HF 535

as introduced - 88th Legislature (2013 - 2014) Posted on 02/13/2013 02:09pm

A bill for an act
relating to higher education; requiring the study of a state loan program to
refinance student loans.

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

Section 1. new text begin DIRECTOR OF THE OFFICE OF MINNESOTA HIGHER
EDUCATION STUDENT LOAN REFINANCING ANALYSIS.
new text end

new text begin The director of the Minnesota Office of Higher Education, in consultation with
the higher education finance and policy committees of the legislature, shall analyze the
feasibility and appropriate components of a program that would assist Minnesota residents
in refinancing student loans for higher education. Without limitation, the outlines of the
program could include the issuance of bonds by the Minnesota Office of Higher Education
to provide a pool of money that could be lent at a lower rate to student loan debtors than is
charged on their existing student loan debt, thereby reducing borrowing costs.
new text end

new text begin In addition to any other issues the director determines necessary to analyze, the
director shall analyze:
new text end

new text begin (1) whether there would be a sufficient spread between interest that could be charged
by the office on its refinancing loans and the current interest on existing student loans to
make the loans from the office attractive and sufficiently beneficial to student loan debtors;
new text end

new text begin (2) the amount of bonds that need to be issued to make them marketable;
new text end

new text begin (3) the eligibility requirements for student loan debtors seeking to refinance,
including whether a debtor must be employed, the sort of education received, and whether
the education received was completed; and
new text end

new text begin (4) the appropriate cap on the amount of a refinancing loan and other loan program
specifics.
new text end

new text begin The director shall report on the analysis under this section and make
recommendations to the higher education finance and policy committees of the legislature
by January 15, 2014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end