2011 Missouri Revised Statutes
TITLE XI EDUCATION AND LIBRARIES
Chapter 173 Department of Higher Education
Section 173.055. Institution risk sharing program, defaulted student loans--definitions--duties of department--risk share revolving fund, created, purposes--institutional fee, amount, collection--loan guarantors, data, duty to report.

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

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

(2) "Department", the Missouri department of higher education;

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

(4) "Institution", any institution of postsecondary education, including a university, college, vocational and technical school, and other postsecondary institution, located within the state of Missouri;

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

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

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

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

2. The Missouri coordinating board for higher education shall administer the "Student Loan Default State Risk Sharing Program" established pursuant to the Omnibus Budget Reconciliation Act of 1993, P.L. 103-66, and shall calculate, assess, collect, and authorize payment of the state fee to the secretary.

3. The department shall annually authorize payment from the fund of any fee assessed by the secretary under the Omnibus Budget Reconciliation Act of 1993, as amended, P.L. 103-66, on behalf 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 in the state treasury and shall consist of money appropriated to the fund by the general assembly, institutional fees, gifts, grants, and bequests from federal, private, or other sources made for the purpose of paying the state fee to the secretary. Any balance in the fund, not in excess of two times the total amount appropriated, paid or transferred to the fund during the preceding fiscal year shall not be subject to transfer to the general revenue fund pursuant to section 33.080.

5. All moneys collected by the department in institutional fees shall be paid into the state treasury and credited to the fund.

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

7. The board shall, by rule, determine the procedures for the collection of the annual institutional fees. If an institution fails to pay the assessed fee, the attorney general for the state of Missouri may initiate proceedings to collect the assessed fee.

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

9. Independent or private guarantors of student loans of students attending Missouri institutions shall file an annual report at no charge by each October fifteenth with the department stating, for the immediately preceding period of October first through September thirtieth and for each month therein and for each Missouri institution, the total number of loans guaranteed, the total dollar amount of such loans, the total number and amount of loans entering repayment, the total number and amount of loans for which default claims were paid, the total number and amount of loans for which bankruptcy claims were paid, the total number and amount of loans for which death claims were paid, and the total number and amount of loans for which total and permanent disability claims were paid.

(L. 1994 S.B. 583)

Annotation Copyright Missouri Joint Committee on Legislative Research