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A BILL TO BE ENTITLED
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AN ACT
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relating to clarification of the authorized uses for loans under |
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public institution of higher education emergency loan programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter D, Chapter 56, |
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Education Code, is amended to read as follows: |
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SUBCHAPTER D. EMERGENCY TUITION, FEE, AND TEXTBOOK [FEES] LOANS |
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SECTION 2. Section 56.053(a), Education Code, is amended to |
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read as follows: |
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(a) The governing board of each institution shall adopt |
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rules providing for the terms of the loan, subject to the following: |
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(1) the loan must be repaid over a period not to exceed |
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90 days for a loan made for a regular semester or long summer |
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session or over a proportionately shorter period for loans made for |
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a six-week summer session; |
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(2) the loan must be evidenced by a written or |
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electronic agreement providing for one of the following: |
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(A) interest on the loan at a rate of not more |
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than five percent per year; or |
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(B) an origination fee of not more than 1.25 |
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percent of the amount of the loan; and |
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(3) the loan amount per student may not exceed an |
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amount equal to the tuition, [and] mandatory fees, and cost of |
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textbooks for the courses in which the student is actually |
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enrolling. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |