Text: S03240 Text: S03242 Text: S03200 - S03299 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 464 as follows:
1 2 #1. Page 28, by inserting after line 13 the
1 3 following:
1 4 "Section . NEW SECTION. 261.130 DEFINITIONS.
1 5 As used in this division, unless the context
1 6 otherwise requires:
1 7 1. "Commission" means the college student aid
1 8 commission.
1 9 2. "Education tax credit" means the federal hope
1 10 scholarship credit or lifetime learning credit under
1 11 section 25A of the Internal Revenue Code.
1 12 3. "Eligible borrower" means a taxpayer who is
1 13 reasonably expected to qualify for receiving the
1 14 federal hope scholarship credit or lifetime learning
1 15 credit under section 25A of the Internal Revenue Code.
1 16 4. "Eligible institution" means any postsecondary
1 17 educational institution described in section 418 of
1 18 the Higher Education Act of 1965 which is entitled to
1 19 participate in a program under Title IV of that Act.
1 20 5. "Higher Education Act of 1965" means the
1 21 federal Higher Education Act of 1965, as amended and
1 22 codified in 20 U.S.C. } 1071 et seq.
1 23 6. "Internal Revenue Code" means the same as
1 24 defined in section 422.3.
1 25 7. "Qualified tuition and related expenses" means
1 26 the same as defined in section 25A(f) of the Internal
1 27 Revenue Code.
1 28 Sec. . NEW SECTION. 261.131 STUDENT BRIDGE
1 29 LOAN PROGRAM.
1 30 1. A student bridge loan program shall be
1 31 established by the commission to provide loans to an
1 32 eligible borrower to bridge the gap between the time
1 33 qualified tuition and related expenses for enrollment
1 34 or attendance at an eligible institution are incurred
1 35 and the time when the eligible borrower will receive
1 36 the benefit of an education tax credit.
1 37 2. An eligible borrower seeking a loan under the
1 38 student bridge loan program shall file an application
1 39 with the commission and demonstrate a need for a
1 40 short-term loan to pay for all or part of the
1 41 qualified tuition and related expenses for enrollment
1 42 or attendance at the eligible institution. The
1 43 demonstrated need for the loan shall be for not longer
1 44 than one school year.
1 45 3. The amount of the loan shall not exceed the
1 46 approximate amount of an educational tax credit which
1 47 will be claimed by the eligible borrower for the tax
1 48 year in which the qualified tuition and related
1 49 expenses will be paid.
1 50 4. A student bridge loan made under this program
2 1 shall be used solely for payment of qualified tuition
2 2 and related expenses. The loan shall be repayable by
2 3 June 30 of the year following the tax year for which
2 4 the educational tax credit is claimed. Interest shall
2 5 not be charged on the loan until after the due date.
2 6 After the due date, interest shall be charged at a
2 7 rate equal to the rate being collected by an eligible
2 8 lender under the guaranteed loan payment program
2 9 established under section 261.44.
2 10 5. An eligible borrower is eligible to receive
2 11 student bridge loans under this program for more than
2 12 one school year or portion of a school year.
2 13 Sec. . NEW SECTION. 261.132 APPROPRIATION –
2 14 REVOLVING FUND.
2 15 There is appropriated to the student bridge loan
2 16 program revolving fund created in the state treasury
2 17 and under the control of the commission the sum of
2 18 five million dollars for the fiscal year beginning
2 19 July 1, 1999.
2 20 Moneys appropriated to the revolving fund shall be
2 21 used by the commission for purposes of making student
2 22 bridge loans to eligible borrowers under the student
2 23 bridge loan program. Interest earned on moneys in the
2 24 revolving fund shall be credited to the revolving
2 25 fund, notwithstanding section 12C.7. All repayment of
2 26 loans made under the program shall be credited to the
2 27 revolving fund.
2 28 Notwithstanding section 8.33, all unencumbered or
2 29 unobligated moneys remaining at the close of any
2 30 fiscal year in the revolving fund shall not revert but
2 31 shall remain available to the commission for use of
2 32 the revolving fund."
2 33 #2. Title page, line 4, by inserting after the
2 34 word "regents," the following: "providing for a
2 35 student bridge loan program,".
2 36
2 37
2 38
2 39 JOHNIE HAMMOND
2 40 EUGENE S. FRAISE
2 41 ELAINE SZYMONIAK
2 42 PATRICIA HARPER
2 43 ROBERT E. DVORSKY
2 44 WALLY E. HORN
2 45 SF 464.712 78
2 46 kh/sc
Text: S03240 Text: S03242 Text: S03200 - S03299 Text: S Index Bills and Amendments: General Index Bill History: General Index
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