53H-12 - Student Loan Collection

Title 53H > 53H-12

Sections (18)

General Provisions

53H-12-101 - General provisions — Definitions.

Collection of Student Loans

53H-12-201 - General provisions — Definitions.

53H-12-202 - Student loan delinquent or in default — Authority to collect.

If a National Direct Student Loan or a student loan made under this title, is delinquent or in default, the state college, university, or board of regents responsible for collection of the loan may proceed under this part to collect the loan.

53H-12-203 - Mailing of notice of default — Contents of notice.

53H-12-203(1) Upon default in payment of a student loan or an installment payment on a student loan, the entity responsible for collecting the loan may send a notice, by certified mail, to the borrower at the borrower’s last known address. 53H-12-203(2) The notice shall state the following:the date and amount of the loan;the balance of the loan;the amount of delinquent installments and the dates the installments were due;a demand for immediate payment of delinquent installments;the right of the borrower to file a written response to the notice, to have a hearing, to be represented at the hearing, and to appeal any decision of the hearing examiner;the time within which a written response must be filed; andthe power of the college, university, or board upon the failure of the borrower to respond or upon a decision of the hearing examiner adverse to the borrower, to obtain an order under this part and to execute upon income tax overpayments or refunds of the borrower.

53H-12-204 - Failure to receive response or payment after notice — Authority to collect balance.

If a written response or payment of delinquent installments is not received by the college, university, or board within 15 days from the date of receipt of the notice by the borrower, the college, university, or board may determine the balance due and proceed to collect the balance as provided in Section 53H-12-207 .

53H-12-205 - Hearing set after receipt of written notice — Notice of hearing.

If a written response to the notice sent under Section 53H-12-203 is received by the college, university, or board, a hearing is set within 30 days of the receipt of the response, and written notice of the hearing is mailed to the borrower at least 15 days before the date for the hearing.

53H-12-206 - Designation of hearing examiner — Representation at hearing — Findings and order of examiner — Continuance of hearing.

53H-12-206(1) The hearing under Section 53H-12-205 is held before a hearing examiner designated by the college, university, or board. 53H-12-206(2) The examiner may not be an officer or employee of the division or office of the college, university, or board responsible for collecting or administering student loans. 53H-12-206(3) The borrower and college, university, or board may be represented at the hearing by an attorney or other person, and may present evidence, exhibits, testimony, witnesses, and other material regarding the student loan, payments, and default as are relevant. 53H-12-206(4) The hearing examiner shall make specific written findings on the student loan, payments, default, and the balance due and shall enter a written order. 53H-12-206(5) If the hearing examiner finds the borrower has defaulted, the order shall state the fact of default and the balance due on the loan including interest. If the examiner finds no default, the order shall dismiss the claim. 53H-12-206(6) The findings and order of the hearing examiner are filed with the college, university, or board and copies mailed to the borrower within 10 days after conclusion of the hearing. 53H-12-206(7) The hearing may be continued by agreement of the parties and approval of the hearing examiner or upon order of the hearing examiner.

53H-12-207 - Order stating default — Filing with State Tax Commission — Lien of order.

53H-12-207(1) An abstract of an order of a hearing examiner stating a default under Section 53H-12-206 may be filed with the State Tax Commission and, when filed, constitutes a lien to the extent of the balance due plus interest against any state income tax refund or overpayment due or to become due to the borrower for a period of eight years from the date of the order unless satisfied or otherwise released in writing by the college, university, or board. 53H-12-207(2) The lien created by this section is, for the purposes of Section 59-10-529 only, a judgment, but no credit of a tax refund or overpayment shall be made on account of the lien until 20 days after the date of the hearing examiner’s order.

53H-12-208 - Judicial review of order — Filing complaint — Hearing de novo — Stay of action on lien by State Tax Commission.

53H-12-208(1) Judicial review of an order of a hearing examiner issued under Section 53H-12-206 is obtained by any party by filing a complaint with the district court within 20 days after the date of the order. 53H-12-208(2) If a complaint is filed, the matter is heard by the district court de novo. 53H-12-208(3) A notice of the filing of a complaint may be filed with the State Tax Commission and, if filed, the tax commission shall take no action with respect to the lien created under Section 53H-12-207 until the matter is finally disposed of by the district court or on appeal from the district court, except as provided in this part.

53H-12-209 - Complaint filed — Bond furnished by borrower — Terms of bond.

53H-12-209(1) If a complaint is filed under Section 53H-12-208, the borrower may furnish to the tax commission a bond, with good and sufficient sureties, in the amount of the balance of the loan or the amount of any overpayment or refund due, whichever is less. 53H-12-209(2) The lien created under Section 53H-12-207 is then dissolved as to that overpayment or refund and the overpayment or refund released to the borrower. 53H-12-209(3) The bond shall provide that the surety will pay, upon a final determination adverse to the borrower, the amount of the bond, or a lesser amount as the court may determine, to the tax commission for the use and benefit of the college, university, or board obtaining the order.

53H-12-210 - Rules for hearings.

The board may adopt rules for the implementation of Sections 53H-12-205 and 53H-12-206 , including rules for the conduct of hearings and appointment of hearing examiners.

Collection of Student Loans from Public Employees

53H-12-301 - Definitions.

As used in thispart: 53H-12-301(1) “Disposable earnings” means the part of an employee’s earnings remaining after the deduction of all amounts required by law to be withheld. 53H-12-301(2) “Earnings” or “earnings from personal services” means compensation paid or payable for personal services, whether designated as wages, salary, commission, bonus, or otherwise, and includes periodic payments under a pension or retirement program. 53H-12-301(3) “Public employee” means any employee, officer, or servant of the state of Utah, or any office, department, agency, authority, commission, board, institution, hospital, college, university, or other instrumentality of the state, or of any county, city, town, school district, special improvement or taxing district, or any other political subdivision or public corporation of or within the state.

53H-12-302 - Collection of defaulted student loan from public employee.

If a National Direct Student Loan or a student loan made to a public employee under this title, is delinquent or in default, the state college, university, or board responsible for collection of the loan may proceed under this part to collect the loan.

53H-12-303 - Proceedings — Notice — Inspection of records — Repayment — Hearing.

When a state college, university, or board determines that a public employee is indebted to the state for debts arising from a defaulted student loan, it may initiate proceedings to collect the debt through deductions from earnings by providing the public employee with the following: 53H-12-303(1) a minimum of 30 days’ written notice as provided in Section 53H-12-203; 53H-12-303(2) an opportunity to inspect and copy college, university, or board records relating to the debt; 53H-12-303(3) an opportunity to enter into a written agreement with the college, university, or board, under terms agreeable to the college, university, or board, to establish a schedule for the repayment of the debt; and 53H-12-303(4) an opportunity for a hearing on the determination of the college, university, or board concerning the existence or the amount of the debt in accordance with Sections 53H-12-205 and 53H-12-206 and judicial review of an order of a hearing examiner under Sections 53H-12-208 and 53H-12-209.

53H-12-304 - Lack of response.

If a written response or payment of delinquent installments is not received by the college, university, or board within 15 days from the date of receipt of the notice by the public employee, the college, university, or board may determine the balance due and proceed to collect the balance as provided in Section 53H-12-305 .

53H-12-305 - Filing of abstract of order of default — Lien — Deduction from wages.

An abstract of an order of a hearing examiner stating a default may be filed with the financial officer responsible for payment of the public employee’s wages. When filed, the abstract constitutes a lien against 15% of the disposable earnings due, or to become due, to the public employee to the extent of the balance due plus interest. The financial officer shall deduct the amount subject to this lien from the public employee’s disposable earnings, and remit the deducted amount to the college, university, or board, but no such amount shall be remitted to the college, university, or board until 20 days after the date of the hearing examiner’s order.

53H-12-306 - Personnel information.

Upon written request of the state college, university, or board, persons with access to personnel information regarding public employees shall disclose the mailing address of individuals who have defaulted under Section 53H-12-302 and who are current public employees for use by the college, university, or board in locating those individuals to collect student loan obligations.

53H-12-307 - Reimbursed costs.

The public employer may obtain reimbursement for costs incurred in providing the information requested under Section 53H-12-306 through the state college, university, or board, which costs are the responsibility of and collectible from the public employee.