MN HF3918

Establishes deferment and forbearance programs for Minnesota student loan borrowers, allowing temporary cessation of payments with eligibility criteria comparable to federal programs under 34 CFR 685.204 and 685.205.

Creates income-contingent repayment plans for refinanced loans with options comparable to federal plans including Pay As You Earn, income-contingent repayment, revised Pay As You Earn, and income-based repayment.

Authorizes loan forgiveness programs for refinanced loans including income-contingent repayment plan forgiveness (20-25 years), teacher loan forgiveness (5 consecutive years), and public service loan forgiveness (120 monthly payments).

Requires the commissioner to provide financial disclosure to borrowers explaining the impact of interest capitalization and changing payment plans before permitting deferment or forbearance entry.

Appropriates funding for fiscal year 2017 from the general fund to the loan capital fund to expand the student loan refinancing program by reducing credit score and debt-to-income ratio requirements.