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Senate File 249 - IntroducedA Bill ForAn Act 1relating to individuals who fail to fulfill the
2obligation to engage in practice in a service commitment
3area under the rural Iowa primary care loan repayment
4program and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.113, subsection 5, Code 2023, is
2amended to read as follows:
35. Loan repayment amounts. The amount of loan repayment
4an eligible student who enters into an agreement pursuant to
5subsection 3 shall receive if in compliance with obligations
6under the agreement shall be forty thousand dollars annually
7for an eligible loan if the total loan amount equals or exceeds
8two hundred thousand dollars. Payments made pursuant to an
9agreement entered into under subsection 3 may be made for after
10the completion of each year of eligible practice during a
11period of five consecutive years and shall not exceed a total
12of two hundred thousand dollars. If the total amount of an
13eligible student’s eligible loan upon graduation is less than
14two hundred thousand dollars, the commission shall divide the
15total amount of the eligible student’s eligible loan by five
16to determine the annual amount of loan repayment the loan
17recipient is eligible to receive.
18 Sec. 2. Section 261.113, subsection 11, paragraph d, Code
192023, is amended to read as follows:
20d. If a loan repayment recipient fails to fulfill
21the obligation to engage in practice in accordance with
22subsection 3, the recipient shall be subject to repayment to
23the commission of the loan amount plus interest as specified
24by rule shall not make additional loan repayments to the
25recipient. A loan repayment recipient who fails to meet
26the requirements of the obligation to engage in practice in
27accordance with subsection 3 may also be subject to repayment
28of moneys advanced by the service commitment area as provided
29in any agreement with the service commitment area.
30 Sec. 3. APPLICABILITY. This Act applies to individuals who
31receive loan repayments under the rural Iowa primary care loan
32repayment program on or after the effective date of this Act.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to individuals who fail to fulfill the
2obligation to engage in practice in a service commitment area
3under the rural Iowa primary care loan repayment program
4(program).
5The program provides loan repayments for medical students
6who agree to practice as physicians for five years in service
7commitment areas, as defined in Code section 261.113. The bill
8provides that the college student aid commission is to make
9loan repayments after the completion of each year of practice.
10Current law requires an individual who receives loan
11repayments under the program to repay the commission the total
12amount of those loan repayments if the individual fails to
13fulfill the obligation to practice as a physician in a service
14area for five years. The bill strikes this requirement. The
15bill provides that, if the individual fails to fulfill the
16obligation to practice as a physician in a service area for
17five years, the commission is prohibited from making additional
18loan repayments to the individual.
19The bill applies to individuals who receive loan repayments
20under the program on or after the effective date of the bill.
-2-jda/jh
2obligation to engage in practice in a service commitment
3area under the rural Iowa primary care loan repayment
4program and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.113, subsection 5, Code 2023, is
2amended to read as follows:
35. Loan repayment amounts. The amount of loan repayment
4an eligible student who enters into an agreement pursuant to
5subsection 3 shall receive if in compliance with obligations
6under the agreement shall be forty thousand dollars annually
7for an eligible loan if the total loan amount equals or exceeds
8two hundred thousand dollars. Payments made pursuant to an
9agreement entered into under subsection 3 may be made for after
10the completion of each year of eligible practice during a
11period of five consecutive years and shall not exceed a total
12of two hundred thousand dollars. If the total amount of an
13eligible student’s eligible loan upon graduation is less than
14two hundred thousand dollars, the commission shall divide the
15total amount of the eligible student’s eligible loan by five
16to determine the annual amount of loan repayment the loan
17recipient is eligible to receive.
18 Sec. 2. Section 261.113, subsection 11, paragraph d, Code
192023, is amended to read as follows:
20d. If a loan repayment recipient fails to fulfill
21the obligation to engage in practice in accordance with
22subsection 3, the recipient shall be subject to repayment to
23the commission of the loan amount plus interest as specified
24by rule shall not make additional loan repayments to the
25recipient. A loan repayment recipient who fails to meet
26the requirements of the obligation to engage in practice in
27accordance with subsection 3 may also be subject to repayment
28of moneys advanced by the service commitment area as provided
29in any agreement with the service commitment area.
30 Sec. 3. APPLICABILITY. This Act applies to individuals who
31receive loan repayments under the rural Iowa primary care loan
32repayment program on or after the effective date of this Act.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to individuals who fail to fulfill the
2obligation to engage in practice in a service commitment area
3under the rural Iowa primary care loan repayment program
4(program).
5The program provides loan repayments for medical students
6who agree to practice as physicians for five years in service
7commitment areas, as defined in Code section 261.113. The bill
8provides that the college student aid commission is to make
9loan repayments after the completion of each year of practice.
10Current law requires an individual who receives loan
11repayments under the program to repay the commission the total
12amount of those loan repayments if the individual fails to
13fulfill the obligation to practice as a physician in a service
14area for five years. The bill strikes this requirement. The
15bill provides that, if the individual fails to fulfill the
16obligation to practice as a physician in a service area for
17five years, the commission is prohibited from making additional
18loan repayments to the individual.
19The bill applies to individuals who receive loan repayments
20under the program on or after the effective date of the bill.
-2-jda/jh