ENGR. H. B. NO. 2462 Summary

• Creates the Oklahoma Student Loan Public University Competition Act allowing comprehensive and regional institutions in The Oklahoma State System of Higher Education to establish tuition payback programs beginning with the 2015-2016 academic year.

• Offers two program options: (1) students attend without paying tuition/fees in exchange for contracting to pay a percentage of annual federal adjusted gross income upon graduation, or (2) institutions pay off existing student loan obligations in exchange for similar income-based repayment contracts.

• Sets maximum income repayment percentages based on years of enrollment: 2% (1 year), 3% (2 years), 4% (3 years), and 5% (4+ years) for tuition payback contracts; up to 5% for loan payoff contracts negotiated between institution and student.

• Requires institutions to determine student qualifications, establish participation policies, provide students with program details, and execute binding contracts specifying repayment terms with maximum 25-year contract periods; contracts discharged upon student death.

• Amends Section 205 of Title 68 to authorize Oklahoma Tax Commission to disclose individual income information and tax returns to higher education institutions with tuition payback programs for verifying income of participating students; effective November 1, 2014.