74R8687 JSA-D
          By Maxey                                              H.B. No. 1697
          Substitute the following for H.B. No. 1697:
          By Ogden                                          C.S.H.B. No. 1697
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to providing information to students applying for
    1-3  guaranteed student loans relating to the graduation, placement, and
    1-4  student loan default rates for certain postsecondary educational
    1-5  institutions.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Subchapter C, Chapter 61, Education Code, is
    1-8  amended by adding Section 61.0735 to read as follows:
    1-9        Sec. 61.0735.  NOTICE RELATING TO GUARANTEED STUDENT LOANS.
   1-10  (a)  In this section:
   1-11              (1)  "Guaranteed student loan" means a loan guaranteed
   1-12  under the Higher Education Act of 1965 (20 U.S.C. Section 1001 et
   1-13  seq.) or other federal law the purpose of which is to provide money
   1-14  for a person to attend a postsecondary educational institution.
   1-15              (2)  "Postsecondary educational institution" has the
   1-16  meaning assigned by Section 57.02.
   1-17        (b)  The board shall collect and maintain information
   1-18  relating to guaranteed student loans for each postsecondary
   1-19  educational institution in this state that does not grant
   1-20  baccalaureate or postgraduate degrees and is eligible to enroll a
   1-21  student receiving a guaranteed student loan.  The information
   1-22  collected by the board must include, to the extent practicable:
   1-23              (1)  the graduation rate for students enrolled in the
   1-24  institution;
    2-1              (2)  the career placement rate for students graduating
    2-2  from the institution; and
    2-3              (3)  the guaranteed student loan default rate of
    2-4  students who have received guaranteed student loans to attend the
    2-5  institution.
    2-6        (c)  The board shall prepare materials for distribution to a
    2-7  student applying for a guaranteed student loan to attend an
    2-8  institution to which this section applies designed to inform the
    2-9  student of the graduation, placement, and loan default rates for
   2-10  the institution collected under Subsection (b).  The board may
   2-11  provide the information in any form the board considers reasonable
   2-12  and may provide rates for the institution as a whole or for
   2-13  particular programs of the institution.
   2-14        (d)  The board by rule shall require:
   2-15              (1)  postsecondary educational institutions covered by
   2-16  this section and entities administering guaranteed student loans in
   2-17  this state to report information that the board requires for the
   2-18  administration of this section; and
   2-19              (2)  each entity that administers guaranteed student
   2-20  loans in this state to provide each applicant for a guaranteed
   2-21  student loan to attend an institution to which this section applies
   2-22  with the materials prepared by the board under Subsection (c).
   2-23        SECTION 2.  (a) This Act takes effect September 1, 1995.
   2-24        (b)  The Texas Higher Education Coordinating Board shall
   2-25  prepare materials for distribution to students applying for
   2-26  guaranteed student loans as required by Section 61.0735, Education
   2-27  Code, as added by this Act, not later than September 1, 1996.
    3-1        SECTION 3.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended.