Second Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 16-0638.02 Jason Gelender x4330 SENATE BILL 16-024
                   SENATE SPONSORSHIP
 Jones, Todd, Aguilar, Donovan, Kefalas, Kerr, Merrifield
 
                    HOUSE SPONSORSHIP
 Moreno,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 State, Veterans, & Military Affairs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning capping private student loan interest rates.
       
       
                           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.
       
       
       
       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.  Applicability. This act applies to student loans
       entered into on or after the effective date of this act.
            SECTION 3.  Act subject to petition - effective date. This act
       takes effect at 12:01 a.m. on the day following the expiration of the
       ninety-day period after final adjournment of the general assembly (August
       10, 2016, if adjournment sine die is on May 11, 2016); except that, if a
       referendum petition is filed pursuant to section 1 (3) of article V of the
       state constitution against this act or an item, section, or part of this act
       within such period, then the act, item, section, or part will not take effect
       unless approved by the people at the general election to be held in
       November 2016 and, in such case, will take effect on the date of the
       official declaration of the vote thereon by the governor.