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.
No cause of action of any nature may arise against and no civil liability may 7
be imposed upon a member of the board for any act or omission in the performance 8
of his or her powers and duties under this chapter, unless the person asserting 9
liability proves that the act or omission constitutes willful misconduct.
The board shall appoint a chief executive officer who shall not be a member 11
of the board and who shall serve at the pleasure of the board. The chief executive 12
officer shall receive such compensation as the board fixes. The chief executive officer 13
or other person designated by resolution of the board shall keep a record of the 14
proceedings of the authority and shall be custodian of all books, documents, and 15
papers filed with the authority, the minute book or journal of the authority, and its 16
official seal. The chief executive officer or other person may cause copies to be made 17
of all minutes and other records and documents of the authority and may give 18
certificates under the official seal of the authority to the effect that such copies are 19
true copies, and all persons dealing with the authority may rely upon such 20
21239.03 Powers of board.
The board shall have all the powers necessary or 22
convenient to carry out the purposes and provisions of this chapter. In addition to 23
all other powers granted the board under this chapter, the board may specifically:
Adopt, amend, and repeal any bylaws, policies, and procedures for the 25
regulation of its affairs and the conduct of its business.
Have a seal and alter the seal at pleasure.
Maintain an office.
Sue and be sued.
Accept gifts, grants, loans, or other contributions from private or public 5
Establish the authority's annual budget and monitor the fiscal 7
management of the authority.
Execute contracts and other instruments required for the operation of the 9
Employ any officers, agents, and employees that it may require and 11
determine their qualifications, duties, and compensation.
Issue notes, bonds, and any other obligations.
Make loans and provide grants.
Procure liability insurance.
16239.04 Duties of board.
The board shall develop and implement a program 17
under which state residents may refinance qualified education loans. The board 18
shall develop the program to include all of the following:
The authority shall provide a loan to an eligible individual to pay all or part 20
of the individual's qualified education loans.
The authority may only issue loans under the program that satisfy the 22
exception to discharge under 11 USC 523
The authority shall establish eligibility criteria to participate in the 24
program that is substantially similar to the criteria used by private lenders in the
state to evaluate whether an individual qualifies for an unsecured personal loan at 2
The board shall set the interest rate on loans made under the program to 4
be as low as possible but still sufficient to fully pay all expenses of the program and 5
to provide necessary reserves, as determined by the board.
6239.05 Issuance of bonds. (1)
The authority may issue bonds for any 7
corporate purpose. All bonds are negotiable for all purposes, notwithstanding their 8
payment from a limited source.
Except as otherwise expressly provided by the authority, every issue of its 10
notes or bonds shall be general obligations of the authority payable out of any 11
revenues or moneys of the authority, subject only to any agreements with the holders 12
of particular notes or bonds pledging any particular receipts or revenues.
All bonds issued by the authority are negotiable investment securities 14
under ch. 408.
The authority may not issue bonds unless the issuance is first authorized 16
by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding 17
50 years from their dates of issue, bear interest at the rates, be payable at the times, 18
be in the denominations, be in the form, carry the registration and conversion 19
privileges, be executed in the manner, be payable in lawful money of the United 20
States at the places, and be subject to the terms of redemption, that the bond 21
resolution provides. The bonds shall be executed by the manual or facsimile 22
signatures of the officers of the authority designated by the board. The bonds may 23
be sold at public or private sale at the price, in the manner, and at the time 24
determined by the board. Pending preparation of definitive bonds, the authority may 25
issue interim receipts or certificates that shall be exchanged for the definitive bonds.
The board may include in bond resolution provisions, which shall be a part 2
of the contract with the holders of the bonds that are authorized by the bond 3
resolution, regarding any of the following:
(a) Pledging or assigning specified assets or revenues of the authority.
(b) Setting aside reserves or sinking funds, and the regulation, investment, and 6
disposition of these funds.
(c) Limitations on the purpose to which or the investments in which the 8
proceeds of the sale of any issue of bonds may be applied.
(d) Limitations on the issuance of additional bonds, the terms upon which 10
additional bonds may be issued and secured, and the terms upon which additional 11
bonds may rank on a parity with, or be subordinate or superior to, other bonds.
(e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
(f) Procedures, if any, by which the terms of any contract with bondholders may 14
be amended, the amount of bonds the holders of which must consent to the 15
amendment, and the manner in which this consent may be given.
(g) Defining the acts or omissions to act that constitute a default in the duties 17
of the authority to the bondholders, and providing the rights and remedies of the 18
bondholders in the event of a default.
(h) Other matters relating to the bonds that the board considers desirable.
Neither the members of the board nor any person executing the bonds is 21
liable personally on the bonds or subject to any personal liability or accountability 22
by reason of the issuance of the bonds, unless the personal liability or accountability 23
is the result of willful misconduct.
24239.06 Bond security.
The authority may secure bonds by a trust agreement, 25
trust indenture, indenture of mortgage, or deed of trust by and between the authority
and one or more corporate trustees. A bond resolution providing for the issuance of 2
bonds so secured shall mortgage, pledge, assign, or grant security interests in some 3
or all of the revenues to be received by, and property of, the authority and may contain 4
those provisions for protecting and enforcing the rights and remedies of the 5
bondholders that are reasonable and proper and not in violation of law. A bond 6
resolution may contain other provisions determined by the board to be reasonable 7
and proper for the security of the bondholders.
8239.07 Bonds not public debt. (1)
The state is not liable on bonds, and the 9
bonds are not a debt of the state. All bonds shall contain a statement to this effect 10
on the face of the bond. A bond issue does not, directly, indirectly, or contingently, 11
obligate the state or a political subdivision of the state to levy any tax or make any 12
appropriation for payment of the bonds. Nothing in this section prevents the 13
authority from pledging its full faith and credit to the payment of bonds.
Nothing in this chapter authorizes the authority to create a debt of the state, 15
and all bonds issued by the authority are payable, and shall state that they are 16
payable, solely from the funds pledged for their payment in accordance with the bond 17
resolution authorizing their issuance or in any trust indenture or mortgage or deed 18
of trust executed as security for the bonds. The state is not liable for the payment 19
of the principal of or interest on a bond or for the performance of any pledge, 20
mortgage, obligation, or agreement that may be undertaken by the authority. The 21
breach of any pledge, mortgage, obligation, or agreement undertaken by the 22
authority does not impose pecuniary liability upon the state or a charge upon its 23
general credit or against its taxing power.
24239.08 State pledge.
The state pledges to and agrees with the bondholders, 25
and persons that enter into contracts with the authority under this chapter, that the
state will not limit or alter the rights vested in the authority by this chapter before 2
the authority has fully met and discharged the bonds, and any interest due on the 3
bonds, and has fully performed its contracts, unless adequate provision is made by 4
law for the protection of the bondholders or those entering into contracts with the 5
6239.09 Liability limited.
Neither the state nor any political subdivision of 7
the state, nor any officer, employee, or agent of the state or a political subdivision of 8
the state who is acting within the scope of employment or agency, is liable for any 9
debt, obligation, act, or omission of the authority.
10239.10 Annual report. (1)
Annually, the board shall submit to the chief clerk 11
of each house of the legislature, for distribution to the legislature under s. 13.172 (2), 12
a report on the activities of the authority, including all of the following:
(a) Its operations, accomplishments, goals, and objectives.
(b) A statement of income and expenses for the fiscal year.
(c) Its assets and liabilities at the end of its fiscal year.
(d) A schedule of its bonds and notes outstanding at the end of its fiscal year, 17
together with a statement of the amounts redeemed and incurred during such fiscal 18
The authority, annually on January 15, shall file with the department of 20
administration and the joint legislative council a complete and current listing of all 21
forms, reports, and papers required by the authority to be completed by any person, 22
other than a governmental body, as a condition of obtaining the approval of the 23
authority or for any other reason. The authority shall attach a blank copy of each 24
such form, report, or paper to the listing.
(1) Staggered terms.
Notwithstanding the length of terms specified for the 2
members of the board of the Wisconsin Student Loan Refinancing Authority under 3
section 239.02 of the statutes, as created by this act, of the 5 members appointed 4
under section 239.02 (1) (a) 3. to 6. of the statutes, as created by this act, one of the 5
initial members shall be appointed for a term expiring on July 1, 2017, 2 of the initial 6
members shall be appointed for terms expiring on July 1, 2018, and the remaining 7
2 initial members shall be appointed for terms expiring on July 1, 2019.