| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the student loan default prevention and financial aid |
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| 6 | 8 | | literacy pilot program. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Sections 61.0763(a), (b), (c), and (d), |
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| 9 | 11 | | Education Code, are amended to read as follows: |
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| 10 | 12 | | (a) [In this section, "career school or college" has the |
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| 11 | 13 | | meaning assigned by Section 132.001. |
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| 12 | 14 | | [(b)] Not later than January 1, 2014, [the board shall |
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| 13 | 15 | | establish and administer] a pilot program shall be established at |
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| 14 | 16 | | selected postsecondary educational institutions to ensure that |
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| 15 | 17 | | students of those institutions are informed consumers with regard |
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| 16 | 18 | | to all aspects of student financial aid, including: |
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| 17 | 19 | | (1) the consequences of borrowing to finance a |
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| 18 | 20 | | student's postsecondary education; |
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| 19 | 21 | | (2) the financial consequences of a student's academic |
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| 20 | 22 | | and career choices; and |
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| 21 | 23 | | (3) strategies for avoiding student loan delinquency |
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| 22 | 24 | | and default. |
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| 23 | 25 | | (b) At [(c) The board shall select at] least one |
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| 24 | 26 | | institution from each of the following categories of postsecondary |
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| 25 | 27 | | educational institutions must be selected to participate in the |
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| 26 | 28 | | program: |
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| 27 | 29 | | (1) general academic teaching institutions; |
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| 28 | 30 | | (2) public junior colleges; and |
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| 29 | 31 | | (3) private or independent institutions of higher |
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| 30 | 32 | | education[; and |
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| 31 | 33 | | [(4) career schools or colleges]. |
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| 32 | 34 | | (c) [(d)] In selecting postsecondary educational |
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| 33 | 35 | | institutions to participate in the pilot program, [the board shall |
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| 34 | 36 | | give] priority shall be given to institutions that are recognized |
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| 35 | 37 | | by the United States Department of Education as minority-serving |
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| 36 | 38 | | institutions, including minority institutions under Section 1067k |
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| 37 | 39 | | of the Higher Education Act of 1965 (20 U.S.C. Section 1001 et seq.) |
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| 38 | 40 | | [have a three-year cohort student loan default rate, as reported by |
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| 39 | 41 | | the United States Department of Education: |
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| 40 | 42 | | [(1) of more than 20 percent; or |
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| 41 | 43 | | [(2) that has above average growth as compared to the |
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| 42 | 44 | | rates of other postsecondary educational institutions in this |
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| 43 | 45 | | state]. |
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| 44 | 46 | | SECTION 2. Section 57.011, Education Code, is amended by |
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| 45 | 47 | | adding Subsection (f) to read as follows: |
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| 46 | 48 | | (f) In accordance with an agreement with the Texas Higher |
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| 47 | 49 | | Education Coordinating Board, the Texas Guaranteed Student Loan |
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| 48 | 50 | | Corporation shall administer the pilot program established under |
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| 49 | 51 | | Section 61.0763. The corporation shall submit to the governor, the |
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| 50 | 52 | | lieutenant governor, and the speaker of the house of |
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| 51 | 53 | | representatives any annual report or end of program report the |
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| 52 | 54 | | corporation submits to the United States Department of Education in |
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| 53 | 55 | | administering the pilot program. This subsection expires December |
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| 54 | 56 | | 31, 2019. |
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| 55 | 57 | | SECTION 3. Sections 61.0763(e), (f), and (g), Education |
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| 56 | 58 | | Code, are repealed. |
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| 57 | 59 | | SECTION 4. This Act takes effect immediately if it receives |
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| 58 | 60 | | a vote of two-thirds of all the members elected to each house, as |
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| 59 | 61 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 60 | 62 | | Act does not receive the vote necessary for immediate effect, this |
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| 61 | 63 | | Act takes effect September 1, 2017. |
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| 62 | | - | ______________________________ ______________________________ |
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| 63 | | - | President of the Senate Speaker of the House |
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| 64 | | - | I hereby certify that S.B. No. 1799 passed the Senate on |
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| 65 | | - | May 3, 2017, by the following vote: Yeas 29, Nays 2. |
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| 66 | | - | ______________________________ |
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| 67 | | - | Secretary of the Senate |
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| 68 | | - | I hereby certify that S.B. No. 1799 passed the House on |
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| 69 | | - | May 24, 2017, by the following vote: Yeas 141, Nays 5, two |
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| 70 | | - | present not voting. |
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| 71 | | - | ______________________________ |
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| 72 | | - | Chief Clerk of the House |
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| 73 | | - | Approved: |
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| 74 | | - | ______________________________ |
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| 75 | | - | Date |
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| 76 | | - | ______________________________ |
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| 77 | | - | Governor |
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