STAND. COM. REP. NO.192

Honolulu, Hawaii

, 2001

RE: S.B. No. 1220

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 1220 entitled:

"A BILL FOR AN ACT RELATING TO STUDENT LOAN FUND,"

begs leave to report as follows:

The purpose of this measure is to authorize Secondary Market Services Corporation Hawaii, the state designated student loan secondary market, to purchase student loan notes held by mainland financial institutions.

Your Committee heard testimony in support of the measure from the University of Hawaii, Secondary Market Services Corporation-Hawaii, Hawaii Credit Union League, American Savings Bank, Pacific Financial Aid Association, and HawaiiUSA Federal Credit Union.

Your Committee finds that the measure will enable the Secondary Market Services Corporation-Hawaii to continue fulfilling its purpose of making low interest loan funds and borrower benefits available to students and their families. By allowing Secondary Market Services Corporation-Hawaii to purchase loans made to Hawaii's students, regardless of the location of their lending institution, the Secondary Market Services Corporation Hawaii will be provided with the economies of scale needed to continue providing students with the opportunity to more capably manage their educational debts.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1220 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

NORMAN SAKAMOTO, Chair