2001 Minnesota Statutes

     136A.1701 Supplemental and additional loans. 

    Subdivision 1.    Establishment of program.  The higher 
 education services office may provide for programs of loans 
 which may be made in lieu of or in addition to loans authorized 
 under sections 136A.15 to 136A.1702 and applicable provisions of 
 federal law as provided in this section. 

    Subd. 2.    Purpose of program.  The purpose of the loan 
 programs under this section is to provide financial assistance 
 for the post-secondary education of students who are eligible 
 students whether or not such students qualify for a loan or 
 loans under other provisions of sections 136A.15 to 136A.1702.  

    Loans granted to students may be used solely for 
 educational purposes.  

    Subd. 3.    Compliance with Civil Rights Act.  The 
 student loan programs shall be administered in compliance with 
 title VI of the Civil Rights Act of 1964.  

    Subd. 4.    Terms and conditions of loans.  The office 
 may loan money upon such terms and conditions as the office may 
 prescribe.  The principal amount of a loan to an undergraduate 
 student for a single academic year shall not exceed $6,000.  The 
 aggregate principal amount of all loans made under this section 
 to an undergraduate student shall not exceed $25,000.  The 
 principal amount of a loan to a graduate student for a single 
 academic year shall not exceed $9,000.  The aggregate principal 
 amount of all loans made under this section to a student as a 
 graduate student shall not exceed $40,000. 

    Subd. 5.    Maximum loans for students.  Loans made 
 under this section or sections 136A.15 to 136A.1702 to an 
 individual eligible student for vocational study may be made for 
 a maximum of three academic years or their equivalent and loans 
 made to any other individual eligible student may be made for a 
 maximum of eight academic years or their equivalent.  

    Subd. 6.    Rate of interest.  The office shall 
 determine the rate of interest to be charged on loans.  The rate 
 of interest on student loans however computed, shall not be 
 subject to any provision of state law limiting the rate of 
 interest to be charged for a loan of money.  

    Subd. 7.    Repayment of loans.  The office shall 
 establish repayment procedures for loans made under this 
 section, but in no event shall the period of permitted repayment 
 exceed ten years from the eligible student's termination of the 
 student's post-secondary academic or vocational program, or 15 
 years from the date of the student's first loan under this 
 section, whichever is less. 

    Subd. 8.    Office powers.  The office may take, hold, 
 and administer for any of its purposes, real or personal 
 property and money, or any interest therein, and the income 
 therefrom, either absolutely or in trust, for any purposes of 
 the office.  The office may acquire real or personal property or 
 money for its purposes by purchase or lease and by gift, grant, 
 bequest, devise, or loan, and may enter into contracts with 
 profit or nonprofit corporations or institutions with the same 
 or similar purposes as will benefit and improve the operation of 
 the office and its loan programs.  

    Subd. 9.    Variable repayment schedules.  The office 
 may establish variable loan repayment schedules consistent with 
 the need and anticipated income streams of borrowers.  

    Subd. 9a.    Appeals.  The office shall develop an 
 appeals process for recipients of loans made under this section 
 who believe there is an unresolved error in the servicing of the 
 loan.  The office shall provide recipients with a description of 
 the appeals process. 

    Subd. 10.    Prohibition on use of state money.  No 
 money originating from state sources in the state treasury shall 
 be made available for student loans under this section and all 
 student loans shall be made from money originating from nonstate 
 sources.  

    HIST: 1983 c 258 s 49; 1986 c 444; 1989 c 293 s 44-46; 1Sp1993 
 c 2 art 2 s 15,16; 1995 c 212 art 3 s 59