68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
HA to HB 2337
LC 1806
HOUSE AMENDMENTS TO
HOUSE BILL 2337
By COMMITTEE ON HUMAN RESOURCES AND EDUCATION
April 24
On page 1 of the printed bill, line 2, after 'provisions '
delete the rest of the line and insert '; amending ORS 348.530;
and repealing sections 2 and 4, chapter 285, Oregon Laws 1993.'.
Delete lines 4 through 30 and pages 2 through 8 and insert:
' { + SECTION 1. + } { + Sections 2 to 7 of this Act are
added to and made a part of ORS 348.505 to 348.695. + }
' { + SECTION 2. + } { + (1) The State Scholarship
Commission may declare that a person is in default in repayment
on a student loan guaranteed or insured by the State Scholarship
Commission if the person is not paying in a satisfactory manner
according to the repayment requirements of the United States
Department of Education.
' (2) The State Scholarship Commission shall notify any state
agency, board or commission, including the Oregon State Bar, that
has the power to issue and renew any license, certification or
registration necessary to practice any profession or engage in
any trade or calling that a person is in default in repayment of
a student loan as determined under subsection (1) of this section
if the commission has established a process for conducting
database matches and notification procedures with the entity
under section 4 of this 1995 Act.
' (3) Any entity notified under subsection (2) of this section
shall not issue or renew or shall suspend a certificate or
license or shall place the person on probation. + } { + Once so
notified, no further administrative review or contested case
proceeding within or by the issuing entity is required. + }
' { + SECTION 3. + } { + Section 2 (2) and (3) of this 1995
Act applies to any license, certification or registration
eligible for issuance or renewal after the effective date of this
1995 Act. + }
' { + SECTION 4. + } { + The State Scholarship Commission
shall identify which entities referred to in section 2 of this
1995 Act it is feasible to enter into an agreement with to design
and implement a process for conducting database matches and
notification procedures for the purpose of complying with section
2 of this 1995 Act. Any entity so identified by the commission
shall enter into an agreement with the commission. + }
' { + SECTION 5. + } { + (1) Upon purchase of a default
claim loan from the lender, the State Scholarship Commission
shall notify the defaulted student loan borrower in writing that
failure to pay satisfactorily as determined under section 2 (1)
of this 1995 Act may result in a refusal to issue or renew, a
suspension or a placement on probation by any entity referred to
in section 2 of this 1995 Act. The notice shall provide the
defaulted student loan borrower with an administrative process to
challenge the default status of any loan and an opportunity to
object to the collection of the debt according to the provisions
of 34 CFR 30.20 to 30.33 and 34 CFR 682.410.
' (2) If, after the initial notification, the borrower fails to
enter into a repayment plan and repay satisfactorily, the State
Scholarship Commission shall inform the borrower in writing on a
regular basis for no less than 180 days of the consequences of
failing to repay a student loan. The final notification letter
shall allow the borrower 30 additional days to perform by paying
the amount delinquent or the balance in full to avoid being
reported to any entity referred to in section 2 of this 1995 Act.
If the borrower has not performed by the end of the final 30-day
period, the State Scholarship Commission shall notify those
entities with whom it has established a process for conducting
database matches and notification procedures under section 4 of
this 1995 Act that the person is in default in repayment and is
not paying in a satisfactory manner as determined under section 2
(1) of this 1995 Act. + }
' { + SECTION 6. + } { + Within 30 days after the effective
date of this 1995 Act, the State Scholarship Commission, for any
default claim loan purchased from a lender prior to the effective
date of this 1995 Act, shall notify any defaulted student loan
borrower of the consequences of failure to repay a student loan
in the manner provided under section 5 of this 1995 Act. + }
' { + SECTION 7. + } { + The State Scholarship Commission
shall promptly notify any entity referred to in section 2 of this
1995 Act when a formerly reported student loan borrower is no
longer in default status due to repayment in full, loan
rehabilitation or some other action that discharges the borrower
of responsibility for repayment or when the borrower achieves
satisfactory repayment status as determined under section 2 (1)
of this 1995 Act. + } { + The issuing entity shall issue or
reinstate the certificate or license of the student loan borrower
within 30 days contingent upon the requirements of the
entity. + }
' { + SECTION 8. + } ORS 348.530 is amended to read:
' 348.530. The State Scholarship Commission may:
' (1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.
' (2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
' (3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
' (4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees, which are related to and
necessary for making and protecting guaranteed loans and
recovering moneys and loans and management of property acquired
in connection with such loans.
' (5) Sue and be sued.
' (6) Pursuant to ORS 183.310 to 183.550, adopt such rules as
may be necessary to carry out the provisions of ORS 348.040 to
348.280 and 348.505 to 348.695.
' (7) Cooperatively coordinate all types of financial aid
activities.
' (8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
' (9) Guarantee loans by eligible lending institutions to
student residents of the State of Oregon who are enrolled or
accepted for enrollment at any eligible institution, nonresident
students enrolled or accepted for enrollment in an institution of
higher education or community college in Oregon, and parents of
those students, under the provisions of the Higher Education Act
of 1965 as amended.
' (10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student. { +
' (11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605. + }
' { + SECTION 9. + } { + Sections 2 and 4, chapter 285,
Oregon Laws 1993, are repealed. + } ' .
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