Bill Text: TX HB1205 | 2021-2022 | 87th Legislature | Introduced

---

Bill Title: Relating to a student loan repayment assistance program for certain professionals for exceptional service to the State of Texas during the coronavirus pandemic.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2021-03-04 - Referred to Higher Education [HB1205 Detail]

Download: Texas-2021-HB1205-Introduced.html

---

87R3804 TYPED
By: Guillen H.B. No. 1205

A BILL TO BE ENTITLED
AN ACT
relating to a student loan repayment assistance program for certain
professionals for exceptional service to the State of Texas during
the coronavirus pandemic.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known as the Thanking Our
Frontline Heroes Student Loan Relief Act.
SECTION 2. Chapter 61, Education Code, is amended by adding
Subchapter NO to read as follows:
SUBCHAPTER NO: FRONTLINE WORKERS LOAN REPAYMENT ASSISTANCE
PROGRAM
Sec. 61.9961. DEFINITION. (a) In this subchapter,
"frontline worker" means any person providing health, education,
public safety, or other necessary support services related to the
coronavirus pandemic, as determined by the board.
(b) The board, in consultation with relevant state
agencies, shall develop a list of occupations that can qualify as a
frontline worker, which shall include:
(1) employees of public schools, open enrollment
charter schools, and private schools;
(2) employees of public and private institutions of
higher education;
(3) peace officers;
(4) fire fighters;
(5) emergency medical technicians;
(6) medical professionals, including doctors,
physician assistants, nurses, nurse practitioners, mental health
professionals, and hospital support personnel;
(7) employees of nursing homes, state supported living
centers, or similar long-term care facilities;
(8) employees of child care facilities;
(9) social workers; and
(10) members of the Texas military forces, United
State armed forces, or a reserve component of the armed forces who
participated in coronavirus-related service.
Sec. 61.9962. LOAN REPAYMENT ASSISTANCE AUTHORIZED;
PURPOSE. The board shall establish and administer a program to
provide, in accordance with this subchapter and board rules, loan
repayment assistance in the repayment of eligible loans for
eligible frontline workers who provided necessary services during
the coronavirus pandemic.
Sec. 61.9963. ELIGIBILITY. (a) To be eligible to receive
loan repayment assistance under this subchapter, a person must:
(1) be a Texas resident at the time of application;
(2) for a substantial portion, as determined by board
rules, of the period between March 15, 2020 and December 31, 2020,
have been employed as a frontline worker; and
(3) submit to the board an application for the loan
repayment assistance, in the manner and on a form prescribed by the
board, that requires:
(A) employer verification or other
documentation, as established by board rule, of the person's
employment as a frontline worker in the specified period of time;
and
(B) a statement of the total amount of principal,
accrued interest, fees, and other charges due on all outstanding
eligible loans for which the person is applying for repayment
assistance;
(4) have earned a degree or certification from a
public or private institution of higher education or earned at
least 30 semester credit hours before the person's initial
employment as a frontline worker; and
(5) comply with any other requirement adopted by the
board under this subchapter.
(b) The board shall establish by rule a time period during
which applications may be submitted of no less than 90 calendar
days.
Sec. 61.9964. AWARD. (a) Except as provided by this
section, an eligible person is entitled to receive an amount of loan
repayment assistance under this chapter payable to the holders of
the eligible person's eligible loans in an amount equal to the
lesser of $5,000 or the balance of the total amount stated in the
person's application under Sec. 61.9963, subject to the amount of
available funding.
(b) An eligible person may receive only one award under this
subchapter.
(c) If the amount of money available for loan repayment
assistance under this subchapter is insufficient to provide loan
repayment assistance to all eligible persons, the board shall
establish criteria to determine the amount of available money to
allocate to the holders of student loans of eligible persons as the
board determines appropriate to further the purpose of this
subchapter.
(d) An eligible person whose loan repayment assistance
under this section is less than the amount necessary to cover the
amount of principal and interest due on the person's eligible loans
for the period in which the award is disbursed is responsible for
the payment of the remainder of the amount due and for otherwise
preventing a default on the loan.
Sec. 61.6695. ELIGIBLE LOANS. (a) The board may provide
loan repayment assistance under this subchapter for the repayment
of any student loan received by an eligible person through any
lender for the cost of attendance at an institution of higher
education or a private or independent institution of higher
education.
(b) If the loan is not a state or federal guaranteed student
loan, the promissory note or other loan agreement document
governing the terms of the loan must require all the loan proceeds
to be used for expenses incurred by a person in attending an
institution of higher education or a private or independent
institution of higher education.
Sec. 61.9966. PAYMENT OF LOAN REPAYMENT ASSISTANCE.
(a) The board shall pay any loan repayment assistance under this
subchapter in a lump sum delivered on the eligible person's behalf
directly to the holder of the loan.
(b) Loan repayment assistance provided under this
subchapter may be applied to any amount due on the loan.
(c) The board shall attempt to allocate all money available
to the board for the purpose of providing loan repayment assistance
under this subchapter.
Sec. 61.9967. GIFTS, GRANTS, AND DONATIONS. The board may
solicit and accept gifts, grants, and other donations from any
public or private source for the purposes of this subchapter.
Sec. 61.9968. RULES; POSTING REQUIRED. (a) The board shall
adopt rules necessary for the administration of this subchapter.
(b) The board shall post on the board's Internet website a
copy of the rules adopted under this subchapter and information
regarding the program established under this subchapter.
(c) The board may advertise in any available media or
otherwise promote the loan repayment assistance program to further
the purposes of this chapter.
Sec. 61.9969. EXPIRATION. This subchapter expires December
31, 2022.
SECTION 3. The Texas Higher Education Coordinating Board
shall adopt rules for the frontline workers loan repayment
assistance program under Subchapter NO, Chapter 61, Education Code,
as added by this Act, not later than December 1, 2021.
SECTION 4. This Act takes effect September 1, 2021.