Bill Text: MI HB6291 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Higher education: financial aid; medical education debt stabilization for students program; establish. Amends sec. 4 of 1975 PA 222 (MCL 390.1154) & adds sec. 4b.
Sponsorship: Strong Partisan Bill (Democrat 19-1)
Status: (Introduced) 2026-09-01 - Bill Electronically Reproduced 08/27/2026 [HB6291 Detail]
Download: Michigan-2025-HB6291-Introduced.html
HOUSE BILL NO. 6291
A bill to amend 1975 PA 222, entitled
"Higher education loan authority act,"
by amending section 4 (MCL 390.1154), as amended by 2018 PA 228, and by adding section 4b.
the people of the state of michigan enact:
Sec. 4. The authority has the powers necessary to carry out and effectuate the purposes of this act, including, but not limited to, the following powers:
(a) The power to sue and be sued; to have a seal and alter the seal at pleasure; to have perpetual succession; to make, execute, and deliver contracts, conveyances, bonds, and other instruments necessary in the exercise of its powers; and to make and amend bylaws.
(b) The power to accept gifts, grants, loans, and other aids or amounts from a person, corporation, or governmental agency.
(c) The power to loan money to students and parents of students for the purpose of assisting any of the following purposes:
(i) Assisting students in obtaining an education beyond or in addition to obtaining a high school education by attending an eligible institution, including refinancing or consolidating borrower obligations previously incurred by a student or parent of a student with other lending sources for this purpose and participating in loans to students and parents of students for this purpose with other lending sources.
(ii) Assisting individuals in attending a graduate-level medical education program maintained by an institution of higher education located in this state under the medical education debt stabilization for students program created under section 4b. As used in this subparagraph, "graduate-level medical education program" means that term as defined in section 4b.
(d) The power to enforce its rights under a contract or agreement including the commencement of a court action.
(e) The power to acquire, hold, and dispose of real and personal property necessary for the accomplishment of the purposes of this act.
(f) The power to procure insurance against losses that may be incurred in connection with its property, assets, activities, or the exercise of the powers granted under this act.
(g) The power to borrow money and to issue its bonds and provide for the rights of the holders of the bonds and to secure the bonds by assignment, pledge, or granting a security interest in its property including all or a part of a borrower obligation. This state shall is not be liable for the repayment of bonds issued by the authority, the bonds issued by the authority shall are not be a debt of this state, and each bond shall must contain on its face a statement to this effect. The authority may, at its option, authorize the issuance of bonds for the purposes described in section 5 that are subject to federal income taxation, notwithstanding any intergovernmental immunity from federal taxation under the constitution of the United States for bonds of the authority, but any waiver of intergovernmental immunity, expressed or implied in this act, shall extend extends only to bonds specifically authorized by the authority as bonds that are subject to federal income taxation.
(h) The power to invest funds not required for immediate use or disbursement in obligations of this state or the United States, in obligations the principal and interest of which are guaranteed by this state or the United States, in United States government or federal agency obligation repurchase agreements, in mutual funds and common trust funds composed of investment vehicles that are legal for direct investment by the authority, in bankers' acceptances of United States banks, in certificates of deposit, savings accounts, deposit accounts, or depository receipts of a bank that is a member of the federal deposit insurance corporation or a savings and loan association that is a member of the federal savings and loan insurance corporation or a credit union that is insured by the national credit union administration, or up to 50% of the funds in commercial paper rated at the time of purchase within the 3 highest rating classifications established by not less than 2 standard rating services and that matures not more than 270 days after the date of purchase.
(i) Subject to a contract with the holders of its bonds, an applicable bond resolution, or a contract with the recipient of a loan, when the authority considers it necessary or desirable, the power to consent to the modification, with respect to security, rate of interest, time of payment of interest or principal, or other term of a bond contract or agreement between the authority and a recipient of a loan, bondholder, or agency or institution guaranteeing the repayment of a borrower obligation.
(j) The power to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this act.
(k) The power to appoint officers, agents, and employees, describe their duties, and fix their compensation subject to rules promulgated by the civil service commission.
(l) The power to solicit grants and contributions from a government, or an agency of government, or from the public, and, at its discretion, to arrange for the guaranteeing of the repayment of borrower obligations by other agencies of this state or agencies of the United States.
(m) The power to promulgate rules consistent with this act and necessary to carry out the purpose of this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(n) The power to collect fees and charges in connection with its loans, commitments, and servicing, including reimbursement of the costs of financing by the authority, service charges, and insurance premiums the authority determines are reasonable and as approved by the authority.
(o) The power to sell borrower obligations held by the authority for a price and at a time and pursuant to other terms, including undertakings or options to repurchase borrower obligations, as the authority may determine, if the sale will not impair the rights or interests of holders of bonds issued by the authority.
(p) The power to participate in federal programs supporting loans to eligible students and parents of students, and to agree to and comply with the conditions of those programs.
(q) The power to purchase or otherwise acquire notes or debt obligations evidencing loans to students or parents of students.
(r) The power to purchase, sell, or exchange borrower obligations securing a series of bonds of the authority with, or for the proceeds of, or the borrower obligations securing a separate series of bonds of the authority, but only to the extent permitted by the respective bond resolutions for the affected series of bonds.
(s) The power to grant and pay money to the Michigan higher education assistance authority established by 1960 PA 77, MCL 390.951 to 390.961, for its loan guaranty fund whenever the authority determines the grant and payment is necessary or beneficial in order to effectuate and carry out the powers, duties, and functions of the authority under this act.
(t) The power to enter into contracts with other authorities, governmental agencies, private persons, firms, or corporations in connection with any transaction relating to any indebtedness incurred by the authority in the providing of funds for the achievement of its purposes under this act.
(u) The power to competitively contract for services including consulting services as needed to carry out the purposes of this act.
(v) In the state fiscal year ending September 30, 2007, the power to grant and pay money to the Michigan merit award trust fund established by section 9 of the Michigan trust fund act, 2000 PA 489, MCL 12.259, to provide funding only for 1 or more of the following:
(i) State competitive scholarships under 1964 PA 208, MCL 390.971 to 390.981.
(ii) Tuition grants under 1966 PA 313, MCL 390.991 to 390.997a.
(iii) The Michigan work-study program established in former 1986 PA 288. , MCL 390.1371 to 390.1382.
(iv) The Michigan work-study program established in former 1986 PA 303. , MCL 390.1321 to 390.1332.
(v) The Michigan nursing scholarship program established in the Michigan nursing scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.
(w) In the state fiscal year ending September 30, 2018, the power to grant and pay money to the talent investment fund established under section 8a, to provide $100,000,000.00 to the talent investment fund.
Sec. 4b. (1) The authority shall create and administer the medical education debt stabilization for students program to provide loans to individuals enrolled in, and in good standing at, a graduate-level medical education program maintained by an institution of higher education located in this state.
(2) An individual must meet all of the following eligibility criteria to receive a loan under the program:
(a) Be a resident of this state.
(b) Be admitted to, and enrolled in, a graduate-level medical education program located in this state and be training to become qualified in 1 or more of the following specialty areas:
(i) Family practice.
(ii) Internal medicine.
(iii) Pediatrics.
(iv) Obstetrics.
(v) Psychiatry.
(vi) Emergency medicine.
(c) Has received the maximum aggregate limit of federal loans authorized under the higher education act of 1965, Public Law 89-329, 20 USC 1001 to 1161aa-1.
(3) As used in this section:
(a) "Graduate-level medical education program" means a medical school, a nursing program for the training of certified nurse practitioners, or a physician's assistant program.
(b) "Medical school", "nursing program", and "physician's assistant program" means those terms as defined in section 2701 of the public health code, 1978 PA 368, MCL 333.2701.
(c) "Program" means the medical education debt stabilization for students program created under subsection (1).
(d) "Qualified" means that term as defined in section 2711 of the public health code, 1978 PA 368, MCL 333.2711.
