Bill Text: TX SB2021 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to student loan forgiveness for certain public service employees or interns.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to Higher Education [SB2021 Detail]
Download: Texas-2021-SB2021-Introduced.html
| 87R1567 KJE-D | ||
| By: Powell | S.B. No. 2021 | |
|
|
||
|
|
||
| relating to student loan forgiveness for certain public service | ||
| employees or interns. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 61, Education Code, is amended by adding | ||
| Subchapter OO to read as follows: | ||
| SUBCHAPTER OO. PUBLIC SERVICE STUDENT LOAN FORGIVENESS PROGRAM | ||
| Sec. 61.9971. LOAN FORGIVENESS AUTHORIZED. The board shall | ||
| provide, in accordance with this subchapter and board rules, loan | ||
| forgiveness of eligible student loans for eligible public service | ||
| employees. | ||
| Sec. 61.9972. ELIGIBILITY. To be eligible to receive loan | ||
| forgiveness under this subchapter, a person must: | ||
| (1) have earned a baccalaureate degree at a public or | ||
| private institution of higher education in this state; | ||
| (2) be employed or interning in this state with: | ||
| (A) a state agency or political subdivision of | ||
| the state; or | ||
| (B) an organization exempt from federal income | ||
| taxation under Section 501(a), Internal Revenue Code of 1986, by | ||
| being described as an exempt organization by Section 501(c)(3) of | ||
| that code; and | ||
| (3) comply with any other requirement adopted by the | ||
| board under this subchapter. | ||
| Sec. 61.9973. ELIGIBLE LOANS. The board may provide | ||
| forgiveness under this subchapter for the following amounts owed | ||
| for the cost of education at a public or private institution of | ||
| higher education: | ||
| (1) a loan made under Chapter 52; | ||
| (2) an amount owed in repayment of a scholarship | ||
| awarded under Subchapter FF; or | ||
| (3) a Texas B-On-time student loan made under former | ||
| Section 56.463. | ||
| Sec. 61.9974. AMOUNT OF FORGIVENESS; LIMITATIONS. (a) | ||
| Subject to Subsection (b), a person may receive loan forgiveness | ||
| under this subchapter for each year the person establishes | ||
| eligibility for the forgiveness in an amount not to exceed $5,000 | ||
| per year. | ||
| (b) A person may not receive loan forgiveness under this | ||
| subchapter for more than four years. | ||
| (c) The total amount of loan forgiveness provided under this | ||
| subchapter may not exceed $10 million for a state fiscal biennium. | ||
| (d) If in any state fiscal biennium the amount of money | ||
| available for loan forgiveness under this subchapter is | ||
| insufficient to provide loan forgiveness to all eligible persons | ||
| for that biennium, the board shall prioritize awarding loan | ||
| forgiveness to eligible persons who are employed or interning with | ||
| health-care providers or other entities affected by the coronavirus | ||
| disease (COVID-19) pandemic, as determined by the board. | ||
| Sec. 61.9975. GIFTS, GRANTS, AND DONATIONS. The board may | ||
| solicit and accept gifts, grants, and other donations from any | ||
| public or private source for the purpose of this subchapter. | ||
| Sec. 61.9976. REPORT. Not later than December 1 of each | ||
| year, the board shall submit to the governor, the lieutenant | ||
| governor, and the speaker of the house of representatives a report | ||
| on the loan forgiveness program under this subchapter. | ||
| Sec. 61.9977. RULES. (a) The board shall adopt rules | ||
| necessary to administer this subchapter, including rules: | ||
| (1) establishing guidelines for qualifying employment | ||
| and internships, including requiring at least 20 hours of work per | ||
| week; and | ||
| (2) making any necessary adjustments to the qualifying | ||
| loan programs to account for loan forgiveness under this | ||
| subchapter. | ||
| (b) In adopting rules, the board shall consult with the | ||
| governor's office, the Texas Workforce Commission, the Texas | ||
| Association of Counties, the Texas Association of School Boards, | ||
| the Texas Municipal League, and the Texas Conference of Urban | ||
| Counties. | ||
| SECTION 2. The Texas Higher Education Coordinating Board | ||
| shall begin awarding loan forgiveness under Subchapter OO, Chapter | ||
| 61, Education Code, as added by this Act, to eligible persons | ||
| beginning January 1, 2022. | ||
| SECTION 3. Not later than December 1, 2022, the Texas Higher | ||
| Education Coordinating Board shall submit the initial report | ||
| required by Section 61.9976, Education Code, as added by this Act. | ||
| SECTION 4. This Act takes effect September 1, 2021. | ||
