§3023. Powers and duties

            A. The board may:

            (1) Guarantee the loan of money to lending agencies and/or any holders of such loans, subject to the requirement of R.S. 17:3023.4 and upon such other terms and conditions as the board may prescribe, for persons attending or planning to attend institutions of higher education to assist them in meeting their expenses of higher education, including graduate, professional, vocational, business, or technical education.

            (2)(a) Pay to the lending agencies or any holders of such loans the interest as prescribed in R.S. 17:3023.4 on loans made to students as long as the student is enrolled in any postsecondary education institution approved by the board or for not in excess of three years during which the borrower is in the active military service of the United States.

            (b) When federal funds are available to refund the board for payment of interest on student loans, periodic installment payments of principal may be delayed, and interest may accrue and may be paid during any period:

            (i) Not in excess of three years during which the borrower is a member of the armed forces of the United States.

            (ii) Not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act.

            (iii) Not in excess of three years during which the borrower is in service as a volunteer under Title VIII of the Economic Opportunity Act of 1964.

            (3) Operate in the other capacities permitted by federal law and regulation in the Title IV student financial assistance programs administered by the commission.

            (4) Reject or take or hold and administer, on behalf of the board and for any of its purposes, real property, personal property, and monies, or any interest therein, and the income therefrom, either absolutely or in trust, for any purpose of the board. The board may invest its funds in any investments in which funds of the state employees retirement system may be invested pursuant to R.S. 11:517. The board may acquire property or monies for its purposes by the acceptance of gifts, grants, appropriations, bequests, devises, or loans.

            (5) Enter into such contracts, as may be desirable, with institutions of higher education, upon such terms as may be agreed upon between the board and the institution, to provide for the administration by such institution of any loan or loan plan guaranteed by the board, including but not limited to applications therefor and repayment thereof.

            (6) Enter into contracts with any bank or other lending agency or any holder of such loan upon such terms as may be agreed upon between the board and the bank or other lending agency or holder, to provide for the administration by such bank or other lending agency or holder, of any loan or loan plan guaranteed by the commission including but not limited to applications therefor and terms of repayment thereof, and to establish the conditions for payment by the board to the bank or other lending agency or the holder of the guarantee on any loan. A loan shall be defaulted when the bank or other lending agency or holder makes application to the board for payment on the loan stating that such loan is in default in accordance with the terms of a contract executed under this Paragraph.

            (7) Sue and be sued in the name of the board.

            (8) Collect loans guaranteed by the board on which the board has met its guarantee obligations.

            (9) Adopt rules and regulations in accordance with the provisions of the Administrative Procedure Act, not inconsistent with the provisions of this Chapter, governing the guarantee, disbursement, or servicing of loans made by the board and governing any other matters relating to the activities of the board. Such rules and regulations shall include procedures for the denial of licenses, permits, and certificates required by the state to practice or engage in a trade, occupation, or profession to applicants and renewal applicants in default on the repayment of loans guaranteed by the board, for the conditional issuance or renewal of such a license, permit, or certificate pending an applicant's compliance with loan repayment requirements, and for other matters necessary to implement the provisions of R.S. 37:2951.

            (10) Perform such other acts as may be necessary or appropriate to carry out effectively the objects and purposes of this Chapter.

            (11) Notwithstanding any other provisions of law, enter into agreements with the United States Department of Education and other public or private entities for any purpose related to the administration of student financial assistance programs pursuant to the Higher Education Act of 1965, 20 U.S.C. 1070 et seq., as amended or as hereafter amended.

            (12) Define, for the purposes of this Chapter, the meaning of "Louisiana residency".

            B. In addition to any other powers and duties authorized by this Section, the board shall establish an internal audit function and shall establish an office of the chief audit executive who shall be responsible for ensuring that the internal audit function adheres to the Institute of Internal Auditors, International Standards for the Professional Practice of Internal Auditing. The chief audit executive shall maintain organizational independence in accordance with these standards and shall have direct and unrestricted access to the board. The chief audit executive shall annually certify to the board that the internal audit function conforms to the Institute of Internal Auditors, International Standards for the Professional Practice of Internal Auditing.

            Acts 1978, No. 135, §2; Acts 1979, No. 349, §2; Acts 1980, No. 790, §1, eff. Aug. 1, 1980; Acts 1980, No. 815, §2; Acts 1982, No. 413, §1; Acts 1982, No. 835, §1, eff. Aug. 4, 1982; Acts 1990, No. 689, §1, eff. July 20, 1990; Acts 1995, No. 713, §1; Acts 2003, No. 393, §3, eff. June 18, 2003; Acts 2015, No. 314, §1; Acts 2016, No. 314, §3(A); Acts 2017, No. 97, §1.