CT SB00057

Amends subsection (a) of section 10a-225 to grant the Connecticut Higher Education Loan Authority powers to establish criteria and guidelines for education loan financing programs, including borrower eligibility standards and institutional participation requirements.

Authorizes the authority to contract with guarantors, financial institutions, and loan servicing organizations to originate, service, and administer education loans, and to charge borrowers fees for these services.

Prohibits the authority from initiating collection actions against students enrolled in institutions of higher education from October 1, 2010 to October 1, 2012, if the student has cured a default or is making reasonable efforts to cure a default.

Grants the authority power to issue bonds, make authority loans, establish default reserve funds, purchase default insurance, and commingle education loan portfolios as security with institutional consent.

Takes effect October 1, 2010.