173.110. Department may guarantee student loans--subrogation--charges for guarantee--lender of last resort loans, origination--amount guaranteed, limit.

MISSOURI STATUTES AND CODES

173.110. Department may guarantee student loans--subrogation--charges for guarantee--lender of last resort loans, origination--amount guaranteed, limit.

Department may guarantee student loans--subrogation--charges forguarantee--lender of last resort loans, origination--amountguaranteed, limit.

173.110. 1. The department is authorized to issuecertificates of guarantee covering student loans by eligiblelenders which meet the requirements of sections 173.095 to173.180 and the regulations of the board adopted hereunder toeligible borrowers, and to pay from the fund to an eligiblelender the amount established by federal law in the event thestudent defaults. Upon payment of the loss the department shallbe subrogated to all the rights of the eligible lender.

2. The department shall charge for each guaranteed loan aspecial loan insurance premium established by federal law whichshall be paid to the department by the borrower. Amounts soreceived shall be used by the department to pay the costs ofadministering the program and to guarantee student loans.

3. The department is authorized to originate loans,including lender of last resort loans. All moneys to originateloans, including lender of last resort loans, shall be paid froma fund established for that purpose, including the lender of lastresort revolving fund created under section 173.187.

4. The total outstanding guaranteed loans shall at no timeexceed an amount which, according to sound actuarial judgment asdetermined by the state auditor, can be guaranteed by the fund.