1748.E AAS CONF REPT 4/22/93
EHB 1748 - CONF REPT - H-2649.2
By Conference Committee
ADOPTED 4/22/93
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 28B.15.820 and 1985 c 390 s 35 are each amended to read as follows:
(1) Each institution of
higher education, except technical colleges, shall deposit two and
one-half percent of revenues collected from tuition and services and activities
fees in an institutional ((long-term loan)) financial aid fund ((which))
that is hereby created and which shall be held locally. Moneys in ((such))
the fund shall be used only for the following purposes: (a) To
make guaranteed long-term loans to eligible students ((except as
provided for)) as provided in subsections (3) through (8) of this
section; (b) to make short-term loans as provided in subsection (9) of this
section; or (c) to provide financial aid to needy students as provided in
subsection (10) of this section.
(2) An "eligible
student" for the purposes of subsections (3) through (8) and (10) of
this section is a student registered for at least six credit hours or the
equivalent, who is eligible for resident tuition and fee rates as defined in
RCW 28B.15.012 through ((28B.15.015)) 28B.15.013, and who is a
"needy student" as defined in RCW 28B.10.802.
(3) The amount of the guaranteed
long-term loans made under ((subsection (1) of)) this section shall
not exceed the demonstrated financial need of the student. Each institution
shall establish loan terms and conditions which shall be consistent with the
terms of the guaranteed loan program established by 20 U.S. Code Section 1071
et seq., as now or hereafter amended. All loans made shall be guaranteed by
the Washington student loan guaranty association or its successor agency.
Institutions are hereby granted full authority to operate as an eligible lender
under the guaranteed loan program.
(4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.
(5) Each institution is
responsible for collection of guaranteed long-term loans made under ((subsection
(1) of)) this section and shall exercise due diligence in such collection,
maintaining all necessary records to insure that maximum repayments are made.
Institutions shall cooperate with other lenders and the Washington student loan
guaranty association, or its successor agency, in the coordinated collection of
guaranteed loans, and shall assure that the guarantability of the loans is not
violated. Collection and servicing of guaranteed long-term loans under
((subsection (1) of)) this section shall be performed by entities
approved for such servicing by the Washington student loan guaranty association
or its successor agency: PROVIDED, That institutions be permitted to perform
such servicing if specifically recognized to do so by the Washington student
loan guaranty association or its successor agency. Collection and servicing of
guaranteed long-term loans made by community colleges under subsection
(1) of this section shall be coordinated by the state board for community and
technical colleges ((education)) and shall be conducted under
procedures adopted by ((such)) the state board.
(6) Receipts from
payment of interest or principal or any other subsidies to which institutions
as lenders are entitled, ((which)) that are paid by or on behalf
of borrowers of funds under subsections (((1))) (3) through
(8) of this section, shall be deposited in each institution's ((general
local)) financial aid fund and shall be used to cover the costs of
making the guaranteed long-term loans under ((subsection (1) of))
this section and maintaining necessary records and making collections under
subsection (5) of this section: PROVIDED, That such costs shall not exceed
five percent of aggregate outstanding loan ((principle)) principal.
Institutions shall maintain accurate records of such costs, and all receipts
beyond those necessary to pay such costs, shall be ((used for the support of
the institution's operating budget)) deposited in the institution's
financial aid fund.
(7) The governing
boards ((of regents)) of the state universities, ((the boards of
trustees of)) the regional universities, and The Evergreen State
College, and the state board for community and technical colleges
((education)), on behalf of the community colleges, shall each adopt
necessary rules and regulations to implement this section.
(8) ((Lending
activities)) First priority for any guaranteed long-term loans made
under this section shall be directed toward students who would not normally
have access to educational loans from private financial institutions in
Washington state, and maximum use shall be made of secondary markets in the
support of loan consolidation.
(9) Short-term ((interim))
loans, not to exceed one ((hundred twenty days)) year, may be
made from the institutional ((long-term loan)) financial aid fund
to students ((eligible for guaranteed student loans and whose receipt of
such loans is pending. Such short-term loans shall not be subject to the
guarantee restrictions or the constraints of federal law imposed by subsection
(3) of this section)) enrolled in the institution. No such loan
shall be made to any student who is known by the institution to be in default
or delinquent in the payment of any outstanding student loan. A short-term
loan may be made only if the institution has ample evidence that the student
has the capability of repaying the loan within the time frame specified by the
institution for repayment.
(10) Any moneys deposited
in the institutional ((long-term loan)) financial aid fund ((which))
that are not used in making ((long)) long-term or short-term
loans ((or transferred to institutional operating budgets)) may be used
by the institution for locally-administered financial aid programs for needy
students, such as need-based institutional employment programs or need-based
tuition and fee ((waiver)) scholarship or grant programs. These
funds shall be used in addition to and not to replace institutional funds ((which))
that would otherwise support these locally-administered financial aid
programs. Priority in the use of these funds shall be given to needy students
who have accumulated excessive educational loan burdens. An excessive
educational loan burden is a burden that will be difficult to repay given
employment opportunities and average starting salaries in the student's chosen
fields of study.
Sec. 2. RCW 28B.101.040 and 1990 c 288 s 6 are each amended to read as follows:
Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that is accredited by an accrediting association recognized by rule of the higher education coordinating board and that has an existing unused capacity. Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW. The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology. Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study.
Sec. 3. RCW 28B.12.040 and 1985 c 370 s 58 are each amended to read as follows:
The higher education coordinating board shall develop and administer the college work-study program and shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program. These agreements shall include such provisions as the higher education coordinating board may deem necessary or appropriate to carry out the purposes of this chapter.
With the exception
of off-campus community service placements, the share from ((funds))
moneys disbursed under the college work-study program of the
compensation of students employed under such program in accordance with such
agreements shall not exceed eighty percent of the total such compensation paid
such students.
By rule, the board shall define community service placements and may determine any salary matching requirements for any community service employers."
EHB 1748 - CONF REPT - H-2649.2
By Conference Committee
ADOPTED 4/22/93
On page 1, line 1 of the title, after "aid;" strike the remainder of the title and insert "and amending RCW 28B.15.820, 28B.101.040, and 28B.12.040."
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