Iowa Administrative Code Agency 284 - Higher Education Loan Authority
Iowa Administrative Code – Agency 284
Higher Education Loan Authority (HELA)
Overview
Agency 284 establishes the Iowa Higher Education Loan Authority (HELA), which oversees state-supported student loan programs.
Its purpose is to:
Facilitate access to higher education by providing financial aid and loan programs to Iowa students.
Ensure loan programs are administered responsibly, efficiently, and fairly.
Support students, parents, and educational institutions in financing postsecondary education.
Key Components of Agency 284
1. Establishment and Organization
The Higher Education Loan Authority is created as a state agency.
Governing structure includes:
A board or authority responsible for oversight, policymaking, and rule adoption.
Staff or administrators who manage daily operations and loan programs.
2. Powers and Duties
The Authority has the power to:
Issue loans and loan guarantees to eligible students and/or parents.
Set terms, interest rates, and repayment schedules for loans.
Administer programs for loan forgiveness, deferment, or repayment assistance.
Collect, monitor, and enforce repayment obligations.
Maintain financial records and submit reports regarding program administration.
3. Loan Eligibility
Loans are available to:
Students enrolled in accredited Iowa higher education institutions.
Parents or guardians financing student education.
Eligibility may require:
Proof of residency or enrollment in Iowa schools.
Completion of financial aid application forms.
Compliance with terms of previous loans, if applicable.
4. Loan Terms and Administration
HELA sets loan amounts, interest rates, repayment periods, and deferment options.
Loans may be subsidized or unsubsidized depending on program design.
Loan administration includes:
Application review,
Disbursement of funds to students or institutions,
Monitoring for compliance and repayment.
5. Borrower Rights and Responsibilities
Borrowers have the right to:
Receive clear disclosure of loan terms, interest rates, and repayment obligations.
Request deferments, forbearance, or repayment assistance under defined circumstances.
Borrowers are responsible for:
Timely repayment,
Notifying HELA of changes in enrollment or address,
Complying with program requirements.
6. Collections and Enforcement
HELA can take actions to collect delinquent or defaulted loans.
Procedures include:
Contacting borrowers for repayment,
Setting up repayment plans,
Referring defaulted accounts to collection agencies if necessary.
7. Reporting and Accountability
HELA is required to:
Maintain accurate records of loans issued, repayments, and defaults.
Submit periodic reports to state oversight bodies or the legislature.
Financial and administrative accountability ensures program integrity and sustainability.
8. Program Updates and Rulemaking
The Authority may periodically adopt or amend rules to:
Reflect changes in funding, interest rates, or loan programs.
Improve administration, repayment compliance, or borrower support.
Align with student needs and institutional requirements.
Purpose of Agency 284
The main objectives are to:
Provide financial access to higher education for Iowa residents.
Administer state-supported student loan programs effectively and responsibly.
Protect the interests of both the borrower and the state.
Ensure transparency, accountability, and proper management of loan funds.
✅ In summary:
Iowa Administrative Code Agency 284 – Higher Education Loan Authority creates a state authority to administer student loans and financial aid programs. It sets eligibility, terms, administration, repayment procedures, enforcement, and reporting to ensure students can access higher education while protecting program integrity and public resources.
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