|
House Bill 2911 |
House Author: Branch |
|
Effective: 6-17-11 |
Senate Sponsor: Patrick, Dan |
House Bill 2911 amends the Education Code to authorize a higher education loan authority to purchase or make alternative education loans and guaranteed student loans in addition to loans guaranteed by the Texas Guaranteed Student Loan Corporation. The bill authorizes a higher education loan authority, on approval of the city or cities that created the authority, to issue revenue bonds or otherwise borrow money to finance the purchase or issuance of such alternative education loans, which bonds must be payable from and secured by a pledge of revenues derived from or by reason of the ownership of the alternative education loans and investment income after the deduction of loan program operating expenses. The bill authorizes an alternative education loan to be made on behalf of a qualified alternative education loan lender, in addition to being made by a qualified alternative education loan lender.
The bill amends the Government Code to revise the priorities for reservations of the portion of the state ceiling on tax-exempt private activity bonds that is available for reservation by issuers of qualified student loan bonds. The bill entitles each qualified nonprofit corporation that applies for a student loan bond allocation in compliance with all applicable application requirements for a program year to receive a student loan bond allocation for that year. The bill redefines such student loan bond allocation to mean the total amount of the allocation for such private activity bonds for a program year divided by the number of qualified nonprofit corporation applicants that comply with all applicable application requirements for that year and removes the need-based provisions relating to the previous entitlement of a floor allocation for such a nonprofit corporation and related contingency provisions for when the total amount to be allocated is less than the sum of the floor allocations for all applicants.