SENATE BILL No. 1161

 

 

March 16, 2006, Introduced by Senators OLSHOVE, CHERRY, PRUSI, SCOTT, EMERSON, BRATER, JACOBS and THOMAS and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1975 PA 222, entitled

 

"Higher education loan authority act,"

 

by amending section 4a (MCL 390.1154a), as added by 1989 PA 96.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4a. (1) From money appropriated from the Michigan merit

 

award trust fund or the worker emergency fund, the authority shall

 

make low-interest loans to full-time undergraduate students who are

 

residents of this state, who are enrolled in an eligible

 

institution, and who have a parent who is an outsourced worker or

 

who is unemployed because of the bankruptcy of the parent's

 

employer. A loan under this section shall not exceed a student's

 

tuition expenses in the academic year in which the student applies


 

for a loan and is payable beginning 6 months after the student is

 

awarded a bachelor's or associate degree or after the student is no

 

longer a full-time student, whichever occurs first.

 

     (2) In addition to the powers enumerated in this section and

 

section 4, the authority may loan money to students or parents of

 

students who are residents of this state to assist them to pay for

 

the cost of the student's attendance at a degree-granting college

 

or university located in this state.

 

     (3) The authority shall promulgate rules under the

 

administrative procedures act of 1969,  Act No. 306 of the Public

 

Acts of 1969, being sections 24.201 to 24.328 of the Michigan

 

Compiled Laws  1969 PA 306, MCL 24.201 to 24.328, to establish

 

payment and repayment terms for the loans authorized under this

 

section.

 

     (4) As used in this section:

 

     (a) "Academic year" means the period from August 1 of a

 

calendar year to July 31 of the next calendar year.

 

     (b) "Eligible institution" means a degree- or certificate-

 

granting public or independent nonprofit college or university,

 

junior college, or community college in this state.

 

     (c) "Full-time student" means a student enrolled in at least

 

12 credit hours in an academic semester or its equivalent number of

 

credit hours in a term or quarter, as determined by the authority.

 

     (d) "Michigan merit award trust fund" means the Michigan merit

 

award trust fund established under section 4 of the Michigan trust

 

fund act, 2000 PA 489, MCL 12.259.

 

     (e) "Outsourced worker" means an adversely affected worker, as


 

that term is defined in 20 CFR 617.3.

 

     (f) "Worker emergency fund" means the worker emergency fund

 

established in the worker emergency fund act.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No.____ (request no.

 

05498'05) of the 93rd Legislature is enacted into law.