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Higher Education
Sale of EdFund
Budget trailer legislation (SB 89 and SB 91) provide for the sale of the Student Aid Commission's loan guarantee function and nonprofit auxiliary organization, known as EdFund, in order to maximize the value of the state's assets related to implementation of the Federal Family Education Loan Program. Because the loan guaranty function is not a core mission of state government and is often conducted by independent, non-governmental entities in other states, it is anticipated that a sale or other arrangement would have the benefit of generating up to $1 billion of revenue to the state without affecting either student access to or interest rates on federal guaranteed loans for postsecondary education. This legislation authorizes the Director of Finance to determine the most cost-effective course of action, to hire a sale advisor, and provides $300,000 for legal expenses to ensure that all details of the transaction are conducted in compliance with both federal requirements and state laws and regulations to ensure no interruption of guaranty services to students. It is anticipated that the sale would take place during the last quarter of the fiscal year, after due diligence has been completed by prospective purchasers, competitive bidding conducted, and approval of the federal Department of Education.
As a consequence of this transaction, the state will resume funding for the cost of the Commission's state operations and financial aid awareness programs.
CHAPTER HIGHLIGHTS for
Higher Education Back to Top
PRINTABLE BUDGET DOCUMENTS Back to Top
Enacted Budget Summary - Higher Education (pdf * - 37K) -
Provides the entire Higher Education Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Enacted Budget Detail - Higher Education
Displays Enacted Budget Detail information for Higher Education.
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