Sec. 2. Definitions
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/bill/116/s/2114/is/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For purposes of this Act: The term comparable loan means, with respect to a Qualified ISA, a loan that— has an original principal amount such that, after any origination fees on the loan are paid, the amount of loan financing received by the individual is equal to the total amount of funding provided under the Qualified ISA to or on behalf of the individual subject to the Qualified ISA; has the same disbursement or funding date, payment start date, and number of required monthly payments; and is fully amortized over such term with monthly payments of principal and interest.
The term income-share agreement means an agreement— between an individual and an ISA funder; under which— the ISA funder credits towards the tuition or other obligations of, or pays amounts to, or on behalf of, such individual for costs associated with a postsecondary training program, or any other program designed to increase the individual’s human capital, employability, or earning potential (and not limited to programs eligible to participate as programs under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.)); and such individual pays to such ISA funder (or the ISA funder’s successor in interest) income-share payments for a defined term; and is not a loan.
The term income-share funding means— costs associated with a postsecondary training program, or any other program designed to increase the individual’s human capital, employability, or earning potential (and not limited to programs eligible to participate as programs under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.)); and an allowance for books, supplies, transportation, and miscellaneous personal expenses, including a reasonable allowance for— the documented rental or purchase of a personal computer; or the refinancing of debt used for the costs described in this subparagraph.
The term income-share payment means an amount equal to a specified percentage of the future income of an individual. With respect to a Qualified ISA, the term ISA funder means the party to the Qualified ISA who— credits towards the tuition or other obligations of, or pays amounts to, or on behalf of, an individual solely for the purposes specified in paragraph (3)(A)(i); and has the right to receive a specified percentage of the individual’s future income. The term Qualified ISA means an agreement between an individual and an ISA funder that— is not a loan, but is an income-share agreement under which— the ISA funder credits towards the tuition or other obligations of, or pays amounts to, or on behalf of, such individual for income-share funding; and such individual pays to such ISA funder (or the ISA funder’s successor in interest); and meets the requirements of subsections
(a)and
(b)of section 102. The term State means the several States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, the government of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. The term State law means— any law, decision, rule, regulation, or other action having the effect of a law of any State or any political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State; and any law of the United States applicable only to the District of Columbia.
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