80R6365 JRJ-F

By: Zaffirini S.B. No. 1232

A BILL TO BE ENTITLED

AN ACT

relating to the manner of payment of higher education tuition and fees and to the repayment of emergency student loans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 54.007, Education Code, is amended by amending Subsections (a), (b), and (d), by amending and relettering Subsection (f), as added by Chapter 888, Acts of the 79th Legislature, Regular Session, 2005, as Subsection (g), and by adding Subsection (b-1) to read as follows:

(a) The governing board of each institution of higher education shall provide for the payment of tuition and fees for [during] the fall and spring semesters through one of the following alternatives:

(1) except as provided by Subsection (b-1), full payment of tuition and fees in advance of the beginning of the semester; or

(2) [one-half] payment in installments under one or more payment plan options that require the first payment to be made [of tuition and fees] in advance of the beginning of the semester and the final payment to be made before the last day of the semester[, one-quarter payment prior to the start of the sixth class week, and the final one-quarter payment before the beginning of the eleventh class week].

(b) The governing board of each institution of higher education shall provide for [may permit] the payment of tuition and fees for [during] a summer term through one of the following alternatives:

(1) except as provided by Subsection (b-1), full [for a student enrolled for a summer term of 12 weeks or longer that is not covered by Subdivision (2), one-half] payment of tuition and fees in advance of the beginning of the summer term[, one-quarter payment before the beginning of the fifth class week, and the final one-quarter payment before the beginning of the ninth class week];

(2) [for a student enrolled for a summer term of 16 weeks or longer, one-half] payment in installments under one or more payment plan options that require the first payment to be made [of tuition and fees] in advance of the beginning of the summer term and the final payment to be made before the last day of the term[, one-quarter payment before the beginning of the sixth class week, and the final one-quarter payment before the beginning of the 11th class week]; or [and]

(3) for a student enrolled for a summer term [not covered by Subdivision (1) or (2)] in a public junior college, public technical institute, or public state college, one-half payment of tuition and fees in advance of the beginning of the summer term and the remaining amount in one or two later payments to be made in the percentages and by the dates determined by the governing board of the college or institute, provided that the final payment must be made before the beginning of the last week of the summer term.

(b-1) A student who owes a balance of tuition and fees as a result of a change in the student's class schedule or who owes a balance of tuition and fees of less than $100 after making an insufficient payment of tuition and fees previously due shall pay the balance owed not later than the next payment date established by the governing board under a payment plan adopted under Subsection (a)(2) or (b)(2), as applicable.

(d) A student who fails to make a full payment of the required amount of tuition and fees, including any incidental fees, by the due date may be prohibited from registering for classes until full payment is made. A student who fails to make full payment prior to the end of the semester or summer term may be denied credit for the work done that semester or term. The governing board may not impose on a student any sanction authorized by this subsection unless the governing board includes in any written or electronic agreement authorized [promissory note signed] by the [a] student the following statement printed in bold-faced type or in capital letters: "A STUDENT WHO FAILS TO MAKE FULL PAYMENT OF TUITION AND FEES, INCLUDING ANY INCIDENTAL FEES, BY THE DUE DATE MAY BE PROHIBITED FROM REGISTERING FOR CLASSES UNTIL FULL PAYMENT IS MADE. A STUDENT WHO FAILS TO MAKE FULL PAYMENT PRIOR TO THE END OF THE SEMESTER OR TERM MAY BE DENIED CREDIT FOR THE WORK DONE THAT SEMESTER OR TERM." The governing board shall notify a student of any delinquent tuition or fee payment as soon as practicable. The institution's records may be adjusted to reflect the student's failure to have properly enrolled for that semester.

(g) [(f)] The governing board shall require a student who elects to pay tuition and fees by installment under this section to enter into a written or electronic agreement reflecting the terms and conditions required by this section for the installment plan provided for the student by the governing board.

SECTION 2. Section 56.053(a), Education Code, as amended by Chapters 80 and 655, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(a) The governing board of each institution shall adopt rules providing for the terms of the loan, subject to the following:

(1) the loan must be repaid over a period not to exceed 90 days for a loan made for a regular semester or long summer session or over a proportionately shorter period for loans made for a six-week summer session;

(2) the loan must be evidenced by a written or electronic agreement providing for one of the following:

(A) [promissory note that bears] interest on the loan at a rate of not more than five percent per year; or

(B) an origination fee of not more than three percent of the amount of the loan; and

(3) the maximum loan amount per student may not be greater than an amount equal to the tuition and mandatory [required] fees for the courses in which the student is actually enrolling.

[(3) the maximum loan amount per student may not be less than an amount equal to the tuition and required fees for the courses in which the student is actually enrolling, unless the institution determines that a lower amount would be in the best interest of the student.]

SECTION 3. Section 56.053, Education Code, is amended by adding Subsection (c) to read as follows:

(c) The maximum loan amount established under Subsection (a)(3) does not entitle a student to a loan in that amount, and an institution may lend the student an amount that is less than the maximum amount if the institution determines that a lower amount is in the best interest of the student.

SECTION 4. (a) The change in law made by this Act applies to payment of tuition and fees and to emergency student loans for an academic period beginning with the 2007 fall semester unless this Act takes effect after July 1, 2007, in which event the change in law applies beginning with the 2008 spring semester.

(b) Payment of tuition and fees and emergency student loans for an academic period before the semester provided by Subsection (a) of this section are covered by the applicable law in effect before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 5. 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, 2007.