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