Oklahoma § 70-623 - Guaranteeing of loans - Conditions - Rules

§ 70-623. Guaranteeing of loans - Conditions - Rules

A. The Oklahoma State Regents for Higher Education are hereby

authorized to utilize the Student Educational Assistance Fund and to

administer the student loan guarantee program under the federal

Higher Education Act of 1965, as amended, for guaranteeing loans

made by private or public lending institutions to loan guarantee

applicants for the purpose of obtaining financial assistance for

attendance at any participating school, to participate in any other

federal student loan program and to provide support services for

students and others in conjunction with the United States Department

of Education in areas including, but not limited to, default

prevention, financial literacy, financial aid awareness, college

access and outreach and other areas as permitted or mandated by

current or future federal legislation. The State Regents are

authorized to provide the student and parent borrower assistance

services described in this section for any and all federal student

loan programs through contracts and agreements with the United

States Department of Education or other entities.

Oklahoma Statutes - Title 70. Schools

B. No loan guaranteed by the State Regents, except as required

by federal regulation, shall require repayment while the student is

pursuing at least a half-time course of study on a continuing basis

in a participating school. The rate of interest on the loan shall

be as established in the Higher Education Act of 1965, as amended.

C. The State Regents are further authorized and empowered to

promulgate rules and procedures with respect to applicant

eligibility, terms of loans, repayment agreements and other matters

considered appropriate, as will facilitate the program authorized by

this section and the Higher Education Act of 1965, as amended, and

as will not conflict with the terms hereof. The procedures may

include, but not be limited to, entering into agreements with other

federal loan program participants such as schools, lenders,

servicers, secondary markets, collection agencies, guarantee

agencies, the United States Department of Education and other

entities.

D. 1. A licensing agency shall provide information indexed by

social security number to the State Regents when the information is

requested for use in the default prevention efforts or collection of

defaulted student loans guaranteed by the State Regents.

2. Any information disclosed under the provision of this

subsection shall be utilized for the purpose outlined in this

subsection and shall be held strictly confidential by the State

Regents.

3. No member or employee of any entity who discloses

information pursuant to this subsection shall be criminally or

civilly liable for any error or omission in the disclosure of the

information.

4. In addition to other collection methods authorized by law,

the State Regents may establish and implement programs for

administrative garnishment and wage withholding, in accordance with

applicable federal laws and regulations, to collect on defaulted

student loans.

Added by Laws 1965, c. 482, § 2, emerg. eff. July 14, 1965. Amended

by Laws 1967, c. 3, § 1, emerg. eff. Feb. 8, 1967; Laws 1984, c.

131, § 1, emerg. eff. April 10, 1984; Laws 1996, c. 261, § 1, eff.

July 1, 1996; Laws 1999, c. 66, § 1, eff. July 1, 1999; Laws 2010,

c. 131, § 1, eff. July 1, 2010; Laws 2017, c. 104, § 1, eff. July 1,

2017.