TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING PART 7 TO CHAPTER 3, TITLE 37 SO AS TO LIMIT THE AMOUNT OF TIME THAT INTEREST MAY ACCRUE ON A STUDENT EDUCATION LOAN.

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

SECTION    1.    Chapter 3, Title 37 of the 1976 Code is amended by adding:

    Section 37-3-700. As used in this part:

    (1)    'Student education loan' means the creation or forbearance of debt incurred primarily for personal use to finance postsecondary education or other school-related expenses. This term does not include an extension of credit secured by a first lien or equivalent security interest in real estate.

    (2)    'Student loan borrower' or 'borrower' means:

        (a)    a resident of this State who has received or agreed to pay a student education loan; or

        (b)    a person who shares legal responsibility with a resident for repaying the student education loan.

    Section 37-3-710.    (A)    The interest rate on a private student education loan issued to a student loan borrower in this State only may be charged for a number of years equal to the amount of time the student loan borrower was enrolled in the postsecondary institution that received the funds provided by the student education loan.

    (B)    The interest rate on a private student education loan may not be charged for more than ten years for a bachelor's degree, ten years for a master's degree, and ten years for a doctorate or longer than the amount of time the student loan borrower was enrolled in a postsecondary institution, whichever is less."

SECTION    2.    This act takes effect upon approval by the Governor.