SF 2517

as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 01:38pm

A bill for an act
relating to higher education; creating a low-interest student loan program;
authorizing rulemaking; 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.165] HIGHER EDUCATION LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The higher education loan program (HELP) is established
to provide low-interest loans to eligible students attending eligible Minnesota postsecondary
institutions.
new text end

new text begin Subd. 2. new text end

new text begin Loans. new text end

new text begin The commissioner shall issue HELP loans to eligible students at a fixed
interest rate not to exceed three percent unless another fixed rate is established in law. Loans
shall be made based on the availability of funds. A HELP loan must not exceed $5,000
annually. The cumulative amount borrowed by a student under this section shall not exceed
$20,000. The commissioner may contract with an outside servicer to implement the loan
program in this section.
new text end

new text begin Subd. 3. new text end

new text begin Account established. new text end

new text begin A HELP loan account is established in the special revenue
fund for the purpose of making loans under this section. Appropriations to the commissioner
for purposes of the program are for transfer to the account. Principal and interest repaid to
the commissioner shall be deposited in the account. All money in the account, including
interest, is appropriated to the commissioner to make loans under this section. Appropriations
from the account do not cancel and are available until expended.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin A student is eligible for a HELP loan if:
new text end

new text begin (1) the student is a Minnesota resident;
new text end

new text begin (2) the student is attending a public or not-for-profit postsecondary institution located
in Minnesota that is an eligible institution under section 136A.103; and
new text end

new text begin (3) the student's household income is less than or equal to 300 percent of the federal
poverty guidelines for the student's household size.
new text end

new text begin Subd. 5. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement the provisions
of this section.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin (a) $17,500,000 in fiscal year 2020 and $17,500,000 in fiscal year 2021 are appropriated
from the general fund to the commissioner of the Office of Higher Education for deposit in
the HELP loan account under Minnesota Statutes, section 136A.165. The commissioner
may use up to three percent of this appropriation for administrative costs.
new text end

new text begin (b) $....... in fiscal year 2020 is appropriated from the general fund to the commissioner
of the Office of Higher Education to secure a loan service for the higher education loan
program under Minnesota Statutes, section 136A.165. This is a onetime appropriation.
new text end