SB91: Bill Text

SB91,23,2 2. Debt management strategies designed to facilitate the repayment of indebtedness.

SB91,23,4 3. The options to prepay each loan, pay each loan on a shorter schedule, or change repayment plans.

SB91,23,6 4. The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures, and litigation.

SB91,23,7 5. The effects of consolidation on a borrower's underlying loan benefits.

SB91,23,8 6. Grace periods, loan forgiveness, cancellation, and deferment opportunities.

SB91,23,9 7. The borrower benefit programs of different lenders.

SB91,23,10 8. The tax benefits that may be available to borrowers.

SB91,23,11 9. How to enroll in income-based repayment.

SB91,23,14 (b) With respect to a student who leaves an institution of higher education without the knowledge of the institution, the institution shall attempt to provide the information described in par. (a) to the student in writing.

SB91,23,18 (5) Fee. An institution of higher education may assess a reasonable fee to the lender to defray the cost of counseling under this section in an amount not exceeding $50. The higher educational aids board and the department of financial institutions shall jointly promulgate rules to implement and administer this subsection.

SB91,37 Section 37. 40.02 (54) (n) of the statutes is created to read:

SB91,23,20 40.02 (54) (n) The Wisconsin Student Loan Refinancing Authority.

SB91,38 Section 38. 70.11 (38v) of the statutes is created to read:

SB91,23,25 70.11 (38v) Wisconsin Student Loan Refinancing Authority. All property owned by the Wisconsin Student Loan Refinancing Authority, provided that use of the property is primarily related to the purposes of the Wisconsin Student Loan Refinancing Authority.

SB91,39 Section 39. 71.05 (6) (b) 28. (intro.), am. and h. of the statutes are amended to read:

SB91,24,14 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses, including any amount paid by a claimant in the year to which the claim relates on a loan, the proceeds of which were used by the claimant to pay the claimant's expenses for tuition, fees, books, room and board, and educational supplies that were directly related to the claimant's attendance at an eligible educational institution, as defined in s. 18.81 (2), and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 38.50, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

SB91,25,6 am. Notwithstanding subd. 28. a., for taxable years beginning after December 31, 2008, the department of revenue and the Board of Regents of the University of Wisconsin System shall continue making the calculation described under subd. 28. a. Notwithstanding subd. 28. a., once this calculation exceeds $6,000, the deduction for tuition expenses, including any amount paid by a claimant in the year to which the claim relates on a loan, the proceeds of which were used by the claimant to pay the claimant's expenses for tuition, fees, books, room and board, and educational supplies that were directly related to the claimant's attendance at an eligible educational institution, as defined in s. 18.81 (2), and mandatory student fees, as described in subd. 28. (intro.), shall be based on an amount equal to not more than 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 for the most recent fall semester, as determined by the Board of Regents by September 1 of that semester, per student for each year to which the claim relates, and the deduction that may be claimed under this subd. 28. am. first applies to taxable years beginning on the January 1 after the calculation of the Board of Regents, that must occur by September 1, exceeds $6,000.

SB91,25,18 h. No modification may be claimed under this subdivision for an amount paid for tuition expenses, including any amount paid by a claimant in the year to which the claim relates on a loan, the proceeds of which were used by the claimant to pay the claimant's expenses for tuition, fees, books, room and board, and educational supplies that were directly related to the claimant's attendance at an eligible educational institution, as defined in s. 18.81 (2), and mandatory student fees, as described under this subdivision, if the source of the payment is an amount withdrawn from a college savings account, as described in s. 16.641 or from a college tuition and expenses program, as described in s. 16.64, and if the owner of the account or a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, who contributed to the account, has claimed a deduction under subd. 32. or 33. that relates to such an amount.

SB91,40 Section 40. 71.05 (6) (b) 28. j. of the statutes is created to read:

SB91,25,21 71.05 (6) (b) 28. j. The provisions of subd. 28. b., c., d., and g. do not apply to a taxable year that begins after December 31, 2017.

SB91,41 Section 41. 77.54 (9a) (a) of the statutes is amended to read:

SB91,26,2 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Wisconsin Student Loan Refinancing Authority, and the Fox River Navigational System Authority.

SB91,42 Section 42. 100.45 (1) (dm) of the statutes is amended to read:

SB91,26,13 100.45 (1) (dm) “State agency" means any office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law which is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Wisconsin Student Loan Refinancing Authority, and the Fox River Navigational System Authority.

SB91,43 Section 43. 224.30 (6) of the statutes is created to read:

SB91,26,15 224.30 (6) Student lending transparency. (a) In this subsection:

SB91,26,16 1. “Higher education expenses" includes all of the following:

SB91,26,17 a. Tuition and fees.

SB91,26,18 b. Books and supplies

SB91,26,19 c. Room and board.

SB91,26,21 2. “Private student loan" means a loan issued by a private lending institution for the purpose of paying for or financing higher education expenses.

SB91,26,24 3. “Private lending institution" means any private entity that itself or through an affiliate makes available student loans to pay for or finance higher education expenses.

SB91,27,2 4. “Student borrower" means any individual who borrows money from a private lending institution to finance higher education expenses.

SB91,27,5 (b) The department shall compile data related to private student loans for the purpose of comparing private lending institutions' student loan interest rates and repayment plans, including all of the following:

SB91,27,6 1. Policies relating to deferment and forbearance.

SB91,27,7 2. Loan default policies and penalties.

SB91,27,10 3. Any other information that the department deems relevant for the purpose of creating a list of private lending institutions that provide the lowest rates and best repayment options on student loans.

SB91,27,13 (c) 1. Using the data compiled under par. (b), the department shall create and maintain a list of private lending institutions that provide the lowest rates and best repayment options on student loans.

SB91,27,19 2. In addition to the list under subd. 1., the department shall compile a list of the 10 best private lending institutions based on rates and policies that are most favorable to the student borrower. The department may also consider the private lending institutions' policies for allowing a student borrower to borrow more than 10 percent over the student borrower's total cost of higher education expenses when determining if a private lending institution should be placed on this list.

SB91,28,2 (d) The department shall place the lists created and compiled under par. (c) at an easily accessible location on the department's Internet site. The department shall update its Internet site on a monthly basis to ensure that the student loan information in these lists is current and accurate. Information pertaining to lending 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 worst rates and strictest repayment options shall be clearly indicated.

SB91,28,5 (e) The department shall make any list or other data under this subsection that appears on the department's Internet site available to be linked as provided in ss. 39.28 (7) and 39.54 (3).

SB91,28,7 (f) The department may satisfy its duties under this subsection through a designee or 3rd-party contractor.

SB91,44 Section 44. 230.03 (3) of the statutes is amended to read:

SB91,28,18 230.03 (3) “Agency" means any board, commission, committee, council, or department in state government or a unit thereof created by the constitution or statutes if such board, commission, committee, council, department, unit, or the head thereof, is authorized to appoint subordinate staff by the constitution or statute, except the Board of Regents of the University of Wisconsin System, a legislative or judicial board, commission, committee, council, department, or unit thereof or an authority created under subch. II of ch. 114 or under ch. 231, 232, 233, 234, 237, 238, 239, or 279. “Agency" does not mean any local unit of government or body within one or more local units of government that is created by law or by action of one or more local units of government.

SB91,45 Section 45. Chapter 239 of the statutes is created to read:

SB91,28,20 Chapter 239

SB91,28,22 Wisconsin Student Loan REFINANCING Authority

SB91,28,23 239.01 Definitions. In this chapter:

SB91,28,24 (1) “Authority" means the Wisconsin Student Loan Refinancing Authority.

SB91,28,25 (2) “Board" means the governing board of the authority.

SB91,29,1 (3) “Qualified education loan" has the meaning given in 26 USC 221 (d).

SB91,29,5 239.02 Creation and organization of authority. (1) (a) There is created an authority, which is a public body corporate and politic, to be known as the “Wisconsin Student Loan Refinancing Authority." The members of the board shall consist of all of the following:

SB91,29,6 1. One member of the majority party in each house of the legislature.

SB91,29,7 2. One member of the minority party in each house of the legislature.

SB91,29,10 3. One undergraduate student enrolled at least half-time and in good academic standing at an institution within the University of Wisconsin System who is at least 18 years old and a resident of this state.

SB91,29,12 4. One student enrolled at least half-time and in good academic standing at a technical college who is at least 18 years old and a resident of this state.

SB91,29,15 5. One undergraduate student enrolled at least half-time and in good academic standing at a private, nonprofit institution of higher education located in this state who is at least 18 years old and a resident of this state.

SB91,29,21 6. Two members who have at least 10 years experience in making qualified education loans or loan refinancing, but any person having a financial interest in or whose employer is primarily engaged in the business of making qualified education loans is not eligible for appointment under this subdivision, and any member appointed under this subdivision who acquires such an interest while serving as a member shall resign from the board.

SB91,29,23 (b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the members of standing committees in their respective houses.

SB91,29,25 2. The members specified in par. (a) 3. to 5. shall be nominated by the governor, and with the advice and consent of the senate appointed, for 2-year terms.

SB91,30,2 3. The members specified in par. (a) 6. shall be nominated by the governor, and with the advice and consent of the senate appointed, for 3-year terms.

SB91,30,8 (2) If a student member of the board appointed under sub. (1) (a) 3. to 5. loses his or her student status upon which the appointment was based, he or she ceases to be a member of the board upon the appointment of a qualified successor to the board. A student member who loses his or her student status solely because he or she graduates from an institution of higher education may complete his or her current term on the board.

SB91,30,14 (3) The members of the board shall annually elect a chairperson and may elect other officers as they consider appropriate. A majority of the members of the board constitutes a quorum for the purpose of conducting its business and exercising its 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 present.

SB91,30,17 (4) A member of the board may not be compensated for his or her services but shall be reimbursed for actual and necessary expenses, including travel expenses, incurred in the performance of his or her duties.

SB91,30,21 (5) No cause of action of any nature may arise against and no civil liability may be imposed upon a member of the board for any act or omission in the performance of his or her powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.

SB91,31,7 (6) The board shall appoint a chief executive officer who shall not be a member of the board and who shall serve at the pleasure of the board. The chief executive officer shall receive such compensation as the board fixes. The chief executive officer or other person designated by resolution of the board shall keep a record of the proceedings of the authority and shall be custodian of all books, documents, and papers filed with the authority, the minute book or journal of the authority, and its official seal. The chief executive officer or other person may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates.

SB91,31,10 239.03 Powers of board. The board shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter. In addition to all other powers granted the board under this chapter, the board may specifically:

SB91,31,12 (1) Adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.

SB91,31,13 (2) Have a seal and alter the seal at pleasure.

SB91,31,14 (3) Maintain an office.

SB91,31,15 (4) Sue and be sued.

SB91,31,17 (5) Accept gifts, grants, loans, or other contributions from private or public sources.

SB91,31,19 (6) Establish the authority's annual budget and monitor the fiscal management of the authority.

SB91,31,21 (7) Execute contracts and other instruments required for the operation of the authority.

SB91,31,23 (8) Employ any officers, agents, and employees that it may require and determine their qualifications, duties, and compensation.

SB91,31,24 (9) Issue notes, bonds, and any other obligations.

SB91,31,25 (10) Make loans and provide grants.

SB91,32,1 (11) Incur debt.

SB91,32,2 (12) Procure liability insurance.

SB91,32,5 239.04 Duties of board. The board shall develop and implement a program under which state residents may refinance qualified education loans. The board shall develop the program to include all of the following:

SB91,32,7 (1) The authority shall provide a loan to an eligible individual to pay all or part of the individual's qualified education loans.

SB91,32,9 (2) The authority may only issue loans under the program that satisfy the exception to discharge under 11 USC 523 (a) (8).

SB91,32,11 (3) The authority shall establish eligibility criteria to participate in the program.

SB91,32,14 (4) The board shall set the interest rate on loans made under the program to be as low as possible but still sufficient to fully pay all expenses of the program and to provide necessary reserves, as determined by the board.

SB91,32,16 (5) The authority shall establish policies governing the ability of borrowers to defer loan payments or to enter into forbearances.

SB91,32,19 239.05 Issuance of bonds. (1) The authority may issue bonds for any corporate purpose. All bonds are negotiable for all purposes, notwithstanding their payment from a limited source.

SB91,32,23 (2) Except as otherwise expressly provided by the authority, every issue of its notes or bonds shall be general obligations of the authority payable out of any revenues or moneys of the authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular receipts or revenues.

SB91,32,25 (3) All bonds issued by the authority are negotiable investment securities under ch. 408.

SB91,33,11 (4) The authority may not issue bonds unless the issuance is first authorized by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding 50 years from their dates of issue, bear interest at the rates, be payable at the times, be in the denominations, be in the form, carry the registration and conversion privileges, be executed in the manner, be payable in lawful money of the United States at the places, and be subject to the terms of redemption, that the bond resolution provides. The bonds shall be executed by the manual or facsimile signatures of the officers of the authority designated by the board. The bonds may be sold at public or private sale at the price, in the manner, and at the time determined by the board. Pending preparation of definitive bonds, the authority may issue interim receipts or certificates that shall be exchanged for the definitive bonds.