| 1 | 1 | | 85R8121 KSD-D |
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| 2 | 2 | | By: Johnson of Dallas H.B. No. 2613 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to authorization for the Texas Higher Education |
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| 8 | 8 | | Coordinating Board to refinance education loans under its student |
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| 9 | 9 | | loan program and to use bond proceeds under that program for that |
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| 10 | 10 | | purpose. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter C, Chapter 52, Education Code, is |
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| 13 | 13 | | amended by adding Section 52.42 to read as follows: |
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| 14 | 14 | | Sec. 52.42. STUDENT LOAN REFINANCE PROGRAM. (a) As part of |
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| 15 | 15 | | the student loan program administered under this subchapter, the |
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| 16 | 16 | | board shall establish and administer a student loan refinance |
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| 17 | 17 | | program under which the board may refinance at favorable rates |
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| 18 | 18 | | federal, state, private, or alternative student loan debt of |
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| 19 | 19 | | eligible borrowers. In administering the program, the board may |
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| 20 | 20 | | provide consolidation loans to permit an eligible borrower to |
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| 21 | 21 | | refinance multiple qualifying loans into a single loan. |
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| 22 | 22 | | (b) The board by rule shall prescribe eligibility criteria |
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| 23 | 23 | | for a borrower under the student loan refinance program. The |
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| 24 | 24 | | criteria prescribed by the board under this subsection must include |
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| 25 | 25 | | requirements for: |
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| 26 | 26 | | (1) Texas residency; |
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| 27 | 27 | | (2) creditworthiness; |
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| 28 | 28 | | (3) debt to income ratio; and |
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| 29 | 29 | | (4) outstanding student loan debt amount. |
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| 30 | 30 | | (c) In administering the student loan refinance program, |
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| 31 | 31 | | the board may use any power or authority provided by this chapter or |
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| 32 | 32 | | other law applicable to original student loans, to the extent that |
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| 33 | 33 | | law may be made applicable to the program. |
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| 34 | 34 | | (d) Sections 52.33 and 52.38 do not apply to a student loan |
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| 35 | 35 | | refinanced under this section. The board by rule shall prescribe: |
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| 36 | 36 | | (1) priorities for determining which student loans to |
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| 37 | 37 | | refinance under this section; |
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| 38 | 38 | | (2) limitations on the amount of student loan debt |
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| 39 | 39 | | that may be refinanced by an eligible borrower under this section; |
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| 40 | 40 | | and |
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| 41 | 41 | | (3) requirements for the repayment of refinance loans |
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| 42 | 42 | | made under this section. |
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| 43 | 43 | | (e) The board shall adopt rules as necessary for the |
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| 44 | 44 | | administration of this section. |
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| 45 | 45 | | SECTION 2. Section 52.62(b), Education Code, is amended to |
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| 46 | 46 | | read as follows: |
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| 47 | 47 | | (b) The college savings bonds issued by the board under this |
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| 48 | 48 | | subchapter are part of the Texas Opportunity Plan Fund, and the |
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| 49 | 49 | | proceeds from the bonds shall be invested as provided by Subchapter |
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| 50 | 50 | | B of this chapter and may be used for the issuance or refinancing of |
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| 51 | 51 | | student loans as provided by Subchapter C of this chapter. |
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| 52 | 52 | | SECTION 3. Section 52.90(a), Education Code, is amended to |
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| 53 | 53 | | read as follows: |
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| 54 | 54 | | (a) The board shall make a loan from the fund to a student |
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| 55 | 55 | | who qualifies for the issuance or refinancing of a student loan |
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| 56 | 56 | | under Subchapter C. |
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| 57 | 57 | | SECTION 4. This Act takes effect September 1, 2017. |
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