BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 2920 seeks to empower students and parents to become informed buyers when it comes to postsecondary education. Today, many students are entering college with an  overestimation of post-graduate earnings and an underestimation of the cost of going to school. This has contributed to the student loan crisis as students borrow more than they can pay back.

The United States Department of Education estimates that over 3.4 million Texans have over $120 billion in student loan debt.

H.B. 2920 seeks to provide prospective students with more transparent expectations of the costs of higher education. 

Specifically, this bill will require the Texas Higher Education Coordinating Board (THECB) to prepare information comparing higher education institutes and programs and post it on the Texas Education Agency website.

The information will include:

�         Total cost of tuition;

�         Median student loan debt;

�         Typical dept to-income ratio for alumni; and

�         Graduation rates, transfer rates, and withdrawal rates.

H.B. 2920 amends current law relating to the distribution or posting of, and the development by the Texas Higher Education Coordinating Board of electronic tools or platforms to provide, information regarding postsecondary education and career opportunities.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 4 (Section 61.09022, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7.040(a), Education Code, as follows:

(a) Requires that information prepared under Section 7.040 (Postsecondary Education and Career Opportunities) be given to any public or private school student, rather than a public school student, who requests the information. Requires that the information meet certain criteria, including assisting prospective postsecondary students in assessing the value of a certificate program, associate or baccalaureate degree program, or other credential program offered by an institution of higher education by comparing each institution with other institutions using information included in the electronic tools or platforms developed by the Texas Higher Education Coordinating Board (THECB) under Section 61.09022(a), rather than comparing each institution of higher education with other institutions regarding certain factors.

SECTION 2. Amends Section 51.762(b-1), Education Code, as follows:

(b-1) Requires that an electronic common admission application form adopted under Section 51.762 (Common Admission Application Forms) include a prominent link to the electronic tools or platforms developed by THECB under Section 61.09022, rather than a prominent link to comparative gainful employment data regarding institutions of higher education, including certain information.

SECTION 3. Amends Section 51.763(b), Education Code, as follows:

(b) Requires that the form meet certain criteria, including a prominent link to the electronic tools or platforms developed by THECB under Section 61.09022, rather than a prominent link to comparative gainful employment data regarding institutions of higher education, including certain information.

SECTION 4. Amends Subchapter C, Chapter 61, Education Code, by adding Section 61.09022, as follows:

Sec. 61.09022. INFORMATION TO ASSIST STUDENTS IN ASSESSING VALUE OF POSTSECONDARY CREDENTIALS. (a) Requires THECB, from money appropriated or otherwise available for the purpose, to develop one or more electronic tools or platforms to provide information to assist prospective postsecondary students in assessing the value of a certificate program, associate or baccalaureate degree program, or other credential program offered by an institution of higher education or private or independent institution of higher education by comparing each institution with other institutions regarding:

(1) the relative cost of obtaining the certificate, degree, or other credential, based on the most recent data released through the United States Department of Education's College Scorecard online tool or a successor tool, including:

(A) the total cost of attendance, including:

(i) the total cost of tuition and fees; and

(ii) the median cost of room and board; and

(B) the estimated net cost remaining after subtracting from the amount described by Paragraph (A) the average amount of student financial aid granted to the typical student for the program;

(2) the value of the certificate, degree, or other credential as measured by comparing:

(A) the median wage earned by students who graduated with the certificate, degree, or other credential from the institution; and

(B) the median student debt of students who graduated with the certificate, degree, or other credential from the institution as compared to the median student debt of all students who graduated with the certificate, degree, or other credential, based on the most recent data released through the United States Department of Education's College Scorecard online tool or a successor tool;

(3) the average student debt-to-income ratio of students who graduated with the certificate, degree, or other credential from the institution and have student debt, including the estimated monthly student loan payment, computed using the standard 10-year repayment plan;

(4) the percentage of students who fully repay student debt within the standard 10-year repayment period or, if this information is not available for the program, the percentage of students in all certificate programs, degree programs, or other credential programs who fully repay student debt within the standard 10-year repayment period; and

(5) educational outcomes for students seeking the certificate, degree, or other credential, including:

(A) for a program designed to be completed in more than one year, the percentage of students who continue in the program after the first year of study;

(B) the graduation rate;

(C) the percentage of students who withdraw or transfer from the institution and subsequently graduate with the certificate, degree, or other credential from another institution of higher education or private or independent institution of higher education;

(D) the percentage of students who withdraw from the institution and do not enroll in the program at another institution of higher education or private or independent institution of higher education within three years of the withdrawal; and

(E) the percentage of graduates employed in a field related to the certificate program, degree program, or other credential program within one year of graduation.

(c) Authorizes THECB to solicit and accept gifts, grants, and donations from any public or private source to implement this section.

(d) Requires THECB to adopt rules as necessary to implement this section, including rules to ensure compliance with federal and state law regarding the confidentiality of student information.

SECTION 5. Transfers Section 7.040(c), Education Code, to Section 61.09022, Education Code, as added by this Act, redesignates it as Section 61.09022(b), Education Code, and amends it, as follows:

(b) Requires each institution of higher education to include on its Internet website, in a prominent location that is not more than three hyperlinks from the website's home page, a link to the electronic tools or platforms developed by THECB, rather than a link to the information posted on TEA's Internet website, under Subsection (a).

SECTION 6. Amends Section 2308A.007, Government Code, by adding Subsection (a-1), as follows:

(a-1) Requires that a credential library established under Section 2308A.007 (Credential Library) include the information included in the electronic tools or platforms developed by THECB under Section 61.09022(a), Education Code.

SECTION 7. Effective date: upon passage or September 1, 2023.