Texas House Bill HB836

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 HB 836 is anticipated to significantly influence state laws concerning educational financing and student rights. By mandating disclosure of loan debt information, the legislation promotes a more informed student body, thus enabling prospective and current students to make better financial decisions regarding their education. The bill is expected to take effect for the 2018-2019 academic year, thereby setting a precedent for greater accountability among higher education institutions in Texas regarding student loan notifications.

Summary

House Bill 836 requires that certain participating institutions under the student loan program provide students with annual information regarding their loan debt. Specifically, the bill mandates that educational institutions must disclose estimates of the total amount of state and federal education loans incurred by students, alongside potential payoff amounts and anticipated monthly repayments. This initiative aims to enhance transparency in student financial obligations and ensure that students are well-informed about their educational debt before graduation.

Sentiment

Overall, the sentiment surrounding HB 836 appears to be positive, with support from various stakeholders who see it as a necessary step toward protecting students from accumulating unmanageable debt without a clear understanding of their financial obligations. Advocates argue that clear communication about loan amounts and repayment expectations can empower students and help them plan their finances more effectively in the long term.

Contention

While the bill received significant support during its discussions, there are concerns about the potential burden it may place on institutions to accurately gather and report the required loan information. Some opponents worry about the feasibility of compliance and the administrative costs associated with these mandatory disclosures. However, the bill includes provisions to protect institutions from liability in representations made under this requirement, which could mitigate some of the apprehensions from educational entities.