| |
| |
| |
|
|
AN ACT
|
|
|
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 |