Texas House Bill HB846

Texas 2019 - 86th Regular

Caption

Relating to the abolition of student loan default or breach of a student loan repayment or scholarship contract as a ground for nonrenewal or other disciplinary action in relation to a professional or occupational license and to certain duties of state agencies and political subdivisions in relation to delinquent or defaulted student loans.

Impact

The potential impact of HB 846 is significant as it alters existing practices where defaulting on a student loan could result in the loss or denial of a professional license. By removing this ground for disciplinary action, the bill aims to alleviate the repercussions individuals face as a result of student debt. Supporters of the bill argue that such a move is essential for helping those struggling with repayment to regain their footing and contribute productively to society without the fear of losing their licenses.

Summary

House Bill 846 aims to reform the implications of student loan defaults on professional and occupational licenses in Texas. The bill explicitly prohibits state licensing agencies from denying the issuance or renewal of licenses based solely on the default status of a person's student loan. This legislation seeks to ensure that individuals who may be in financial distress due to student loans are not barred from pursuing their professional careers, thereby promoting economic opportunity and reducing barriers to entry in various occupations.

Contention

However, the bill has not been without controversy. Opponents may raise concerns about accountability and the responsibilities tied to student loans. There is a debate about whether this law could encourage a lax attitude towards repayment obligations, potentially harming the financial aid system as a whole. As the legislation moves forward, discussions among stakeholders, including educational institutions, government agencies, and financial organizations, highlight differing views on balancing support for students with the need for fiscal responsibility.