78R4770 KSD-D
By: Zaffirini S.B. No. 4
A BILL TO BE ENTITLED
AN ACT
relating to the establishment and operation of the Texas school
fund student loan program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 56, Education Code, is amended by adding
Subchapter Q to read as follows:
SUBCHAPTER Q. TEXAS SCHOOL FUND LOAN PROGRAM
Sec. 56.451. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Eligible institution" means:
(A) an institution of higher education; or
(B) a private or independent institution of
higher education.
(3) "General academic teaching institution," "private
or independent institution of higher education," "public junior
college," and "public technical institute" have the meanings
assigned by Section 61.003.
Sec. 56.452. PROGRAM NAME; PURPOSE. (a) The student loan
program authorized by this subchapter is known as the Texas school
fund loan program, and an individual loan awarded under this
subchapter is known as a Texas school fund loan.
(b) The purpose of this subchapter is to provide no-interest
loans to eligible students to enable those students to attend all
public and private or independent institutions of higher education
in this state.
Sec. 56.453. ADMINISTRATION OF PROGRAM; RULES. (a) The
coordinating board shall:
(1) administer the Texas school fund loan program;
(2) determine the repayment and other terms of a Texas
school fund loan; and
(3) in consultation with the student financial aid
officers of eligible institutions, adopt any rules necessary to
implement the program or this subchapter.
(b) The total amount of Texas school fund loans awarded may
not exceed the amount available in the Texas school fund student
loan account under Section 56.463.
Sec. 56.454. PERSONS NOT ELIGIBLE. (a) A person is not
eligible to receive a Texas school fund loan if the person has been
granted a baccalaureate degree.
(b) A person may not receive a Texas school fund loan for
more than 150 semester credit hours or the equivalent.
Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible
initially for a Texas school fund loan, a person must:
(1) be a resident of this state for purposes of
Subchapter B, Chapter 54;
(2) meet one of the following academic requirements:
(A) be a graduate of a public or accredited
private high school in this state who graduated:
(i) not earlier than the 2002-2003 school
year; and
(ii) with a cumulative grade point average
of at least 3.0 on a four-point scale or the equivalent;
(B) have received an associate degree from an
eligible institution not earlier than May 1, 2005, with a
cumulative grade point average of at least 3.0 on a four-point scale
or the equivalent; or
(C) be an undergraduate student at an eligible
institution with a cumulative grade point average of at least 3.0 on
a four-point scale or the equivalent;
(3) be enrolled for at least three-fourths of a full
course load for an undergraduate student, as determined by the
coordinating board, in an undergraduate degree or certificate
program at an eligible institution;
(4) be eligible for federal financial aid, except that
a person is not required to meet any financial need requirement
applicable to a particular federal financial aid program; and
(5) comply with any additional nonacademic
requirement adopted by the coordinating board under this
subchapter.
Sec. 56.456. CONTINUING ELIGIBILITY AND ACADEMIC
PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
Texas school fund loan, a person may continue to receive a Texas
school fund loan for each semester or term in which the person is
enrolled at an eligible institution only if the person:
(1) is enrolled for at least three-fourths of a full
course load for an undergraduate student, as determined by the
coordinating board, in an undergraduate degree or certificate
program at an eligible institution;
(2) is eligible for federal financial aid, except that
a person is not required to meet any financial need requirement
applicable to a particular federal financial aid program;
(3) maintains a cumulative grade point average of at
least 3.0 on a four-point scale or the equivalent; and
(4) complies with any additional nonacademic
requirement adopted by the coordinating board.
(b) If a person fails to meet any of the requirements of
Subsection (a) after the completion of any semester or term, the
person may not receive a Texas school fund loan for the next
semester or term in which the person enrolls. A person may become
eligible to receive a Texas school fund loan in a subsequent
semester or term if the person:
(1) completes a semester or term during which the
student is not eligible for a Texas school fund loan; and
(2) meets all of the requirements of Subsection (a).
(c) A person who is eligible to receive a Texas school fund
loan continues to remain eligible to receive the Texas school fund
loan if the person enrolls in or transfers to another eligible
institution.
(d) A person who qualifies for and subsequently receives a
Texas school fund loan, who receives an undergraduate certificate
or associate degree, and who, not later than the 12th month after
the month the person receives the certificate or degree, enrolls in
a program leading to a higher-level undergraduate degree continues
to be eligible for a Texas school fund loan to the extent other
eligibility requirements are met.
Sec. 56.457. WAIVER OF COURSE LOAD REQUIREMENT. (a) The
coordinating board shall adopt rules to allow a person who is
otherwise eligible to receive a Texas school fund loan, in the event
of a hardship or other good cause, to receive a Texas school fund
loan while enrolled in a number of semester credit hours that is
less than the number of semester credit hours required under
Section 56.455 or 56.456, as applicable.
(b) The coordinating board may not allow a person to receive
a Texas school fund loan while enrolled in fewer than six semester
credit hours.
Sec. 56.458. LOAN USE. A person receiving a Texas school
fund loan may use the money to pay for any usual and customary costs
of attendance at an eligible institution incurred by the student,
including tuition, fees, books, and room and board.
Sec. 56.459. LOAN AMOUNT. (a) The amount of a Texas school
fund loan for a semester or term for a student enrolled full-time at
an eligible institution other than an institution covered by
Subsection (b), (c), or (d) is an amount determined by the
coordinating board as the average statewide amount of tuition and
required fees that a resident student enrolled full-time in an
undergraduate degree program would be charged for that semester or
term at general academic teaching institutions.
(b) The amount of a Texas school fund loan for a student
enrolled full-time at a private or independent institution of
higher education is an amount determined by the coordinating board
as the average statewide amount of tuition and required fees that a
resident student enrolled full-time in an undergraduate degree
program would be charged for that semester or term at general
academic teaching institutions.
(c) The amount of a Texas school fund loan for a student
enrolled full-time at a public technical institute is the amount
determined by the coordinating board as the average statewide
amount of tuition and required fees that a resident student
enrolled full-time in an associate degree or certificate program
would be charged for that semester or term at public technical
institutes.
(d) The amount of a Texas school fund loan for a student
enrolled full-time at a public junior college is the amount
determined by the coordinating board as the average statewide
amount of tuition and required fees that a student who is a resident
of the junior college district and is enrolled full-time in an
associate degree or certificate program would be charged for that
semester or term at public junior colleges.
(e) Not later than January 31 of each year, the coordinating
board shall publish the amounts of each loan established by the
board for each type of institution for the academic year beginning
the next fall semester.
(f) If in any academic year the amount of money in the Texas
school fund student loan account is insufficient to provide the
loans to all eligible persons in amounts specified by this section,
the coordinating board shall determine the amount of available
money and shall allocate that amount to eligible institutions in
proportion to the number of full-time equivalent undergraduate
students enrolled at each institution. Each institution shall use
the money allocated to award Texas school fund loans to eligible
students enrolled at the institution selected according to
financial need.
Sec. 56.460. NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF
SCHOOL DISTRICTS. (a) The coordinating board shall distribute to
each eligible institution and to each school district a copy of the
rules adopted under this subchapter.
(b) Each school district shall notify its middle school
students, junior high school students, and high school students,
those students' teachers and counselors, and those students'
parents or guardians of the Texas school fund loan program and the
eligibility requirements of the program.
Sec. 56.461. LOAN PAYMENT DEFERRED. The repayment of a
Texas school fund loan received by a student under this subchapter
is deferred as long as the student remains continuously enrolled in
an undergraduate degree or certificate program at an eligible
institution.
Sec. 56.462. LOAN FORGIVENESS. A student who receives a
Texas school fund loan shall be forgiven the amount of the student's
loan if the student is awarded an undergraduate certificate or
degree at an eligible institution with a cumulative grade point
average of at least 3.0 on a four-point scale or the equivalent
within:
(1) four calendar years after the date the student
initially enrolled in the institution or another eligible
institution if:
(A) the institution is a four-year institution;
and
(B) the student is awarded a degree other than a
degree in engineering or architecture;
(2) five calendar years after the date the student
initially enrolled in the institution or another eligible
institution if:
(A) the institution is a four-year institution;
and
(B) the student is awarded a degree in
engineering or architecture; or
(3) two years after the date the student initially
enrolled in the institution or another eligible institution if the
institution is a public junior college or public technical
institute.
Sec. 56.463. TEXAS SCHOOL FUND STUDENT LOAN ACCOUNT. (a)
The Texas school fund student loan account is an account in the
general revenue fund. The fund consists of gifts and grants and
legislative appropriations received under Section 56.464, and
other money required by law to be deposited in the account.
(b) Money in the Texas school fund student loan account may
be used only as provided by this subchapter.
Sec. 56.464. FUNDING. (a) The coordinating board may
solicit and accept gifts and grants from any public or private
source for the purposes of this subchapter.
(b) The legislature may appropriate money for the purposes
of this subchapter.
SECTION 2. (a) The Texas Higher Education Coordinating
Board and the eligible institutions shall award loans under the
Texas school fund loan program established under Subchapter Q,
Chapter 56, Education Code, as added by this Act, beginning with the
2003 fall semester.
(b) The Texas Higher Education Coordinating Board shall
adopt the initial rules for awarding loans under the Texas school
fund loan program established under Subchapter Q, Chapter 56,
Education Code, as added by this Act, as soon as practicable after
the effective date of this Act. The coordinating board may adopt
those 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, 2003.