|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to a requirement that certain participating institutions |
|
under the student loan program administered by the Texas Higher |
|
Education Coordinating Board provide loan debt information to |
|
certain students. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter C, Chapter 52, Education Code, is |
|
amended by adding Section 52.335 to read as follows: |
|
Sec. 52.335. REQUIRED LOAN DEBT DISCLOSURE. (a) This |
|
section applies to a participating higher educational institution |
|
that enrolls one or more students receiving state financial aid |
|
administered by the Texas Higher Education Coordinating Board. |
|
(b) At least annually a participating higher educational |
|
institution to which this section applies that receives education |
|
loan information for a student enrolled at the institution who |
|
initially enrolled at the institution as a first-time freshman |
|
student shall provide to that student in an electronic |
|
communication the following information: |
|
(1) an estimate of the total amount of state and |
|
federal education loans incurred by the student; |
|
(2) an estimate of the total payoff amount, or a range |
|
for that amount, for the amount described by Subdivision (1), |
|
including principal and interest; and |
|
(3) an estimate of the monthly repayment amount that |
|
the student may incur for the repayment of the amount described by |
|
Subdivision (1), including principal and interest. |
|
(c) A participating higher educational institution is |
|
required to include in the disclosure only education loan debt |
|
information regarding the student that the institution: |
|
(1) receives or otherwise obtains from the United |
|
States Department of Education's central database for student aid; |
|
and |
|
(2) may reasonably collect from its own records. |
|
(d) The disclosure required under this section must: |
|
(1) identify the types of education loans included in |
|
the institution's estimates; and |
|
(2) include: |
|
(A) a statement that the disclosure is not a |
|
complete and official record of the student's education loan debt, |
|
together with an explanation regarding why the disclosure may not |
|
be complete or accurate; and |
|
(B) a statement that the institution's estimates |
|
are general in nature and are not intended as a guarantee or |
|
promise. |
|
(e) A participating higher educational institution does not |
|
incur liability for any representation made under this section. |
|
(f) The Texas Higher Education Coordinating Board shall |
|
adopt rules for the administration of this section. |
|
SECTION 2. Section 52.335, Education Code, as added by this |
|
Act, applies beginning with the 2018-2019 academic year. |
|
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, 2017. |