DIGEST OF INTRODUCED BILL
University selection of preferred lenders. Prohibits the lenders of private student loans from making gifts to state educational institutions. Prohibits the employees of state educational institutions and foundations established for the benefit of state educational institutions from accepting from a lender gifts having a total value of more than $100 in a calendar year. Requires the attorney general to enforce the prohibitions. Establishes the conditions under which a state educational institution may designate a lender of private student loans as a preferred lender. Imposes civil penalties upon lenders that make prohibited gifts. Requires a state educational institution that violates the new provisions to forfeit an amount equal to 1% of the tuition charged to students in the preceding academic year. Requires penalties and forfeitures to be paid to the state student assistance commission for scholarships. Makes an appropriation.