Bill Text: IA HF474 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to the disposition or modification of uncollectible student debt owed to the college student aid commission. (Formerly HSB 95.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2017-04-04 - Referred to Education. H.J. 869. [HF474 Detail]

Download: Iowa-2017-HF474-Introduced.html

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House File 474 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON EDUCATION

                                 (SUCCESSOR TO HSB 95)

                                      A BILL FOR

  1 An Act relating to the disposition or modification of
  2    uncollectible student debt owed to the college student aid
  3    commission.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1239HV (1) 87
    kh/jh/rj

PAG LIN



  1  1    Section 1.  Section 261.2, Code 2017, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  13.  Adopt rules pursuant to chapter 17A
  1  4 establishing standards for the disposition or modification of
  1  5 uncollectible student debt owed to the commission, including
  1  6 but not limited to the restructuring of troubled debt,
  1  7 settlement of debt for an amount less than the amount of debt
  1  8 owed, selling of debt to a third=party debt collector, and
  1  9 charging off uncollectible debt. The commission shall not
  1 10 charge off a debt under this subsection until the commission
  1 11 does all of the following:
  1 12    a.  Attempts to collect the debt for not less than five
  1 13 years after the student defaulted on an obligation owed to or
  1 14 collected by the commission.
  1 15    b.  Determines, in its discretion, either that no person
  1 16 liable for the debt has the present or prospective ability to
  1 17 pay the debt or that the cost of collecting the debt is likely
  1 18 to exceed the amount recoverable.
  1 19                           EXPLANATION
  1 20 The inclusion of this explanation does not constitute agreement with
  1 21 the explanation's substance by the members of the general assembly.
  1 22    This bill directs the college student aid commission to
  1 23 adopt administrative rules establishing standards for the
  1 24 disposition or modification of uncollectible student debt
  1 25 owed to the commission, including but not limited to the
  1 26 restructuring of troubled debt, settlement of debt for an
  1 27 amount less than the amount of debt owed, selling of debt to
  1 28 a third=party debt collector, and charging off uncollectible
  1 29 debt.
  1 30    The commission is prohibited from charging off debt until it
  1 31 has attempted to collect the debt for at least five years after
  1 32 the student defaulted on the obligation and until after, in its
  1 33 discretion, the commission determines either that no person
  1 34 liable for the debt has the present or prospective ability to
  1 35 pay the debt or that the cost of collecting the debt is likely
  2  1 to exceed the amount recoverable.
       LSB 1239HV (1) 87
       kh/jh/rj