39.32 Student loans.
39.32
39.32 Student loans.39.32(1)
(1) In this section:39.32(1)(a)
(a) "Institution of higher education" means an educational institution meeting the requirements of P.L. 89-329 for institutions covered therein and of P.L. 89-287 for business, trade, technical or vocational schools and full-time post-high school technical colleges in this state.39.32(1)(b)
(b) "Resident student" shall be determined under s. 36.27, so far as applicable.39.32(2)
(2) The board shall:39.32(2)(a)
(a) Make and authorize loans to be made to resident students who have satisfactory academic records, who need financial assistance and who are desirous of attending institutions of higher education, when such loans are to assist them in meeting expenses of post-high school education in accordance with this section.39.32(2)(b)
(b) Establish standards and methods for determining the amount of loans, rates of interest, financial need and other administrative procedures consistent with P.L. 89-329 and P.L. 89-287.39.32(3)
(3) The board may make and authorize loans to be made to students if:39.32(3)(a)
(a) The student is enrolled or accepted for enrollment in an institution of higher education.39.32(3)(b)
(b) The student's eligibility for a loan is certified to the board by the institution of higher education in which the student is enrolled or has been accepted for enrollment.39.32(3)(c)
(c) The student has a satisfactory academic record.39.32(3)(d)
(d) The student is a resident student.39.32(3)(e)
(e) The student needs financial assistance.39.32(3)(g)
(g) The student is not in default on any previous loan or the board has determined that the student has made satisfactory arrangements to repay the defaulted loan.39.32(4)
(4) Loans may be made to minors and minority shall not be a defense to the collection of the debt.39.32(5)
(5) The board may collect any loans made or authorized to be made by the board pursuant to this section or made prior to July 1, 1966, under s. 49.42, 1963 stats.39.32(6)
(6) The board shall satisfy the loan of any student who obtained a loan under this section or under s. 39.023, 1965 stats., between July 1, 1966, and December 15, 1968, if the student dies after July 1, 1966, and before completing repayment of the loan, and shall write off the balance of principal and interest owing on the loan on the date that the board received confirmation of the student's death. Obligation to repay such a loan shall terminate on the date of the student's death and any payments made on the loan to the board after the date of the student's death shall be refunded to the payor or the payor's heirs or personal representative upon receipt by the board of an application for refund.39.32(7)
(7) The board may write off defaulted student loans made pursuant to this section or made prior to July 1, 1966, under s. 49.42, 1963 stats., from moneys other than advances from the investment board originally appropriated for student loans, and from moneys other than moneys resulting from assignment, sale or conveyance of student loans.39.32(8)
(8) The board may use up to $150,000 annually of student revenue bond proceeds for the purpose of consolidating loans for needy students who have a state direct loan and one or more federally guaranteed student loans from one or more private lenders.39.32(10)
(10)39.32(10)(a)
(a) The board may enter into contractual agreements with lenders in this state and lenders in other states which grant loans to residents of this state, and with institutions and agencies wherein the board may provide and furnish to such lenders, institutions and agencies administrative services related to the operation of any programs involving the granting of loans to students including but not limited to any and all services and functions related to the granting, administering and collecting of any loans made to students.39.32(10)(b)
(b) The board shall have all powers that are reasonably appropriate to the provision of such services and the performance of such contracts and may include charges or fees to be paid by the lenders, institutions and agencies to the board for the provision of such administrative services or any services or activities related to the collection of any student loans for which the board may become responsible by operation of law or by contractual agreements under this paragraph, but such charges or fees, before being instituted by the board, shall be approved by the secretary of administration.39.32(11)
(11)39.32(11)(a)
(a) In lieu of the procedure under ch. 812, the board, on behalf of the corporation under s. 39.33, or the corporation, on its own behalf, may certify the department of administration to deduct money from a state employee's earnings. The board shall specify an amount, not to exceed 25% of the employee's disposable earnings, as defined in s. 812.30 (6), to be deducted on a continuing basis until the amount certified by the board or corporation has been paid. The department of administration shall remit moneys deducted to the board or the corporation.39.32(11)(b)
(b) The procedure in this section may be used only if the amount owed to the board or corporation is reduced to a judgment. At least 30 days prior to certification, the board or corporation shall notify the debtor under s. 879.05 (2) or (3) of the intent to certify the debt to the department of administration and of the debtor's right to a contested case hearing before the board under s. 227.42. If the debtor requests a hearing within 20 days after receiving notice, the board shall notify the department of administration which shall not make deductions under par. (a) until a decision is reached under s. 227.47 or the case is otherwise concluded.39.32(11)(c)
(c) The department of administration shall prescribe the manner and form for certification of debts by the board or corporation under this subsection.39.32 - ANNOT.
History: 1971 c. 85; 1971 c. 211 s. 126; 1973 c. 90; 1973 c. 335 s. 13; 1975 c. 189, 224; 1977 c. 29; 1979 c. 34 ss. 813m to 813r, 2102 (22) (a); 1979 c. 176, 221; 1981 c. 20, 314; 1983 a. 27; 1985 a. 182 s. 57; 1989 a. 31; 1991 a. 316; 1993 a. 80, 399; 1995 a. 27; 1997 a. 27; 2001 a. 102.39.32 - ANNOT.
The legislature may direct the public land commissioners to invest monies from the sale of public lands in student loans under s. 39.32, but it may not direct a specific investment. 65 Atty. Gen. 28.