Subdivision 1.Establishment of program.
The office may provide for programs of loans which may be made in lieu of or in addition to loans authorized under sections136A.15to136A.1702and 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 postsecondary education of students who are eligible students whether or not such students qualify for a loan or loans under other provisions of sections136A.15to136A.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 condition
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Subdivision 1.Establishment of program.
The office may provide for programs of loans which may be made in lieu of or in addition to loans authorized under sections136A.15to136A.1702and 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 postsecondary education of students who are eligible students whether or not such students qualify for a loan or loans under other provisions of sections136A.15to136A.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. Annually, the office must determine the minimum loan amount, the maximum loan amount based on program type, the maximum cumulative amount for each program type, and the maximum lifetime limit for an individual. The annual amount of the loan must not exceed the cost of attendance as determined by the eligible institution less all other financial aid.
Subd. 5.
[Repealed,2010 c 215 art 2 s 21]
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 in accordance with the policies, rules, and conditions authorized under section136A.16, subdivision 2. The office will take into consideration the loan limits and current financial market conditions when establishing repayment terms. The office shall not require a minimum annual payment, though the office may require minimum monthly payments.
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.
Except as provided in section136A.1787, paragraph (a), 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.
Subd. 11.Data.
(a) An eligible institution whose students are eligible to receive funding under sections136A.15to136A.1795and licensed or registered under sections136A.61to136A.834must provide to the office data on student enrollment and federal and state financial aid.
(b) An institution or its agent must provide to the office aggregate and distributional financial or other data as determined by the commissioner that is directly related to the responsibilities of the office under this chapter. The commissioner may only request aggregate and distributional data after establishing and consulting with a data advisory task force to determine the need, content, and detail of the information. Data provided by nonpublic institutions under this paragraph is considered nonpublic data under chapter 13.
Subd. 12.
MS 2018 [Repealed,2019 c 64 art 2 s 45]