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Senate File 253 - IntroducedA Bill ForAn Act 1relating to loan repayments made by the college student
2aid commission under the mental health professional loan
3repayment program and including applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.117, subsection 2, Code 2023, is
2amended to read as follows:
32. Program established. A mental health professional loan
4repayment program is established to be administered by the
5commission for purposes of providing annual loan repayments
6for mental health professionals who agree to practice in an
7eligible practice area and meet the requirements of this
8section.
9 Sec. 2. Section 261.117, subsection 3, paragraph a,
10unnumbered paragraph 1, Code 2023, is amended to read as
11follows:
12The mental health professional and the commission shall
13enter into a program agreement. Under the agreement, to
14receive annual loan repayments pursuant to subsection 5, a
15mental health professional shall agree to and shall engage in
16either of the following:
17 Sec. 3. Section 261.117, subsection 4, paragraph b, Code
182023, is amended to read as follows:
19b. If a mental health professional fails to fulfill the
20obligation to engage in practice in accordance with subsection
213, the mental health professional shall be subject to repayment
22to the commission of loan repayment amounts the commission paid
23to the mental health professional pursuant to subsection 5 plus
24interest as specified by rule shall not make additional loan
25repayments to the mental health professional.
26 Sec. 4. Section 261.117, subsection 5, Code 2023, is amended
27to read as follows:
285. Loan repayment amounts. The
29a. After the completion of a year of full-time practice, the
30annual amount of loan repayment the commission may make to a
31mental health professional who enters into a program agreement
32pursuant to subsection 3, if the mental health professional
33is in compliance with obligations under the agreement, shall
34be the lesser of eight thousand dollars for an eligible loan
35or the remaining balance of the mental health professional’s
-1-1eligible loan.
2b. After the completion of a year of part-time practice, the
3annual amount of loan repayment the commission may make to a
4mental health professional who enters into a program agreement
5pursuant to subsection 3, if the mental health professional is
6in compliance with obligations under the agreement, shall be
7the lesser of the same amount of loan repayment the commission
8may make pursuant to paragraph “a” prorated based on the number
9of hours of practice in the mental health professional’s
10workweek or the remaining balance of the mental health
11professional’s eligible loan.
12c. The total amount of loan repayments from the commission
13to a mental health professional under this subsection shall not
14exceed forty thousand dollars.
15 Sec. 5. APPLICABILITY. This Act applies to individuals who
16receive loan repayments under the mental health professional
17loan repayment program on or after the effective date of this
18Act.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to loan repayments made by the college
23student aid commission under the mental health professional
24loan repayment program (program).
25The program provides loan repayments for mental health
26professionals who agree to practice in an eligible practice
27area, as defined in Code section 261.117, for five years if the
28individual engages in full-time practice or for seven years
29if the individual engages in part-time practice. The bill
30provides that the college student aid commission is to make
31loan repayments annually after the completion of each year of
32practice.
33Current law requires an individual who receives loan
34repayments under the program to repay the commission the
35total amount of the loan repayments if the individual fails
-2-1to fulfill the obligation to practice as a mental health
2professional in a service area for the applicable amount of
3time. The bill strikes this requirement. The bill provides
4that if the individual fails to fulfill the obligation to
5practice as a mental health professional in a service area for
6the applicable amount of time, the commission is prohibited
7from making additional loan repayments to the individual.
8Current law provides that the annual amount of loan
9repayment the commission may make to an individual under
10the program is $8,000. The bill provides that, after the
11completion of a year of full-time practice, the annual amount
12of loan repayment the commission may make to an individual
13under the program is the lesser of $8,000 or the remaining
14balance of the individual’s eligible loan. Additionally, the
15bill provides that, after the completion of a year of part-time
16practice, the annual amount of loan repayment the commission
17may make to an individual under the program shall be the
18lesser of the same amount of loan repayment the commission may
19make to an individual who has completed a year of full-time
20practice prorated based on the number of hours of practice
21in the individual’s workweek or the remaining balance of the
22individual’s eligible loan.
23The bill applies to individuals who receive loan repayments
24under the program on or after the effective date of the bill.
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2aid commission under the mental health professional loan
3repayment program and including applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261.117, subsection 2, Code 2023, is
2amended to read as follows:
32. Program established. A mental health professional loan
4repayment program is established to be administered by the
5commission for purposes of providing annual loan repayments
6for mental health professionals who agree to practice in an
7eligible practice area and meet the requirements of this
8section.
9 Sec. 2. Section 261.117, subsection 3, paragraph a,
10unnumbered paragraph 1, Code 2023, is amended to read as
11follows:
12The mental health professional and the commission shall
13enter into a program agreement. Under the agreement, to
14receive annual loan repayments pursuant to subsection 5, a
15mental health professional shall agree to and shall engage in
16either of the following:
17 Sec. 3. Section 261.117, subsection 4, paragraph b, Code
182023, is amended to read as follows:
19b. If a mental health professional fails to fulfill the
20obligation to engage in practice in accordance with subsection
213, the mental health professional shall be subject to repayment
22to the commission of loan repayment amounts the commission paid
23to the mental health professional pursuant to subsection 5 plus
24interest as specified by rule shall not make additional loan
25repayments to the mental health professional.
26 Sec. 4. Section 261.117, subsection 5, Code 2023, is amended
27to read as follows:
285. Loan repayment amounts. The
29a. After the completion of a year of full-time practice, the
30annual amount of loan repayment the commission may make to a
31mental health professional who enters into a program agreement
32pursuant to subsection 3, if the mental health professional
33is in compliance with obligations under the agreement, shall
34be the lesser of eight thousand dollars for an eligible loan
35or the remaining balance of the mental health professional’s
-1-1eligible loan.
2b. After the completion of a year of part-time practice, the
3annual amount of loan repayment the commission may make to a
4mental health professional who enters into a program agreement
5pursuant to subsection 3, if the mental health professional is
6in compliance with obligations under the agreement, shall be
7the lesser of the same amount of loan repayment the commission
8may make pursuant to paragraph “a” prorated based on the number
9of hours of practice in the mental health professional’s
10workweek or the remaining balance of the mental health
11professional’s eligible loan.
12c. The total amount of loan repayments from the commission
13to a mental health professional under this subsection shall not
14exceed forty thousand dollars.
15 Sec. 5. APPLICABILITY. This Act applies to individuals who
16receive loan repayments under the mental health professional
17loan repayment program on or after the effective date of this
18Act.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to loan repayments made by the college
23student aid commission under the mental health professional
24loan repayment program (program).
25The program provides loan repayments for mental health
26professionals who agree to practice in an eligible practice
27area, as defined in Code section 261.117, for five years if the
28individual engages in full-time practice or for seven years
29if the individual engages in part-time practice. The bill
30provides that the college student aid commission is to make
31loan repayments annually after the completion of each year of
32practice.
33Current law requires an individual who receives loan
34repayments under the program to repay the commission the
35total amount of the loan repayments if the individual fails
-2-1to fulfill the obligation to practice as a mental health
2professional in a service area for the applicable amount of
3time. The bill strikes this requirement. The bill provides
4that if the individual fails to fulfill the obligation to
5practice as a mental health professional in a service area for
6the applicable amount of time, the commission is prohibited
7from making additional loan repayments to the individual.
8Current law provides that the annual amount of loan
9repayment the commission may make to an individual under
10the program is $8,000. The bill provides that, after the
11completion of a year of full-time practice, the annual amount
12of loan repayment the commission may make to an individual
13under the program is the lesser of $8,000 or the remaining
14balance of the individual’s eligible loan. Additionally, the
15bill provides that, after the completion of a year of part-time
16practice, the annual amount of loan repayment the commission
17may make to an individual under the program shall be the
18lesser of the same amount of loan repayment the commission may
19make to an individual who has completed a year of full-time
20practice prorated based on the number of hours of practice
21in the individual’s workweek or the remaining balance of the
22individual’s eligible loan.
23The bill applies to individuals who receive loan repayments
24under the program on or after the effective date of the bill.
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