Section 5104 - Powers and dutiesIn furtherance of the purposes set forth in this act, the board of directors shall have the following powers:
(1) To make, guarantee, undertake commitments to make or acquire and participate with lending or postsecondary institutions in the making of loans, service or otherwise provide loans of money upon such terms and conditions as the board may prescribe within the limitations contained herein or applicable Federal law, at such rates of interest as are determined by the agency, to lenders, postsecondary institutions and to persons who are residents of this State and who plan to attend or are attending any approved institution of higher education eligible under this act or applicable Federal law, in this State or elsewhere to assist them in meeting their expenses of higher education. No such person shall receive any loan or loan guarantee in excess of annual and maximum limits as established by the board of directors or in compliance with limits established for loans funded, guaranteed or reinsured under Federal laws. Such loans or loan guarantees shall become due and payable at the direction of the board of directors. Loans made or guaranteed by the agency shall not be subject to the provisions of the act of January 30, 1974 (P.L. 13, No. 6), referred to as the Loan Interest and Protection Law, or to any other law which establishes a limit of interest rate which may be charged thereon. The board of directors of the agency shall have the sole authority and discretion to establish the interest rates on all loans made or guaranteed by the agency.(1.1) As a public corporation and body politic subject to examination by the Auditor General of the Commonwealth, the agency shall be deemed an "eligible lender" as defined in Part B of Title IV of the Federal Higher Education Act of 1965 and in Part C of the Health Professions Educational Assistance Act of 1976 and, pursuant to the provisions of those acts and any subsequent amendments thereto or other applicable Federal programs, be entitled to exercise all the authority, rights and privileges of an "eligible lender." Such authority, rights and privileges shall include but not be limited to the following:(i) To do whatever is necessary to enable students who are parties to loans made, funded or guaranteed under this act to qualify for Federal interest subsidy, special allowance, loan forgiveness or other applicable benefits.(ii) To charge and collect premiums for insurance on loans and other appropriate charges and pay such insurance premiums or a portion thereof and other charges as are appropriate or required by applicable Federal statutes or agreements.(iii) To enter into contracts with schools, lenders, individuals, corporations, the Student Loan Marketing Association, other agencies of the Commonwealth, other states and the Federal government to make, service, invest in, purchase, make commitments to purchase, take assignments of or administer loans made or insured under this act, the Health Professions Educational Assistance Act of 1976, or other programs approved by the board of directors and to provide for loan forgiveness, loan consolidation, loan referral service and graduated repayment. Loans to lenders or postsecondary institutions made under this clause may be made under terms and conditions requiring that the funds so loaned be used for the making of loans to categories of students as defined and established by the board. Any such contract of the agency to service student loans shall not be subject to the provisions of the act of June 21, 1957 (P.L. 390, No. 212), referred to as the Right-to-Know Law. For purposes of this clause, contract shall include schedules or exhibits relating to pricing or schedules relating to equipment, time charges, service charges or other charges pertinent to an agency contract to service student loans. Any citizen of the Commonwealth of Pennsylvania who desires to examine, inspect or copy any such contract shall apply to the Attorney General. Upon receipt of any such application, the Attorney General shall cause a review of the contract to determine if the disclosure of the contents of the contract could cause a loss of revenue to any Commonwealth fund or to the agency. If the Attorney General determines that it is unlikely that a loss of revenue to any Commonwealth fund or the agency could occur, the Attorney General may grant the application and order the agency to permit the citizen to examine, inspect or copy the contract. Otherwise, the Attorney General shall deny the application. The Attorney General shall also have the power to determine that portions of the contract may be examined, inspected or copied and other portions may not. The agency may adopt and enforce reasonable rules, subject to the approval of the Attorney General, governing the examination, inspection or copying of any such contracts. The Attorney General shall make a determination for any application within thirty days of receipt thereof.(iv) To purchase stocks, securities, and the obligations issued by the Student Loan Marketing Association, and to use its insured and other student loans as security for loans and other forms of advances from the Student Loan Marketing Association or others, including lenders and postsecondary institutions participating or investing in loans made under this act.(v) To be issued certificates of loan insurance as set forth in section 732, Part C, Title IV of the Health Professions Educational Assistance Act of 1976 or other appropriate Federal legislation.(1.2) To guarantee loans to parents as authorized by Federal law, Part B, Title IV, of the Federal Higher Education Act, as amended, and to other persons for purposes of attending postsecondary, educational institutions from funds other than those appropriated by the Commonwealth and to pay such interest and costs or any parts thereof and for such period of time as may be authorized by the board of directors of the agency and on loans guaranteed for individual students and parents who otherwise would not qualify for Federal or other interest subsidy.(1.3) To establish annually the award of the "assistance grant" in the act of July 18, 1974 (P.L. 483, No. 174), known as "The Institutional Assistance Grants Act" by dividing the total amount annually appropriated to the "agency" pursuant to that act by the number of "Pennsylvania State scholarship students" certified to the "agency" pursuant to that act.(2) To pay costs and fees incurred by lenders and others in making loans, advancing funds representing loans issued through a line of credit advanced by the agency or the lender and performing other functions on behalf of the agency.(3) To take, hold, administer, assign, lend, encumber, mortgage, invest or otherwise dispose of, at public or private sale, on behalf of the agency and for any of its purposes, real property, personal property and moneys or any interest therein including any mortgage or loan interest owned by it or under its control or in its possession and the income therefrom either absolutely or in trust. The board may acquire property or moneys for such purpose by purchase or lease and by the acceptance of gifts, grants, bequests, devises or loans. The board may, with the approval of the Governor, borrow moneys by making and issuing notes, bonds and other evidences of indebtedness of the agency and by making and issuing refunding notes, bonds and other evidences of indebtedness, as the board may from time to time determine necessary to make and issue for the purposes of purchasing, making or guaranteeing loans to students or parents, or to lending institutions or to postsecondary institutions for the purpose of student loans, but no obligation of the agency shall be a debt of the State and it shall have no power to pledge the credit or taxing power of the State nor to make its debts payable out of any moneys except those of the corporation. All accrued and future earnings from funds invested by the board of directors and such other accrued and future nonappropriated funds including but not limited to those funds obtained from the Federal government, insurance premiums, charges assessed by the agency, loan servicing revenues, and contributions for the same purpose shall be available to the agency and shall be deposited in the State Treasury and may be utilized at the discretion of the board of directors for carrying out any of the corporate purposes of the agency. Any placement of such funds by the State Treasurer in depositories or investments shall be consistent with guidelines approved by the board of directors. For the purpose of administration, the agency shall be subject to the following provisions of "The Administrative Code of 1929": sections 610, 613 and 614. (4) To enter into contracts with or provide funds to approved and eligible institutions of higher education upon such terms as may be agreed upon between the board and any such institution, to provide for the administration by such institutions of any loan made, guaranteed or serviced by the agency including applications therefor and disbursement and payment thereof, and to acquire Federal moneys to establish loan programs for students attending such institutions.(5) To establish and from time to time revise and publish a list of approved or eligible institutions of higher education.(6) To adopt rules and regulations not inconsistent with law governing matters relating to its activities including rules and regulations to assure that student applicants for admission or students enrolled are not discriminated against because such applicants and students have not or will not qualify as a recipient for aid under programs administered by the agency and to adopt such other rules and regulations and to perform such other acts as may be necessary or appropriate to comply with applicable Federal legislation.(7) To perform such other acts as may be necessary or appropriate to carry out effectively the objects and purposes of the agency as specified in this act.(8) To take, hold and administer for the purpose of the agency, real property, personal property and moneys, or any interest therein, and the income therefrom, either absolutely or in trust, by the acceptance of gifts, grants, bequests, devises or loans, but no obligation of the agency shall be a debt of the Commonwealth and it shall have no power to pledge the credit or taxing power of the Commonwealth or to make the agency's debts payable out of any moneys except those of the agency.(9) To conduct investigations to determine whether applications or income tax and other data submitted to the agency contained any misrepresentations or false statements made for the purpose of cheating or defrauding. Whoever, by any false pretense, knowingly and with intent to defraud, procures, obtains, or attempts to obtain, or aids, assists, or abets, in obtaining or attempting to obtain from or through the Pennsylvania Higher Education Assistance Agency or under this act any moneys, scholarship awards, educational assistance grants, loans or loan guarantees shall be liable to the agency for an amount equal to three times the amount obtained.(10) To establish an investigation unit which shall have the power and duty to:(i) investigate alleged violations of all criminal statutes related to fraud or a breach of fiduciary obligation committed by any person who has obtained or attempted to obtain, or aids, assists, or abets in obtaining or attempting to obtain, scholarship awards, educational assistance grants, loans or loan guarantees or other moneys from the agency;(ii) work in conjunction with the appropriate prosecuting authorities in the prosecution of cases where it is determined that evidence of criminal activity exists. In the enforcement of criminal statutes or investigations related to fraud or a breach of fiduciary obligation under this clause, the staff of the investigation unit shall have the powers of law enforcement officers; and(iii) present to the board of directors of the agency, evidence of probable violations of criminal statutes related to fraud or a breach of fiduciary obligation and request the board to issue an order of subpoena duces tecum to obtain original documents submitted by individuals for the purpose of obtaining loans or loan guarantees or other moneys from the agency. The board of directors shall have the power to issue a subpoena duces tecum for such purposes under the hand of its chairman upon a majority vote of its membership of a finding that a probable violation of such criminal statutes has occurred.(11) To execute by writ of execution upon wages, salaries or commissions in the hands of an employer or any other person in order to enforce money judgments for the repayment of all loans authorized, serviced, insured, made, funded or guaranteed under this act or Federal law: Provided, however, That such power of execution may not be assigned to any other person or agency nor be employed for any other purpose by the agency. Such power of execution may be exercised at the discretion of the agency, but under no circumstances may an amount in excess of ten percent of the pay of an obligor be subject to execution during any given pay period.(12) In addition to the powers granted in clause (3), to acquire and hold title in the name of the agency to the property known as the Towne House, including the Annex thereto leased by the agency, located at 660 Boas Street in the 7th Ward of the City of Harrisburg, more particularly bounded and described in a Deed dated April 25, 1974, and recorded in Dauphin County Deed Book T, Volume 60, Page 877, the property located on the southwest corner of Herr Street and Fox Alley in the 7th Ward of the City of Harrisburg, more particularly bounded and described in a Deed dated October 5, 1979, and recorded in Dauphin County Record Book 101, Page 142, and in a Deed dated October 6, 1965, and recorded in Dauphin County Deed Book E, Volume 51, Page 48, the property located at 945 North 7th Street in the 7th Ward of the City of Harrisburg, more particularly bounded and described in a Deed dated March 27, 1963, and recorded in Dauphin County Deed Book N, Volume 48, Page 325, and to make such arrangements as may be necessary to finance such acquisitions.1963, Aug. 7, P.L. 549, § 4. Amended 1965, May 11, P.L. 53, §§ 1, 2; 1966, Special Sess. No. 3, May 12, P.L. 86, § 2; 1968, Jan. 18, P.L. (1967) 952, §§ 3-5; 1969, Oct. 29, P.L. 283, § 2; 1969, Nov. 19, P.L. 296, No. 125, § 1; 1970, Dec. 30, P.L. 947, No. 297, § 1; 1972, Oct. 18, P.L. 953, No. 233, § 1, imd. effective; 1974, Dec. 30, P.L. 1111, No. 357, §§ 1, 2, imd. effective; 1977, Dec. 21, P.L. 338, No. 99, § 1, imd. effective; 1981, July 12, P.L. 264, No. 89, § 2, imd. effective; 1981, Nov. 25, P.L. 417, No. 130, § 1, imd. effective; 1982, Dec. 29, P.L. 1450, No. 330, § 2, imd. effective; 1983, May 13, P.L. 10, No. 5, § 1, imd. effective; 1983, Dec. 20, P.L. 289, No. 77, § 1, imd. effective; 1986, Oct. 3, P.L. 1416, No. 130, § 1, imd. effective.