First Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 15-0478.01 Jason Gelender x4330 SENATE BILL 15-068
                   SENATE SPONSORSHIP
 Jones, Todd
 
                    HOUSE SPONSORSHIP
 Moreno, Garnett
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 State, Veterans, & Military Affairs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the reduction of student loan repayment costs,
            and, in connection therewith, capping the maximum rate
            of interest that a nongovernmental lender may charge
            for a student loan and excluding principal and
            federally taxable interest paid on student loans from
            Colorado taxable income.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill establishes a cap on the annual interest rate that a
       nongovernmental lender may charge for a student loan taken for the
       purpose of financing undergraduate, graduate, or professional education
       and related expenses of 2 percentage points over the rate that the federal
       government would charge the student for a direct unsubsidized student
       loan made for the same purpose. For income tax years commencing on or
       after January 1, 2016, the bill allows a state income tax deduction, to the
       extent included in federal taxable income, for amounts or principal and
       interest paid in repayment of a student loan.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, add 5-12-108 as
       follows:
            5-12-108.  Student loans issued by private lenders - maximum
       rate of interest. Notwithstanding any other provision of law, the
       maximum annual rate of interest that a bank, credit union, or
       other lender that is not governmental or quasi-governmental
       in nature may charge for a student loan taken for the purpose
       of financing undergraduate, graduate, or professional
       education and related expenses is the rate that the federal
       government would charge the student for a direct unsubsidized
       student loan made for the same purpose plus two percentage
       points.
            SECTION 2.  In Colorado Revised Statutes, 39-22-104, add (4)
       (u) as follows:
            39-22-104.  Income tax imposed on individuals, estates, and
       trusts - single rate - definitions - repeal. (4)  There shall be subtracted
       from federal taxable income:
            (u)  For income tax years commencing on or after January
       1, 2016, to the extent included in federal taxable income,
       amounts or principal and interest paid in repayment of a
       qualified education loan, as defined in 26 U.S.C. sec. 221 (d).
            SECTION 3.  Applicability. Section 1 of this act adding section
       5-12-108, Colorado Revised Statutes, applies to student loans entered into
       on or after the effective date of this act.
            SECTION 4.  Safety clause. The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.