Greater access to student loans
STATEHOUSE — Senate Bill (SB) 532, sponsored by Rep. Bob Behning (R-Indianapolis), passed out of the Indiana House today with a vote of 71 - 24. SB 532 permits the Indiana Secondary Market (ISM) for Education Loans, Inc. to become a direct lender of postsecondary education loans for purposes of attending both Indiana and non-Indiana postsecondary education schools.
"My focus is to continue giving Hoosier students the resources they need to compete and address the skills gap through advanced education,” said Rep. Behning. “With private markets limiting the amount of low interest loans granted to students, it is imperative that we provide a way for students to have a smarter and more cost efficient option for postsecondary education loans."
Currently, ISM does not have clear ability in its legislative charter or articles of incorporation to permit it to be a direct originator of postsecondary education loans.
SB 532 will provide Hoosiers with a source of direct lending to fill the financial gap created by the federal student loan and grant restrictions. This will help shift cost for students who are experiencing increased borrowing costs and higher tuition levels.
SB 532 was authored by Sen. Doug Eckerty (R-Yorktown) and cosponsored in the House by Reps. Tom Dermody (R-LaPorte) and Gail Riecken (D-Evansville).
“We cannot allow our state to fall behind academically due to the potential financial strain of higher education. Allowing every student the opportunity to continue their education is vital to providing these students with the proper skills needed to acquire many high-quality jobs, as well as continuing to grow Indiana’s economy,” said Rep. Behning.