MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Universities and Colleges; Appropriations
By: Representative Dickson
AN ACT TO CREATE THE MISSISSIPPI B-ON-TIME STUDENT LOAN PROGRAM; TO DEFINE TERMS USED IN THIS ACT; TO REQUIRE THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING AND THE STATE BOARD FOR COMMUNITY AND JUNIOR COLLEGES TO ADMINISTER THE PROGRAM; TO AUTHORIZE THE BOARD TO CHARGE AND COLLECT A LOAN ORIGINATION FEE FROM PERSONS RECEIVING LOANS UNDER THE PROGRAM; TO PROVIDE THAT THE TOTAL AMOUNT OF LOANS ISSUED UNDER THE PROGRAM SHALL NOT EXCEED THE AMOUNT AVAILABLE IN THE LOAN FUND; TO PRESCRIBE THE CRITERIA FOR ELIGIBILITY FOR A LOAN; TO PRESCRIBE THE CRITERIA FOR CONTINUED LOAN ELIGIBILITY; TO PROVIDE THE MANNER FOR A STUDENT TO REESTABLISH ELIGIBILITY FOR A LOAN UNDER THE PROGRAM; TO REQUIRE THE BOARD TO ADOPT RULES TO ALLOW OTHERWISE ELIGIBLE PERSONS TO RECEIVE A LOAN UNDER THE PROGRAM UNDER CERTAIN CONDITIONS; TO PRESCRIBE THE PURPOSES FOR WHICH LOAN FUNDS MAY BE USED; TO REQUIRE THE BOARD TO DETERMINE THE LOAN AMOUNT AWARDED TO A FULL-TIME STUDENT AT AN ELIGIBLE INSTITUTION OF HIGHER LEARNING; TO REQUIRE THE BOARD TO DISTRIBUTE COPIES OF ITS ADOPTED RULES TO EACH LOCAL SCHOOL DISTRICT; TO REQUIRE LOCAL SCHOOL DISTRICTS TO NOTIFY CERTAIN INDIVIDUALS OF THE LOAN PROGRAM AND THE ELIGIBILITY REQUIREMENTS OF THE PROGRAM; TO PROVIDE FOR THE DEFERMENT OF LOAN REPAYMENTS BASED ON THE ENROLLMENT STATUS OF THE LOAN RECIPIENT; TO PROVIDE FOR THE CONDITIONS UNDER WHICH THE REPAYMENT OF A LOAN WILL BE FORGIVEN; TO ESTABLISH THE MISSISSIPPI B-ON-TIME STUDENT LOAN FUND AS A SPECIAL FUND IN THE STATE TREASURY AND PROVIDE FOR ITS FUNDING; TO AMEND SECTION 37-103-25, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Mississippi B-On-Time Student Loan Program."
SECTION 2. As used in this act, the following terms shall have the meaning ascribed to them in this section, unless the context requires otherwise:
(a) "Board" means the Board of Trustees of State Institutions of Higher Learning acting in conjunction with the State Board for Community and Junior Colleges.
(b) "Eligible institution" means a public or private institution of higher learning or a community or junior college. The term "eligible institution" does not include a private or independent institution of higher learning offering only professional or graduate degrees.
(c) "Institution of higher learning" means any of the following institutions of higher learning or community or junior colleges located in Mississippi: Alcorn State University, Delta State University, Jackson State University, Mississippi State University, Mississippi University for Women, Mississippi Valley State University, University of Mississippi, University of Southern Mississippi, Coahoma Community College, Copiah-Lincoln Community College, East Central Community College, East Mississippi Community College, Hinds Community College, Holmes Community College, Itawamba Community College, Jones County Junior College, Meridian Community College, Mississippi Delta Community College, Mississippi Gulf Coast Community College, Northeast Mississippi Community College, Northwest Mississippi Community College, Pearl River Community College, Southwest Mississippi Community College, Belhaven College, Blue Mountain College, Millsaps College, Mississippi College, Rust College, Tougaloo College, William Carey College, Mary Holmes College, Magnolia Bible College and Wood College.
SECTION 3. The purpose of the Mississippi B-On-Time Student Loan Program is to provide no-interest loans to eligible students to enable those students to attend any public and private institution of higher learning in this state.
SECTION 4. (1) The Board of Trustees of State Institutions of Higher Learning in conjunction with the State Board for Community and Junior Colleges shall:
(a) Administer the Mississippi B-On-Time Student Loan Program;
(b) Determine the repayment and other terms of a Mississippi B-On-Time Student Loan; and
(c) Consult with the student financial aid officers of eligible institutions for the adoption of any rules necessary to implement the program or this act.
(2) The board may charge and collect a loan origination fee from a person who receives a Mississippi B-On-Time Student Loan to be used by the board to pay for the operating expenses for making loans under this act.
(3) The total amount of Mississippi B-On-Time Student Loans awarded shall not exceed the amount available in the Mississippi B-On-Time Student Loan Fund established under Section 14 of this act.
SECTION 5. (1) A person is not eligible to receive a Mississippi B-On-Time Student Loan if the person has been granted a baccalaureate degree.
(2) A person may not receive a Mississippi B-On-Time Student Loan for more than one hundred fifty (150) semester credit hours or the equivalent.
SECTION 6. To be eligible initially for a Mississippi B-On-Time Student Loan, a person must:
(a) Be a resident of this state, be granted an exception under Section 37-103-25, or be entitled, as a dependent child of a member of the Armed Forces of the United States, to pay tuition at the rate provided for residents of this state;
(b) Meet one (1) of the following academic requirements:
(i) Be a graduate of a public or private high school in this state who graduated not earlier than the 2009-2010 school year under the recommended core or advanced high school curriculum program or its equivalent;
(ii) Be a graduate of a high school operated by the United States Department of Defense who:
1. Graduated from that school not earlier than the 2009-2010 school year; and
2. At the time of graduation from that school was a dependent child of a member of the Armed Forces of the United States; or
(iii) Have received an associate degree from an eligible institution not earlier than May 1, 2010;
(c) Be enrolled for a full course load for an undergraduate student, as determined by the board, in an undergraduate degree or certificate program at an eligible institution;
(d) Be eligible for federal financial aid, except that a person is not required to meet any financial need requirement applicable to a particular federal financial aid program; and
(e) Comply with any additional nonacademic requirement adopted by the board under this act.
SECTION 7. (1) After initially qualifying for a Mississippi B-On-Time Student Loan, a person may continue to receive a Mississippi B-On-Time Student Loan for each semester or term in which the person is enrolled at an eligible institution only if the person:
(a) Is enrolled for a full course load for an undergraduate student, as determined by the board, in an undergraduate degree or certificate program at an eligible institution;
(b) Is eligible for federal financial aid, except that a person is not required to meet any financial need requirement applicable to a particular federal financial aid program;
(c) Makes satisfactory academic progress toward a degree or certificate as determined by the institution at which the person is enrolled, if the person is enrolled in the person's first academic year at the institution;
(d) Completed at least seventy-five percent (75%) of the semester credit hours attempted by the person in the most recent academic year and has a cumulative grade point average of at least 2.5 on a 4.0 scale or the equivalent on all coursework previously attempted at institutions of higher education, if the person is enrolled in any academic year after the person's first academic year; and
(e) Complies with any additional nonacademic requirement adopted by the board.
(2) If a person fails to meet any of the requirements of subsection (1) of this section after the completion of any semester or term, the person may not receive a Mississippi B-On-Time Student Loan for the next semester or term in which the person enrolls. A person may become eligible to receive a Mississippi B-On-Time Student Loan in a later semester or term if he or she:
(a) Completes a semester or term during which he or she is not eligible for a Mississippi B-On-Time Student Loan; and
(b) Meets all of the requirements of subsection (1) of this section.
(3) A person who is eligible to receive a Mississippi B-On-Time Student Loan continues to remain eligible to receive the Mississippi B-On-Time Student Loan if the person enrolls in or transfers to another eligible institution.
(4) A person who qualifies for and later receives a Mississippi B-On-Time Student Loan, who receives an undergraduate certificate or associate degree, and who, not later than twelve (12) months after the person receives the certificate or degree, enrolls in a program leading to a higher-level undergraduate degree continues to be eligible for a Mississippi B-On-Time Student Loan to the extent that other eligibility requirements are met.
SECTION 8. (1) The board shall adopt rules to allow a person who is otherwise eligible to receive a Mississippi B-On-Time Student Loan, in the event of a hardship or other good cause, to receive a Mississippi B-On-Time Student Loan while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Section 6 or 7 of this act, as applicable.
(2) The board may not allow a person to receive a Mississippi B-On-Time Student Loan while enrolled in fewer than six (6) semester credit hours.
SECTION 9. A person receiving a Mississippi B-On-Time Student Loan may use the money to pay for any usual and customary costs of attendance at an eligible institution incurred by the student, including tuition, fees, books and room and board.
SECTION 10. (1) The amount of a Mississippi B-On-Time Student Loan for a semester or term for a student enrolled full-time at an eligible institution other than an institution covered by subsection (2) or (3) of this section is an amount determined by the board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in an undergraduate degree program would be charged for that semester or term at state-supported institutions of higher learning.
(2) The amount of a Mississippi B-On-Time Student Loan for a student enrolled full-time at a private institution of higher learning is an amount determined by the board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in an undergraduate degree program would be charged for that semester or term at state-supported institutions of higher learning.
(3) The amount of a Mississippi B-On-Time Student Loan for a student enrolled full-time at a community or junior college is the amount determined by the board as the average statewide amount of tuition and required fees that a student who is a resident of the community or junior college district and is enrolled full-time in an associate degree or certificate program would be charged for that semester or term at public community or junior colleges.
(4) Not later than January 31 of each year, the board shall publish the amounts of each loan established by the board for each type of institution for the academic year beginning the next fall semester.
(5) If in any academic year the amount of money in the Mississippi B-On-Time Student Loan Fund is insufficient to provide the loans to all eligible persons in amounts specified by this section, the board shall determine the amount of available money and shall allocate that amount to eligible institutions in proportion to the number of full-time equivalent undergraduate students enrolled at each institution. Each institution shall use the money allocated to award Mississippi B-On-Time Student Loans to eligible students enrolled at the institution selected according to financial need.
SECTION 11. (1) The board shall distribute to each eligible institution and to each local school district a copy of the rules adopted under this act.
(2) Each local school district shall notify its middle school students, high school students, those students' teachers and counselors and those students' parents or guardians of the Mississippi B-On-Time Student Loan Program and the eligibility requirements of the program.
SECTION 12. The repayment of a Mississippi B-On-Time Student Loan received by a student under this act shall be deferred as long as the student remains continuously enrolled in an undergraduate degree or certificate program at an eligible institution.
SECTION 13. A student who receives a Mississippi B-On-Time Student Loan shall be forgiven the amount of the student's loan if the student is awarded an undergraduate certificate or degree at an eligible institution with a cumulative grade point average of at least 3.0 on a 4.0 scale or the equivalent:
(a) Within four (4) calendar years after the date that the student initially enrolled in the institution or another eligible institution if:
(i) The institution is a four-year institution; and
(ii) The student is awarded a degree other than a degree in engineering, architecture, or any other program determined by the board to require more than four (4) years to complete;
(b) Within five (5) calendar years after the date that the student initially enrolled in the institution or another eligible institution if:
(i) The institution is a four-year institution; and
(ii) The student is awarded a degree in engineering, architecture, or any other program determined by the board to require more than four (4) years to complete;
(c) Within two (2) years after the date the student initially enrolled in the institution or another eligible institution if the institution is a community or junior college; or
(d) With a total number of semester credit hours, including transfer credit hours and excluding hours earned exclusively by examination and hours earned for a course for which the student received credit toward the student's high school academic requirements, that are not more than six (6) hours more than the minimum number of semester credit hours required to complete the certificate or degree.
SECTION 14. (1) The Mississippi B-On-Time Student Loan Fund is established as a special fund in the State Treasury. The fund shall consist of gifts and grants and legislative appropriations received under Section 15 of this act and other money required by law to be deposited in the fund.
(2) Money in the Mississippi B-On-Time Student Loan Fund may be used only to pay the expenses of the board related to the operation of the Mississippi B-On-Time Student Loan Program and as otherwise provided by this act.
(3) Any interest earned on the fund shall be credited to the fund and shall not be paid into the State General Fund. Any unexpended monies remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund. Monies in the fund shall be expended, upon appropriation by the Legislature, exclusively for the purposes of implementing the provisions of this chapter. Disbursement of monies in the fund shall be made only upon warrants issued by the State Fiscal Officer upon requisitions of the board or its designee.
SECTION 15. (1) The board may solicit and accept gifts and grants from any public or private source for the purposes of this act.
(2) The Legislature may appropriate money for the purposes of funding this act.
SECTION 16. Section 37-103-25, Mississippi Code of 1972, is amended as follows:
37-103-25. (1) The Board of Trustees of State Institutions of Higher Learning and the boards of trustees of the community colleges and junior colleges are authorized to prescribe the amount of tuition and fees to be paid by students attending the several state-supported institutions of higher learning and community colleges and junior colleges of the State of Mississippi.
(2) Except as otherwise provided in this subsection, the total tuition to be paid by residents of other states shall not be less than the average cost per student from appropriated funds. However, the tuition to be paid by a resident of another state shall be equal to the tuition amount established under subsection (1) of this section if:
(a) The nonresident student was born in the State of Mississippi but later relocated and resided outside the state as a minor under the care of the minor's father or mother, or both;
(b) The nonresident student is a veteran who served in the Armed Forces of the United States;
(c) The nonresident student is domiciled in Mississippi no later than six (6) months after the nonresident student's separation from service, as evidenced by a Report of Separation from Military Service or other military discharge document, for the purpose of enrolling in a state institution of higher learning or a community or junior college; * * *
(d) The nonresident student is an evacuee of an area affected by Hurricane Katrina or Hurricane Rita. This waiver shall be applicable to the 2005-2006 school year only; or
(e) The nonresident student is a dependent child of a member of the Armed Forces of the United States and meets the requirements of Section 6 of this act for those type of students.
SECTION 17. This act shall take effect and be in force from and after July 1, 2010.