Oklahoma § 70-695.18 - Supplemental loan program

§ 70-695.18. Supplemental loan program

The Oklahoma Student Loan Authority shall establish and operate

a supplemental loan program for qualified students who are not

eligible for loans under the federally insured student loan program,

pursuant to the following:

A. "Qualified person" shall be those students enrolled in a

participating institution or a biological or adoptive parent of such

student who meets the eligibility requirements set by the Oklahoma

Student Loan Authority.

B. The Authority may enter into agreements with the

Commissioners of the Land Office for funding this loan program or

may obtain funding through authorized procedures as provided for in

the Oklahoma Student Loan Act.

C. The Authority may enter into agreements with the State

Guarantee Agency or any nationally recognized guarantor approved by

the United States Secretary of Education for the insurance of such

loans.

D. The Authority shall collect its loans when due; and, in the

event of a possible default after due diligence has been performed

to collect on a guaranteed loan, a claim shall be filed with the

State Guarantee Agency for collection under the insurance program,

which guarantor shall pay the claim for the Authority, following

which it shall take whatever action may be necessary to collect from

the borrower in order to assure that the State of Oklahoma will not

suffer any loss in connection with default payments; and if

insurance of the loan is with a nationally recognized guarantor, the

same procedure shall apply.

E. The Authority shall establish the rate of interest to be

paid on loans, which shall be paid by the borrowers to the

Authority, which rate shall be as modest as possible for the benefit

of the student but shall be at sufficient level to assure repayment

of the debt incurred to underwrite the loans and expenses incurred

by the Authority in administration of the program.

F. The Authority shall promulgate rules as may be necessary and

appropriate for the full and effective administration of the loan

program provided for in the Oklahoma Student Loan Act, and it shall

be the sole state agency for providing loans to eligible persons

under the federal and state student loan programs.

G. As in the case of other trust agencies, the State of

Oklahoma is not obligated to support with state-appropriated funds

the loan program provided for in the Oklahoma Student Loan Act.

Oklahoma Statutes - Title 70. Schools

Added by Laws 1987, c. 81, § 8, operative July 1, 1987. Amended by

Laws 2001, c. 303, § 1, eff. July 1, 2001; Laws 2024, c. 242, § 7,

eff. Nov. 1, 2024.