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A BILL TO BE ENTITLED
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AN ACT
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relating to student loan repayment assistance for certain state |
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employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 61, Education Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. REPAYMENT OF EDUCATION LOANS FOR CERTAIN STATE |
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EMPLOYEES |
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Sec. 61.7305. DEFINITION. In this subchapter, "state |
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employee" means an individual, other than a state officer as |
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defined by Section 572.002, Government Code, who is employed by: |
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(1) a state agency; |
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(2) the Supreme Court of Texas, the Court of Criminal |
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Appeals of Texas, a court of appeals, or the Texas Judicial Council; |
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or |
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(3) either house of the legislature or a legislative |
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agency, council, or committee, including the Legislative Budget |
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Board, the Texas Legislative Council, the State Auditor's Office, |
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and the Legislative Reference Library. |
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Sec. 61.731. LOAN REPAYMENT ASSISTANCE AUTHORIZED. The |
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board shall provide, in accordance with this subchapter and board |
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rules, assistance in the repayment of eligible student loans for |
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eligible state employees who apply and qualify for the assistance. |
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Sec. 61.732. ELIGIBILITY. To be eligible to receive loan |
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repayment assistance under this subchapter, a person must: |
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(1) apply to the board in a manner prescribed by the |
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board; |
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(2) have an income at or below 80 percent of the |
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statewide median family income, adjusted for family size, that is |
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established by the United States Department of Housing and Urban |
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Development; and |
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(3) at the time of application for repayment |
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assistance have been employed for at least five years as, and be |
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currently employed as, a state employee. |
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Sec. 61.733. LIMITATIONS. A state employee may receive |
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loan repayment assistance under this subchapter for not more than |
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five years. |
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Sec. 61.734. ELIGIBLE LOANS. (a) The board may provide |
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loan repayment assistance under this subchapter for the repayment |
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of any student loan for education at an institution of higher |
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education, a private or independent institution of higher |
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education, or a public or private out-of-state institution of |
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higher education accredited by a recognized accrediting agency, |
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including loans for undergraduate education, received by an |
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eligible person through any lender. |
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(b) The board may not provide repayment assistance for a |
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student loan that is in default at the time of the person's |
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application. |
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(c) In each state fiscal biennium, the board shall attempt |
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to allocate all money appropriated to the board for the purpose of |
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providing loan repayment assistance under this subchapter. |
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Sec. 61.735. REPAYMENT. (a) The board shall deliver any |
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repayment under this subchapter in a lump sum payable: |
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(1) to both the lender or other holder of the loan and |
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the state employee; or |
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(2) directly to the lender or other holder of the loan |
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on the state employee's behalf. |
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(b) A repayment under this subchapter may be applied to any |
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amount due in connection with the loan. |
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Sec. 61.736. AMOUNT OF REPAYMENT ASSISTANCE. (a) A state |
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employee may receive loan repayment assistance under this |
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subchapter in an amount determined by the board. |
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(b) The total amount of loan repayment assistance awarded |
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under this subchapter may not exceed the sum of: |
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(1) the total amount of gifts and grants accepted by |
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the board for the repayment assistance; |
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(2) legislative appropriations for the repayment |
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assistance; and |
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(3) other money available to the board for the |
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repayment assistance. |
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Sec. 61.737. RULES; ADMINISTRATION. (a) The board shall |
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adopt rules necessary to administer this subchapter. |
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(b) The board shall distribute to each institution of higher |
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education or private or independent institution of higher education |
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and to any appropriate state agency and professional association |
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copies of the rules adopted under this section and other pertinent |
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information relating to this subchapter. |
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(c) The board shall administer the program under this |
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subchapter in a manner that maximizes any matching funds available |
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through other sources. |
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(d) A reasonable amount, not to exceed three percent, of any |
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money appropriated for purposes of this subchapter may be used to |
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pay the costs of administering this subchapter. |
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Sec. 61.738. SOLICITATION AND ACCEPTANCE OF MONEY. The |
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board may solicit and accept gifts and grants from any public or |
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private source for the purposes of this subchapter. |
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SECTION 2. The Texas Higher Education Coordinating Board is |
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required to provide assistance in the repayment of eligible student |
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loans for eligible state employees as provided by this Act only if |
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the legislature appropriates money specifically for that purpose. |
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If the legislature does not appropriate money specifically for that |
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purpose, the board may, but is not required to, provide assistance |
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in the repayment of eligible student loans for eligible state |
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employees as provided by this Act using other appropriations |
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available for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |