An Act To Ensure the Availability of Supplemental Educational Loans

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  unprecedented turbulence in the capital markets has made it necessary to replace existing auction rate bond financing for supplemental or alternative student loans with financing supported by a capital reserve fund; and

Whereas,  if financing supported by a capital reserve fund cannot be made available, Maine students and families may be adversely affected by increased costs of education borrowing or limited availability of supplemental loans, which may affect the number of Maine students pursuing a higher education because they cannot secure the necessary financing; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 20-A MRSA §11424, sub-§2,  as enacted by PL 1987, c. 807, §3, is amended to read:

Sec. 2. 20-A MRSA §11424, sub-§6,  as enacted by PL 1987, c. 807, §3, is repealed.

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

summary

This bill allows the Maine Educational Loan Authority to establish a capital reserve fund to secure student loan revenue bonds in the principal amount necessary to help meet the supplemental educational financing needs of Maine students and families. It also removes language that places a limit on the principal amount of a certain type of bond that the authority may have outstanding at any one time.