Washington Code 28B.94.010 – Definitions

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

Terms Used In Washington Code 28B.94.010

Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
Contract: A legal written agreement that becomes binding when signed.
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

(1) “Council” means the Washington student achievement council.

(2) “Financial institution” has the same meaning as in RCW 7.88.010.

(3) “Interest rate buy down incentive” means the use of state funds to enable qualified borrowers to receive below market rate interest rates for the purposes of this chapter.

(4) “Loan loss reserve coverage” means partial risk coverage to financial institutions to cover losses on qualified loans according to the terms set forth in the contract between the agency and the financial institution for the purposes of this chapter.

(5) “Program” means the Washington student loan refinancing program.

(6) “Qualified borrower” means an individual meeting all of the following requirements:

(a) Resident of the state of Washington;

(b) Is enrolled in, or has completed, a certificate, associate’s, bachelor’s, graduate, or professional degree program; and

(7) “Qualified loan” means a loan or a portion of a loan made by a financial institution to a qualified borrower to refinance an existing student loan under the program. Only a federal direct PLUS loan or a private student loan determined by the financial institution to be an educational loan that is nondischargeable in bankruptcy as set forth in 11 U.S.C. § 523 as it existed on January 14, 2019, shall be a qualified loan eligible for refinancing. A qualified loan made under the program shall:

(a) Carry a contractual interest rate at least one-quarter of one percentage point lower than the loan being refinanced, and may be made with the interest rates, fees, and other terms and conditions agreed upon by the financial institution and the qualified borrower; and

(b) Specify that a qualified borrower’s obligation under a qualified loan must be discharged if the qualified borrower dies, based on the following:

(i) An original or certified copy of the qualified borrower’s death certificate;

(ii) An accurate and complete photocopy of the original or certified copy of the qualified borrower’s death certificate;

(iii) An accurate and complete original or certified copy of the qualified borrower’s death certificate that is scanned and submitted electronically or sent by facsimile transmission; or

(iv) Verification of the qualified borrower’s death through an authoritative federal or state electronic database approved for use by the council.

(8) This section expires July 1, 2029.

[ 2019 c 406 § 50.]