MCA Chapter 51

in effect

Miss. Code Ann. § 37-51-1 Legislative findings and declarations.

It is hereby determined and declared that the state reaffirms its commitment and dedication to public school education; that nothing contained in this chapter shall be construed in any manner whatever to be an abandonment or impairment of public school education in this state; that the state calls upon all public school trustees, administrators, teachers, parents, and the public at large to continue full support of the public school system of this state; and that, especially during these difficult times, all school officials, administrators, teachers and others with primary responsibility for the public school system merit and need continued support and encouragement in their efforts.

Miss. Code Ann. § 37-51-3 Administration of chapter.

The terms and provisions of this chapter shall be administered and executed by the state educational finance commission. For the purpose of this chapter, the term “commission” shall mean “state educational finance commission” except where the context clearly indicates otherwise.

Miss. Code Ann. § 37-51-5 State educational loan fund created.

There shall be, and there is hereby, created in the state treasury, a special fund to be known as the “state educational loan fund.” The said fund shall consist of such amounts as may be paid into said fund by appropriation and also such amounts as may be returned to said fund as repayments, both principal and interest, from loans provided for in this chapter.

Miss. Code Ann. § 37-51-7 General powers and duties of commission.

It shall be the duty of the commission to receive and pass upon, allow or disallow, all applications for loans made by students who desire to receive a secular education in any of the grades one through twelve in any school in this state constituting a bona fide school as defined in a general regulation of the commission, other than in the free public school system of this state, and who are acceptable for enrollment in any approved nonfree school system. The commission may make such investigation into the financial status of the parents of such students who apply for loans as it deems advisable, to determine the extent of the need for said loan. The commission may prescribe such rules and regulations as it may deem necessary and proper to carry out the purposes of this chapter. The commission shall have the authority to grant loans from the “state educational loan fund” to such applicants as are qualified to receive them and on such terms as may be prescribed by regulation of the commission and by this chapter.

Miss. Code Ann. § 37-51-9 “Secular education of children” defined.

The “secular education of children” as used in this chapter shall mean the education of children in those subjects, and only those subjects, which are required to be taught by state law to the same extent as those subjects are taught in the public schools of the state or which are provided in public schools throughout the state; it shall not include the education of children in any course in religion or any course expressing religious teaching or the morals or forms of worship of any sect.

Miss. Code Ann. § 37-51-11 Eligibility for loans.

In addition to the requirements set out in Section 37-51-7, to be eligible for a loan an applicant must: Be a bona fide actual resident of the State of Mississippi; and Attend any bona fide approved nonfree elementary or secondary school.

Miss. Code Ann. § 37-51-13 Applications for loans; certifications; transfers.

An applicant shall not have to submit but one initial application for a loan; thereafter, he or she shall file a request for each additional year’s loan amount up to the maximum amount allowed. Accompanying each said request shall be a certification from the school which applicant is attending certifying that the applicant is in attendance and in good standing. Each application by or on behalf of said student shall be signed by and be made also in the name of the parent or legal guardian of said student if he or she be a minor. However, the parent or legal guardian shall not be considered the applicant for the purposes of the limitations in Section 37-51-15. In the event that the applicant transfers to another approved school within the state, he shall cause the certification to immediately go forth to the commission, setting out the school from which and to which he has transferred.

Miss. Code Ann. § 37-51-15 Limitations on amounts of loans.

Applicants who are granted loans may receive a loan in any amount, not exceeding two thousand four hundred dollars ($2,400.00) to any one applicant. Said amount is to be paid in annual, semiannual or quarterly installments not exceeding two hundred dollars ($200.00) per school year, and shall be used to defray part of the applicant’s tuition and other costs of attending said schools. The loans herein provided shall not exceed the limitations set out above, but they may be for any such lesser amounts as may be required.

Miss. Code Ann. § 37-51-17 Contract agreeing to terms and conditions of loans; suits on contracts.

Each applicant, if an adult, or his parent or legal guardian in his behalf, if a minor, before being granted a loan shall enter into a contract with the State of Mississippi agreeing to the terms and conditions upon which the loan shall be made. Said contract shall include such terms and conditions as are necessary to carry out the full purpose and intent of this chapter. The form of said contract shall be prepared and approved by the attorney general of this state, and said contract shall be signed by the executive secretary of the commission. The commission is hereby vested with full and complete authority to sue in its own name any applicant for any balance due the state on any such contract. Such suit shall be filed and conducted by the attorney general of the State of Mississippi, or by private counsel, which the commission is hereby authorized to employ for such purpose.

Miss. Code Ann. § 37-51-19 Repayment of loans.

Any loans made or granted to any applicant shall be made and based upon the following conditions of repayment: Repayment in full of the principal of the loan may be made at any time prior to three years after graduation from or termination of attendance in an approved school, plus simple interest at the rate of three percent per annum from the date of each payment made to applicant. Repayment of the principal of the loan after three years from the date of graduation from or termination of attendance in an approved school shall be with interest at the rate of four percent per annum from the date of each payment made to applicant. From and after the fourth year following graduation or termination of attendance in an approved school, the rate of interest to be paid on the remaining unpaid balance, after such fourth year, shall increase at the rate of one-half percent per annum to a maximum of eight percent. No applicant shall be entitled to more than twelve years after said graduation or termination of attendance in an approved school within which to repay said loan.

Miss. Code Ann. § 37-51-21 Reduction of loans.

The amount of any loan made or granted to any applicant shall be reduced by a credit at the rate of one hundred dollars ($100.00) per annum for each year from and after five years from the initial date of the granting of said loan that applicant continues to reside in the State of Mississippi. In addition, the amount of said loan shall be reduced by a credit at the rate of one hundred dollars ($100.00) per annum for each year that applicant continues his education at any junior college, college or university within the State of Mississippi after his graduation or termination from secondary school. In addition, the amount of said loan shall be reduced by a credit at the rate of two hundred dollars ($200.00) per annum for each year that applicant resides within the state and teaches in any school system therein, beginning from the date of his certification or licensing by the state department of education to teach in any such system.