AB 661

This bill requires the Higher Educational Aids Board (HEAB) to make student

loan assistance payments to certain individuals employed in sectors of industry that

are critical to the state's economy and that offer employment with wages and benefits

that provide for self-sufficiency. The bill requires the secretary of workforce

development and the chief executive office (CEO) of the Wisconsin Economic

Development Corporation to identify the sectors. In addition, the secretary and CEO

must consult with the following in identifying the sectors: the state superintendent

of public instruction, the Board of Regents of the University of Wisconsin System, the

technical college system board, and local workforce investment boards established

under the federal Workforce Investment Act.

An individual is eligible for the payments if he or she was enrolled in an

institution of higher education on or after the bill's effective date. In addition, prior

to applying for the payments, the individual must have obtained a technical college

embedded pathway certificate, technical college short-term, one-year, or two-year

technical diploma, or an associate, bachelor's, or graduate degree. The individual

must also have an outstanding balance on a student loan. Finally, within 18 months

after obtaining the required degree, he or she must be employed in a sector identified

as described above.

The bill requires HEAB to make payments to eligible individuals who submit

an application prescribed by HEAB that identifies lenders and outstanding student

loan balances. Except when the appropriation for the payments is not sufficient,

which is discussed below, the bill requires that the total amount of payments to an

individual must equal 20 percent of the outstanding balance on the individual's

student loans, or $15,000, whichever is less. HEAB must make five annual

payments of equal amounts to the lenders identified on the individual's application.

If more than one lender is identified, HEAB must prorate the payments among the

lenders. If an individual pays the entire balance of a student loan before HEAB

makes all the required payments to the lender, HEAB must pay directly to the

individual the amounts HEAB would have paid to the lender. However, HEAB may

not make any annual payment to a lender or individual unless the individual

submits proof that he or she is a state resident who is employed in a sector identified

as described above.

The bill requires HEAB to determine whether the amounts appropriated for the

payments are sufficient to make payments to eligible individuals. If the amount is

not sufficient, HEAB must prorate the payments and notify the joint committee on

finance that the amount is not sufficient. The bill also provides that the bill does not

relieve an individual of any contractual duty to make scheduled payments on a

student loan. Finally, the bill requires HEAB to prepare and distribute

informational and promotional material about the student loan assistance available,

and the sectors identified, under the bill to all private, public, and tribal high schools