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A BILL TO BE ENTITLED
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AN ACT
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relating to the interest rate for student loans issued by the Texas |
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Higher Education Coordinating Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 52.321, Education Code, is amended to |
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read as follows: |
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Sec. 52.321. STANDARDS CONCERNING ABILITY TO REPAY CERTAIN |
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LOANS. In establishing requirements to be met by applicants for |
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student loans authorized by the board under this chapter, the board |
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may not establish standards relating to demonstration of ability to |
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repay a federally insured student loan that are stricter for a |
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certain class of applicants than for other applicants, except: |
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(1) in cases where the applicant attends a school with |
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a loan default rate of 15 percent or more; or |
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(2) as provided by Section 52.36. |
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SECTION 2. Section 52.36, Education Code, is amended to |
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read as follows: |
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Sec. 52.36. LOAN INTEREST AND FEES. (a) The board shall |
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[from time to time] fix the interest to be charged for a [any] |
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student loan at a rate that ensures that the average interest rate |
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fixed for student loans under this chapter is sufficient to pay the |
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interest on outstanding bonds, any expenses incident to their |
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issuance, sale, and retirement, and all or a portion of the board's |
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expenses related to the operation of the student loan program. |
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(b) In fixing the interest rate for a student loan, the |
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board shall ensure that the rate corresponds to the risk that the |
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applicant will timely repay the loan, determined according to the |
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following factors and using the most recent data available: |
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(1) whether the applicant's proposed degree or |
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certificate program leads to a high-demand occupation in the region |
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of the participating higher educational institution at which the |
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applicant is enrolled; |
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(2) the projected salary or wages for the occupation |
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identified under Subdivision (1); and |
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(3) the percentage of the participating higher |
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educational institution's students in the applicant's proposed |
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degree or certificate program who obtain employment in that field |
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after graduation. |
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(c) Interest shall be postponed by the board as long as a |
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student is enrolled at a participating institution and may be |
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postponed at the board's discretion as long as a student is enrolled |
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at any other higher educational institution, provided that the |
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total interest paid is to be equal to that fixed at the time the note |
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evidencing the loan is executed. |
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(d) [(b)] The board may charge and collect loan origination |
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fees from borrowers for use in offsetting in whole or in part the |
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operating expenses for the loans. |
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SECTION 3. This Act applies beginning with student loans |
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issued for the 2026 spring semester. |
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SECTION 4. This Act takes effect September 1, 2025. |