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House panel seeks more detail on student debt reduction bill

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April 6th, 2015 by Ric Hanson

DES MOINES, Iowa (AP) — An Iowa House panel says there should be more rules specified for a bill that would allow a person to get student debt reduced through community service. A Ways and Means subcommittee discussed the bill Monday. They agreed to meet again before deciding whether to advance it.

The bill, proposed by Gov. Terry Branstad, would allow a person with student debt to provide community service to a designated organization. A grant would then be issued toward that volunteer’s educational loan.

The program would be privately funded. Individuals or corporations that participate could receive tax credits equal to 65 percent of their donations. There would be a $2 million cap on total tax credits the state could issue. Lawmakers say they want more specific rules on requirements for a grant.