(1) The division shall:
(a) Promulgate rules and regulations for administration of the Colorado
student loan program established by this article, including but not limited to the
following:
(I) Criteria for eligibility of borrowers, lenders, and institutions of higher
education to participate in the network;
(II) Procedures to be followed by participating borrowers, lenders, and
institutions of higher education;
(III) With the advice of the authority created by part 2 of this article,
procedures and criteria by which the powers of the division pursuant to section 23-3.1-104.5 may be exercised;
(b) Approve or arrange for approval of loan applications for guarantee;
(c) Establish the level of the insurance premium charged to borrowers of
guaranteed student loans, not to exceed the amount permitted by federal law;
(d) Assist lenders in seeking payment from delinquent borrowers;
(e) Purchase defaulted guaranteed student loans promptly;
(f) Collect or provide for the collection of defaulted guaranteed student
loans purchased from lenders;
(g) Repealed.
(h) Train lenders in the requirements of the network;
(i) Evaluate lender performance in the network;
(j) Train personnel of institutions of higher education in the requirements of
the network;
(k) Evaluate the performance of institutions of higher education in the
network;
(l) Educate borrowers in the requirements of the network;
(m) Communicate on a periodic basis with borrowers to inform them of the
status of their loans;
(n) Bill the federal government for administrative allowances and
reinsurance payments;
(o) Repealed.
(p) (I) At times prescribed by the department of revenue, but not less
frequently than annually, certify to the department of revenue information
regarding persons who owe a loan repayment to the division, the amount of which
has been determined to be owing as a result of a final agency determination or
judicial decision pursuant to section 39-21-108 (3), C.R.S., or which has been
reduced to judgment.
(II) Such information shall include the name and social security number of
the person owing the debt, the amount of the debt, and any other identifying
information required by the department of revenue.
(III) Upon notification by the department of revenue of amounts deposited
with the state treasurer pursuant to section 39-21-108 (3), C.R.S., the state
treasurer shall disburse such amounts to the division.
(q) (I) At least quarterly, certify to the controller information regarding
persons who owe a loan repayment to the division.
(II) Such information shall include the name and social security number of
the person owing the debt, the amount of the debt, and any other identifying
information required by the controller.
(III) Upon notification by the controller to the state agency of amounts
deposited with the state treasurer pursuant to section 24-30-202.4 (3.5)(a)(V),
C.R.S., the state treasurer shall disburse such amounts to the division.
(2) The division may:
(a) Permit lenders to require cosigners;
(b) Provide incentives to lenders, which may include but are not limited to:
(I) Billing the federal government for interest payments owed to lenders;
(II) Preparing federal reports required of lenders;
(III) Guaranteeing, originating, servicing, making, and purchasing
consolidation loans and refinancing loans pursuant to the provisions of section 23-3.1-112;
(IV) Verifying in-school status of students;
(c) Employ legal counsel;
(d) Garnish wages of defaulted borrowers;
(e) Enter into contracts and guarantee agreements with approved lenders,
approved institutions of higher education, state and federal governmental agencies,
and corporations, including agreements for federal insurance of losses resulting
from death, default, bankruptcy, or total and permanent disability of borrowers.
Contracts with corporations to provide services shall clearly specify the role and
duties of such corporations and may be entered into without regard to the
provisions of the Procurement Code, articles 101 to 112 of title 24, C.R.S., without
regard to the provisions of section 17-24-111, C.R.S., and without regard to the
provisions of part 11 of article 30 of title 24, C.R.S.
(f) Make, originate, disburse, service, or guarantee student loans;
(g) Establish the level of insurance premium or interest rate charged to the
borrowers of student loans;
(h) Purchase defaulted student loans;
(i) Collect or provide for the collection of defaulted student loans purchased
from lenders;
(j) and (k) Repealed.
(l) Advise the commission and the department on matters pertaining to
student loans;
(m) Make and enter into contracts and all other instruments necessary or
convenient for the exercise of its powers and functions pursuant to this part 1
without regard to the provisions of the Procurement Code, articles 101 to 112 of
title 24, C.R.S., without regard to the provisions of section 17-24-111, C.R.S., and
without regard to the provisions of part 11 of article 30 of title 24, C.R.S.;
(n) Do all things necessary or convenient to carry out the purposes of this
part 1;
(o) Repealed.
(p) Require a lender or institution of higher education to take reasonable
corrective action to remedy a violation of applicable laws, regulations, special
arrangements, agreements, or limitations, including but not limited to requiring
such lender or institution to make payments to the secretary of the United States
department of education, the division, or their designated recipients of any funds
that the lender or institution improperly received, withheld, or disbursed or caused
to be disbursed;
(q) Establish an investigations unit, which shall have the following powers
and duties:
(I) To conduct investigations, as it deems necessary, to determine whether
applications and other data submitted to the division contain any
misrepresentations or false statements made for the purpose of cheating or
defrauding and to locate defaulted borrowers;
(II) To investigate, as it deems necessary, alleged violations of any state or
federal criminal statute related to fraud committed by any person who has obtained
or attempted to obtain or who aids, assists, or abets in obtaining or attempting to
obtain student loans or loan guarantees or other money from the division;
(III) To work in conjunction with the appropriate law enforcement and
prosecuting authorities in the investigation and prosecution of cases where
evidence of criminal activity exists;
(IV) To request and obtain information, assistance, and data from any
department, division, board, bureau, commission, or other agency of the local, state,
or federal government, including, but not limited to, arrest and conviction records
available from any law enforcement agency or crime information center pursuant to
the provisions of part 3 of article 72 of title 24, C.R.S.
(3) All rules promulgated by the division pursuant to subsection (1)(a) of this
section are subject to section 24-4-103. Any guarantee made pursuant to any rule
continues to be governed by the rule in effect at the time when the guarantee was
made, whether or not the rule has been continued.