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A BILL TO BE ENTITLED
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AN ACT
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relating to the displacement of student financial aid at a public |
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institution of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 56, Education Code, is |
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amended by adding Section 56.0094 to read as follows: |
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Sec. 56.0094. FINANCIAL AID DISPLACEMENT. (a) In this |
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section: |
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(1) "Coordinating board" means the Texas Higher |
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Education Coordinating Board. |
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(2) "Gift aid" means a grant, scholarship, exemption, |
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waiver, or other financial aid awarded to a student without a |
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requirement to repay the aid or earn the aid through work. |
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(b) The coordinating board shall develop a financial aid |
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displacement advisory for use by institutions of higher education |
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under this section that contains: |
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(1) a statement bordered by a line one point in weight |
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in a font not less than 14 points in size in the following form: |
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"Financial aid displacement occurs when a student's |
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financial aid is reduced due to receipt of a private scholarship or |
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other reasons identified in this advisory. This practice occurs in |
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Texas and should be taken into consideration while applying for |
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financial aid. The institution to which you are applying is |
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providing in this application a list of recommendations describing |
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how to maximize your financial aid and ensure that you are prepared |
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when financial aid displacement occurs. You are encouraged to |
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reach out to the institution to which you are applying to receive |
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advice on how to avoid financial aid displacement."; and |
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(2) a list of the most common reasons, as identified by |
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the coordinating board, for which the amount of gift aid awarded may |
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be revised or reduced under this chapter. |
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(c) Each institution of higher education shall include in |
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the institution's admission application form or provide in the |
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institution's admission application form a link to the financial |
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aid displacement advisory developed under Subsection (b) and, in |
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plain language: |
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(1) how to apply for gift aid at the institution; |
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(2) the timeline for financial aid processes at the |
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institution, including application deadlines, suggested deadlines |
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to report gift aid, and other deadlines of which the institution |
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determines a prospective student should be made aware; |
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(3) a list of recommendations to aid a prospective |
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student in maximizing gift aid awards, as determined by the |
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institution; |
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(4) a list of recommendations for a prospective |
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student to ensure the student's gift aid will not be reduced; and |
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(5) contact information for an employee or office at |
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the institution from whom a prospective student may seek advice |
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regarding gift aid. |
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(d) The coordinating board shall adopt rules necessary to |
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implement this section. |
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SECTION 2. Section 56.0094, Education Code, as added by |
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this Act, applies beginning with the 2025-2026 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, 2025. |