§18-27-4 Powers of board; determination of qualified financings and establishment of financing programs; establishing criteria for and guidelines encompassing the types of and qualifications for ed
§18-27-4. Powers of board; determination of qualified financings and establishment of financing programs; establishing criteria for and guidelines encompassing the types of and qualifications for education loan financing programs.
The board may:
(a) Issue bonds for the purpose of making board loans to institutions of higher education participating in a program of the board for the express purpose of providing education loans. The criteria and guidelines established by the board for its education loan financing programs shall include such eligibility standards for borrowers as the board determines are necessary or desirable in order to effectuate the purposes of this article, including the following: (i) each student shall have a certificate of admission or enrollment at a specific participating institution of higher education, (ii) each student or his or her parents shall satisfy such financial qualifications as the board shall establish to effectuate the purposes of this article, (iii) each student and his or her parents shall submit such information as may be required by the board to his or her institution of higher education.
The board is authorized to contract with financial institutions and other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and which shall service and administer each education loan. Each education loan's fees shall include a portion, if necessary, to cover the applicable pro rata cost of such a servicing organization.
The board is authorized to establish specific criteria governing the eligibility of institutions of higher education to participate in its programs, the making of board and education loans and provisions for default.
(b) Receive and accept from any source, loans, contributions or grants for or in aid of a board education loan financing program or any portion thereof and, when required, to use such funds, property or labor only for the purposes for which it was loaned, contributed or granted.
(c) Make board loans to institutions of higher education and require that the proceeds thereof be used for making education loans and paying costs and fees in connection therewith.
(d) Charge to and apportion among participating institutions of higher education its administrative and operating costs and expenses incurred in the exercise of the powers and duties conferred by this article.
(e) Borrow working capital funds and other funds as may be necessary for start-up and continuing operations, as long as such funds are borrowed in the name of the board only. Such borrowings shall be limited obligations of the character described in section ten of this article and shall be payable solely from revenues of the board or the proceeds of bonds pledged for that purpose.
(f) Examine records and financial reports of participating institutions of higher education, and to examine records and financial reports of any contractor organization or institution retained under this section.
(g) Authorize its officers, agents and employees to take such action and do such things as are necessary or desirable in order to carry out and effectuate the purposes of this article.
(h) The board shall require that board loans be used solely to make education loans. The board shall require that institutions of higher education require that each borrower under an education loan use the proceeds solely for the cost of attendance and that each such borrower shall so certify.