Bill Text: TX SB2197 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to alternative education loans and qualified student loan bonds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred to Higher Education [SB2197 Detail]
Download: Texas-2019-SB2197-Introduced.html
86R3476 MM-F | ||
By: Flores | S.B. No. 2197 |
|
||
|
||
relating to alternative education loans and qualified student loan | ||
bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 53B.02(2) and (7), Education Code, are | ||
amended to read as follows: | ||
(2) "Alternative education loan" means a loan other | ||
than a guaranteed student loan that is made to a student, a former | ||
student, or any other person [ |
||
or former student for the purpose of financing or refinancing all or | ||
part of the student's or former student's cost of attendance at an | ||
accredited institution. The term includes: | ||
(A) indebtedness that meets the definition of a | ||
qualified education loan under Section 221(d)(1), Internal Revenue | ||
Code of 1986; and | ||
(B) indebtedness used to refinance indebtedness | ||
that meets the definition of a qualified education loan under | ||
Section 221(d)(1), Internal Revenue Code of 1986. | ||
(7) "Cost of attendance" means all costs of a student | ||
or former student incurred in connection with that student's [ |
||
program of study at an accredited institution, as determined by the | ||
institution, including tuition and instructional fees, the cost of | ||
room and board, books, computers, and supplies, and other related | ||
fees, charges, and expenses. | ||
SECTION 2. Sections 53B.47(b), (d), and (h), Education | ||
Code, are amended to read as follows: | ||
(b) An authority may cause money to be expended to make or | ||
purchase for its account guaranteed student loans that are | ||
guaranteed by the Texas Guaranteed Student Loan Corporation, other | ||
guaranteed student loans, or alternative education loans that are | ||
executed by or on behalf of students or former students [ |
||
(1) who are residents of this state; or | ||
(2) who have been admitted to attend or who attended an | ||
accredited institution within this state. | ||
(d) The authority, as a municipal corporation of the state, | ||
is charged with a portion of the responsibility of the state to | ||
provide educational opportunities in keeping with all applicable | ||
state and federal laws. This [ |
||
[ |
||
to limit the purchase of guaranteed student loans or alternative | ||
education loans executed by or on behalf of students or former | ||
students who are attending or who attended [ |
||
certain geographical area or by or on behalf of students or former | ||
students who are residents of the area. | ||
(h) An alternative education loan may be made under this | ||
section only by or on behalf of a qualified alternative education | ||
loan lender. An alternative education loan may not be in an amount | ||
in excess of the difference between the cost of attendance and the | ||
amount of other student-based [ |
||
borrower may be eligible [ |
||
Section 428B(a)(1), Higher Education Act of 1965 (20 U.S.C. Section | ||
1078-2) (relating to parent loans)[ |
||
|
||
subsection is subject to Chapter 342, Finance Code, as applicable, | ||
except that: | ||
(1) the maximum interest rate on the loan may not | ||
exceed the rate permitted under Subchapter A, Chapter 303, Finance | ||
Code; and | ||
(2) application and origination fees may be agreed to | ||
by the parties and assessed at the inception of the loan, provided | ||
that if any such fees constitute additional interest under | ||
applicable law, the effective rate of interest agreed to over the | ||
stated term of the loan may not exceed the rate allowed by | ||
Subchapter A, Chapter 303, Finance Code, and accrued unpaid | ||
interest may be added to unpaid principal at the beginning of the | ||
agreed repayment period at the borrower's option and in accordance | ||
with the terms of the agreement for purposes of determining the | ||
total principal amount due at the inception of the repayment | ||
period. | ||
SECTION 3. Section 1372.002(a), Government Code, is amended | ||
to read as follows: | ||
(a) For purposes of this chapter, a project is: | ||
(1) an eligible facility or facilities that are | ||
proposed to be financed, in whole or in part, by an issue of | ||
qualified residential rental project bonds; | ||
(2) in connection with an issue of qualified mortgage | ||
bonds or qualified student loan bonds, the providing of financial | ||
assistance to qualified borrowers if those borrowers are | ||
[ |
||
jurisdiction of the issuer; or | ||
(3) an eligible facility or facilities that are | ||
proposed to be financed, in whole or in part, by an issue of bonds | ||
other than bonds described by Subdivision (1) or (2). | ||
SECTION 4. Section 1372.033(g), Government Code, is amended | ||
to read as follows: | ||
(g) A qualified nonprofit corporation that receives a | ||
student loan bond allocation may not: | ||
(1) transfer the allocation to another entity; or | ||
(2) loan to another entity, other than a qualified | ||
borrower, [ |
||
SECTION 5. The change in law made by this Act to Chapter | ||
1372, Government Code, applies to the allocation of the available | ||
state ceiling under that chapter beginning with the 2019 program | ||
year. | ||
SECTION 6. This Act takes effect September 1, 2019. |