Bill Text: AZ HB2654 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: State student loans; waivers
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-02-11 - Referred to House GHE Committee [HB2654 Detail]
Download: Arizona-2015-HB2654-Introduced.html
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REFERENCE TITLE: state student loans; waivers |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HB 2654 |
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Introduced by Representative Rivero
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AN ACT
Title 15, chapter 13, article 2, Arizona Revised Statutes, by adding section 15-1642.01; amending section 15‑1877, Arizona Revised Statutes; relating to the arizona board of regents.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 13, article 2, Arizona Revised Statutes, is amended by adding section 15-1642.01, to read:
15-1642.01. State student loan and waivers in aid trust fund; report; definition
A. The Arizona board of regents shall establish the state student loan and waivers in aid trust fund for the purpose of providing assistance to students enrolled in universities under the jurisdiction of the Arizona board of regents.
B. The board shall adopt rules to govern the trust fund.
C. The board shall report to the legislature every three years on the status of the trust fund. The report shall include the use to which the monies have been put and the impact of such use.
D. A qualifying student may apply to the Arizona board of regents to receive a loan of not more than a total of thirty thousand dollars from the trust fund. If a student is awarded a loan pursuant to this section, the student shall sign a contract with the Arizona board of regents to repay the full amount borrowed at an interest rate of two percent if the student qualifies for in‑state tuition or at an interest rate of four percent if the student does not qualify for in‑state tuition. The Arizona board of regents shall give priority to loan applicants who either demonstrate financial need or are pursuing degrees that the board determines are in high demand in this state.
E. A qualifying student who receives a loan pursuant to this section may also apply to the Arizona board of regents to receive a waiver in aid. If The Arizona board of regents awards a waiver in aid to a qualifying student, the board shall waive or forgive all or a portion of the repayment of a loan awarded pursuant to this section as follows:
1. a qualifying student is not required to pay interest on the loan for the first year after the student graduates from the university.
2. If a qualifying student's total loan amount awarded pursuant to this section is five thousand dollars or less, the student is not required to repay any amount of the amount borrowed or interest on the amount borrowed.
3. If a qualifying student's total loan amount awarded pursuant to this section is more than five thousand dollars but not more than ten thousand dollars, the student is not required to repay more than fifteen percent of the amount of the amount borrowed plus interest.
4. If a qualifying student's total loan amount awarded pursuant to this section is more than ten thousand dollars but not more than fifteen thousand dollars, the student is not required to repay more than thirty percent of the amount of the amount borrowed plus interest.
5. If a qualifying student's total loan amount awarded pursuant to this section is more than fifteen thousand dollars but not more than twenty thousand dollars, the student is not required to repay more than forty‑five percent of the amount of the amount borrowed plus interest.
6. If a qualifying student's total loan amount awarded pursuant to this section is more than twenty thousand dollars but not more than twenty‑five thousand dollars, the student is not required to repay more than sixty percent of the amount of the amount borrowed plus interest.
7. If a qualifying student's total loan amount awarded pursuant to this section is more than twenty‑five thousand dollars but not more than thirty thousand dollars, the student is not required to repay more than seventy‑five percent of the amount of the amount borrowed plus interest.
F. Fund monies shall be used only as approved by the board, and such monies shall supplement, and not supplant, existing state or institutional financial aid monies, including monies from the financial aid trust fund ESTABLISHED pursuant to section 15‑1642. Assistance may be provided to full‑time or part-time students.
G. In cooperation with the department of education and the superintendent of public instruction, The Arizona board of regents shall solicit gifts, grants and donations from any lawful public or private source to carry out the purposes of this section.
H. For the purposes of this section, "Qualifying student" means:
1. For state student loans provided pursuant to this section, a student who meets all of the following requirements:
(a) Is enrolled in an undergraduate program at a university under the jurisdiction of the Arizona board of regents.
(b) Is pursuing a first or second baccalaureate degree.
(c) Has completed and submitted a Free Application for Federal Student Aid.
(d) Is under thirty years of age at the time of initial enrollment at the university.
2. For waivers in aid provided pursuant to this section, a student who meets all of the following requirements:
(a) Has been awarded and accepted a loan pursuant to this section.
(b) Becomes or remains a resident of this state for four calendar years after obtaining the baccalaureate degree that was financed in whole or in part with a loan awarded pursuant to this section.
Sec. 2. Section 15-1877, Arizona Revised Statutes, is amended to read:
15-1877. Scholarships and financial aid provisions
A. Any student loan program, student grant program or other financial assistance program established or administered by this state shall treat the balance in an account of which the student is a designated beneficiary as neither an asset of the parent of the designated beneficiary nor as a scholarship, a grant or an asset of the student for determining a student's or parent's income, assets or financial need.
B. Subsection A of this section applies to any state appropriated financial assistance program administered by a college or university in this state, including the financial aid trust fund, established by pursuant to section 15‑1642, the state student loan and waivers in aid trust fund established pursuant to SECTION 15‑1642.01, the leveraging educational assistance program established by section 1203 of the higher education act amendments of 1998 (P.L. 105‑244; 112 Stat. 1581; 20 United States Code section 1001) and the private postsecondary education student financial assistance program established by section 15‑1854.
C. Subsections A and B of this section do not apply if any of the following conditions exist exists:
1. Federal law requires all or a portion of the amount in an account to be taken into consideration in a different manner.
2. Federal benefits could be lost if all or a portion of the amount in an account is not taken into consideration in a different manner.
3. A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into consideration.
