HB 1489 Summary

• Clarifies that the Arkansas Student Loan Authority is authorized to be established and replaces language requiring a Governor's proclamation with simpler authorization language

• Changes terminology from "participating institutions" to "eligible institutions" throughout the statute and broadens the authority's power to make education loans in addition to guaranteed educational loans

• Repeals § 6-81-103 allowing nonprofit corporations as an alternative to the authority, § 6-81-105 requiring cooperation from the Student Loan Guarantee Foundation, § 6-81-127 through 6-81-129 regarding proprietary institution lending limits and reporting, and § 6-81-131 regarding administration of existing programs

• Expands the authority's powers to include interest rate exchange agreements with credit rating requirements, enhanced procurement procedures, and disclosure requirements to the Governor and State Board of Finance

• Changes authority board member compensation from unpaid service to allowing stipends and expense reimbursement, and adds the Arkansas Student Loan Authority Board of Directors to the list of boards eligible for stipend payments