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136A.17 PROVISIONS FOR FEDERAL PROGRAMS.
    Subdivision 1. Eligibility. A student is eligible to apply for a loan under sections 136A.15 to
136A.1702 if the office finds that the student is an eligible student as defined in those sections
and is eligible for a loan under federal laws and regulations governing the federal guaranteed
student loan programs.
    Subd. 2. Compliance. The student loan programs shall be administered in compliance
with title VI of the Civil Rights Act of 1964.
    Subd. 3. Terms and conditions of loans. The office may loan money upon such terms and
conditions as the office may prescribe and it may acquire student loans from other lenders to
facilitate the student loan programs provided for in this section.
    Subd. 4. Maximum loans for students. No loan shall be made in excess of the maximum
provided by pertinent federal laws and regulations. The aggregate unpaid principal amount of
loans to any individual student shall not exceed the maximum provided in pertinent federal
laws and regulations.
    Subd. 5. Vocational study. The office may make loans for vocational study to an individual
student for a maximum of three academic years or their equivalent and loans for higher education
to an individual student for a maximum of eight academic years of study or their equivalent.
    Subd. 6. Maximum rate of interest. No loans made by the office shall be made at an annual
rate of interest in excess of the maximum prescribed in the National Vocational Student Loan
Insurance Act of 1965 and the Higher Education Act of 1965, and any amendments thereof.
    Subd. 7. Student's family income. The benefits of the loan programs will not be denied
any student because of the student's family income or lack of need if the student's adjusted
annual family income at the time the note is executed is less than the maximum prescribed in
the applicable federal regulations.
    Subd. 8. Repayment of loans. The repayment procedures applicable for loans made by the
office shall be consistent with federal regulations governing interest payments under the National
Vocational Student Loan Insurance Act of 1965 and the Higher Education Act of 1965.
    Subd. 9. Office powers. The office may take, hold, and administer for any of its purposes, real
property, personal property and moneys, or any interest therein, and the income therefrom, either
absolutely or in trust, for any purposes of the office. The office may acquire property or moneys
for such purposes by purchase or lease and by the acceptance of gifts, grants, bequests, devises or
loans; and may enter into contracts with other 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. 10. Variable repayment. The office may establish variable repayment schedules
consistent with the need and anticipated income streams of borrowers. The repayment schedules
shall not violate the federal laws and regulations governing federal guaranteed student loan
programs.
    Subd. 11. Prohibition on use of state money. No moneys originating from state sources in
the state treasury shall be made available for student loans and all student loans shall be made
from moneys originating from nonstate sources.
History: 1967 c 894 s 4; 1973 c 605 s 7-10; 1975 c 271 s 6; 1977 c 384 s 9-14; 1978 c 706 s
52; 1981 c 300 s 6-8; 1983 c 258 s 48; 1986 c 444; 1989 c 293 s 43; 1995 c 212 art 3 s 59

Official Publication of the State of Minnesota
Revisor of Statutes