The Oklahoma State Regents for Higher Education are hereby authorized to utilize the Student Educational Assistance Fund and to administer the student loan guarantee program under the federal Higher Education Act of 1965 for guaranteeing loans made by private or public lending institutions to applicants for such loan guarantees for the purpose of obtaining financial assistance for attendance at any vocational rehabilitation school, vocational education or trade school, or any institution of higher learning, under the following conditions:

1. 1. Every such applicant shall demonstrate to the satisfaction of the State Regents or their delegate or delegates that the student is a worthy applicant for such assistance, that the student is unable to obtain funds necessary for an adequate program of education at the institution of the student's choice without such assistance, and shall undertake repayment of the loan guarantee in compliance with conditions stated herein;
2. 2. No such loan guaranteed by the State Regents through the Student Educational Assistance Fund, except as required by federal regulation, shall require repayment while the student is pursuing at least a half-time course of study on a continuing basis in a vocational rehabilitation school, vocational education or trade school, or institution of higher learning. The rate of interest on the loan shall be subject to the approval of the State Regents, but shall not be in excess of the interest or rate of interest allowable in any similar federally guaranteed Student Loan Program;
3. 3. The State Regents are further authorized and empowered to promulgate such rules and procedures with respect to applicant eligibility, terms of loans, and other matters they may consider appropriate, as will facilitate the program authorized by this act, and as will not conflict with the terms hereof. Such procedures may include, but not be limited to, entering into agreements with other Federal Family Education Loan Program (FFELP) participants such as schools, lenders, servicers, secondary markets, collection agencies, guarantee agencies, and the United States Department of Education. It is the intent of the Legislature that the State Regents consider the hardships existing due to previous requirements of applicants. That, further, the State Regents make every effort to consolidate previous loans of full-time students for students now qualifying as part-time students and guarantee these combined loans;
4. 4. The State Regents may notify each licensing board in this state of the default of payment of the student in accordance with Section 623.1 of this title;
5. 5. A licensing agency shall provide information indexed by social security number to the State Regents when such information is requested for use in the default prevention efforts or collection of defaulted student loans guaranteed by the State Regents. Any information disclosed under this provision shall be utilized for the purpose outlined herein and shall be held strictly confidential by the State Regents. No member or employee of any entity who discloses information pursuant to this section shall be criminally or civilly liable for any error or omission in the disclosure of such information; and
6. 6. In addition to other collection methods authorized by law, the State Regents may establish and implement programs for administrative garnishment and wage withholding, in accordance with applicable federal laws and regulations, to collect on defaulted student loans.

Added by Laws 1965, HB 1056, c. 482, § 2, emerg. eff. July 14, 1965; Amended by Laws 1967, SB 62, c. 3, § 1, emerg. eff. February 8, 1967; Amended by Laws 1984, SB 471, c. 131, § 1, emerg. eff. April 10, 1984; Amended by Laws 1996, HB 2887, c. 261, § 1, emerg. eff. July 1, 1996; Amended by Laws 1999, SB 224, c. 66, § 1, emerg. eff. July 1, 1999 (superseded document available).