Texas 2017 - 85th Regular

Texas Senate Bill SB1380

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to alternative education loans and to the use of higher education private activity bonds by qualified alternative education loan lenders.

Impact

The implications of SB1380 extend to both educational financing and the broader economic landscape. The bill allows for increased flexibility in funding options available to students, potentially improving access to education for those who might not qualify for traditional loans. This could promote a more inclusive educational environment, particularly benefiting non-traditional students and those attending accredited institutions within Texas. Additionally, the use of private activity bonds presents opportunities for lower interest rates, making education financing more manageable for many.</p>

Summary

SB1380 is a legislative measure aimed at enhancing the framework for alternative education loans and the utilization of private activity bonds for higher education. The bill modifies several sections within the Education Code and the Government Code to broaden the scope of how alternative education loans are conceptualized and managed. It delineates the roles and capabilities of qualified alternative education loan lenders, specifically emphasizing the ability of nonprofit corporations to engage in the making, purchasing, or refinancing of loans for students and former students. By expanding the definition of alternative education loans, the bill enables a wider range of financial products that can support students' educational pursuits.

Contention

Notably, the bill may face scrutiny regarding its impact on existing student loan frameworks and potential risks associated with alternative lending. Critics might raise concerns about the adequacy of consumer protections for students borrowing through alternative loans compared to federal student loan options. Furthermore, the engagement of nonprofit organizations as lenders could lead to debates on accountability and the ethical implications of alternative financing methods. Stakeholders will need to consider how these changes interact with the current landscape of higher education financing and consumer rights.

Companion Bills

TX HB2705

Identical Relating to alternative education loans and to the use of higher education private activity bonds by qualified alternative education loan lenders.

Previously Filed As

TX HB4606

Relating to the operation of a juvenile justice alternative education program by a county department of education.

TX HB5267

Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.

TX HB4340

Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.

TX SB532

Relating to providing mental health services information to certain higher education students and to the repayment of certain higher education loans.

TX HB2817

Relating to establishing a program allowing certain students who are educationally disadvantaged, have a disability, or failed certain assessment instruments to use state money or money the state receives for the purpose from gifts and non-federal grants to pursue certain educational alternatives to public schools.

TX HB4339

Relating to the establishment of the Education Savings Account Program to allow certain disadvantaged children and their siblings to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.

TX SB2354

Relating to the establishment of the Education Savings Account Program to allow certain disadvantaged children and their siblings to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.

TX HB1211

Relating to financial assistance, including repayment of loans, for certain students attending postsecondary educational institutions.

TX HB1044

Relating to the issuance of a transcript by a postsecondary educational institution to a student who is in default on certain student loans.

TX SB642

Relating to the issuance of a transcript by a postsecondary educational institution to a student who is in default on certain student loans.

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