(a) The Legislature finds and declares both of the following:
(1) The student loan guarantee business is not a core mission of government. Recognition of this fact led, in 1996, to the approval of the establishment of an auxiliary organization for the purpose of providing operational and administrative services for the Student Aid Commission’s participation in the Federal Family Education Loan Program.
(2) Pursuant to that authority, an auxiliary organization was established to provide, pursuant to contract, certain services to the Student Aid Commission.
(b) It is the intent of the Legislature that the value of the auxiliary organization’s arrangement with the Student Aid Commission and the Student Aid Commission’s participation in the Federal Family Education Loan Program be maximized through either of the following:
(1) The sale of the state’s interest in the student loan guarantee portfolio of the Student Aid Commission and certain related assets and liabilities of the student loan guarantee program operated by the Student Aid Commission, to a firm approved to act as a state student loan guarantee agency for the Federal Family Education Loan Program by the Secretary of Education.
(2) The entry into an arrangement for the operation of the state student loan guarantee program by an entity meeting the financial and compliance standards established for the Federal Family Education Loan Program.
(Added by Stats. 2007, Ch. 182, Sec. 1. Effective August 24, 2007.)
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