2018 Oklahoma Statutes
Title 70. Schools
§70-623. Guaranteeing of loans - Conditions - Rules.

Universal Citation: 70 OK Stat § 70-623 (2018)

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.

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.

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