bill defines “high-demand area” as a rural county
18designated by the department as a geographic area experiencing
19teacher shortages in specific content areas. “Rural county”
20means a county that does not include any urbanized area, less
21than 25 percent of its residents are employed in another county
22that includes an urbanized area, and less than 25 percent
23of persons employed in the county reside in another county
24that includes an urbanized area. “Urbanized area” means a
25geographic area with a population of 50,000 or more.
   26To be eligible for a loan from the commission, a resident
27student must be enrolled at least part-time as a sophomore,
28junior, or senior in an approved practitioner preparation
29program at a regents university or an accredited private
30institution in a designated content area in which teacher
31shortages are anticipated, maintain a 3.0 grade point average
32on a 4.0 grade scale, and be eligible for a federal educational
33loan. The loan does not come due until after the student
34graduates or leaves school. Such a student is eligible for
35a loan of up to $10,000 annually for not more than three
-3-1years. The loan must be repaid at an annual interest rate
2of 5 percent, but the commission shall forgive 25 percent of
3the loan and interest on the loan for each school year the
4loan recipient is employed as a full-time teacher by a school
5district or accredited nonpublic school in a high-demand area.
   6The bill also establishes a rural teacher shortage area
7loan forgiveness fund in the state treasury to be administered
8by the commission. The fund consists of moneys appropriated
9by the general assembly and any other moneys received by the
10commission for deposit in the fund, including moneys repaid
11by loan recipients. Moneys in the fund carry forward to be
12continuously available for loan forgiveness under the program.
   13The commission is directed to adopt administrative rules for
14purposes of administering the program.
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