261.37 - DUTIES.
261.37 DUTIES.
The duties of the commission under this division shall be as
follows:
1. To review the Iowa guaranteed loan program.
2. To review and make disposition of all applications for the
guarantee of student loans.
3. Collect an insurance premium of not more than the amount
authorized by the federal Higher Education Act of 1965. The premium
shall be collected by the lender upon the disbursement of the loan
and shall be remitted promptly to the commission.
4. To enter into all necessary agreements with the United States
secretary of education as required for the purpose of receiving full
benefit of the state program incentives offered pursuant to the
Higher Education Act of 1965.
5. To adopt rules pursuant to chapter 17A to implement the
provisions of this division including establishing standards for
educational institutions, lenders, and individuals to become eligible
institutions, lenders, and borrowers. Notwithstanding any contrary
provisions in chapter 537, the rules and standards established shall
be consistent with the requirements provided in the Higher Education
Act of 1965.
6. To reimburse eligible lenders for the amount authorized by the
federal Higher Education Act of 1965 on defaulted loans guaranteed by
the commission upon receipt of written notice of the default
accompanied by evidence that the lender has exercised the required
degree of diligence in efforts to collect the loan.
7. To establish an effective system for the collection of
delinquent loans, including the adoption of an agreement with the
department of administrative services to set off against a
defaulter's income tax refund or rebate the amount that is due
because of a default on a guaranteed or parental loan made under this
division. The commission shall adopt rules under chapter 17A
necessary to assist the department of administrative services in the
implementation of the student loan setoff program as established
under section 8A.504. The commission shall apply administrative wage
garnishment procedures authorized under the federal Higher Education
Act of 1965, as amended and codified in 20 U.S.C. § 1071 et seq., for
all delinquent loans, including loans authorized under section
261.38, when a defaulter who is financially capable of paying fails
to voluntarily enter into a reasonable payment agreement. In no case
shall the commission garnish more than the amount authorized by
federal law for all loans being collected by the commission,
including those authorized under section 261.38.
8. To develop and disseminate informational and educational
materials to lenders, postsecondary institutions and borrowers. The
commission shall provide applicants, as deemed necessary by the
commission, with information about the past default rates of
borrowers, enrollment, and placement statistics by postsecondary
institution.
9. To develop all forms necessary to the proper administration of
the guaranteed student loan program and provide supplies of such
forms to participating lenders and postsecondary institutions.
10. To report annually to the governor and the general assembly
on the status of the guaranteed student loan program.
11. To implement all possible assistance to eligible lenders for
the purpose of easing the workload entailed in participation in the
guaranteed student loan program. Section History: Early Form
[C79, 81, § 261.37; 81 Acts, ch 8, § 14; 82 Acts, ch 1057, § 1] Section History: Recent Form
83 Acts, ch 101, § 62; 87 Acts, ch 233, § 459; 88 Acts, ch 1284, §
29; 89 Acts, ch 300, § 6; 90 Acts, ch 1168, § 37; 96 Acts, ch 1158, §
1; 2003 Acts, ch 145, §228; 2004 Acts, ch 1145, §3