HI HB830

Repeals section 309-1.5 of Hawaii Revised Statutes, which authorized a private not-for-profit corporation to acquire student loan notes under the Federal Family Education Loan Program.

Eliminates the statutory authority for Secondary Market Services Corp. -- Hawaii, formed in 1992, whose original purpose has expired due to federal changes in student loan origination.

Federal law (Health Care and Education Reconciliation Act of 2010, effective June 30, 2010) terminated private entity originations under the Federal Family Education Loan Program, transferring all federally guaranteed student loans to the Federal Direct Loan Program.

Allows Secondary Market Services Corp. -- Hawaii to continue operating as a tax-exempt organization under Internal Revenue Code section 501(c)(3) for other educational and charitable activities without statutory restrictions.

Takes effect upon approval.