Texas Senate Bill SB1799

Texas 2017 - 85th Regular

Caption

Relating to the student loan default prevention and financial aid literacy pilot program.

Impact

The bill amends sections of the Education Code to implement this pilot program in institutions such as public junior colleges and private institutions, with a particular emphasis on minority-serving institutions. By prioritizing institutions that have high default rates, SB1799 seeks to create a targeted approach in addressing the financial challenges faced by students of these institutions. The Texas Guaranteed Student Loan Corporation is responsible for administering the program and reporting its findings back to the state government.

Summary

SB1799 establishes a student loan default prevention and financial aid literacy pilot program designed to assist students at selected postsecondary educational institutions. The primary aim of the bill is to ensure that students are well-informed about the implications of borrowing for their education, the financial consequences of their academic and career decisions, and strategies to avoid delinquency and default on their student loans. This pilot program is expected to be critical in addressing rising student loan default rates and enhancing financial literacy among students.

Sentiment

There is a general sentiment of support for SB1799 among legislators who recognize the importance of financial literacy and the need to combat student loan delinquency rates. The legislation has garnered attention as a necessary measure to protect students from the long-term financial ramifications of poor loan management. However, concerns were raised about the effectiveness of such programs and whether they could significantly reduce default rates in practice.

Contention

Despite the widespread support for financial literacy initiatives, some lawmakers and critics remain skeptical of the bill's potential impact. Questions were raised regarding the adequacy of resources provided for the pilot program and whether it would lead to tangible improvements in student outcomes. Additionally, there are worries about the long-term sustainability of such programs and their reliance on state funding. The debate surrounding SB1799 highlights a broader conversation about how best to equip students for financial success while addressing the challenges posed by rising education costs.