SF 2253

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 03:31pm

A bill for an act
relating to higher education; expanding student loan refinancing; permitting
refinancing in emergency circumstances; amending Minnesota Statutes 2014,
section 136A.1704.

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

Section 1.

Minnesota Statutes 2014, section 136A.1704, is amended to read:

136A.1704 STUDENT LOAN REFINANCING.

new text begin Subdivision 1. new text end

new text begin Refinancing authorized. new text end

The office may refinance student and
parent loans as provided by this section and on other terms and conditions the office
prescribes. The office may establish credit requirements for borrowers and determine
what types of student and parent loans will be eligible for refinancing new text begin , but the office
must refinance the loans of a borrower facing emergency circumstances in accordance
with subdivision 2 new text end . The refinanced loan need not have been made through a loan program
administered by the office. Loans shall be made with available funds in the loan capital
fund under section 136A.1785. The maximum amount of outstanding loans refinanced
under this section may not exceed deleted text begin $100,000,000 deleted text end new text begin $150,000,000 new text end . The maximum loan under
this section may not exceed $70,000.

new text begin Subd. 2. new text end

new text begin Emergency circumstances. new text end

new text begin (a) The commissioner must refinance the
student or parent loans of a borrower who is unable to repay the loans due to emergency
circumstances. Emergency circumstances may include but are not limited to the death,
long-term disability, or permanent disability of:
new text end

new text begin (1) the borrower;
new text end

new text begin (2) the borrower's spouse; or
new text end

new text begin (3) the child of a parent who was issued a parent loan to pay for the child's higher
education costs.
new text end

new text begin (b) The commissioner may offer a borrower who refinances under this subdivision
the option of selecting an alternative payment plan. Alternative payment plan options may
include but are not limited to the temporary cessation of payments, income contingent
repayments, or repaying loans over a longer term.
new text end

new text begin (c) The commissioner may, for good cause, cancel part or all of the loan balance of a
borrower who refinances under this subdivision.
new text end