94157.
As used in this article, unless the context requires otherwise, the following terms have the following meanings:(a) “Executive director” means the Executive Director of the California Educational Facilities Authority.
(b) “Financial institution” means a bank as defined under paragraph (4) of subdivision (b) of Section 1201 of the Commercial Code, including a federal- or state-chartered bank, that has been approved by the authority to enroll qualified loans in the program and has agreed to all terms and conditions set forth in this article and as may be required by the authority. A financial institution shall have a branch or office, or be otherwise present for jurisdictional purposes, in California.
(c) “Loss reserve “First loss protection account” means an account in the State Treasury or in any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the program for the purposes of any of the following:
(1) Depositing all required fees paid by the financial institution and the qualified borrower. borrower, if applicable.
(2) Depositing contributions made by the state and, if applicable, the federal government or other sources. Contributions by the state for each qualified loan shall not exceed 10 percent of the amount of the qualified loan, as determined by the authority.
(3) Covering losses not to exceed 10 percent of a qualified loan, as determined by the authority, on enrolled qualified loans sustained by the financial institution by disbursing funds accumulated in the first loss reserve protection account.
(d) “Private student loan” means a loan issued by a private lending institution for the costs of attendance at any public or private nonprofit college or university in the United States, or any public or private nonprofit trade, career, or technical school in the United States, notwithstanding the definitions in subdivisions (i), (k), and (l) of Section 94110.
(e) “Program” means the California Student Loan Refinancing Program created pursuant to this article.
(f) “Qualified borrower” means an individual meeting all of the following requirements:
(1) Residency in California.
(2) Completion of a bachelor’s degree. an associate’s, bachelor’s, graduate, or professional degree; receipt of a certificate, diploma, or degree from a trade, career, or technical school; or attendance at a public or private nonprofit college, university, or trade, career, or technical school in the United States without receipt of a certificate, diploma, or degree from that institution.
(3) Employment in a public service program or by a nonprofit organization for no less than six continuous months with one employer located in California.
(4) Able to repay, as determined by the authority.
(5) (4) Meeting the criteria established by the financial institution and the authority.
(5) His or her loans are in deferment, forbearance, or repayment status.
(6) His or her loans are not delinquent or in default status.
(7) Any other requirement, as determined by the authority.
(g) “Qualified loan” means a loan or a portion of a loan made by a financial institution to a qualified borrower to refinance a private student loan under the program. A qualified loan made under the program shall carry a contractual interest rate at least one-quarter of 1 percentage point lower than the loan being refinanced, and may be made with the interest rates, fees, fees and other terms and conditions agreed upon by the financial institution and the qualified borrower. The maximum principal amount of a qualified loan shall not exceed twenty-five thousand dollars ($25,000). Only a loan determined by the authority to be an educational loan nondischargeable in bankruptcy as set forth in Section 523 of Title 11 of the United States Code as that section existed on August 15, 2014, shall be a qualified loan eligible for financing under this article.