HI SB675

Repeals section 309-1.5 of the Hawaii Revised Statutes, which authorized a private not-for-profit corporation to acquire student loan notes under the Federal Family Education Act of 1965.

Eliminates the statutory authorization for Secondary Market Services Corp. – Hawaii, a not-for-profit corporation formed in 1992 to provide liquidity to banks participating in the Federal Family Education Loan Program as a secondary market student loan purchaser.

Takes effect upon approval following the Federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), which terminated new private student loan originations under the Federal Family Education Loan Program as of June 30, 2010.

Allows Secondary Market Services Corp. – Hawaii to continue operating and serve the state in other educational and charitable activities authorized for tax-exempt organizations under Internal Revenue Code section 501(c)(3).