Bill Text: TX SB680 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to a pilot program to improve student loan default rates and financial aid literacy among postsecondary students.
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-06-14 - Effective immediately [SB680 Detail]
Download: Texas-2013-SB680-Enrolled.html
| S.B. No. 680 | ||
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| relating to a pilot program to improve student loan default rates | ||
| and financial aid literacy among postsecondary students. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Chapter 61, Education Code, is | ||
| amended by adding Section 61.0763 to read as follows: | ||
| Sec. 61.0763. STUDENT LOAN DEFAULT PREVENTION AND FINANCIAL | ||
| AID LITERACY PILOT PROGRAM. (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 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. | ||
| (c) The board shall select at least one institution from | ||
| each of the following categories of postsecondary educational | ||
| institutions to participate in the program: | ||
| (1) general academic teaching institutions; | ||
| (2) public junior colleges; | ||
| (3) private or independent institutions of higher | ||
| education; and | ||
| (4) career schools or colleges. | ||
| (d) In selecting postsecondary educational institutions to | ||
| participate in the pilot program, the board shall give priority to | ||
| institutions that 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 | ||
| state. | ||
| (e) The board, in consultation with postsecondary | ||
| educational institutions, shall adopt rules for the administration | ||
| of the pilot program, including rules governing the selection of | ||
| postsecondary educational institutions to participate in the pilot | ||
| program consistent with the requirements of Subsection (d). | ||
| (f) The board may contract with one or more entities to | ||
| administer the pilot program according to criteria established by | ||
| board rule. | ||
| (g) Not later than January 1 of each year, beginning in | ||
| 2016: | ||
| (1) the board shall submit a report to the governor, | ||
| the lieutenant governor, and the speaker of the house of | ||
| representatives regarding the outcomes of the pilot program, as | ||
| reflected in the federal student loan default rates reported for | ||
| the participating institutions; and | ||
| (2) each participating institution shall submit a | ||
| report to the governor, the lieutenant governor, and the speaker of | ||
| the house of representatives regarding the outcomes of the pilot | ||
| program at the institution, as reflected in the federal student | ||
| loan default rate reported for the institution. | ||
| (h) This section expires December 31, 2020. | ||
| SECTION 2. The Texas Higher Education Coordinating Board | ||
| shall adopt rules for the administration of Section 61.0763, | ||
| Education Code, as added by this Act, as soon as practicable after | ||
| this Act takes effect. For that purpose, the coordinating board may | ||
| adopt the initial rules in the manner provided by law for emergency | ||
| rules. | ||
| SECTION 3. 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, 2013. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 680 passed the Senate on | ||
| March 27, 2013, by the following vote: Yeas 30, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 680 passed the House on | ||
| May 22, 2013, by the following vote: Yeas 137, Nays 11, two | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
