15-62.1-02. Powers and duties of the agency

15-62.1-02. Powers and duties of the agency

The agency has the following powers and duties under this chapter:

1. To guarantee all loans that satisfy the requirements set forth in title IV, part B, of the

Higher Education Act of 1965 [20 U.S.C. 1001 et seq.; Pub. L. 89-329; 79 Stat. 1236;

Pub. L. 99-498; 100 Stat. 1353; Pub. L. 105-244; 112 Stat. 1581], as amended through

December 31, 1998, upon terms, conditions, and application procedures

commensurate with the federal Higher Education Act of 1965 [20 U.S.C. 1001 et seq.;

Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; Pub. L. 105-244;

112 Stat. 1581], as amended through December 31, 1998, if federal coinsurance of

student loans guaranteed by the agency is available. If at any time the agency

determines that student loans made under the terms and conditions of federal

coinsurance programs are no longer adequately serving the needs of North Dakota

students attending postsecondary institutions, or if federal coinsurance is no longer

available, the agency shall notify the industrial commission or its designee. Upon

approval of the industrial commission or its designee, the agency shall guarantee

student loans without federal coinsurance pursuant to rules made by the agency

relating to terms for applicant eligibility in accordance with the provisions of this

chapter. Students whose loans are guaranteed by the agency must be students who

have been accepted for enrollment in postsecondary training or are attending eligible

postsecondary institutions located within or outside this state, and whose loans are for

the purpose of assisting them in meeting their expenses of postsecondary education.

Students who are accepted for enrollment or are attending eligible proprietary or

postsecondary institutions of higher education are eligible to have loans guaranteed by

the agency. The agency shall, by rule, establish minimum qualifications for a person to

be deemed a part-time student for purposes of this chapter.

2. To take, hold, expend, and administer, on behalf of the state from any source any real

property, personal property and moneys, or any interest therein, and the income

therefrom, either absolutely or in trust, for any purpose of the guarantee loan program;

provided, that no guarantee obligation of the agency may be a general obligation of

the state of North Dakota, nor may be payable out of any moneys except those made

available to the agency under this chapter. Nothing in this chapter may be construed to

authorize the agency to borrow funds for any use relating to the administration of the

state guarantee loan programs.