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: TLSB 1812YH (2) 87 kh/nh 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 7and261.116, and 261.118, and the institutions from which 1 8 individuals graduated,and that includesany 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. LSB 1812YH (2) 87 kh/nh
