H.B. No. 3578
AN ACT
relating to clarification of the authorized uses for loans under
public institution of higher education emergency loan programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter D, Chapter 56,
Education Code, is amended to read as follows:
SUBCHAPTER D. EMERGENCY TUITION, FEE, AND TEXTBOOK [FEES] LOANS
SECTION 2. Section 56.053(a), Education Code, is amended to
read as follows:
(a) The governing board of each institution shall adopt
rules providing for the terms of the loan, subject to the following:
(1) the loan must be repaid over a period not to exceed
90 days for a loan made for a regular semester or long summer
session or over a proportionately shorter period for loans made for
a six-week summer session;
(2) the loan must be evidenced by a written or
electronic agreement providing for one of the following:
(A) interest on the loan at a rate of not more
than five percent per year; or
(B) an origination fee of not more than 1.25
percent of the amount of the loan; and
(3) the loan amount per student may not exceed an
amount equal to the tuition, [and] mandatory fees, and cost of
textbooks for the courses in which the student is actually
enrolling.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3578 was passed by the House on May
13, 2011, by the following vote: Yeas 144, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3578 was passed by the Senate on May
24, 2011, by the following vote: Yeas 31, Nays 0
.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor