Bill Text: TX SB1799 | 2017-2018 | 85th Legislature | Enrolled

Bill Title: Relating to the student loan default prevention and financial aid literacy pilot program.

Spectrum: Bipartisan Bill

Status: (Passed) 2017-06-15 - Effective immediately [SB1799 Detail]

Download: Texas-2017-SB1799-Enrolled.html
  S.B. No. 1799
  relating to the student loan default prevention and financial aid
  literacy pilot program.
         SECTION 1.  Sections 61.0763(a), (b), (c), and (d),
  Education Code, are amended to read as follows:
         (a)  [In this section, "career school or college" has the
  meaning assigned by Section 132.001.
         [(b)]  Not later than January 1, 2014, [the board shall
  establish and administer] a pilot program shall be established at
  selected postsecondary educational institutions to ensure that
  students of those institutions are informed consumers with regard
  to all aspects of student financial aid, including:
               (1)  the consequences of borrowing to finance a
  student's postsecondary education;
               (2)  the financial consequences of a student's academic
  and career choices; and
               (3)  strategies for avoiding student loan delinquency
  and default.
         (b)  At [(c)  The board shall select at] least one
  institution from each of the following categories of postsecondary
  educational institutions must be selected to participate in the
               (1)  general academic teaching institutions;
               (2)  public junior colleges; and
               (3)  private or independent institutions of higher
  education[; and
               [(4)  career schools or colleges].
         (c) [(d)]  In selecting postsecondary educational
  institutions to participate in the pilot program, [the board shall
  give] priority shall be given to institutions that are recognized
  by the United States Department of Education as minority-serving
  institutions, including minority institutions under Section 1067k
  of the Higher Education Act of 1965 (20 U.S.C. Section 1001 et seq.)
  [have a three-year cohort student loan default rate, as reported by
  the United States Department of Education:
               [(1)  of more than 20 percent; or
               [(2)     that has above average growth as compared to the
  rates of other postsecondary educational institutions in this
         SECTION 2.  Section 57.011, Education Code, is amended by
  adding Subsection (f) to read as follows:
         (f)  In accordance with an agreement with the Texas Higher
  Education Coordinating Board, the Texas Guaranteed Student Loan
  Corporation shall administer the pilot program established under
  Section 61.0763. The corporation shall submit to the governor, the
  lieutenant governor, and the speaker of the house of
  representatives any annual report or end of program report the
  corporation submits to the United States Department of Education in
  administering the pilot program. This subsection expires December
  31, 2019.
         SECTION 3.  Sections 61.0763(e), (f), and (g), Education
  Code, are repealed.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1799 passed the Senate on
  May 3, 2017, by the following vote:  Yeas 29, Nays 2.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1799 passed the House on
  May 24, 2017, by the following vote:  Yeas 141, Nays 5, two
  present not voting.
  Chief Clerk of the House