May 21, 2008, Introduced by Reps. Meltzer, Agema, Moss, Hune, Rick Jones, Steil, Stahl, Stakoe, Calley, LaJoy, Meekhof, Opsommer, David Law, Nitz, Caul and Marleau and referred to the Committee on Oversight and Investigations.
A bill to amend 1960 PA 77, entitled
"An act to create the Michigan higher education assistance
authority and to prescribe its powers and duties; to authorize
persons, corporations, and associations to make gifts to the
authority; to prescribe the powers and duties of certain state
officials; to authorize, ratify, and confirm certain guarantees of
students' loans and authorize reguarantees; to authorize, ratify,
and confirm certain guarantees of loans made to parents of
students; to validate certain prior appropriations; and to
authorize the transfer of certain appropriations to be transferred
to and administered by the authority,"
by amending section 7 (MCL 390.957), as amended by 1990 PA 117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
7. (1) The Subject
to subsection (2), the authority may
do 1 or more of the following:
(a) Guarantee 100% of the principal and interest of a loan of
money, upon the terms and conditions as it prescribes, to a person
attending or accepted to attend an eligible postsecondary
educational institution to assist the person in meeting his or her
expenses of postsecondary education incurred in any academic year
or to a parent of a person who meets the requirements for a loan as
determined by the authority.
(b) Take, hold, and administer real, personal, or mixed
property and money, or any interest in property or money, and the
income from the property, either absolutely or in trust, for a
purpose of this act. The authority may acquire property for this
purpose by purchase or lease and by the acceptance of gifts,
grants, bequests, devises, money, or loans. An obligation incurred
under
this act shall not be is
not a debt of the state.
(c) Enter into contracts with an eligible lender or with a
public or private postsecondary educational institution, upon the
terms as may be agreed upon between the authority and an
institution, to provide for the administration by an institution of
a loan, or guarantee of a loan, made by the authority, including
applications for a loan and repayment of a loan.
(d) Competitively contract for services, including consulting
services as needed to carry out the purposes of this act.
(e) Enter into an agreement with a group life insurance
carrier to insure each person receiving a guaranteed loan under the
program.
(f) Require a person receiving a guaranteed loan to remit a
fee. which
The fee may include the payment of a group life
insurance premium.
(g) Receive state appropriations for the guaranty fund of the
loan program to be used to match deposits and to accept
contributions received by the authority for this purpose.
(h) Administer a state scholarship program according to the
law and rules promulgated by the authority.
(i) Administer an undergraduate scholar awards program
according to the law and rules promulgated by the authority.
(j) Receive funds from the federal government to assist in
implementing federally supported programs administered under this
act.
(k) Administer an incentive awards program according to rules
promulgated by the authority.
(2) The authority shall not provide a loan, loan guarantee,
grant, scholarship, or other financial assistance under this act to
any individual who is not a United States citizen or any other
student described as eligible to receive title IV, HEA program
assistance under 34 CFR 668.33. The authority by rule shall
establish procedures for verifying the identity of each applicant
for financial assistance and the citizenship or HEA program
assistance eligibility status of each loan applicant.