Bill Text: IA HF479 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act to establish a nurturing Iowans loan reimbursement program and fund under the administration and control of the college student aid commission.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2015-03-04 - Subcommittee, Highfill, Salmon, and Winckler. H.J. 467. [HF479 Detail]
Download: Iowa-2015-HF479-Introduced.html
House File 479 - Introduced HOUSE FILE BY FINKENAUER A BILL FOR 1 An Act to establish a nurturing Iowans loan reimbursement 2 program and fund under the administration and control of the 3 college student aid commission. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2035YH (3) 86 kh/sc PAG LIN 1 1 Section 1. NEW SECTION. 261.117 Nurturing Iowans loan 1 2 reimbursement program. 1 3 1. For purposes of this section: 1 4 a. "Eligible individual" means an individual who graduated 1 5 from an accredited college or university with a baccalaureate 1 6 or higher degree and who resides in and is employed full=time 1 7 in this state for at least one full year prior to receiving 1 8 reimbursements under subsection 3. To maintain eligibility 1 9 in order to continue participating beyond the first year 1 10 in the program, the individual shall annually reapply to 1 11 the commission and submit any information requested by the 1 12 commission as set forth in subsection 2. 1 13 b. "Eligible loan" means the eligible individual's total 1 14 federally guaranteed Stafford loan amount under the federal 1 15 family education loan program or the eligible individual's 1 16 federal direct loan program, the amount of the eligible 1 17 individual's federal grad plus loans, or the amount of the 1 18 eligible individual's federal Perkins loan, including principal 1 19 and interest. 1 20 2. Subject to an appropriation by the general assembly for 1 21 this purpose, a nurturing Iowans loan reimbursement program 1 22 is established to be administered by the college student 1 23 aid commission for purposes of providing loan reimbursement 1 24 payments for individuals who remain in Iowa and are employed in 1 25 the state upon graduating from an accredited public or private 1 26 postsecondary institution. 1 27 3. An individual shall be eligible for the loan 1 28 reimbursement program if, upon graduating from an accredited 1 29 public or private postsecondary institution with a 1 30 baccalaureate or higher degree, the individual resides in and 1 31 is employed full=time in this state. An eligible individual 1 32 may apply to the commission to participate in the program and 1 33 shall submit any information requested in connection with the 1 34 program, including but not limited to information regarding 1 35 the eligible individual's outstanding loans and loan payments, 2 1 academic status, and employment. 2 2 4. An eligible individual shall receive reimbursement 2 3 payments under the program for each of the fiscal years 2 4 following the first full calendar year of residence in this 2 5 state as follows or until the twelve months following the 2 6 fiscal year in which the eligible loans are paid in full: 2 7 a. For the first fiscal year, an amount equivalent to five 2 8 percent of the amount of loan payments made by the eligible 2 9 individual on eligible loans in the prior fiscal year. 2 10 b. For the second fiscal year, an amount equivalent to ten 2 11 percent of the amount of loan payments made by the eligible 2 12 individual on eligible loans in the prior fiscal year. 2 13 c. For the third fiscal year, an amount equivalent to 2 14 fifteen percent of the amount of loan payments made by the 2 15 eligible individual on eligible loans in the prior fiscal year. 2 16 d. For the fourth fiscal year, an amount equivalent to 2 17 twenty percent of the amount of loan payments made by the 2 18 eligible individual on eligible loans in the prior fiscal year. 2 19 e. For the fifth fiscal year, an amount equivalent to 2 20 twenty=five percent of the amount of loan payments made by the 2 21 eligible individual on eligible loans in the prior fiscal year. 2 22 f. For the sixth fiscal year, an amount equivalent to thirty 2 23 percent of the amount of loan payments made by the eligible 2 24 individual on eligible loans in the prior fiscal year. 2 25 g. For the seventh fiscal year, an amount equivalent to 2 26 forty percent of the amount of loan payments made by the 2 27 eligible individual on eligible loans in the prior fiscal year. 2 28 h. For the eighth fiscal year, an amount equivalent to fifty 2 29 percent of the amount of loan payments made by the eligible 2 30 individual on eligible loans in the prior fiscal year. 2 31 5. A nurturing Iowans loan reimbursement fund is created 2 32 in the state treasury as a separate fund under the control 2 33 of the commission and shall consist of moneys appropriated 2 34 by the general assembly and any other moneys received by 2 35 the commission for deposit in the fund. Moneys in the fund 3 1 are appropriated to the commission for the purposes of the 3 2 program. Notwithstanding section 8.33, any balance in the 3 3 fund on June 30 of any fiscal year shall not revert to the 3 4 general fund of the state but shall remain in the fund and 3 5 be continuously available for loan reimbursement under the 3 6 program. Notwithstanding section 12C.7, subsection 2, interest 3 7 or earnings on moneys deposited in the fund shall be credited 3 8 to the fund. 3 9 6. The commission shall adopt rules pursuant to chapter 17A 3 10 to administer this section. 3 11 EXPLANATION 3 12 The inclusion of this explanation does not constitute agreement with 3 13 the explanation's substance by the members of the general assembly. 3 14 This bill establishes, subject to an appropriation by the 3 15 general assembly for such purpose, a nurturing Iowans loan 3 16 reimbursement program and fund under administration and control 3 17 of the college student aid commission for purposes of providing 3 18 loan reimbursement payments for eligible individuals who remain 3 19 in Iowa as residents and are employed full=time in the state 3 20 upon graduating with a baccalaureate degree or a higher degree 3 21 from an accredited public or private postsecondary institution. 3 22 An eligible individual may apply to the commission to 3 23 participate in the program and must submit any information 3 24 requested by the commission in connection with the program. 3 25 Under the program, the commission begins reimbursement 3 26 payments to an eligible individual following the individual's 3 27 first full calendar year of residence in this state. The first 3 28 reimbursement payment an eligible individual qualifies for is 3 29 5 percent of the amount of loan payments made by the eligible 3 30 individual on eligible loans in the prior fiscal year. The 3 31 amounts increase by five percentage points per year for each of 3 32 the next five years for which the individual remains eligible 3 33 for the program, then increase by 10 percentage points per year 3 34 for the seventh and eighth years of eligibility, making the 3 35 individual eligible for reimbursement payments in the eighth 4 1 year equivalent to 50 percent of the amount of loan payments 4 2 made by the eligible individual on eligible loans in the prior 4 3 fiscal year. 4 4 Under the bill, "eligible loan" means the eligible 4 5 individual's total federally guaranteed Stafford loan amount 4 6 under the federal family education loan program or the eligible 4 7 individual's federal direct loan program, the amount of the 4 8 eligible individual's federal grad plus loans, or the amount 4 9 of the eligible individual's federal Perkins loan, including 4 10 principal and interest. 4 11 A nurturing Iowans loan reimbursement fund is created in 4 12 the state treasury as a separate fund under the control of the 4 13 commission for deposit of moneys appropriated by the general 4 14 assembly or received by the commission for deposit in the fund. 4 15 Moneys in the fund are appropriated to the commission for use 4 16 under the program. Moneys in the fund do not revert to the 4 17 general fund of the state, and interest earned on the fund is 4 18 credited to the fund, to be continuously available for loan 4 19 reimbursement under the program. LSB 2035YH (3) 86 kh/sc
