Bill Text: IA HF2327 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act authorizing the college student aid commission to write off certain defaulted student loan debt as uncollectible. (Formerly HSB 570)

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2016-03-11 - Rereferred to Education. H.J. 456. [HF2327 Detail]

Download: Iowa-2015-HF2327-Introduced.html

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House File 2327 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON EDUCATION

                                 (SUCCESSOR TO HSB 570)

                                      A BILL FOR

  1 An Act authorizing the college student aid commission to write
  2    off certain defaulted student loan debt as uncollectible.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5738HV (1) 86
    kh/sc

PAG LIN



  1  1    Section 1.  Section 261.2, Code 2016, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  13.  Adopt rules establishing standards
  1  4 for the disposition of uncollectible student loan debt in
  1  5 accordance with this subsection.  Under such rules, if the
  1  6 commission is unable to collect a defaulted student loan owed
  1  7 to the commission under a program the commission administers
  1  8 under this chapter and the program has been inactive or
  1  9 unfunded for fifteen or more years, and if any portion of the
  1 10 defaulted student loan remains uncollected after fifteen years
  1 11 from the date the loan was authorized, the commission may write
  1 12 off the defaulted student loan debt as uncollectible.  The
  1 13 commission shall prepare a report that includes information
  1 14 on the length of time the student loan debt that meets the
  1 15 criteria established under this subsection has been in default.
  1 16 The report shall include the amounts collected by public
  1 17 and private collection designees, the distribution of those
  1 18 amounts, and the amount of the fee paid to the collection
  1 19 designee. In addition, the report shall include the amounts
  1 20 written off, by program administered. The commission shall
  1 21 submit the report to the general assembly by December 15 of
  1 22 each year.
  1 23                           EXPLANATION
  1 24 The inclusion of this explanation does not constitute agreement with
  1 25 the explanation's substance by the members of the general assembly.
  1 26    This bill authorizes the college student aid commission to
  1 27 write off certain defaulted student loan debt as uncollectible
  1 28 and requires the commission to submit a report on the defaulted
  1 29 student loan debt to the general assembly.
  1 30    The commission must adopt rules to establish standards for
  1 31 the disposition of the uncollectible student loan debt that
  1 32 may be written off under the bill. Under the rules, if the
  1 33 commission is unable to collect a defaulted student loan under
  1 34 a program the commission administers and the program has been
  1 35 inactive or unfunded for 15 or more years, and if any portion
  2  1 of the defaulted student loan remains uncollected after 15
  2  2 years from the date the loan was authorized, the commission
  2  3 may write the debt off as uncollectible.  The commission must
  2  4 prepare a report that includes information on the length of
  2  5 time the defaulted student loan debt that meets this criteria
  2  6 has been in default, and include in the report the amounts
  2  7 collected by public and private collection designees, the
  2  8 distribution of those amounts, the amount of the fee paid
  2  9 to the collection designee, and the amounts written off, by
  2 10 program administered. The commission shall submit the report
  2 11 to the general assembly by December 15 of each year.
       LSB 5738HV (1) 86
       kh/sc