OLR Bill Analysis

sHB 5123

AN ACT CONCERNING THE CONNECTICUT STUDENT LOAN FOUNDATION. AN ACT CONCERNING THE CONNECTICUT STUDENT LOAN FOUNDATION.

SUMMARY:

This bill reduces the size of the Connecticut Student Loan Foundation's (CSLF) board of directors from 15 to 14 members and changes its composition. Under current law, the House speaker and minority leader and the Senate president pro tempore and minority leader must each appoint a legislator from their respective chambers to the board. The bill eliminates this requirement and instead requires that each legislative leader appoint a person knowledgeable in business or finance.

It also eliminates the governor's appointment of a financial aid officer at an eligible institution and changes one of the governor's appointees, from a representative of the private colleges to a representative of an eligible higher education institution.

By law, an eligible institution is any institution that satisfies the eligibility requirements for participation in the Federal Family Education Loan Program authorized under Title IV, Part B of the 1965 Higher Education Act. This includes public or private nonprofit, proprietary, or postsecondary vocational institutions.

EFFECTIVE DATE: July 1, 2008

COMMITTEE ACTION

Higher Education and Employment Advancement Committee

Joint Favorable Substitute Change of Reference

Government Administration and Elections Committee

Joint Favorable