SB 663

This bill requires the Higher Educational Aids Board to make student loan

reimbursement payments on behalf of certain individuals who establish domiciles

in rural counties. To be eligible for the payments, an individual must have an

outstanding balance on a student loan for attending an "institution of higher

education," which is defined as a nonprofit or public educational institution that

either awards a bachelor's or higher degree, provides a program acceptable for full

credit toward such a degree, or provides a training program to prepare students for

gainful employment in a recognized occupation. In addition, the institution must

admit as regular students only individuals who have a high school graduation

certificate or its equivalent. Also, to be eligible, for at least six months, an individual

must have been domiciled in a "rural county," which the bill defines as a county that

does not include a metropolitan statistical area as delineated by the U.S. Office of

Management and Budget. Immediately prior to establishing that domicile, the

individual must have been domiciled outside this state for a period of at least five

years. In addition, to be eligible, an individual must be employed on a full-time basis

and not receive any public assistance benefits.

The bill requires an individual to submit an application that is prescribed by

HEAB. The application must identify 1) all student loans with an outstanding

balance; 2) the balance amounts; 3) loan payment schedules and maturity dates; and

4) the names and addresses of lenders. For each eligible individual who submits an

application, the bill requires HEAB to make five annual student loan payments to

the lenders identified on the application. The total amount of payments for an

individual must equal 40 percent of the outstanding balances, or $25,000, whichever

is less. If there are multiple lenders, HEAB must prorate the payments among the

lenders. If an individual pays the outstanding balance of a student loan prior to

HEAB making payments to a lender, HEAB must pay directly to the individual the

amounts that HEAB would have paid to the lender. If an individual who receives

payments does any of the following, the individual is ineligible for additional

payments: 1) establishes a domicile outside a rural county; 2) fails to be employed on

a full-time basis; or 3) receives public assistance benefits.