173.055. Institution risk sharing program, defaulted student loans--definitions--duties of department--risk share revolving fund, created, purposes--institutional fee, amount, collection--loan guarant - Missouri Statutes

Institution risk sharing program, defaulted studentloans--definitions--duties of department--risk share revolving fund,created, purposes--institutional fee, amount, collection--loanguarantors, data, duty to report.

173.055. 1. As used in this section, the following termsshall mean:

(1) "Board", the Missouri coordinating board for highereducation;

(2) "Department", the Missouri department of highereducation;

(3) "Fund", the risk sharing revolving fund;

(4) "Institution", any institution of postsecondaryeducation, including a university, college, vocational andtechnical school, and other postsecondary institution, locatedwithin the state of Missouri;

(5) "Institutional fee", an annual fee assessed againstinstitutions by the department based on a calculation approved bythe United States Secretary of Education;

(6) "Rate", the cohort default rate determined by theUnited States Secretary of Education;

(7) "Secretary", the United States Secretary of Education;

(8) "State fee", a fee assessed against the state ofMissouri and paid to the secretary as required by federal law.

2. The Missouri coordinating board for higher educationshall administer the "Student Loan Default State Risk SharingProgram" established pursuant to the Omnibus BudgetReconciliation Act of 1993, P.L. 103-66, and shall calculate,assess, collect, and authorize payment of the state fee to thesecretary.

3. The department shall annually authorize payment from thefund of any fee assessed by the secretary under the OmnibusBudget Reconciliation Act of 1993, as amended, P.L. 103-66, onbehalf of the state and shall collect, pursuant to this section,fees from educational institutions to cover this cost.

4. The "Risk Share Revolving Fund" is hereby established inthe state treasury and shall consist of money appropriated to thefund by the general assembly, institutional fees, gifts, grants,and bequests from federal, private, or other sources made for thepurpose of paying the state fee to the secretary. Any balance inthe fund, not in excess of two times the total amountappropriated, paid or transferred to the fund during thepreceding fiscal year shall not be subject to transfer to thegeneral revenue fund pursuant to section 33.080, RSMo.

5. All moneys collected by the department in institutionalfees shall be paid into the state treasury and credited to thefund.

6. The department may contract with public agencies orprivate persons or organizations for the purpose of carrying outthe provisions of this section.

7. The board shall, by rule, determine the procedures forthe collection of the annual institutional fees. If aninstitution fails to pay the assessed fee, the attorney generalfor the state of Missouri may initiate proceedings to collect theassessed fee.

8. The board shall develop and promulgate rules pursuant toand shall administer the provisions of this section.

9. Independent or private guarantors of student loans ofstudents attending Missouri institutions shall file an annualreport at no charge by each October fifteenth with the departmentstating, for the immediately preceding period of October firstthrough September thirtieth and for each month therein and foreach Missouri institution, the total number of loans guaranteed,the total dollar amount of such loans, the total number andamount of loans entering repayment, the total number and amountof loans for which default claims were paid, the total number andamount of loans for which bankruptcy claims were paid, the totalnumber and amount of loans for which death claims were paid, andthe total number and amount of loans for which total andpermanent disability claims were paid.

(L. 1994 S.B. 583)