US Laws, Codes, Statutes & Cases

Chapter 348 — Student Aid; Education Stability Fund; Planning

 

2007 EDITION

 

 

STUDENT AID; STABILITY FUND; PLANNING

 

EDUCATION AND CULTURE

 

POLICY

 

348.005     Policy on student financial aid

 

LOANS GENERALLY

 

348.010     Higher Education Student Loan Fund; investments

 

348.040     Definitions for ORS 348.040 to 348.070

 

348.050     Student loans from Common School Fund; terms and conditions; exceptions

 

348.070     List of suitable career schools

 

348.090     Loans guaranteed by state agency; payment of interest

 

348.095     Reimbursement by commission for default losses

 

348.105     Loan obligations enforceable against minor

 

348.115     Student loans for nursing programs; terms and conditions

 

348.117     Repayment of loans for nursing program; grounds for deferral

 

SCHOLARSHIPS AND GRANTS

 

348.180     Definitions

 

348.183     Legislative intent

 

348.186     Oregon Achievement Grant; qualifications; renewal

 

348.205     Oregon Opportunity Grant program

 

348.210     Scholarships at Eastern Oregon University; scholarships for certain foreign students

 

348.230     Scholastic grants at post-secondary institutions; qualified applicants; renewals

 

348.250     Procedure for awarding grants under ORS 348.230 and 348.260

 

348.260     Oregon Opportunity Grant; amount; renewal

 

348.265     Grants for students of Oregon Health and Science University

 

348.270     Scholarships for children of public safety officers and former foster children

 

348.280     Determination of eligibility for scholarships under ORS 348.270; rules

 

348.282     Definitions

 

348.283     Oregon Troops to Teachers program; rules

 

348.290     Financial aid to study barbering, hairdressing, manicure and esthetics

 

RURAL MEDICAL EDUCATION LOANS

 

348.310     Loans for medical study; rules

 

348.320     Eligibility for loans; application; written agreement

 

348.330     Amount of loans

 

348.340     Cost-sharing community loan fund program; repayment; exception

 

348.350     Cost-sharing hospital loan fund program; limitation; admission to family practice programs

 

348.360     Renewal of loans

 

348.370     Repayment of loans; interest; conditions; exemption

 

348.390     Rural Medical Education Loan Fund; sources; use

 

SPEECH-LANGUAGE PATHOLOGIST GRANTS AND STIPENDS

 

348.394     Definitions for ORS 348.394 to 348.406

 

348.398     Department of Education authority; grants; stipends; rules

 

348.401     Grant eligibility; amount; employment requirement

 

348.403     Stipend eligibility; amount

 

348.406     Speech-Language Pathologist Training Fund

 

COMMUNITY SERVICE VOUCHER PROGRAM

 

348.427     Voucher program established; amount; recipient eligibility

 

348.429     Voucher amount limited; Oregon Student Assistance Commission duties; vouchers not personal income; rules

 

348.431     Tracking system

 

348.433     Limitation on administrative expenditures

 

348.436     Community Service Voucher Fund

 

COOPERATION BETWEEN OREGON UNIVERSITY SYSTEM AND COMMUNITY COLLEGES

 

348.470     Legislative findings; cooperation between Oregon University System and community colleges

 

ASPIRE PROGRAMS

 

348.500     Purpose; goals

 

OREGON STUDENT ASSISTANCE COMMISSION

 

(Administration)

 

348.505     “Commission” and “financial aid” defined

 

348.510     Oregon Student Assistance Commission; term; vacancy; confirmation; qualifications

 

348.520     Duties

 

348.530     Powers; rulemaking authority

 

348.540     Officers of commission; quorum; meetings

 

348.550     Compensation and expenses of commission members

 

348.560     Staff; office space

 

348.563     Authority of Oregon Student Assistance Commission to require fingerprints

 

348.570     Funds and accounts created

 

348.580     Agreements with community foundations

 

348.590     Continuous appropriation of certain funds

 

348.592     Loan cancellation insurance

 

(Degrees)

 

348.594     Definitions for ORS 348.594 to 348.615

 

348.596     Purpose of ORS 348.594 to 348.615

 

348.597     Applicability of ORS 348.594 to 348.615

 

348.599     Office of Degree Authorization

 

348.601     Office of Degree Authorization Account

 

348.603     Duties of commission relating to degree authorization and nondegree programs; approval of new post-secondary program or location; rules; fees

 

348.604     Exemption from ORS 348.594 to 348.615

 

348.605     Restrictions and duties of exempted schools

 

348.606     Conferring or offering of degree before approval obtained prohibited; fees; rules

 

348.607     Fee for exemption application; rules; prohibition on requirements for religious exemption

 

348.608     Certification by exempt school; suspension or revocation of exemption; appeal

 

348.609     Representation of possession of academic degree; complaints; civil penalties; rules; fees

 

348.612     Revocation of approval; hearing

 

348.615     Appeal procedure

 

(Scholarship Program Tax Credit)

 

348.616     Minimum criteria for certification of employer program; rules

 

348.618     Requirements for program certification application; acceptance and rejection of application

 

348.621     Requirements for tax credit certification application

 

(Alternative Student Loan Program)

 

348.625     Definitions for ORS 348.570 and 348.625 to 348.695

 

348.630     Eligible recipients; limitations; credit check

 

348.635     Establishment of loan terms and conditions

 

348.640     Administration of loans by private lenders; repayment to state; risk of loss

 

348.655     Issuance of revenue bonds; amount; interest tax exempt

 

348.660     Determination to issue revenue bonds; duties of State Treasurer; factors to consider

 

348.665     Laws governing issuance of bonds; powers of State Treasurer

 

348.670     Administrative expenses

 

348.675     Refunding of bonds

 

348.680     Validity of bonds

 

348.685     Covenants in actions authorizing bonds; contents

 

348.690     Liability of state for bonds

 

348.695     Rights and remedies of bondholders and trustees

 

EDUCATION STABILITY FUND

 

(Generally)

 

348.696     Education Stability Fund; investment; earnings

 

(Oregon Growth Account)

 

348.701     Definitions for ORS 348.701 to 348.710

 

348.702     Oregon Growth Account

 

348.703     Management and investment of moneys in account; reporting requirement; contracts for investment advice and other services

 

348.704     Allocation, withdrawal and transfer of assets in account

 

348.706     Oregon Resource and Technology Development Subaccount

 

348.707     Oregon Growth Account Board; members; terms; compensation; powers and duties

 

348.710     Confidentiality of records, communications and information

 

(Oregon Education Fund)

 

348.716     Oregon Education Fund; use; payment of education lottery bonds

 

OREGON 529 COLLEGE SAVINGS NETWORK

 

348.841     Definitions for ORS 348.841 to 348.873

 

348.844     Policy on higher education qualified tuition savings program

 

348.849     Oregon 529 College Savings Board; membership

 

348.853     Board powers and duties; establishment of network; rules

 

348.856     Oregon 529 College Savings Network Fund

 

348.857     Network participation; contribution limitations; fees

 

348.860     Right to direct investment of contributions or earnings; liability for loss

 

348.863     Prohibitions and limitations on accounts

 

348.867     Designated beneficiary of account; confidentiality of account information

 

348.869     State interest in contributions and earnings

 

348.870     Account withdrawals; rules; report

 

348.873     Report to Governor and Legislative Assembly

 

COORDINATION OF STATE AGENCIES

 

348.890     Joint Boards of Education; meeting; implementation of agreements

 

(Temporary provisions relating to statewide articulation and transfer system are compiled as notes following ORS 348.890)

 

348.900     Needs assessment for health care occupations; evaluation of health care education programs

 

EDUCATION COMMISSION OF THE STATES

 

348.950     Education Commission of the States; members; dues

 

PENALTIES

 

348.992     Criminal penalty

 

POLICY

 

      348.005 Policy on student financial aid. (1) The Legislative Assembly finds that:

      (a) The State of Oregon can achieve its full economic and social potential only if all Oregonians have the opportunity to contribute to the full extent of their capabilities and only when financial barriers to their educational goals are removed;

      (b) All Oregonians who meet the appropriate admissions requirements should be able to attend any community college, state institution of higher education or independent not-for-profit institution of post-secondary education regardless of individual economic or social circumstances;

      (c) The interests of this state are best served when public subsidies supporting college students are distributed fairly, equitably and consciously to ensure maximum access and choice for all Oregonians at the least cost to the taxpayers;

      (d) Need-based student financial aid is an effective, efficient and essential means of assisting Oregonians who are unable to afford the full cost of higher education;

      (e) Student financial aid allows Oregonians with limited resources to select academic programs based on their interests, aptitudes and career goals;

      (f) Student financial aid encourages and permits capable and promising Oregonians to persist in their education and training within this state; and

      (g) By assisting Oregonians in this manner, student financial aid contributes to the quality of life of each Oregonian and to the social, cultural and economic well-being of all Oregonians.

      (2) It is the intention of the Legislative Assembly to establish financial assistance programs to enable qualified Oregonians who need student aid to obtain post-secondary education in Oregon’s community colleges, state institutions of higher education or independent not-for-profit institutions of post-secondary education. [1993 c.239 §1; 2005 c.22 §242]

 

LOANS GENERALLY

 

      348.010 Higher Education Student Loan Fund; investments. (1) The Department of Higher Education shall maintain with the State Treasurer a fund separate and distinct from the General Fund known as the Higher Education Student Loan Fund, which shall consist of:

      (a) All moneys made available to the State Board of Higher Education for student loan purposes by state appropriations and by the federal government under terms of the National Defense Education Act of 1958 and amendments thereto, and under terms of the Health Professions Educational Assistance Act of 1963 and the Nurses Training Act of 1964 and amendments thereto;

      (b) Repayments of loans identified in paragraph (a) of this subsection;

      (c) Interest earned on student loans identified in paragraph (a) of this subsection; and

      (d) Earnings from investments of the Higher Education Student Loan Fund.

      (2) All moneys in the Higher Education Student Loan Fund are continuously appropriated to the Department of Higher Education for the purpose of granting student loans under the terms established by the National Defense Education Act of 1958 and amendments thereto, under terms of the Health Professions Educational Assistance Act of 1963 and the Nurses Training Act of 1964 and amendments thereto.

      (3) The repayment in whole or part of any student loan made under terms of the National Defense Education Act of 1958 and amendments thereto, under terms of the Health Professions Educational Assistance Act of 1963 and the Nurses Training Act of 1964 and amendments thereto, shall be made pursuant to the provisions of the applicable federal statutes and repayment to the Higher Education Student Loan Fund shall be made in accordance with applicable federal statutes.

      (4) Funds in the Higher Education Student Loan Fund not needed for student loans may be invested by the State Treasurer as other public funds are invested under ORS 293.701 to 293.820. The State Treasurer shall credit to the Higher Education Student Loan Fund any interest or other income derived from such investment. [Formerly 351.570; 1987 c.102 §1; 1999 c.311 §4; 2005 c.22 §243]

 

      348.040 Definitions for ORS 348.040 to 348.070. As used in ORS 348.040 to 348.070, unless the context requires otherwise:

      (1) “Commission” means the Oregon Student Assistance Commission.

      (2) “Eligible student” means a person who is a resident of this state, as determined by the Oregon Student Assistance Commission, at the time of application for a loan under ORS 348.040 to 348.070:

      (a) Who is enrolled in or has applied for enrollment in a qualified school;

      (b) Who has demonstrated a satisfactory level of achievement in the high school or other school on the record of which the application for enrollment is based or in which the applicant is enrolled; and

      (c) Who can show the necessity for financial assistance in order to continue the applicant’s education.

      (3) “Qualified school” means a school within this state which is a:

      (a) Four-year, nonprofit, generally accredited institution of higher education;

      (b) Accredited public or private community college or education center, or one recognized by a state educational agency;

      (c) Career school that is approved by the Superintendent of Public Instruction;

      (d) Medical or dental program offered by the Oregon Health and Science University;

      (e) Veterinary program offered by Oregon State University; or

      (f) Institution which is, in the opinion of the commission, comparable to such institutions, colleges, centers or schools.

      (4) When the commission certifies that the course is not available within this state, a qualified school may include an institution, college, center or school not located in this state. [1965 c.532 §1; 1977 c.762 §6; 1981 c.324 §2; 1995 c.343 §33; 1999 c.704 §9]

 

      348.050 Student loans from Common School Fund; terms and conditions; exceptions. (1) Upon approval of the loan application of an eligible student by the Oregon Student Assistance Commission, the Department of State Lands may loan an amount from the Common School Fund to the student in compliance with ORS 348.040 to 348.070. The loan shall be evidenced by a written obligation but no additional security shall be required. Notwithstanding any provision in this section, the department may require cosigners on the loans.

      (2) Loans granted under ORS 348.040 to 348.070 to eligible students by the department shall:

      (a) Not exceed $1,000 in a single academic year to an undergraduate student.

      (b) Not exceed $4,000 in a single academic year to a graduate or professional student.

      (c) Not exceed $16,000 for all loans made to a student under ORS 348.040 to 348.070.

      (3) Payment of interest shall be as follows:

      (a) Medical and dental student borrowers at the Oregon Health and Science University and veterinary student borrowers at Oregon State University shall be assessed at least six percent interest per annum on the unpaid balance from the date of the note. Interest payments by these borrowers shall be deferred until they cease to be enrolled. During the interest deferment period, the Oregon Student Assistance Commission shall pay the department the negotiated rate of interest on an annual basis. The borrower shall reimburse the Oregon Student Assistance Commission for these interest payments as provided in subsection (4) of this section. These borrowers shall commence direct payment of accruing interest to the department at the time they cease to be enrolled.

      (b) All other borrowers are required to pay at least seven percent interest per annum on the unpaid balance from the date of the loan as provided in subsection (4) of this section.

      (c) The Oregon Student Assistance Commission shall pay annually to the department a maximum of three percent per annum on the unpaid balance of all medical, dental and veterinary student borrower loans. The rate of this special payment may vary annually and will be negotiated by the Oregon Student Assistance Commission and the department.

      (d) The interest rates to be charged the borrower for the school year as stated in paragraphs (a) and (b) of this subsection shall be negotiated by the department and the Oregon Student Assistance Commission.

      (4)(a) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the student’s graduation or other termination of the student’s education.

      (b) Notwithstanding any other provision of this section, medical, dental and veterinary student borrowers who enter approved post-graduate study programs shall commence repayment of the principal and the accruing and deferred interest on loans no later than 12 months following the completion of the post-graduate study program or 60 months, whichever is sooner.

      (c) Repayment shall be completed in a maximum of 120 months from the time repayment is commenced. However, nothing in this section is intended to prevent repayment without penalty at an earlier date than provided in this section or to prohibit the department, with the consent of the Oregon Student Assistance Commission, from extending the repayment period to a date other than permitted by this subsection.

      (5) Notwithstanding any other provision of this section, the department may loan an amount from the Common School Fund to a student under guaranteed programs authorized by the Higher Education Act of 1965, as amended, commonly known as the Guaranteed Student Loan Program and the Parent’s Loans for Undergraduate Students Program. Neither the limitations on amounts set forth in subsection (2) of this section nor the subsidies authorized by subsection (3) of this section apply to such loans. ORS 327.484 does not apply to such loans. [1965 c.532 §2; 1969 c.573 §3; 1977 c.725 §1; 1977 c.762 §7; 1981 c.324 §1; 1983 c.483 §1]

 

      348.060 [1965 c.532 §3; repealed by 1971 c.577 §3]

 

      348.070 List of suitable career schools. To assist the Oregon Student Assistance Commission and the Department of State Lands in determining the qualification of schools, the Superintendent of Public Instruction shall maintain a listing of career schools offering professional and technical training that meets the occupational needs of the student. [1965 c.532 §4; 1995 c.343 §34]

 

      348.080 [1965 c.532 §10; repealed by 1967 c.477 §5]

 

      348.090 Loans guaranteed by state agency; payment of interest. In addition to and not in lieu of student loans authorized pursuant to ORS 348.040 to 348.070, the Department of State Lands may make loans to students who are Oregon residents if the loans are guaranteed by a state agency. The terms, conditions and rates of interest of such loans may be determined by the department so as to take advantage of any federal statute providing for full or partial payment of interest on such loans. [1967 c.477 §4]

 

      348.095 Reimbursement by commission for default losses. From funds available therefor, the Oregon Student Assistance Commission shall reimburse the Department of State Lands for any loss resulting from default of a student loan under ORS 348.040 to 348.070. Funds appropriated under ORS 348.050 to pay interest to the department on loans to medical, dental and veterinary students shall also be available to reimburse the department for any loss resulting from default of a student loan under ORS 348.040 to 348.070. [1977 c.762 §10; 1987 c.130 §1]

 

      348.105 Loan obligations enforceable against minor. (1) As used in this section:

      (a) “Educational institution” means any post-secondary educational institution that is approved or accredited by the Northwest Association of Schools and Colleges, by its regional equivalent or by the appropriate official, department or agency of the state or nation in which the institution is located, and that is:

      (A) A four-year college or university;

      (B) A junior college or community college; or

      (C) A technical, professional or career school.

      (b) “Educational loan” means a loan or other aid or assistance for the purpose of furthering the obligor’s education at an educational institution.

      (c) “Person” means an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity.

      (2) Notwithstanding any other provision of law, any written obligation made by any minor in consideration of an educational loan received by the minor from any person shall be as valid and binding as if the minor had, at the time of making and executing the obligation, attained the age of majority, but only if prior to the making of the educational loan an educational institution has certified in writing to the person making the educational loan that the minor is enrolled, or has been accepted for enrollment, in the educational institution.

      (3) Any obligation mentioned in subsection (2) of this section may be enforced in any action or proceeding against such person in the name of the person and shall be valid, insofar as the issue of age is concerned, without the consent thereto of the parent or guardian of such person. Such person may not disaffirm the obligation because of age nor may such person interpose in any action or proceeding arising out of the educational loan the defense that the borrower is, or was, at the time of making or executing the obligation, a minor.

      (4) Any parent or legal guardian who did not consent to guarantee or otherwise ensure performance of the obligation mentioned in subsection (2) of this section shall not be liable for payment of such obligation. [Formerly 348.805; 1977 c.725 §2; 1995 c.343 §35; 2005 c.22 §244]

 

      348.115 Student loans for nursing programs; terms and conditions. (1) In addition to any other financial aid provided by law, the Oregon Student Assistance Commission, pursuant to rule, may award loans to a qualified resident of this state upon the resident’s acceptance and entry into a baccalaureate or associate degree nursing program at a post-secondary institution in Oregon. The loans may be forgiven upon fulfillment of the requirements of subsection (4) of this section.

      (2) The loans authorized by subsection (1) of this section:

      (a) Shall be made based on achievement, ability, need and motivation;

      (b) Shall be made on an annual basis subject to renewal upon satisfactory performance for the duration of the nursing program; and

      (c) Shall be made in annual amounts not to exceed 50 percent of the sum of tuition, fees and room and board for each participating student.

      (3) Priority in awarding loans shall be given to:

      (a) A resident employed in the health care field at the time of application; and

      (b) A resident who agrees to practice in an area where there is a critical shortage of nurses, as determined annually by the Oregon State Board of Nursing in consultation with the Office of Rural Health.

      (4) The resident receiving a loan under this section must agree to practice nursing at least half-time in an area described in subsection (3)(b) of this section or in an area of specialty that is underserved for one calendar year for each academic year for which the loan is received. If the resident does not fulfill the practice requirement within five years of graduation, the amount received shall be considered a loan, repayable as provided in ORS 348.117, for each year for which the practice requirement is not met. [1991 c.947 §16; 1993 c.765 §51; 1999 c.704 §10; 2001 c.599 §4]

 

      Note: 348.115 is repealed July 1, 2012. See section 8, chapter 599, Oregon Laws 2001.

 

      348.117 Repayment of loans for nursing program; grounds for deferral. (1) Student borrowers under ORS 348.115 shall be required to pay at least seven percent interest per annum on the unpaid balance from the date of the loan as provided in subsection (5) of this section.

      (2) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the student’s completion of the nursing program or other termination of the student’s education.

      (3) Repayment of loans shall be deferred upon application therefor for up to three years during which:

      (a) The student borrower is enrolled as at least a half-time student in a subsequent nursing program leading to a nursing degree higher than that attained in the initial program; or

      (b) The student borrower shows inability to locate suitable employment.

      (4) Repayment commences under the usual terms if the student borrower ceases to be employed as a nurse in this state before completing the practice requirements set forth in ORS 348.115 (4).

      (5) Repayment shall be completed in a maximum of 120 months from the time repayment is commenced. However, nothing in this subsection is intended to prevent repayment without penalty at an earlier date than provided in this subsection or to prohibit the Oregon Student Assistance Commission from extending the repayment period to a date other than specified by this subsection.

      (6) A student who borrows under ORS 348.115 shall have 100 percent of principal and accrued interest on loans under this section, ORS 348.115, 353.450, 442.470, 442.520, 442.550 to 442.570 and 656.256 canceled if it can be documented that, within five years of graduation:

      (a) The student has completed one calendar year of full-time employment as a nurse in the State of Oregon for each academic year in which a loan was received; or

      (b) The student has completed two calendar years of half-time employment as a nurse in the State of Oregon for each academic year in which a loan was received.

      (7) A student who borrows under this section, ORS 348.115, 353.450, 442.470, 442.520, 442.550 to 442.570 and 656.256 and completes at least one calendar year of the practice obligation described in subsection (6) of this section shall have the amount of principal and accrued interest on loans under this section, ORS 348.115, 353.450, 442.470 442.520, 442.550 to 442.570 and 656.256 canceled for each calendar year of qualifying practice that is:

      (a) For full-time practice, equal to the principal and accrued interest on the loan borrowed for the comparable academic year of award; or

      (b) For half-time practice, equal to half of the principal and accrued interest on the loan borrowed for the comparable academic year of the award.

      (8) Repayment of any remaining principal and interest shall be waived upon the death or total and permanent disability of the student borrower. [1991 c.947 §17; 2001 c.599 §5]

 

      Note: 348.117 is repealed July 1, 2012. See section 8, chapter 599, Oregon Laws 2001.

 

      348.120 [1987 c.896 §§24, 28; 1993 c.45 §283; renumbered 329.757 in 1993]

 

      348.125 [1987 c.896 §25; 1991 c.67 §89; 1993 c.45 §284; renumbered 329.765 in 1993]

 

      348.130 [1987 c.896 §26; 1989 c.159 §1; renumbered 329.775 in 1993]

 

      348.135 [1987 c.896 §27; 1993 c.45 §285; renumbered 329.780 in 1993]

 

SCHOLARSHIPS AND GRANTS

 

      348.180 Definitions. As used in this section and ORS 348.183, 348.186, 348.205, 348.230, 348.250 and 348.260:

      (1) “Cost of education” includes but is not limited to, tuition, fees and living expenses.

      (2) “Eligible post-secondary institution” means:

      (a) A state institution under the direction of the State Board of Higher Education;

      (b) A community college operated under ORS chapter 341;

      (c) The Oregon Health and Science University; or

      (d) An Oregon-based, generally accredited, not-for-profit institution of higher education.

      (3) “Qualified student” means any resident student who plans to attend an eligible post-secondary institution and who:

      (a) Has not achieved a baccalaureate or higher degree from any post-secondary institution;

      (b) Is enrolled in an eligible program as defined by rule of the Oregon Student Assistance Commission; and

      (c) Is making satisfactory academic progress as defined by rule of the commission. [1999 c.1070 §3; 2001 c.321 §1; 2007 c.802 §1]

 

      Note: The amendments to 348.180 by section 1, chapter 802, Oregon Laws 2007, fi