Texas Senate Bill SB887

Texas 2017 - 85th Regular

Caption

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.

Impact

The implementation of SB887 is expected to enhance transparency regarding student loan obligations, allowing students to make more informed decisions concerning their finances and educational choices. By mandating schools to provide this information, the bill aims to alleviate surprises associated with student debt and repayment processes. The requirement for annual disclosures might encourage institutions to maintain accurate and up-to-date records regarding students' loans, thus potentially fostering a culture of financial awareness among students.

Summary

SB887 establishes a requirement for certain participating institutions in the student loan program administered by the Texas Higher Education Coordinating Board to provide significant loan debt information to students. This legislation dictates that these educational institutions must communicate with students at least once a year, providing estimates of their total state and federal loan debt incurred, potential payoff amounts, and estimates of monthly repayment obligations. The intention is to empower students with knowledge about their financial responsibilities as they pursue their education.

Sentiment

The sentiment surrounding SB887 is generally positive among supporters who advocate for greater accountability and transparency in student financial aid processes. Proponents argue that students deserve clear, comprehensive information about their loan debt to aid in their financial planning. Conversely, concerns may arise regarding how institutions will handle the administrative burdens of updating and delivering these disclosures, and whether this might lead to additional complexities in their operations.

Contention

While there seems to be widespread agreement on the need for clarity in student loan information, potential contention lies in how effectively institutions will comply with these requirements. Critics may express concerns over the accuracy and completeness of the disclosures, particularly for transfer students whose financial histories with multiple institutions complicate estimation processes. Additionally, there may be apprehensions on whether this law will place undue strain on institutions, especially smaller colleges that may lack the resources to implement rigorous disclosure systems.