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A BILL TO BE ENTITLED
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AN ACT
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relating to authorization for the Texas Higher Education |
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Coordinating Board to refinance education loans under its student |
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loan program and to use bond proceeds under that program for that |
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purpose. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 52, Education Code, is |
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amended by adding Section 52.42 to read as follows: |
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Sec. 52.42. STUDENT LOAN REFINANCE PROGRAM. (a) As part of |
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the student loan program administered under this subchapter, the |
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board shall establish and administer a student loan refinance |
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program under which the board may refinance at favorable rates |
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federal, state, private, or alternative student loan debt of |
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eligible borrowers. In administering the program, the board may |
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provide consolidation loans to permit an eligible borrower to |
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refinance multiple qualifying loans into a single loan. |
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(b) The board by rule shall prescribe eligibility criteria |
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for a borrower under the student loan refinance program. The |
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criteria prescribed by the board under this subsection must include |
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requirements for: |
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(1) Texas residency; |
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(2) creditworthiness; |
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(3) debt to income ratio; and |
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(4) outstanding student loan debt amount. |
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(c) In administering the student loan refinance program, |
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the board may use any power or authority provided by this chapter or |
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other law applicable to original student loans, to the extent that |
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law may be made applicable to the program. |
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(d) Sections 52.33 and 52.38 do not apply to a student loan |
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refinanced under this section. The board by rule shall prescribe: |
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(1) priorities for determining which student loans to |
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refinance under this section; |
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(2) limitations on the amount of student loan debt |
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that may be refinanced by an eligible borrower under this section; |
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and |
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(3) requirements for the repayment of refinance loans |
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made under this section. |
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(e) The board shall adopt rules as necessary for the |
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administration of this section. |
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SECTION 2. Section 52.62(b), Education Code, is amended to |
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read as follows: |
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(b) The college savings bonds issued by the board under this |
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subchapter are part of the Texas Opportunity Plan Fund, and the |
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proceeds from the bonds shall be invested as provided by Subchapter |
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B of this chapter and may be used for the issuance or refinancing of |
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student loans as provided by Subchapter C of this chapter. |
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SECTION 3. Section 52.90(a), Education Code, is amended to |
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read as follows: |
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(a) The board shall make a loan from the fund to a student |
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who qualifies for the issuance or refinancing of a student loan |
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under Subchapter C. |
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SECTION 4. This Act takes effect September 1, 2017. |