Loan repayment programs—refinancing eligible loans, loan repayment awards, 14.2(4), 24.2, 26.2
COLLEGE STUDENT AID COMMISSION
Adopted and Filed
Rule making related to loan repayment programs
The College Student Aid Commission hereby amends Chapter 14, "Health Care Professional Recruitment Program," Chapter 24, "Rural Iowa Primary Care Loan Repayment Program," and Chapter 26, "Health Care Loan Repayment Program," Iowa Administrative Code.
Legal Authority for Rule Making
This rule making is adopted under the authority provided in Iowa Code section 261.3.
State or Federal Law Implemented
This rule making implements, in whole or in part, Iowa Code chapter 261 as amended by 2020 Iowa Acts, Senate File 2118.
Purpose and Summary
This adopted rule making implements amendments enacted by 2020 Iowa Acts, Senate File 2118. These amendments allow a recipient of a loan repayment program administered by the Commission who refinances an eligible student loan by obtaining a private education loan to continue to receive loan repayment awards.
Public Comment and Changes to Rule Making
Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on August 12, 2020, as ARC 5124C. No public comments were received. No changes from the Notice have been made.
Adoption of Rule Making
This rule making was adopted by the Commission on September 18, 2020.
This rule making has no fiscal impact to the State of Iowa.
After analysis and review of this rule making, no impact on jobs has been found.
Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 283—Chapter 7.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
This rule making will become effective on November 11, 2020.
The following rule-making actions are adopted:
Item 1. Amend subrule 14.2(4) as follows:
14.2(4) Eligible loans. Eligible loans include subsidized and unsubsidized Stafford loans, Grad PLUS loans and consolidated loans. Only the outstanding portion of a Federal Consolidation Loan that was used to repay an eligible subsidized or unsubsidized Federal Stafford Loan, an eligible Direct Subsidized Loan, an eligible Direct Unsubsidized Loan, or an eligible Grad PLUS Loan qualifies for loan repayment. A health care professional who receives loan repayment under this program and who refinances an eligible loan by obtaining a private educational loan may continue to receive loan repayment awards.
Item 2. Amend rule 283—24.2(261), definition of "Eligible loan," as follows:
"Eligible loan" means the physician's total subsidized, unsubsidized, and consolidated Federal Stafford Loan amount under the Federal Family Education Loan Program, Federal Direct Loan Program, federal Graduate PLUS Loan, or federal Perkins Loan, including principal and interest. Only the outstanding portion of a federal consolidation loan that was used to repay an eligible subsidized or unsubsidized Federal Stafford Loan qualifies for loan repayment. A physician who receives loan repayment under this program and who refinances an eligible loan by obtaining a private educational loan may continue to receive loan repayment awards.
Item 3. Amend rule 283—26.2(261), definition of "Qualified student loan," as follows:
"Qualified student loan" means a loan that was made, insured, or guaranteed under Title IV of the federal Higher Education Act of 1965, as amended, or under Title VII or VIII of the federal Public Health Service Act, as amended, directly to the borrower for attendance at an approved postsecondary institution. Only the outstanding portion of a federal consolidation loan that was used to repay a qualified student loan qualifies for loan repayment. A recipient who refinances a qualified student loan by obtaining a private educational loan may continue to receive loan repayment awards.
[Filed 9/18/20, effective 11/11/20]
Editor's Note: For replacement pages for IAC, see IAC Supplement 10/7/20.