Chapter 39

39.26 39.26 Definition. In this subchapter, “board” means the higher educational aids board.

39.26 History History: 1995 a. 27; 1997 a. 27.

39.28 39.28 Powers and duties.

39.28(1) (1) The board shall administer the programs under this subchapter and may promulgate such rules as are necessary to carry out its functions. The board may accept and use any funds which it receives from participating institutions, lenders or agencies. The board may enter into such contracts as are necessary to carry out its functions under this subchapter.

39.28(2) (2) The board shall establish plans to be administered by the board for participation by this state under any federal acts relating to higher education and submit them to the U.S. secretary of education for the secretary’s approval. The board may utilize such criteria for determination of priorities, participation or purpose as are delineated in the federal acts.

39.28(3) (3) 

39.28(3)(a) (a) In its biennial report under s. 15.04 (1) (d), the board also shall include recommendations for improvement of the state’s student financial aid programs.

39.28(3)(b) (b) On January 1 and July 1, the board shall report to the joint committee on finance and the joint legislative audit committee on the board’s loan collection activities and efforts to develop collection policies to improve program performance through changes in data processing and program review.

39.28(4) (4) The board may assign, sell, convey or repurchase student loans made under s. 39.32 subject to prior approval by the joint committee on finance.

39.28 History History: 1971 c. 125, 211; 1973 c. 90; 1975 c. 198, 224; 1977 c. 29; 1977 c. 196 s. 131; 1977 c. 418; 1981 c. 20; 1983 a. 27; 1985 a. 332 s. 251 (3); 1989 a. 31, 56; 1991 a. 316; 1995 a. 27; 1997 a. 27; 2001 a. 16; 2023 a. 80.

39.28 Cross-reference Cross-reference: See also HEA, Wis. adm. code.

39.285 39.285 Board review of proposed formulae; minimum and maximum grant amounts.

39.285(1) (1) 

39.285(1)(a) (a) By March 1 of each year, the board shall approve, modify, or disapprove any proposed formula for the awarding of grants for the next fiscal year submitted under sub. (2) or (3) or s. 36.11 (6) (c) or 38.04 (7m).

39.285(1)(b) (b) If the board determines during a fiscal year that any formula approved under par. (a) during the prior fiscal year needs to be modified during the fiscal year in order to expend the entire amount appropriated for grants to students under s. 39.30 or 39.435, except s. 39.435 (2) or (5), in that fiscal year, the board shall submit the modified formula to the joint committee on finance. If the cochairpersons of the committee do not notify the board that the committee has scheduled a meeting for the purpose of reviewing the modified formula within 14 working days after the date of the submittal, the modified formula may be implemented as proposed by the board. If, within 14 working days after the date of the submittal, the cochairpersons of the committee notify the board that the committee has scheduled a meeting for the purpose of reviewing the modified formula, the modified formula may be implemented only upon approval of the committee.

39.285(2) (2) By February 10 of each year, the Wisconsin Association of Independent Colleges and Universities shall develop and submit to the board for its review under sub. (1) a proposed formula for the awarding of grants under s. 39.30 for the next fiscal year to students enrolled at private institutions of higher education.

39.285(3) (3) By February 10 of each year, each tribally controlled college in this state is requested to develop and submit to the board for its review under sub. (1) a proposed formula for the awarding of grants under s. 39.435, except for grants awarded under s. 39.435 (2) or (5), for the next fiscal year to students enrolled at that tribally controlled college.

39.285(4) (4) By March 1 of each year, the board shall establish a minimum and maximum amount for grants awarded for the next fiscal year under ss. 39.30 and 39.435, except for grants awarded under s. 39.435 (2) or (5). The board shall integrate the minimum and maximum grant amounts into the formula for awarding grants.

39.285 History History: 1995 a. 27; 1997 a. 27; 1999 a. 9; 2017 a. 59; 2023 a. 80; s. 35.17 correction in (4).

39.29 39.29 Executive secretary. An executive secretary shall be appointed by the governor to serve at his or her pleasure.

39.29 History History: 1997 a. 27.

39.30 39.30 Wisconsin grants; private, nonprofit college students.

39.30(1) (1) Definitions. In this section:

39.30(1)(d) (d) An “accredited” institution is an institution accredited by a nationally recognized accrediting agency or by the board of nursing pursuant to s. 441.01 (4), or, if not so accredited, is a nonprofit institution of higher education whose credits are accepted on transfer by not less than 3 institutions which are so accredited, on the same basis as if transferred from an institution so accredited.

39.30(1)(e) (e) “Resident student” shall be determined under s. 36.27, so far as applicable.

39.30(1m) (1m) Grant program. There is established, to be administered by the board, a grant program for postsecondary resident students who satisfy the eligibility criteria under 20 USC 1091 (a) (1) and (2) and are enrolled in accredited, private, nonprofit institutions of higher education headquartered in this state.

39.30(2) (2) Eligibility restrictions.

39.30(2)(d) (d) No grant may be awarded under this section to members of religious orders who are pursuing a course of study leading to a degree in theology, divinity or religious education.

39.30(2)(e) (e) The board may not make a grant under this section to a student whose name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the student provides to the board a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

39.30(2)(g) (g) The board may award a grant under this section to the same student for up to 10 semesters of full-time enrollment or, as determined by the board, the equivalent of 10 semesters of full-time enrollment. If the student receiving the grant is enrolled less than full time in any semester or session, only the fraction of the student’s enrollment, in proportion to full-time enrollment, shall be applied toward this 10-semester limit.

39.30(3) (3) Grant awards.

39.30(3)(a) (a) The board shall award grants under this section based on the current federal need analysis formula consistent with generally accepted definitions and nationally approved need analysis methodology.

39.30(3)(b) (b) The awarding of grants under this section is subject to any formula approved or modified by the board under s. 39.285 (1).

39.30 History History: 1971 c. 125; 1973 c. 90; 1973 c. 335 s. 13; 1975 c. 224; 1979 c. 34; 1981 c. 20; 1985 a. 29; 1987 a. 27; 1991 a. 316; 1993 a. 437; 1995 a. 27, 404; 1997 a. 27, 222; 1999 a. 9; 2001 a. 16; 2013 a. 330; 2023 a. 80.

39.30 Cross-reference Cross-reference: See also ch. HEA 4, Wis. adm. code.

39.30 Annotation Students who attend VTAE (technical college) institutions are eligible for tuition grants under this section. 66 Atty. Gen. 182.

39.31 39.31 Determination of student costs. In determining a student’s total cost of attending a postsecondary institution for the purpose of calculating the amount of a grant under s. 39.30, 39.38, 39.435 or 39.44, the board shall include the following:

39.31(1) (1) The cost of tuition, fees, books and educational supplies.

39.31(2) (2) Miscellaneous expenses, as determined by the board.

39.31(3) (3) The cost of child care, as determined by the board.

39.31 History History: 1987 a. 27; 1995 a. 27; 1997 a. 27.

39.32 39.32 Student loans.

39.32(1) (1) In this section:

39.32(1)(a) (a) “Institution of higher education” means an educational institution meeting the requirements of P.L. 89-329 for institutions covered therein and of P.L. 89-287 for business, trade, technical or vocational schools and full-time post-high school technical colleges in this state.

39.32(1)(b) (b) “Resident student” shall be determined under s. 36.27, so far as applicable.

39.32(2) (2) The board shall:

39.32(2)(a) (a) Make and authorize loans to be made to resident students who have satisfactory academic records, who need financial assistance and who are desirous of attending institutions of higher education, when such loans are to assist them in meeting expenses of post-high school education in accordance with this section.

39.32(2)(b) (b) Establish standards and methods for determining the amount of loans, rates of interest, financial need and other administrative procedures consistent with P.L. 89-329 and P.L. 89-287.

39.32(3) (3) The board may make and authorize loans to be made to students if:

39.32(3)(a) (a) The student is enrolled or accepted for enrollment in an institution of higher education.

39.32(3)(b) (b) The student’s eligibility for a loan is certified to the board by the institution of higher education in which the student is enrolled or has been accepted for enrollment.

39.32(3)(c) (c) The student has a satisfactory academic record.

39.32(3)(d) (d) The student is a resident student.

39.32(3)(e) (e) The student needs financial assistance.

39.32(3)(g) (g) The student is not in default on any previous loan or the board has determined that the student has made satisfactory arrangements to repay the defaulted loan.

39.32(4) (4) Loans may be made to minors and minority shall not be a defense to the collection of the debt.

39.32(5) (5) The board may collect any loans made or authorized to be made by the board pursuant to this section or made prior to July 1, 1966, under s. 49.42, 1963 stats.

39.32(6) (6) The board shall satisfy the loan of any student who obtained a loan under this section or under s. 39.023, 1965 stats., between July 1, 1966, and December 15, 1968, if the student dies after July 1, 1966, and before completing repayment of the loan, and shall write off the balance of principal and interest owing on the loan on the date that the board received confirmation of the student’s death. Obligation to repay such a loan shall terminate on the date of the student’s death and any payments made on the loan to the board after the date of the student’s death shall be refunded to the payor or the payor’s heirs or personal representative upon receipt by the board of an application for refund.

39.32(7) (7) The board may write off defaulted student loans made pursuant to this section or made prior to July 1, 1966, under s. 49.42, 1963 stats., from moneys other than advances from the investment board originally appropriated for student loans, and from moneys other than moneys resulting from assignment, sale or conveyance of student loans.

39.32(8) (8) The board may use up to $150,000 annually of student revenue bond proceeds for the purpose of consolidating loans for needy students who have a state direct loan and one or more federally guaranteed student loans from one or more private lenders.

39.32(10) (10) 

39.32(10)(a) (a) The board may enter into contractual agreements with lenders in this state and lenders in other states which grant loans to residents of this state, and with institutions and agencies wherein the board may provide and furnish to such lenders, institutions and agencies administrative services related to the operation of any programs involving the granting of loans to students including but not limited to any and all services and functions related to the granting, administering and collecting of any loans made to students.

39.32(10)(b) (b) The board shall have all powers that are reasonably appropriate to the provision of such services and the performance of such contracts and may include charges or fees to be paid by the lenders, institutions and agencies to the board for the provision of such administrative services or any services or activities related to the collection of any student loans for which the board may become responsible by operation of law or by contractual agreements under this paragraph, but such charges or fees, before being instituted by the board, shall be approved by the secretary of administration.

39.32(11) (11) 

39.32(11)(a) (a) In lieu of the procedure under ch. 812, the board, on behalf of the corporation under s. 39.33, or the corporation, on its own behalf, may certify the department of administration to deduct money from a state employee’s earnings. The board shall specify an amount, not to exceed 25 percent of the employee’s disposable earnings, as defined in s. 812.30 (6), to be deducted on a continuing basis until the amount certified by the board or corporation has been paid. The department of administration shall remit moneys deducted to the board or the corporation.

39.32(11)(b) (b) The procedure in this section may be used only if the amount owed to the board or corporation is reduced to a judgment. At least 30 days prior to certification, the board or corporation shall notify the debtor under s. 879.05 (2) or (3) of the intent to certify the debt to the department of administration and of the debtor’s right to a contested case hearing before the board under s. 227.42. If the debtor requests a hearing within 20 days after receiving notice, the board shall notify the department of administration which shall not make deductions under par. (a) until a decision is reached under s. 227.47 or the case is otherwise concluded.

39.32(11)(c) (c) The department of administration shall prescribe the manner and form for certification of debts by the board or corporation under this subsection.

39.32 History History: 1971 c. 85; 1971 c. 211 s. 126; 1973 c. 90; 1973 c. 335 s. 13; 1975 c. 189, 224; 1977 c. 29; 1979 c. 34 ss. 813m to 813r, 2102 (22) (a); 1979 c. 176, 221; 1981 c. 20, 314; 1983 a. 27; 1985 a. 182 s. 57; 1989 a. 31; 1991 a. 316; 1993 a. 80, 399; 1995 a. 27; 1997 a. 27; 2001 a. 102.

39.32 Annotation The legislature may direct the public land commissioners to invest monies from the sale of public lands in student loans under this section, but it may not direct a specific investment. 65 Atty. Gen. 28.

39.325 39.325 Wisconsin health education loan program.

39.325(1) (1) There is established, to be administered by the board, a Wisconsin health education loan program under P.L. 94-484, on July 29, 1979, in order to provide financial aid to medical and dentistry students enrolled in the University of Wisconsin Medical School, the Medical College of Wisconsin or Marquette University School of Dentistry.

39.325(2) (2) The board shall lend to students who qualify under sub. (1) any moneys appropriated or authorized through the issuance of revenue obligations. The board shall require a student borrowing moneys under this section to pay interest while in medical or dental school and during his or her residency training at the rate of at least 3 percent per year on the sum of the principal amount of the student’s obligation and the accumulated interest, unless federal law provides otherwise as a condition of guaranteeing the loan. Principal and interest payable on maturing revenue obligations shall, when necessary, be paid from funded reserves, authorized under subch. II of ch. 18, or from moneys made available under chapter 20, laws of 1981, section 2022 (1).

39.325(3) (3) The board shall promulgate rules and establish standards and methods of determining the amounts of loans, rates of interest and other administrative procedures consistent with P.L. 94-484, on July 29, 1979. The rates of interest shall be set as low as possible, but shall remain sufficient to cover all costs of the program under this section.

39.325 History History: 1979 c. 34; 1981 c. 20; 1983 a. 27; 1995 a. 27; 1997 a. 27.

39.33 39.33 Guaranteed student loan program.

39.33(1) (1) The board may organize and maintain a nonstock corporation under ch. 181 to provide for a guaranteed student loan program in this state under P.L. 89-287 and P.L. 89-329 as may from time to time be amended. The board may make use of and pay for the use of the facilities and services of such corporation.

39.33(2) (2) The board may provide administrative services for the nonstock corporation with which the board has entered into a contractual agreement for purposes of providing for a guaranteed student loan program in this state. Services provided under this section shall be in accordance with the decision of the board as to the type and scope of services requested and the civil service range of any employee assigned to them.

39.33(3) (3) The board or the legislature or any person delegated by the legislature may inspect and examine or cause an inspection and examination of all records relating to all programs that are, or are to be, administered under contractual agreement between the board and the corporation.

39.33 History History: 1995 a. 27; 1997 a. 27.

39.34 39.34 Medical student loan program. Notwithstanding s. 39.34, 1991 stats., the board shall terminate on August 12, 1993, any obligation to repay a loan awarded under this section.

39.34 History History: 1975 c. 118, 224; 1993 a. 16; 1995 a. 27; 1997 a. 27.

39.35 39.35 Repayment of scholarships for teachers in educationally disadvantaged areas. Notwithstanding s. 39.35, 1969 stats., and s. 39.35, 1991 stats., the board shall terminate on August 12, 1993, any obligation to repay a student aid award made under this section.

39.35 History History: 1975 c. 189, 422; 1985 a. 29; 1993 a. 16; 1995 a. 27; 1997 a. 27.

39.36 39.36 Repayment of stipends for teachers of the impaired. Notwithstanding s. 39.36, 1969 stats., s. 39.37 (3) (b), 1969 stats., and s. 39.36, 1991 stats., the board shall terminate on August 12, 1993, any obligation to repay a stipend awarded under this section.

39.36 History History: 1975 c. 189, 422; 1985 a. 29; 1993 a. 16; 1995 a. 27; 1997 a. 27; 2019 a. 9.

39.37 39.37 Student loan funding.

39.37(1) (1) Student loans made or authorized to be made under s. 39.32 may be funded from the proceeds of revenue obligations issued subject to and in accordance with subch. II of ch. 18.

39.37(2) (2) There is created a separate nonlapsible trust fund designated the student loan repayment fund consisting of all revenues received in repayment of student loans funded under this section, and any other revenues dedicated to it by the board. The board may pledge revenues received or to be received by the fund to secure revenue obligations issued under this section, and shall have all other powers necessary and convenient to distribute the proceeds of the revenue obligations and loan repayments in accordance with subch. II of ch. 18.

39.37(3) (3) All student loans funded with revenue obligations issued under this section shall be fully guaranteed as to repayment of principal and interest from among a nonstock corporation organized under s. 39.33 (1), the United States, its agencies or instrumentalities. The board may enter into agreements necessary to affect this guaranty.