Notice of Intended Action
Debt collection, ch 37
ARC 9392C
COLLEGE STUDENT AID COMMISSION[283]
Notice of Intended Action
Proposing rulemaking related to student loan debt collection
and providing an opportunity for public comment
The College Student Aid Commission hereby proposes to rescind Chapter 37, “Student Loan Debt Collection,” and to adopt a new Chapter 37, “Debt Collection,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in Iowa Code sections 256.178and 256.197(7).
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code section 256.197(7).
Purpose and Summary
The Commission proposes to rescind and adopt a new Chapter 37 pursuant to Executive Order 10. New Chapter 37 is proposed to ensure the Commission meets the requirements set forth in law by adopting rules to provide for an effective system of collecting defaulted obligations owed to the Commission. The proposed rulemaking illustrates the mechanisms and references the processes the Commission utilizes in the collection of defaulted obligations. The proposed rulemaking includes standards adopted by reference that align to 34 CFR Part 34 to leverage federal administrative wage garnishment procedures.
The Administrative Rules Coordinator provided preclearance for the publication of this Notice of Intended Action on April 11, 2025.
Regulatory Analysis
A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on March 19, 2025. A public hearing was held on the following date(s):
●April 8, 2025
No public comments on the Regulatory Analysis were received at the public hearing or in writing.
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rulemaking 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.
Public Comment
Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Commission no later than 4:30 p.m. on July 29, 2025. Comments should be directed to:
|
David Ford |
Public Hearing
Public hearings at which persons may present their views orally or in writing will be held as follows:
|
July 29, 2025 |
Room B50 |
|
July 30, 2025 |
Room B50 |
Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.
Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Commission and advise of specific needs.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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).
The following rulemaking action is proposed:
ITEM 1.Rescind 283—Chapter 37 and adopt the following new chapter in lieu thereof:
CHAPTER 37
DEBT COLLECTION
283—37.1(256) Definitions.
“Debtor” means a person who has defaulted on any obligation owed to or collected by the commission.
“Default” means that a debtor:
1.Becomes obligated to repay the commission under any loan repayment program administered by the commission and fails to make an agreed payment within 30 days of the agreed due date;
2.Becomes obligated to repay the commission under any forgivable loan program administered by the commission and fails to make an agreed payment within 30 days of the agreed due date; or
3.Enters into a written repayment agreement with the commission and fails to make an agreed payment within 30 days of the due date stated in the repayment agreement.
“Defaulted obligation owed” means the total amount of the debtor’s obligation, including principal and unpaid accrued interest, and may include collection costs and other allowable fees.
283—37.2(256) Administrative wage garnishment procedures. The commission shall use the general administrative wage garnishment procedures established in 34 CFR Part 34 et seq., as of July 1, 2024, in the collection of all defaulted obligations owed to the commission. Administrative hearings will be governed by 283—Chapter 4.
283—37.3(261) Offset against state income tax refund or rebate. The commission may make a claim against a defaulted borrower’s state income tax refund or rebate to receive a payment against defaulted obligation owed pursuant to 701—Chapter 26.
These rules are intended to implement Iowa Code section 256.197.
College Student Aid Commission
- 475 SW Fifth St. Ste D
- Des Moines, IA 50309-4608
- (515) 725-3400
- Visit Website
- Agency Chapters
- Agency Rules
- RSS
Open For Comments
This notice is open for comments for 20 more day(s). If you'd like to comment, select or click the text you wish to comment on in the document, or click the button below to make a general comment about the document. Comments will be collected through 7/29/2025
NOTE: You can also click the text in the document to make comments about specific sections.
Public Hearing
Official Document
- Debt collection, ch 37
- Published on 7/9/2025
- 6 Views , 0 Comments
- Notice of Intended Action
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 7/9/2025.
Administrative Rule References
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 283-37.1 Rule 283-37.2 Rule 283-37.3Iowa Code References
The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 256.197Keywords
The following keywords and tags were added to this document. You may click a keyword to view related notices.
Administrative wage garnishment procedures Definitions Offset against state income tax refund or rebateAbout
Welcome to the State of Iowa’s Administrative Rules Website. Public participation in the formulation of administrative rules helps our state to reform burdensome rules and prevent overregulation or red tape, encouraging efficiency, economic growth and job creation.
The purpose of this website is to allow members of the public the opportunity to comment on administrative rules in the Notice process. Members of the public have 20 days to comment on a rule from the date of publication. You may comment on all administrative rules open for comment on this website.
Division of Information Technology
Des Moines, Iowa 50309
administrative-rules@iowa.gov
https://dom.iowa.gov/information-technology
Stay Connected
© 2025 State of Iowa | Privacy Policy