South Carolina General Assembly
103rd Session, 1979-1980

Bill 2376


                    Current Status

Bill Number:               2376
Ratification Number:       431
Act Number                 375
Introducing Body:          House
Subject:                   Default on certain student loans
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A375, R431, H2376)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-111-50 SO AS TO PROVIDE THAT NO PERSON WHO HAS DEFAULTED ON A NATIONAL DIRECT STUDENT LOAN, A NATIONAL DEFENSE STUDENT LOAN, A GUARANTEED-FEDERALLY INSURED STUDENT LOAN, A NURSING STUDENT LOAN, A HEALTH PROFESSIONS STUDENT LOAN OR A LAW ENFORCEMENT EDUCATIONAL LOAN SHALL BE EMPLOYED BY THE STATE OR ANY OF ITS DEPARTMENT, AGENCIES OR SUBDIVISIONS UNTIL ALL DEFAULTS ARE CURED AND LOAN PAYMENTS MADE CURRENT AND PROVIDE EXCEPTIONS IN THE EVENT OF WRITTEN AGREEMENTS BETWEEN THE DEFAULTER AND HIS LENDER.

Be it enacted by the General Assembly of the State of South Carolina:

Default on certain student loans

Section 1. The 1976 Code is amended by adding:

"Section 59-111-50. No person who has wilfully defaulted on a National Direct Student Loan, a National Defense Student Loan, a Guaranteed-Federally Insured Student Loan, a Nursing Student Loan, a Health Professions Student Loan or a Law Enforcement Educational Loan shall now or hereafter be employed by the State or any of its departments, agencies or subdivisions until all defaults are cured and loan payments made current; provided, however, that if such person and his lender voluntarily enter into an agreement after default under which terms the debt will be repaid and the lender confirms this agreement in writing with the state agency, department or subdivision, the loan shall not be considered in default and the default shall be considered as cured so long as the person complies with the terms of the agreement."

Time effective

Section 2. This act shall take effect upon approval by the Governor.