SB376,19,2220 (c) Student loan rates, repayment plans, default rates, and the actual monthly
21payment that would be required to pay the student loan debt described in par. (b)
22when the loan becomes due.
SB376,19,25 23(3) Each institution of higher education shall create on its Internet site a link
24to that portion of the department of financial institutions' Internet site created under
25s. 224.30 (5) (c) and (d).
SB376,36
1Section 36. 39.56 of the statutes is created to read:
SB376,20,6 239.56 Loan counseling. (1) Definition. In this section, "institution of higher
3education" means an institution or college campus within the University of
4Wisconsin System, a technical college under ch. 38, or any private, nonprofit,
5educational institution located in this state that provides an educational program for
6which it awards an associate's or higher degree.
SB376,20,10 7(2) Applicability. This section applies to any student loan offered by an
8institution of higher education or a private lender or recommended to a student by
9an institution of higher education, other than a federally funded, federally insured,
10or federally guaranteed loan for which counseling is required by 20 USC 1092.
SB376,20,18 11(3) Entrance counseling. (a) Before a student enters into a student loan
12agreement, an institution of higher education shall provide the student with
13comprehensive information on the terms and conditions of a loan and the
14responsibilities the student has with respect to the loan. The institution shall
15provide the information during a counseling session conducted in person, on a
16written form provided to the student that the student signs and returns, or online,
17with the student acknowledging receipt of the information. The information
18provided shall include all of the following:
SB376,20,2019 1. To the extent practicable, the effect of accepting the loan to be disbursed on
20the eligibility of the borrower for other forms of student financial assistance.
SB376,20,2221 2. How interest accrues and is capitalized during periods when the interest is
22not paid by the borrower.
SB376,20,2523 3. The definitions of full-time and half-time enrollment at the institution of
24higher education, during regular terms and intersession terms, if applicable, and the
25consequences of not maintaining full-time or half-time enrollment.
SB376,21,3
14. The importance of contacting the appropriate office at the institution of
2higher education if the borrower withdraws before completing his or her program of
3study so that the institution can provide counseling under sub. (4).
SB376,21,54 5. Sample monthly repayment amounts, based on a range of levels of
5indebtedness.
SB376,21,86 6. The obligation of the borrower to repay the full amount of the loan,
7irrespective of whether the borrower completes his or her program of study at the
8institution.
SB376,21,109 7. The likely consequences of default on the loan, including adverse credit
10reports, delinquent debt collection procedures, and litigation.
SB376,21,1211 8. Whether the student has reached the limit on his or her federal student loan
12opportunities.
SB376,21,1513 9. The name of, and contact information for, an individual the borrower may
14contact if he or she has any questions about the borrower's rights and responsibilities
15or the terms and conditions of the loan.
SB376,21,2016 10. How a student or any member of the public may file a complaint about a
17lender with the federal Consumer Financial Protection Bureau by calling a toll-free
18telephone number, or by completing a complaint form, which may be obtained on the
19bureau's Internet site. The toll-free telephone number and Internet site address of
20the bureau shall be included.
SB376,21,2221 (b) In conjunction with providing information under par. (a), the institution of
22higher education shall also do all of the following:
SB376,21,2523 1. Clearly distinguish private loans from federal loans in individual financial
24aid awards by stating, for any private loans included by the institution as part of the
25institution's award package, all of the following:
SB376,22,1
1a. Whether the rate is fixed or variable.
SB376,22,32 b. An explanation that private student loan lenders can offer variable interest
3rates that can increase or decrease over time, depending on market conditions.
SB376,22,74 c. An explanation that private student loans have a range of interest rates and
5fees and students should determine the interest rate of, and any fees associated with,
6the private student loan included in their financial aid award package before
7accepting the loan.
SB376,22,108 d. An explanation that students should contact the lender of the private
9student loan or their institution's financial aid office if they have any questions about
10a private student loan.
SB376,22,1211 e. An explanation that the interest rate on a private loan may depend on the
12borrower's credit rating.
SB376,22,1613 2. If the institution of higher education provides a private loan lender list,
14provide general information about the loans available through the lender and
15disclose the basis for each lender's inclusion on the list. The institution shall also
16disclose with the list that the student may choose any lender.
SB376,22,2217 (c) 1. A lender may not accept a final and complete application for a private
18student loan from an applicant, or assess any fees upon an applicant, without first
19receiving certification from the applicant's institution of higher education that the
20applicant has received counseling from the institution under pars. (a) and (b) and
21that the counseling was conducted in person, unless the certification specified that
22the applicant elected to receive the counseling in a manner other than in person.
SB376,23,323 2. The certification required by subd. 1. shall be signed by the applicant and
24the institutional counselor, and shall include the date of the counseling and the
25name, address, and telephone number of both the counselor and the applicant. An

1electronic facsimile copy of the counseling certification satisfies the requirement of
2this subdivision. The lender shall maintain the certification in an accurate,
3reproducible, and accessible format for the term of the student loan.
SB376,23,7 4(4) Exit counseling. (a) As close as practicable to the date that a student
5graduates from, transfers from, withdraws from, or otherwise completes his or her
6program of study at the institution of higher education, the institution shall provide
7the student with information relating to all of the following:
SB376,23,118 1. Repayment plans that are available, including a description of the different
9features of each plan and sample information showing the average anticipated
10monthly payments, and the difference in interest paid and total payments, under
11each plan.
SB376,23,1312 2. Debt management strategies designed to facilitate the repayment of
13indebtedness.
SB376,23,1514 3. The options to prepay each loan, pay each loan on a shorter schedule, or
15change repayment plans.
SB376,23,1716 4. The likely consequences of default on the loan, including adverse credit
17reports, delinquent debt collection procedures, and litigation.
SB376,23,1818 5. The effects of consolidation on a borrower's underlying loan benefits.
SB376,23,1919 6. Grace periods, loan forgiveness, cancellation, and deferment opportunities.
SB376,23,2020 7. The borrower benefit programs of different lenders.
SB376,23,2121 8. The tax benefits that may be available to borrowers.
SB376,23,2222 9. How to enroll in income-based repayment.
SB376,23,2523 (b) With respect to a student who leaves an institution of higher education
24without the knowledge of the institution, the institution shall attempt to provide the
25information described in par. (a) to the student in writing.
SB376,24,4
1(5) Fee. An institution of higher education may assess a reasonable fee to the
2lender to defray the cost of counseling under this section in an amount not exceeding
3$50. The higher educational aids board and the department of financial institutions
4shall jointly promulgate rules to implement and administer this subsection.
SB376,37 5Section 37. 40.02 (54) (n) of the statutes is created to read:
SB376,24,66 40.02 (54) (n) The Wisconsin Student Loan Refinancing Authority.
SB376,38 7Section 38. 70.11 (38v) of the statutes is created to read:
SB376,24,118 70.11 (38v) Wisconsin Student Loan Refinancing Authority. All property
9owned by the Wisconsin Student Loan Refinancing Authority, provided that use of
10the property is primarily related to the purposes of the Wisconsin Student loan
11Refinancing Authority.
SB376,39 12Section 39. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
SB376,24,2513 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
14mandatory student fees for a student who is the claimant or who is the claimant's
15child and the claimant's dependent who is claimed under section 151 (c) of the
16Internal Revenue Code, to attend any university, college, technical college or a school
17approved under s. 38.50, that is located in Wisconsin or to attend a public vocational
18school or public institution of higher education in Minnesota under the
19Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows: in
20subd. 28. a., am., e., f., and h. In this subdivision, "tuition expenses" includes any
21amount paid by a claimant in the year to which the claim relates on a loan, the
22proceeds of which were used by the claimant to pay the claimant's expenses for
23tuition, fees, books, room and board, and educational supplies that were directly
24related to the claimant's attendance at an eligible educational institution, as defined
25in s. 18.81 (2).
SB376,40
1Section 40. 71.05 (6) (b) 28. j. of the statutes is created to read:
SB376,25,32 71.05 (6) (b) 28. j. The provisions of subd. 28. b., c., d., and g. do not apply to
3a taxable year that begins after December 31, 2013.
SB376,41 4Section 41. 77.54 (9a) (a) of the statutes is amended to read:
SB376,25,95 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
6Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health
7Insurance Risk-Sharing Plan Authority, the Wisconsin Economic Development
8Corporation, the Wisconsin Student Loan Refinancing Authority, and the Fox River
9Navigational System Authority.
SB376,42 10Section 42. 100.45 (1) (dm) of the statutes is amended to read:
SB376,25,2011 100.45 (1) (dm) "State agency" means any office, department, agency,
12institution of higher education, association, society, or other body in state
13government created or authorized to be created by the constitution or any law which
14is entitled to expend moneys appropriated by law, including the legislature and the
15courts, the Wisconsin Housing and Economic Development Authority, the Bradley
16Center Sports and Entertainment Corporation, the University of Wisconsin
17Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
18Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic
19Development Corporation, the Wisconsin Student Loan Refinancing Authority, and
20the Fox River Navigational System Authority.
SB376,43 21Section 43. 224.30 (5) of the statutes is created to read:
SB376,25,2222 224.30 (5) Student lending transparency. (a) In this subsection:
SB376,25,2323 1. "Higher education expenses" includes all of the following:
SB376,25,2424 a. Tuition and fees.
SB376,25,2525 b. Books and supplies
SB376,26,1
1c. Room and board.
SB376,26,32 2. "Private student loan" means a loan issued by a private lending institution
3for the purpose of paying for or financing higher education expenses.
SB376,26,64 3. "Private lending institution" means any private entity that itself or through
5an affiliate makes available student loans to pay for or finance higher education
6expenses.
SB376,26,87 4. "Student borrower" means any individual who borrows money from a private
8lending institution to finance higher education expenses.
SB376,26,119 (b) The department shall compile data related to private student loans for the
10purpose of comparing private lending institutions' student loan interest rates and
11repayment plans, including all of the following:
SB376,26,1212 1. Policies relating to deferment and forbearance.
SB376,26,1313 2. Loan default policies and penalties.
SB376,26,1614 3. Any other information that the department deems relevant for the purpose
15of creating a list of private lending institutions that provide the lowest rates and best
16repayment options on student loans.
SB376,26,1917 (c) 1. Using the data compiled under par. (b), the department shall create and
18maintain a list of private lending institutions that provide the lowest rates and best
19repayment options on student loans.
SB376,26,2520 2. In addition to the list under subd. 1., the department shall compile a list of
21the 10 best private lending institutions based on rates and policies that are most
22favorable to the student borrower. The department may also consider the private
23lending institutions' policies for allowing a student borrower to borrow more than 10
24percent over the student borrower's total cost of higher education expenses when
25determining if a private lending institution should be placed on this list.
SB376,27,7
1(d) The department shall place the lists created and compiled under par. (c) at
2an easily accessible location on the department's Internet site. The department shall
3update its Internet site on a monthly basis to ensure that the student loan
4information in these lists is current and accurate. Information pertaining to lending
5institutions that do not make the list compiled under par. (c) 2. shall also be posted
6on the department's Internet site and those lending institutions that provide the
7worst rates and strictest repayment options shall be clearly indicated.
SB376,27,108 (e) The department shall make any list or other data under this subsection that
9appears on the department's Internet site available to be linked as provided in ss.
1039.28 (7) and 39.54 (3).
SB376,27,1211 (f) The department may satisfy its duties under this subsection through a
12designee or 3rd-party contractor.
SB376,44 13Section 44. 230.03 (3) of the statutes, as affected by 2011 Wisconsin Acts 10,
1432 and 229, is amended to read:
SB376,27,2415 230.03 (3) "Agency" means any board, commission, committee, council, or
16department in state government or a unit thereof created by the constitution or
17statutes if such board, commission, committee, council, department, unit, or the
18head thereof, is authorized to appoint subordinate staff by the constitution or
19statute, except a legislative or judicial board, commission, committee, council,
20department, or unit thereof or an authority created under subch. II of ch. 114 or
21subch. III of ch. 149 or under ch. 231, 232, 233, 234, 237, 238, 239, or 279. "Agency"
22does not mean any local unit of government or body within one or more local units
23of government that is created by law or by action of one or more local units of
24government.
SB376,45 25Section 45. Chapter 239 of the statutes is created to read:
SB376,28,1
1Chapter 239
SB376,28,3 2Wisconsin Student Loan
3 REFINANCING Authority
SB376,28,4 4239.01 Definitions. In this chapter:
SB376,28,5 5(1) "Authority" means the Wisconsin Student Loan Refinancing Authority.
SB376,28,6 6(2) "Board" means the governing board of the authority.
SB376,28,7 7(3) "Qualified education loan" has the meaning given in 26 USC 221 (d).
SB376,28,11 8239.02 Creation and organization of authority. (1) (a) There is created an
9authority, which is a public body corporate and politic, to be known as the "Wisconsin
10Student Loan Refinancing Authority." The members of the board shall consist of all
11of the following:
SB376,28,1212 1. One member of the majority party in each house of the legislature.
SB376,28,1313 2. One member of the minority party in each house of the legislature.
SB376,28,1614 3. One undergraduate student enrolled at least half-time and in good academic
15standing at an institution within the University of Wisconsin System who is at least
1618 years old and a resident of this state.
SB376,28,1817 4. One student enrolled at least half-time and in good academic standing at a
18technical college who is at least 18 years old and a resident of this state.
SB376,28,2119 5. One undergraduate student enrolled at least half-time and in good academic
20standing at a private, nonprofit institution of higher education located in this state
21who is at least 18 years old and a resident of this state.
SB376,29,222 6. Two members who have at least 10 years experience in making qualified
23education loans or loan refinancing, but any person having a financial interest in or
24whose employer is primarily engaged in the business of making qualified education
25loans is not eligible for appointment under this subdivision, and any member

1appointed under this subdivision who acquires such an interest while serving as a
2member shall resign from the board.
SB376,29,43 (b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the
4members of standing committees in their respective houses.
SB376,29,65 2. The members specified in par. (a) 3. to 5. shall be nominated by the governor,
6and with the advice and consent of the senate appointed, for 2-year terms.
SB376,29,87 3. The members specified in par. (a) 6. shall be nominated by the governor, and
8with the advice and consent of the senate appointed for 3-year terms.
SB376,29,14 9(2) If a student member of the board appointed under sub. (1) (a) 3. to 5. loses
10his or her student status upon which the appointment was based, he or she ceases
11to be a member of the board upon the appointment of a qualified successor to the
12board. A student member who loses his or her student status solely because he or
13she graduates from an institution of higher education may complete his or her
14current term of the board.
SB376,29,20 15(3) The members of the board shall annually elect a chairperson and may elect
16other officers as they consider appropriate. A majority of the members of the board
17constitutes a quorum for the purpose of conducting its business and exercising its
18powers and for all other purposes, notwithstanding the existence of any vacancies.
19Action may be taken by the board upon a vote of a majority of the voting members
20present.
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