Bill Text: IA HF23 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act establishing a worker shortage loan forgiveness program to be administered by the college student aid commission.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-01-23 - Subcommittee: Nunn, Bennett and Gassman. H.J. 109. [HF23 Detail]

Download: Iowa-2017-HF23-Introduced.html
House File 23 - Introduced




                                 HOUSE FILE       
                                 BY  HUNTER

                                      A BILL FOR

  1 An Act establishing a worker shortage loan forgiveness program
  2    to be administered by the college student aid commission.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 261.2, subsection 8, Code 2017, is
  1  2 amended to read as follows:
  1  3    8.  Submit by January 15 annually a report to the general
  1  4 assembly which provides, by program, the number of individuals
  1  5 who received loan forgiveness in the previous fiscal year, the
  1  6 amount paid to individuals under sections 261.73, 261.112,
  1  7 and 261.116, and 261.118, and the institutions from which
  1  8 individuals graduated, and that includes any other information
  1  9 specified under sections 261.73, 261.112, 261.116, and 261.118,
  1 10  any proposed statutory changes relating to loan forgiveness
  1 11 programs administered by the commission, and the commission's
  1 12 findings and recommendations.
  1 13    Sec. 2.  NEW SECTION.  261.118  Worker shortage loan
  1 14 forgiveness program.
  1 15    1.  A worker shortage loan forgiveness program is
  1 16 established to be administered by the commission.  An
  1 17 individual is eligible for the program if the individual
  1 18 graduated from a school district or accredited nonpublic school
  1 19 in this state on or after January 1, 2016, is a resident of
  1 20 the state who successfully completed a career and technical
  1 21 education program or a career option program, or graduated
  1 22 with an associate degree from a community college established
  1 23 pursuant to chapter 260C or graduated with a baccalaureate
  1 24 degree or postbaccalaureate degree from an institution of
  1 25 higher education governed by the state board of regents or from
  1 26 an accredited private institution, and meets either of the
  1 27 following conditions:
  1 28    a.  Is employed and residing in this state and has been
  1 29 employed and residing in this state for not less than two
  1 30 consecutive years within three years of successfully completing
  1 31 a career and technical education program or a career option
  1 32 program or receiving an associate degree from a community
  1 33 college.
  1 34    b.  Is employed and residing in this state and has been
  1 35 employed and residing in this state for not less than four
  2  1 consecutive years within five years of graduating with a
  2  2 baccalaureate degree or postbaccalaureate degree from an
  2  3 institution of higher learning governed by the state board of
  2  4 regents or from an accredited private institution.
  2  5    2.  Each applicant for loan forgiveness shall, in accordance
  2  6 with the rules of the commission, do the following:
  2  7    a.  Complete and file an application for worker shortage
  2  8 loan forgiveness.  The individual shall be responsible for
  2  9 the prompt submission of any information required by the
  2 10 commission.
  2 11    b.  File a new application and submit information as
  2 12 required by the commission annually on the basis of which the
  2 13 applicant's eligibility for the renewed loan forgiveness will
  2 14 be evaluated and determined.
  2 15    c.  Complete and return on a form approved by the commission
  2 16 an affidavit of eligibility verifying that the applicant meets
  2 17 the requirements of subsection 1.
  2 18    3.  The annual amount of worker shortage loan forgiveness
  2 19 shall not exceed the following:
  2 20    a.  For an individual who meets the conditions of
  2 21 subsection 1, paragraph "a", the combined resident tuition
  2 22 rate established for the two years following the individual's
  2 23 successful program completion or graduation from the community
  2 24 college, or one hundred percent of the individual's total
  2 25 federally guaranteed Stafford loan amount under the federal
  2 26 family education loan program or the federal direct loan
  2 27 program and any private student loan issued by a lender
  2 28 that meets standards prescribed by the commission including
  2 29 principal and interest, whichever amount is less.
  2 30    b.  For an individual who meets the conditions of
  2 31 subsection 1, paragraph "b", the combined resident tuition
  2 32 rate established for institutions of higher learning governed
  2 33 by the state board of regents for the four years following
  2 34 the individual's graduation from the regents university or
  2 35 accredited private institution, or one hundred percent of the
  3  1 individual's total federally guaranteed Stafford loan amount
  3  2 under the federal family education loan program or the federal
  3  3 direct loan program and any private student loan issued by
  3  4 a lender that meets standards prescribed by the commission
  3  5 including principal and interest, whichever amount is less.
  3  6    4.  The commission shall submit in a report to the general
  3  7 assembly by January 1, annually, the number of individuals
  3  8 who received loan forgiveness pursuant to this section, the
  3  9 postsecondary institutions from which the individuals graduated
  3 10 or successfully completed a career and technical education
  3 11 program or career option program, where in the state program
  3 12 participants are employed, program participants' employment
  3 13 classifications or types of employment, the amount paid to each
  3 14 program participant, and other information identified by the
  3 15 commission as indicators of outcomes from the program.
  3 16    5.  The commission shall adopt rules pursuant to chapter 17A
  3 17 to administer this section.
  3 18                           EXPLANATION
  3 19 The inclusion of this explanation does not constitute agreement with
  3 20 the explanation's substance by the members of the general assembly.
  3 21    This bill creates a worker shortage loan forgiveness program
  3 22 to be administered by the college student aid commission.  The
  3 23 program is open to individuals who graduated from an Iowa high
  3 24 school in 2016 or later, are employed and reside in the state,
  3 25 and successfully completed a career and technical education
  3 26 program or career option program or received a degree from an
  3 27 accredited postsecondary institution in the state.
  3 28    The individual must also have been employed in and a resident
  3 29 of this state for a period of two consecutive years within
  3 30 three years of successfully completing a career and technical
  3 31 education program or career option program or receiving an
  3 32 associate degree from a community college, or must have been
  3 33 employed in and a resident of this state for a period of four
  3 34 consecutive years within five years of graduating with a
  3 35 baccalaureate degree or postbaccalaureate degree from a regents
  4  1 university or accredited private institution.
  4  2    In the case of an individual who attended a community
  4  3 college, the total amount of worker shortage loan forgiveness
  4  4 shall not exceed the combined resident tuition rate established
  4  5 for the two years following the individual's successful program
  4  6 completion or graduation from the community college, or 100
  4  7 percent of the individual's total federal loan program and
  4  8 private student loan amount including principal and interest,
  4  9 whichever amount is less.
  4 10    In the case of an individual who attended a regents
  4 11 university or accredited private institution, the annual
  4 12 amount of worker shortage loan forgiveness shall not exceed
  4 13 the combined resident tuition rate established for regents
  4 14 universities for the four years following the individual's
  4 15 graduation, or 100 percent of the individual's total federal
  4 16 loan program and private student loan amount including
  4 17 principal and interest, whichever amount is less.  The
  4 18 individual is eligible for the loan forgiveness program for not
  4 19 more than four consecutive years.
  4 20    The bill requires the commission to submit a report to the
  4 21 general assembly by January 1, annually, with information
  4 22 identified as indicators of outcomes from the program.
  4 23    The bill makes corresponding changes relating to a current
  4 24 loan forgiveness reporting requirement.
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