164A.010 Findings -- Determinations -- Intent. The General Assembly of the Commonwealth of Kentucky hereby makes the following <br>findings and determinations and promulgates the following statements of legislative <br>intent: <br>(1) That the attainment by every citizen of his or her educational goals will inure to the general welfare, well-being, and productivity of the Commonwealth. Accordingly, it <br>is hereby determined and declared that providing higher education assistance to <br>needy, qualified students is in the best interest of the Commonwealth and <br>constitutes the implementation of a public purpose of statewide import of the <br>Commonwealth. (2) Pursuant to KRS 164.740 to 164.764, the Kentucky Higher Education Assistance Authority has heretofore been created and has rendered valuable and material <br>services to the Commonwealth and its citizens in the effectuation of the public <br>policy stated in the foregoing subsection. Pursuant to said cited statutory authority, <br>the Kentucky Higher Education Assistance Authority is legally authorized to make <br>and to guarantee student loans, and is eligible to reinsure student loans with the <br>United States of America pursuant to the Higher Education Act of 1965, as <br>amended. The United States Secretary of Education has been authorized to enter <br>into insurance or reinsurance agreements with the Kentucky Higher Education <br>Assistance Authority, and other lending institutions in the Commonwealth pursuant <br>to which insured student loans have been made possible for the benefit, welfare, and <br>well-being and for the future benefit of citizens, residents and inhabitants of the <br>Commonwealth. (3) The 1976 amendments (P.L. 94-482) to the Higher Education Act of 1965 (P.L. 89-329), provided incentives for states to establish and implement programs of student <br>loan insurance by providing federal reinsurance of any losses due to the death, <br>disability, bankruptcy or default of the borrower. The education amendments of <br>1976 (P.L. 94-482) offered further incentives to states to establish insured student <br>loan programs including the payment of certain administrative expenses to a state <br>agency, the payment of interest on student loans directly by the federal government <br>while qualified students are pursuing a course of education at an eligible institution, <br>the payment of special allowances to holders of state insured student loans and the <br>reimbursement of costs of collection to state student loan insurance agencies in the <br>event of defaults. The Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66) <br>further amended the Higher Education Act of 1965 by reducing the rate of insurance <br>payable to holders of insured student loans first disbursed on or after October 1, <br>1993, to ninety-eight percent (98%) of losses resulting from the default of the <br>borrower, and reduced the federal reimbursements to the guarantee agency to a <br>maximum of ninety-eight percent (98%) of the principal and interest amount on <br>defaulted insured student loans, with further reductions to eighty-eight percent <br>(88%) and seventy-eight percent (78%) when the amount of reinsurance claims paid <br>in any one (1) year exceeds five percent (5%) and nine percent (9%), respectively, <br>of insured student loan amounts in repayment as of the end of the preceding federal <br>fiscal year. (4) The General Assembly hereby determines and declares that in order to continue the Insured Student Loan Program in Kentucky, to enable eligible lenders including <br>banks and trust companies and the Kentucky Higher Education Assistance <br>Authority to be able to continue to make student loans available to qualified <br>students and to ensure that the Commonwealth of Kentucky shall not lose the <br>benefits of the Insured Student Loan Program, it is necessary that there be created a <br>body corporate and politic to act as a financing agency, and to assure that a <br>secondary market for insured student loans be created and maintained. The actions <br>and duties of such body corporate and politic to be carried out in such manner so as <br>to assure that any student loans acquired by such entity have the benefit of state <br>insurance with federal reinsurance to the end that the assets of the Commonwealth <br>be not committed to such purposes. Effective: July 15, 1996 <br>History: Amended 1996 Ky. Acts ch. 350, sec. 5, effective July 15, 1996. -- Created 1978 Ky. Acts ch. 387, sec. 1, effective June 17, 1978.
164A.010 Findings -- Determinations -- Intent. The General Assembly of the Commonwealth of Kentucky hereby makes the following <br>findings and determinations and promulgates the following statements of legislative <br>intent: <br>(1) That the attainment by every citizen of his or her educational goals will inure to the general welfare, well-being, and productivity of the Commonwealth. Accordingly, it <br>is hereby determined and declared that providing higher education assistance to <br>needy, qualified students is in the best interest of the Commonwealth and <br>constitutes the implementation of a public purpose of statewide import of the <br>Commonwealth. (2) Pursuant to KRS 164.740 to 164.764, the Kentucky Higher Education Assistance Authority has heretofore been created and has rendered valuable and material <br>services to the Commonwealth and its citizens in the effectuation of the public <br>policy stated in the foregoing subsection. Pursuant to said cited statutory authority, <br>the Kentucky Higher Education Assistance Authority is legally authorized to make <br>and to guarantee student loans, and is eligible to reinsure student loans with the <br>United States of America pursuant to the Higher Education Act of 1965, as <br>amended. The United States Secretary of Education has been authorized to enter <br>into insurance or reinsurance agreements with the Kentucky Higher Education <br>Assistance Authority, and other lending institutions in the Commonwealth pursuant <br>to which insured student loans have been made possible for the benefit, welfare, and <br>well-being and for the future benefit of citizens, residents and inhabitants of the <br>Commonwealth. (3) The 1976 amendments (P.L. 94-482) to the Higher Education Act of 1965 (P.L. 89-329), provided incentives for states to establish and implement programs of student <br>loan insurance by providing federal reinsurance of any losses due to the death, <br>disability, bankruptcy or default of the borrower. The education amendments of <br>1976 (P.L. 94-482) offered further incentives to states to establish insured student <br>loan programs including the payment of certain administrative expenses to a state <br>agency, the payment of interest on student loans directly by the federal government <br>while qualified students are pursuing a course of education at an eligible institution, <br>the payment of special allowances to holders of state insured student loans and the <br>reimbursement of costs of collection to state student loan insurance agencies in the <br>event of defaults. The Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66) <br>further amended the Higher Education Act of 1965 by reducing the rate of insurance <br>payable to holders of insured student loans first disbursed on or after October 1, <br>1993, to ninety-eight percent (98%) of losses resulting from the default of the <br>borrower, and reduced the federal reimbursements to the guarantee agency to a <br>maximum of ninety-eight percent (98%) of the principal and interest amount on <br>defaulted insured student loans, with further reductions to eighty-eight percent <br>(88%) and seventy-eight percent (78%) when the amount of reinsurance claims paid <br>in any one (1) year exceeds five percent (5%) and nine percent (9%), respectively, <br>of insured student loan amounts in repayment as of the end of the preceding federal <br>fiscal year. (4) The General Assembly hereby determines and declares that in order to continue the Insured Student Loan Program in Kentucky, to enable eligible lenders including <br>banks and trust companies and the Kentucky Higher Education Assistance <br>Authority to be able to continue to make student loans available to qualified <br>students and to ensure that the Commonwealth of Kentucky shall not lose the <br>benefits of the Insured Student Loan Program, it is necessary that there be created a <br>body corporate and politic to act as a financing agency, and to assure that a <br>secondary market for insured student loans be created and maintained. The actions <br>and duties of such body corporate and politic to be carried out in such manner so as <br>to assure that any student loans acquired by such entity have the benefit of state <br>insurance with federal reinsurance to the end that the assets of the Commonwealth <br>be not committed to such purposes. Effective: July 15, 1996 <br>History: Amended 1996 Ky. Acts ch. 350, sec. 5, effective July 15, 1996. -- Created 1978 Ky. Acts ch. 387, sec. 1, effective June 17, 1978.
164A.010 Findings -- Determinations -- Intent. The General Assembly of the Commonwealth of Kentucky hereby makes the following <br>findings and determinations and promulgates the following statements of legislative <br>intent: <br>(1) That the attainment by every citizen of his or her educational goals will inure to the general welfare, well-being, and productivity of the Commonwealth. Accordingly, it <br>is hereby determined and declared that providing higher education assistance to <br>needy, qualified students is in the best interest of the Commonwealth and <br>constitutes the implementation of a public purpose of statewide import of the <br>Commonwealth. (2) Pursuant to KRS 164.740 to 164.764, the Kentucky Higher Education Assistance Authority has heretofore been created and has rendered valuable and material <br>services to the Commonwealth and its citizens in the effectuation of the public <br>policy stated in the foregoing subsection. Pursuant to said cited statutory authority, <br>the Kentucky Higher Education Assistance Authority is legally authorized to make <br>and to guarantee student loans, and is eligible to reinsure student loans with the <br>United States of America pursuant to the Higher Education Act of 1965, as <br>amended. The United States Secretary of Education has been authorized to enter <br>into insurance or reinsurance agreements with the Kentucky Higher Education <br>Assistance Authority, and other lending institutions in the Commonwealth pursuant <br>to which insured student loans have been made possible for the benefit, welfare, and <br>well-being and for the future benefit of citizens, residents and inhabitants of the <br>Commonwealth. (3) The 1976 amendments (P.L. 94-482) to the Higher Education Act of 1965 (P.L. 89-329), provided incentives for states to establish and implement programs of student <br>loan insurance by providing federal reinsurance of any losses due to the death, <br>disability, bankruptcy or default of the borrower. The education amendments of <br>1976 (P.L. 94-482) offered further incentives to states to establish insured student <br>loan programs including the payment of certain administrative expenses to a state <br>agency, the payment of interest on student loans directly by the federal government <br>while qualified students are pursuing a course of education at an eligible institution, <br>the payment of special allowances to holders of state insured student loans and the <br>reimbursement of costs of collection to state student loan insurance agencies in the <br>event of defaults. The Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66) <br>further amended the Higher Education Act of 1965 by reducing the rate of insurance <br>payable to holders of insured student loans first disbursed on or after October 1, <br>1993, to ninety-eight percent (98%) of losses resulting from the default of the <br>borrower, and reduced the federal reimbursements to the guarantee agency to a <br>maximum of ninety-eight percent (98%) of the principal and interest amount on <br>defaulted insured student loans, with further reductions to eighty-eight percent <br>(88%) and seventy-eight percent (78%) when the amount of reinsurance claims paid <br>in any one (1) year exceeds five percent (5%) and nine percent (9%), respectively, <br>of insured student loan amounts in repayment as of the end of the preceding federal <br>fiscal year. (4) The General Assembly hereby determines and declares that in order to continue the Insured Student Loan Program in Kentucky, to enable eligible lenders including <br>banks and trust companies and the Kentucky Higher Education Assistance <br>Authority to be able to continue to make student loans available to qualified <br>students and to ensure that the Commonwealth of Kentucky shall not lose the <br>benefits of the Insured Student Loan Program, it is necessary that there be created a <br>body corporate and politic to act as a financing agency, and to assure that a <br>secondary market for insured student loans be created and maintained. The actions <br>and duties of such body corporate and politic to be carried out in such manner so as <br>to assure that any student loans acquired by such entity have the benefit of state <br>insurance with federal reinsurance to the end that the assets of the Commonwealth <br>be not committed to such purposes. Effective: July 15, 1996 <br>History: Amended 1996 Ky. Acts ch. 350, sec. 5, effective July 15, 1996. -- Created 1978 Ky. Acts ch. 387, sec. 1, effective June 17, 1978.
