September 23, 2019 - Introduced by Senators Hansen, Ringhand, Bewley,
Carpenter, Johnson, Larson, Risser, Shilling, Smith, L. Taylor and Wirch,
cosponsored by Representatives Shankland, Anderson, Billings, Bowen,
Brostoff, Crowley, Fields, Goyke, Hebl, Milroy, Ohnstad, Pope, Riemer,
Sargent, Sinicki, Subeck, C. Taylor and Zamarripa. Referred to Committee on
Universities, Technical Colleges, Children and Families.

SB444,1,10 1An Act to amend 13.172 (1), 13.48 (13) (a), 13.62 (2), 13.94 (4) (a) 1., 13.95
2(intro.), 16.002 (2), 16.004 (4), 16.004 (5), 16.004 (12) (a), 16.045 (1) (a), 16.15
3(1) (ab), 16.41 (4), 16.417 (1) (b), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a)
41., 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7) (d),
516.765 (8), 16.85 (2), 16.865 (8), 77.54 (9a) (a), 100.45 (1) (dm) and 230.03 (3);
6and to create 13.94 (1) (dt), 13.94 (1s) (c) 10., 19.42 (10) (t), 19.42 (13) (q),
720.195, 39.28 (7), 39.52, 39.54, 39.56, 40.02 (54) (n), 70.11 (38v), 224.30 (6) and
8chapter 239 of the statutes; relating to: student loans, creating an authority
9to be known as the Wisconsin Student Loan Refinancing Authority, granting
10rule-making authority, and making an appropriation.

This bill creates an authority, which is a public body corporate and politic, to be
known as the Wisconsin Student Loan Refinancing Authority (WSLRA). The
WSLRA is governed by a board that consists of four members of the legislature, three
members who are students of an institution of higher education, and two members

with experience in making student loans. The five members of the board who are not
members of the legislature are nominated by the governor, and with the advice and
consent of the senate appointed, to serve two- or three-year terms. The board
appoints the chief executive officer of WSLRA and annually elects the chairperson
of the board. The board is given all the powers necessary or convenient to carry out
its duties, as well as specific powers to conduct its corporate business, including the
power to issue bonds for any corporate purpose.

Under the bill, the board must develop and implement a loan program under
which state residents may refinance student loans. Under the program, WSLRA
provides a loan to an individual to pay off some or all of his or her outstanding student
loan debt. To qualify for the program, an individual must satisfy eligibility
requirements established by WSLRA. Under the bill, WSLRA must provide loans
under the program at the lowest possible interest rate that is still sufficient to cover
the expenses of the program. A loan issued under the program is not dischargeable
in a bankruptcy proceeding.

This bill requires the Department of Financial Institutions to compile data
related to private student loans for the purpose of comparing private lending
institutions' student loan interest rates and repayment plans. A “private student
loan" is a loan issued by a private lending institution for the purpose of paying for
or financing higher education expenses, including tuition and fees, books and
supplies, and room and board. DFI must create and maintain a list of private lending
institutions that provide the lowest rates and best repayment options on student
loans. DFI must also compile a list of the top ten best private lending institutions
based on rates and policies that are most favorable to the student borrower. DFI
must place these lists on DFI's Internet site and update the Internet site monthly to
ensure that the student loan information in these lists is current and accurate. DFI's
Internet site must also contain information pertaining to lending institutions that
do not make the top ten list, including identifying those lending institutions that
provide the worst rates and strictest repayment options. DFI may satisfy its duties
under the bill through a designee or third-party contractor.

The bill also requires an institution or college campus within the University of
Wisconsin System, a technical college within the technical college system, a tribally
controlled college, or a private, nonprofit institution of higher education located in
this state (institution of higher education) to provide to a prospective or newly
accepted student and to the student's parents clearly outlined and
easy-to-understand information pertaining to all of the following:

1. The total cost of attendance at the institution of higher education.

2. The approximate or, if known, the actual total amount of financial aid that
the student would receive from the institution of higher education, and the
approximate or, if known, the actual total amount of student loan debt that the
student would accumulate, over the course of four years, if the student were to attend
the institution of higher education for four years (student loan debt).

3. Student loan rates, repayment plans, default rates, and the actual monthly
payment that would be required to pay that student loan debt when the loan becomes
due.

Finally, the bill requires an institution of higher education and the Higher
Educational Aids Board to create on their Internet sites a link to that portion of DFI's
Internet site containing the lists and other information required under the bill.