Bill Text: TX HB2613 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to authorization for the Texas Higher Education Coordinating Board to refinance education loans under its student loan program and to use bond proceeds under that program for that purpose.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-03-21 - Referred to Higher Education [HB2613 Detail]

Download: Texas-2017-HB2613-Introduced.html
  85R8121 KSD-D
 
  By: Johnson of Dallas H.B. No. 2613
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authorization for the Texas Higher Education
  Coordinating Board to refinance education loans under its student
  loan program and to use bond proceeds under that program for that
  purpose.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 52, Education Code, is
  amended by adding Section 52.42 to read as follows:
         Sec. 52.42.  STUDENT LOAN REFINANCE PROGRAM. (a)  As part of
  the student loan program administered under this subchapter, the
  board shall establish and administer a student loan refinance
  program under which the board may refinance at favorable rates
  federal, state, private, or alternative student loan debt of
  eligible borrowers.  In administering the program, the board may
  provide consolidation loans to permit an eligible borrower to
  refinance multiple qualifying loans into a single loan.
         (b)  The board by rule shall prescribe eligibility criteria
  for a borrower under the student loan refinance program. The
  criteria prescribed by the board under this subsection must include
  requirements for:
               (1)  Texas residency;
               (2)  creditworthiness; 
               (3)  debt to income ratio; and
               (4)  outstanding student loan debt amount.
         (c)  In administering the student loan refinance program,
  the board may use any power or authority provided by this chapter or
  other law applicable to original student loans, to the extent that
  law may be made applicable to the program.
         (d)  Sections 52.33 and 52.38 do not apply to a student loan
  refinanced under this section. The board by rule shall prescribe:
               (1)  priorities for determining which student loans to
  refinance under this section;
               (2)  limitations on the amount of student loan debt
  that may be refinanced by an eligible borrower under this section;
  and
               (3)  requirements for the repayment of refinance loans
  made under this section.
         (e)  The board shall adopt rules as necessary for the
  administration of this section.
         SECTION 2.  Section 52.62(b), Education Code, is amended to
  read as follows:
         (b)  The college savings bonds issued by the board under this
  subchapter are part of the Texas Opportunity Plan Fund, and the
  proceeds from the bonds shall be invested as provided by Subchapter
  B of this chapter and may be used for the issuance or refinancing of
  student loans as provided by Subchapter C of this chapter.
         SECTION 3.  Section 52.90(a), Education Code, is amended to
  read as follows:
         (a)  The board  shall make a loan from the fund to a student
  who qualifies for the issuance or refinancing of a student loan
  under Subchapter C.
         SECTION 4.  This Act takes effect September 1, 2017.
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