SF 2544

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/04/2016 02:08pm

A bill for an act
relating to higher education; eliminating an unworkable requirement from a
student loan counseling program; amending Laws 2015, chapter 69, article 3,
section 24, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to
read:

Subdivision 1.

Pilot program created.

The commissioner of the Office of Higher
Education shall make a grant to a nonprofit qualified debt counseling organization to
provide individual student loan debt repayment counseling to borrowers who are Minnesota
residents concerning loans obtained to attend a Minnesota postsecondary institution. deleted text begin The
counseling shall be provided to borrowers who are 30 to 60 days delinquent when they
are referred to or otherwise identified by the organization as candidates for counseling.
deleted text end The number of individuals receiving counseling may be limited to those capable of being
served with available appropriations for that purpose. A goal of the counseling program is
to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.

The purpose of the counseling is to assist borrowers to:

(1) understand their loan and repayment options;

(2) manage loan repayment; and

(3) develop a workable budget based on the borrower's full financial situation
regarding income, expenses, and other debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and is retroactive to July 1, 2015.
new text end