HF 1928

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2015 03:07pm

A bill for an act
relating to higher education; requiring student loan entrance counseling;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 136A.

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

Section 1.

new text begin [136A.091] STUDENT LOAN ENTRANCE COUNSELING.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin (a) This section applies to all public postsecondary
institutions located in Minnesota and to all private postsecondary institutions located in
Minnesota subject to registration or licensure under this chapter or chapter 141.
new text end

new text begin (b) The entrance counseling requirements in this section are in addition to any other
entrance counseling requirements under federal law.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Student borrower" means a person who obtained a student loan for purposes of
attending a public or private postsecondary institution located in this state.
new text end

new text begin (c) "Student loan" means (1) a loan authorized under this chapter, or (2) any other
loan made, insured, or guaranteed by an entity that is not a governmental unit or nonprofit
institution, used by a student borrower for the actual costs of tuition, reasonable education
expenses, and reasonable living expenses related to pursuing a degree at a public or private
postsecondary institution located in this state.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner of Office of Higher Education; duties. new text end

new text begin (a) The
commissioner shall make available on the office's Web site a student loan entrance
counseling presentation in video format. The student loan entrance counseling
presentation must, at a minimum:
new text end

new text begin (1) explain the use and significance of a promissory note;
new text end

new text begin (2) emphasize the seriousness and importance of the repayment obligation the
student borrower is assuming;
new text end

new text begin (3) describe the possible consequences of default, including, but not limited to,
adverse credit reports, garnishment of wages, and litigation;
new text end

new text begin (4) provide general information with respect to the average indebtedness for student
borrowers attending public and private postsecondary institutions in this state; and
new text end

new text begin (5) inform the student borrower of the average anticipated monthly repayment for
those student borrowers based on the average indebtedness provided under clause (4).
new text end

new text begin (b) In addition to the student loan entrance counseling presentation video required
under paragraph (a), the commissioner shall make available on the office's Web site
student loan entrance counseling materials in electronic written format that includes, but is
not limited to, the information under paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Public and private postsecondary institutions; duties. new text end

new text begin (a) Before a
public or private postsecondary institution releases a student borrower's first student loan
disbursement at that institution, the public or private postsecondary institution must ensure
that the student borrower has viewed the student loan counseling video presentation
available on the office's Web site and has received the student loan counseling materials
made available by the office under subdivision 3.
new text end

new text begin (b) The student borrower must sign a statement of understanding on a form
prescribed by the commissioner acknowledging that the student borrower has viewed,
received, and understands the materials required to be provided under paragraph (a),
before a private or public postsecondary institution releases the student borrower's first
student loan disbursement.
new text end

new text begin (c) A public or private postsecondary institution must maintain documentation
substantiating the institution's compliance with this section for each student borrower.
new text end

Sec. 2. new text begin APPROPRIATION; STUDENT LOAN ENTRANCE COUNSELING.
new text end

new text begin $....... in fiscal year 2016 is appropriated from the general fund to the commissioner
of higher education to develop the online and printed counseling materials and the
statement of understanding as required under section 1.
new text end