S.B. No. 1799

	AN ACT
	relating to the student loan default prevention and financial aid
	literacy pilot program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	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
	program:
	(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
	state].
	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
	Approved:
	______________________________
	Date
	______________________________
	Governor