23(3) Entrance counseling.
(a) Before a student enters into a student loan 24
agreement, an institution of higher education shall provide the student with 25
comprehensive information on the terms and conditions of a loan and the
responsibilities the student has with respect to the loan. The institution shall 2
provide the information during a counseling session conducted in person, on a 3
written form provided to the student that the student signs and returns, or online, 4
with the student acknowledging receipt of the information. The information 5
provided shall include all of the following:
1. To the extent practicable, the effect of accepting the loan to be disbursed on 7
the eligibility of the borrower for other forms of student financial assistance.
2. How interest accrues and is capitalized during periods when the interest is 9
not paid by the borrower.
3. The definitions of full-time and half-time enrollment at the institution of 11
higher education, during regular terms and intersession terms, if applicable, and the 12
consequences of not maintaining full-time or half-time enrollment.
4. The importance of contacting the appropriate office at the institution of 14
higher education if the borrower withdraws before completing his or her program of 15
study so that the institution can provide counseling under sub. (4).
5. Sample monthly repayment amounts, based on a range of levels of 17
6. The obligation of the borrower to repay the full amount of the loan, 19
irrespective of whether the borrower completes his or her program of study at the 20
7. The likely consequences of default on the loan, including adverse credit 22
reports, delinquent debt collection procedures, and litigation.
8. Whether the student has reached the limit on his or her federal student loan 24
9. The name of, and contact information for, an individual the borrower may 2
contact if he or she has any questions about the borrower's rights and responsibilities 3
or the terms and conditions of the loan.
10. How a student or any member of the public may file a complaint about a 5
lender with the federal Consumer Financial Protection Bureau by calling a toll-free 6
telephone number, or by completing a complaint form, which may be obtained on the 7
bureau's Internet site. The institution of higher education shall also include the 8
toll-free telephone number and Internet site address of the bureau.
(b) In conjunction with providing information under par. (a), the institution of 10
higher education shall also do all of the following:
1. Clearly distinguish private loans from federal loans in individual financial 12
aid awards by stating, for any private loans included by the institution as part of the 13
institution's award package, all of the following:
a. Whether the rate is fixed or variable.
b. An explanation that private student loan lenders can offer variable interest 16
rates that can increase or decrease over time, depending on market conditions.
c. An explanation that private student loans have a range of interest rates and 18
fees and students should determine the interest rate of, and any fees associated with, 19
the private student loan included in their financial aid award package before 20
accepting the loan.
d. An explanation that students should contact the lender of the private 22
student loan or their institution's financial aid office if they have any questions about 23
a private student loan.
e. An explanation that the interest rate on a private loan may depend on the 25
borrower's credit rating.
2. If the institution of higher education provides a private loan lender list, 2
provide general information about the loans available through the lender and 3
disclose the basis for each lender's inclusion on the list. The institution shall also 4
disclose with the list that the student may choose any lender.
(c) 1. A lender may not accept a final and complete application for a private 6
student loan from an applicant, or assess any fees upon an applicant, without first 7
receiving certification from the applicant's institution of higher education that the 8
applicant has received counseling from the institution under pars. (a) and (b) and 9
that the counseling was conducted in person, unless the certification specified that 10
the applicant elected to receive the counseling in a manner other than in person.
2. The certification required by subd. 1. shall be signed by the applicant and 12
the institutional counselor, and shall include the date of the counseling and the 13
name, address, and telephone number of both the counselor and the applicant. An 14
electronic facsimile copy of the counseling certification satisfies the requirement 15
under this subdivision. The lender shall maintain the certification in an accurate, 16
reproducible, and accessible format for the term of the student loan.
17(4) Exit counseling.
(a) As close as practicable to the date that a student 18
graduates from, transfers from, withdraws from, or otherwise completes his or her 19
program of study at the institution of higher education, the institution shall provide 20
the student with information relating to all of the following:
1. Repayment plans that are available, including a description of the different 22
features of each plan and sample information showing the average anticipated 23
monthly payments, and the difference in interest paid and total payments, under 24
2. Debt management strategies designed to facilitate the repayment of 2
3. The options to prepay each loan, pay each loan on a shorter schedule, or 4
change repayment plans.
4. The likely consequences of default on the loan, including adverse credit 6
reports, delinquent debt collection procedures, and litigation.
5. The effects of consolidation on a borrower's underlying loan benefits.
6. Grace periods, loan forgiveness, cancellation, and deferment opportunities.
7. The borrower benefit programs of different lenders.
8. The tax benefits that may be available to borrowers.
9. How to enroll in income-based repayment.
(b) With respect to a student who leaves an institution of higher education 13
without the knowledge of the institution, the institution shall attempt to provide the 14
information described in par. (a) to the student in writing.
An institution of higher education may assess a reasonable fee to the 16
lender to defray the cost of counseling under this section in an amount not exceeding 17
$50. The higher educational aids board and the department of financial institutions 18
shall jointly promulgate rules to implement and administer this subsection.
40.02 (54) (n) of the statutes is created to read:
(n) The Wisconsin Student Loan Refinancing Authority.
70.11 (38v) of the statutes is created to read:
70.11 (38v) Wisconsin Student Loan Refinancing Authority.
All property 23
owned by the Wisconsin Student Loan Refinancing Authority, provided that use of 24
the property is primarily related to the purposes of the Wisconsin Student loan 25
71.05 (6) (b) 28. (intro.), am. and h. of the statutes are amended 2
(b) 28. (intro.) An amount paid by a claimant for tuition expenses,
4including any amount paid by a claimant in the year to which the claim relates on
5a loan, the proceeds of which were used by the claimant to pay the claimant's
6expenses for tuition, fees, books, room and board, and educational supplies that were
7directly related to the claimant's attendance at an eligible educational institution,
8as defined in s. 18.81 (2),
and mandatory student fees for a student who is the 9
claimant or who is the claimant's child and the claimant's dependent who is claimed 10
under section 151
(c) of the Internal Revenue Code, to attend any university, college, 11
technical college or a school approved under s. 38.50, that is located in Wisconsin or 12
to attend a public vocational school or public institution of higher education in 13
Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, 14
calculated as follows:
am. Notwithstanding subd. 28. a., for taxable years beginning after December 16
31, 2008, the department of revenue and the Board of Regents of the University of 17
Wisconsin System shall continue making the calculation described under subd. 28. 18
a. Notwithstanding subd. 28. a., once this calculation exceeds $6,000, the deduction 19
for tuition expenses, including any amount paid by a claimant in the year to which
20the claim relates on a loan, the proceeds of which were used by the claimant to pay
21the claimant's expenses for tuition, fees, books, room and board, and educational
22supplies that were directly related to the claimant's attendance at an eligible
23educational institution, as defined in s. 18.81 (2),
and mandatory student fees, as 24
described in subd. 28. (intro.), shall be based on an amount equal to not more than 25
twice the average amount charged by the Board of Regents of the University of
Wisconsin System at 4-year institutions for resident undergraduate academic fees 2
for the most recent fall semester, as determined by the Board of Regents by 3
September 1 of that semester, per student for each year to which the claim relates, 4
and the deduction that may be claimed under this subd. 28. am. first applies to 5
taxable years beginning on the January 1 after the calculation of the Board of 6
Regents, that must occur by September 1, exceeds $6,000.
h. No modification may be claimed under this subdivision for an amount paid 8
for tuition expenses, including any amount paid by a claimant in the year to which
9the claim relates on a loan, the proceeds of which were used by the claimant to pay
10the claimant's expenses for tuition, fees, books, room and board, and educational
11supplies that were directly related to the claimant's attendance at an eligible
12educational institution, as defined in s. 18.81 (2),
and mandatory student fees, as 13
described under this subdivision, if the source of the payment is an amount 14
withdrawn from a college savings account, as described in s. 16.641 or from a college 15
tuition and expenses program, as described in s. 16.64, and if the owner of the 16
account or a parent, grandparent, great-grandparent, aunt, or uncle of the 17
beneficiary, who contributed to the account, has claimed a deduction under subd. 32. 18
or 33. that relates to such an amount.
71.05 (6) (b) 28. j. of the statutes is created to read:
(b) 28. j. The provisions of subd. 28. b., c., d., and g. do not apply to 21
a taxable year that begins after December 31, 2015.
77.54 (9a) (a) of the statutes is amended to read:
(a) This state or any agency thereof, the University of Wisconsin 24
Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
Economic Development Corporation, the Wisconsin Student Loan Refinancing
and the Fox River Navigational System Authority.
100.45 (1) (dm) of the statutes is amended to read:
(dm) "State agency" means any office, department, agency, 5
institution of higher education, association, society, or other body in state 6
government created or authorized to be created by the constitution or any law which 7
is entitled to expend moneys appropriated by law, including the legislature and the 8
courts, the Wisconsin Housing and Economic Development Authority, the Bradley 9
Center Sports and Entertainment Corporation, the University of Wisconsin 10
Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities 11
Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic 12
Development Corporation, the Wisconsin Student Loan Refinancing Authority,
the Fox River Navigational System Authority.
224.30 (5) of the statutes is created to read:
224.30 (5) Student lending transparency.
(a) In this subsection:
1. "Higher education expenses" includes all of the following:
a. Tuition and fees.
b. Books and supplies
c. Room and board.
2. "Private student loan" means a loan issued by a private lending institution 21
for the purpose of paying for or financing higher education expenses.
3. "Private lending institution" means any private entity that itself or through 23
an affiliate makes available student loans to pay for or finance higher education 24
4. "Student borrower" means any individual who borrows money from a private 2
lending institution to finance higher education expenses.
(b) The department shall compile data related to private student loans for the 4
purpose of comparing private lending institutions' student loan interest rates and 5
repayment plans, including all of the following:
1. Policies relating to deferment and forbearance.
2. Loan default policies and penalties.
3. Any other information that the department deems relevant for the purpose 9
of creating a list of private lending institutions that provide the lowest rates and best 10
repayment options on student loans.
(c) 1. Using the data compiled under par. (b), the department shall create and 12
maintain a list of private lending institutions that provide the lowest rates and best 13
repayment options on student loans.
2. In addition to the list under subd. 1., the department shall compile a list of 15
the 10 best private lending institutions based on rates and policies that are most 16
favorable to the student borrower. The department may also consider the private 17
lending institutions' policies for allowing a student borrower to borrow more than 10 18
percent over the student borrower's total cost of higher education expenses when 19
determining if a private lending institution should be placed on this list.
(d) The department shall place the lists created and compiled under par. (c) at 21
an easily accessible location on the department's Internet site. The department shall 22
update its Internet site on a monthly basis to ensure that the student loan 23
information in these lists is current and accurate. Information pertaining to lending 24
institutions that do not make the list compiled under par. (c) 2. shall also be posted
on the department's Internet site and those lending institutions that provide the 2
worst rates and strictest repayment options shall be clearly indicated.
(e) The department shall make any list or other data under this subsection that 4
appears on the department's Internet site available to be linked as provided in ss. 5
39.28 (7) and 39.54 (3).
(f) The department may satisfy its duties under this subsection through a 7
designee or 3rd-party contractor.
230.03 (3) of the statutes is amended to read:
"Agency" means any board, commission, committee, council, or 10
department in state government or a unit thereof created by the constitution or 11
statutes if such board, commission, committee, council, department, unit, or the 12
head thereof, is authorized to appoint subordinate staff by the constitution or 13
statute, except a legislative or judicial board, commission, committee, council, 14
department, or unit thereof or an authority created under subch. II of ch. 114 or 15
subch. III of ch. 149 or under ch. 231, 232, 233, 234, 237, 238, 239,
or 279. "Agency" 16
does not mean any local unit of government or body within one or more local units 17
of government that is created by law or by action of one or more local units of 18
230.03 (3) of the statutes, as affected by 2013 Wisconsin Act 20
2015 Wisconsin Act .... (this act), is repealed and recreated to read:
"Agency" means any board, commission, committee, council, or 22
department in state government or a unit thereof created by the constitution or 23
statutes if such board, commission, committee, council, department, unit, or the 24
head thereof, is authorized to appoint subordinate staff by the constitution or 25
statute, except the Board of Regents of the University of Wisconsin System, a
legislative or judicial board, commission, committee, council, department, or unit 2
thereof or an authority created under subch. II of ch. 114 or under ch. 231, 232, 233, 3
234, 237, 238, 239, or 279. "Agency" does not mean any local unit of government or 4
body within one or more local units of government that is created by law or by action 5
of one or more local units of government.
Chapter 239 of the statutes is created to read:
8Wisconsin Student Loan
In this chapter:
"Authority" means the Wisconsin Student Loan Refinancing Authority.
"Board" means the governing board of the authority.
"Qualified education loan" has the meaning given in 26 USC 221
14239.02 Creation and organization of authority. (1)
(a) There is created an 15
authority, which is a public body corporate and politic, to be known as the "Wisconsin 16
Student Loan Refinancing Authority." The members of the board shall consist of all 17
of the following:
1. One member of the majority party in each house of the legislature.
2. One member of the minority party in each house of the legislature.
3. One undergraduate student enrolled at least half-time and in good academic 21
standing at an institution within the University of Wisconsin System who is at least 22
18 years old and a resident of this state.
4. One student enrolled at least half-time and in good academic standing at a 24
technical college who is at least 18 years old and a resident of this state.
5. One undergraduate student enrolled at least half-time and in good academic 2
standing at a private, nonprofit institution of higher education located in this state 3
who is at least 18 years old and a resident of this state.
6. Two members who have at least 10 years experience in making qualified 5
education loans or loan refinancing, but any person having a financial interest in or 6
whose employer is primarily engaged in the business of making qualified education 7
loans is not eligible for appointment under this subdivision, and any member 8
appointed under this subdivision who acquires such an interest while serving as a 9
member shall resign from the board.
(b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the 11
members of standing committees in their respective houses.
2. The members specified in par. (a) 3. to 5. shall be nominated by the governor, 13
and with the advice and consent of the senate appointed, for 2-year terms.
3. The members specified in par. (a) 6. shall be nominated by the governor, and 15
with the advice and consent of the senate appointed, for 3-year terms.
If a student member of the board appointed under sub. (1) (a) 3. to 5. loses 17
his or her student status upon which the appointment was based, he or she ceases 18
to be a member of the board upon the appointment of a qualified successor to the 19
board. A student member who loses his or her student status solely because he or 20
she graduates from an institution of higher education may complete his or her 21
current term on the board.
The members of the board shall annually elect a chairperson and may elect 23
other officers as they consider appropriate. A majority of the members of the board 24
constitutes a quorum for the purpose of conducting its business and exercising its 25
powers and for all other purposes, notwithstanding the existence of any vacancies.
Action may be taken by the board upon a vote of a majority of the voting members 2
A member of the board may not be compensated for his or her services but 4
shall be reimbursed for actual and necessary expenses, including travel expenses, 5
incurred in the performance of his or her duties.