(1) The division shall:
(a) Promulgate rules and regulations for administration of the Colorado student loan program established by this article, including but not limited to the following:
Criteria for eligibility of borrowers, lenders, and institutions of higher education toparticipate in the network;
Procedures to be followed by participating borrowers, lenders, and institutions ofhigher education;
With the advice of the authority created by part 2 of this article, procedures andcriteria by which the powers of the division pursuant to section 23-3.1-104.5 may be exercised;
Approve or arrange for approval of loan applications for guarantee;
Establish the level of the insurance premium charged to borrowers of guaranteedstudent loans, not to exceed the amount permitted by federal law;
Assist lenders in seeking payment from delinquent borrowers;
Purchase defaulted guaranteed student loans promptly;
Collect or provide for the collection of defaulted guaranteed student loans purchasedfrom lenders;
Repealed.
Train lenders in the requirements of the network;
Evaluate lender performance in the network;
Train personnel of institutions of higher education in the requirements of the network;
Evaluate the performance of institutions of higher education in the network;
Educate borrowers in the requirements of the network;
Communicate on a periodic basis with borrowers to inform them of the status oftheir loans;
Bill the federal government for administrative allowances and reinsurance payments;(o) Repealed.
(p) (I) At times prescribed by the department of revenue, but not less frequently than annually, certify to the department of revenue information regarding persons who owe a loan repayment to the division, the amount of which has been determined to be owing as a result of a final agency determination or judicial decision pursuant to section 39-21-108 (3), C.R.S., or which has been reduced to judgment.
Such information shall include the name and social security number of the personowing the debt, the amount of the debt, and any other identifying information required by the department of revenue.
Upon notification by the department of revenue of amounts deposited with the statetreasurer pursuant to section 39-21-108 (3), C.R.S., the state treasurer shall disburse such amounts to the division.
(q) (I) At least quarterly, certify to the controller information regarding persons who owe a loan repayment to the division.
Such information shall include the name and social security number of the personowing the debt, the amount of the debt, and any other identifying information required by the controller.
Upon notification by the controller to the state agency of amounts deposited withthe state treasurer pursuant to section 24-30-202.4 (3.5)(a)(V), C.R.S., the state treasurer shall disburse such amounts to the division.
(2) The division may:
Permit lenders to require cosigners;
Provide incentives to lenders, which may include but are not limited to:
Billing the federal government for interest payments owed to lenders;
Preparing federal reports required of lenders;
Guaranteeing, originating, servicing, making, and purchasing consolidation loansand refinancing loans pursuant to the provisions of section 23-3.1-112;
Verifying in-school status of students;
Employ legal counsel;
Garnish wages of defaulted borrowers;
Enter into contracts and guarantee agreements with approved lenders, approved institutions of higher education, state and federal governmental agencies, and corporations, including agreements for federal insurance of losses resulting from death, default, bankruptcy, or total and permanent disability of borrowers. Contracts with corporations to provide services shall clearly specify the role and duties of such corporations and may be entered into without regard to the provisions of the "Procurement Code", articles 101 to 112 of title 24, C.R.S., without regard to the provisions of section 17-24-111, C.R.S., and without regard to the provisions of part 11 of article 30 of title 24, C.R.S.
Make, originate, disburse, service, or guarantee student loans;
Establish the level of insurance premium or interest rate charged to the borrowers ofstudent loans;
Purchase defaulted student loans;
Collect or provide for the collection of defaulted student loans purchased from lenders;
and (k) Repealed.
Advise the commission and the department on matters pertaining to student loans;
Make and enter into contracts and all other instruments necessary or convenient forthe exercise of its powers and functions pursuant to this part 1 without regard to the provisions of the "Procurement Code", articles 101 to 112 of title 24, C.R.S., without regard to the provisions of section 17-24-111, C.R.S., and without regard to the provisions of part 11 of article 30 of title 24, C.R.S.;
Do all things necessary or convenient to carry out the purposes of this part 1;(o) Repealed.
Require a lender or institution of higher education to take reasonable corrective action to remedy a violation of applicable laws, regulations, special arrangements, agreements, or limitations, including but not limited to requiring such lender or institution to make payments to the secretary of the United States department of education, the division, or their designated recipients of any funds that the lender or institution improperly received, withheld, or disbursed or caused to be disbursed;
Establish an investigations unit, which shall have the following powers and duties:
To conduct investigations, as it deems necessary, to determine whether applicationsand other data submitted to the division contain any misrepresentations or false statements made for the purpose of cheating or defrauding and to locate defaulted borrowers;
To investigate, as it deems necessary, alleged violations of any state or federal criminal statute related to fraud committed by any person who has obtained or attempted to obtain or who aids, assists, or abets in obtaining or attempting to obtain student loans or loan guarantees or other money from the division;
To work in conjunction with the appropriate law enforcement and prosecuting authorities in the investigation and prosecution of cases where evidence of criminal activity exists;
To request and obtain information, assistance, and data from any department, division, board, bureau, commission, or other agency of the local, state, or federal government, including, but not limited to, arrest and conviction records available from any law enforcement agency or crime information center pursuant to the provisions of part 3 of article 72 of title 24, C.R.S.
(3) On or after July 1, 1979, all rules and regulations promulgated by the division pursuant to the provisions of paragraph (a) of subsection (1) of this section shall be subject to sections 24-4-103 (8) and 24-4-108, C.R.S. Any guarantee made pursuant to any rule or regulation shall continue to be governed by the rule or regulation in effect at the time when the guarantee was made, whether or not such rule or regulation has been continued.
Source: L. 79: Entire article added, p. 808, § 1, effective July 1. L. 80: (3) amended, p. 787, § 20, effective June 5. L. 81: (1)(a)(I), (1)(a)(II), (1)(c), (1)(l), (1)(m), (1)(o), and (2)(e) amended, p. 1087, § 3, effective May 29. L. 84: (1)(p) added and (2)(d) amended, p. 1008, §§ 1, 2, effective March 29; (2)(f) to (2)(o) added, p. 619, 1008, §§ 5, 2, 6, effective April 10. L. 85:
(2)(p) added, p. 773, § 4, effective April 5; (2)(q) added, p. 776, § 1, effective April 30. L. 87:
(2)(b)(III) amended, p. 845, § 1, effective February 26. L. 97: (1)(q) added, p. 941, § 4, effective July 1. L. 2002: (2)(e) and (2)(m) amended, p. 962, § 2, effective June 1; (1)(p)(I) amended, p. 100, § 2, effective August 7. L. 2004: IP(1)(a), (1)(a)(I), (1)(g), (1)(h), (1)(i), (1)(j), (1)(k), (1)(l), (2)(j), and (2)(o) amended, pp. 578, 559, §§ 38, 2, effective July 1. L. 2006: IP(1)(a) amended, p. 512, § 5, effective July 1. L. 2010: (1)(g), (1)(o), (2)(j), (2)(k), and (2)(o) repealed, (HB 101428), ch. 390, p. 1829, § 4, effective June 9.