An Act To Combine Outstanding Student Loan Debt with a Home Mortgage
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §1026-U is enacted to read:
§ 1026-U. Homes for Student Loans Program
1. Program established. The Homes for Student Loans Program, referred to in this section as "the program," is established to develop a financial services loan product that combines outstanding federal and state student loans for higher education with a mortgage loan. The authority shall administer the program.
2. Eligibility requirements. Eligibility requirements must be established by rule of the authority and, at a minimum, must include:
A. That the applicant have received a bachelor's degree or graduate degree within 2 years of the date of application;
B. That the applicant have outstanding federal or state student loans; and
C. That the applicant be seeking to purchase a home as the applicant's primary residence.
3. Agreements with financial institutions. The authority shall enter into agreements with financial institutions to offer loan products in accordance with this section and on terms and conditions acceptable to the authority.
4. Rules. The authority shall establish rules necessary to implement this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
summary
This bill establishes the Homes for Student Loans Program within the Finance Authority of Maine. The bill directs the authority to develop a loan product that combines outstanding federal and state student loan debt with a home mortgage.