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1996 SESSION

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SB 517 Education Assistance Authority.

Introduced by: Malfourd W. Trumbo | all patrons    ...    notes | add to my profiles

SUMMARY:

State Education Assistance Authority. Requires the State Education Assistance Authority (SEAA) to separate those assets necessary or required to support non-federal, state-sponsored student loan programs from those required to guarantee federal loan programs. The SEAA does have at least one state-sponsored student loan program (EduCare), primarily for middle-income students.

The SEAA maintains reserves for both federal and state programs to pay claims by lenders. Reserve funds for federal programs are already deemed federal property by the Supreme Court and federal legislation; this measure would provide similar protection for reserves for the Edvantage loan program, a state student loan program. The SEAA and the Virginia Education Loan Authority (VELA) were consolidated in 1992 to create the Virginia Student Assistance Authorities (VSAA). Although designated jointly as the VSAA and sharing a common 10-member board, the two authorities nonetheless remained separate political subdivisions. The organizations were preserved to operate in their respective roles: the SEAA as guarantor and the VELA as lender, obviating the need for renewed federal approval to perform these functions. Each authority maintained its own assets, liabilities, and trust funds.

This bill is identical to HB 355.


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