| 6 | 4 | | AN ACT |
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| 7 | 5 | | relating to a requirement that certain participating institutions |
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| 8 | 6 | | under the student loan program administered by the Texas Higher |
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| 9 | 7 | | Education Coordinating Board provide loan debt information to |
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| 10 | 8 | | certain students. |
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| 11 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 10 | | SECTION 1. Subchapter C, Chapter 52, Education Code, is |
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| 13 | 11 | | amended by adding Section 52.335 to read as follows: |
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| 14 | 12 | | Sec. 52.335. REQUIRED LOAN DEBT DISCLOSURE. (a) This |
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| 15 | 13 | | section applies to a participating higher educational institution |
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| 16 | 14 | | that enrolls one or more students receiving state financial aid |
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| 17 | 15 | | administered by the Texas Higher Education Coordinating Board. |
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| 18 | 16 | | (b) At least annually a participating higher educational |
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| 19 | 17 | | institution to which this section applies that receives education |
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| 20 | 18 | | loan information for a student enrolled at the institution shall |
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| 21 | 19 | | provide to that student in an electronic communication the |
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| 22 | 20 | | following information: |
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| 23 | 21 | | (1) an estimate of the total amount of state and |
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| 24 | 22 | | federal education loans incurred by the student; |
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| 25 | 23 | | (2) an estimate of the total payoff amount, or a range |
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| 26 | 24 | | for that amount, for the amount described by Subdivision (1), |
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| 27 | 25 | | including principal and interest; and |
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| 28 | 26 | | (3) an estimate of the monthly repayment amount that |
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| 29 | 27 | | the student may incur for the repayment of the amount described by |
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| 30 | 28 | | Subdivision (1), including principal and interest. |
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| 31 | 29 | | (c) A participating higher educational institution is |
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| 32 | 30 | | required to include in the disclosure only education loan debt |
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| 33 | 31 | | information regarding the student that the institution: |
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| 34 | 32 | | (1) receives or otherwise obtains from the United |
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| 35 | 33 | | States Department of Education's central database for student aid; |
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| 36 | 34 | | and |
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| 37 | 35 | | (2) may reasonably collect from its own records. |
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| 38 | 36 | | (d) The disclosure required under this section must: |
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| 39 | 37 | | (1) identify the types of education loans included in |
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| 40 | 38 | | the institution's estimates; and |
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| 41 | 39 | | (2) include: |
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| 42 | 40 | | (A) a statement that the disclosure is not a |
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| 43 | 41 | | complete and official record of the student's education loan debt; |
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| 44 | 42 | | (B) an explanation regarding why the disclosure |
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| 45 | 43 | | may not be complete or accurate, including an explanation that for a |
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| 46 | 44 | | transfer student, the institution's estimates regarding state |
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| 47 | 45 | | loans reflect only state loans incurred by the student for |
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| 48 | 46 | | attendance at the institution; and |
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| 49 | 47 | | (C) a statement that the institution's estimates |
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| 50 | 48 | | are general in nature and are not intended as a guarantee or |
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| 51 | 49 | | promise. |
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| 52 | 50 | | (e) A participating higher educational institution does not |
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| 53 | 51 | | incur liability for any representation made under this section. |
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| 54 | 52 | | (f) The Texas Higher Education Coordinating Board shall |
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| 55 | 53 | | adopt rules for the administration of this section. |
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| 56 | 54 | | SECTION 2. Section 52.335, Education Code, as added by this |
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| 57 | 55 | | Act, applies beginning with the 2018-2019 academic year. |
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| 58 | 56 | | SECTION 3. This Act takes effect immediately if it receives |
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| 59 | 57 | | a vote of two-thirds of all the members elected to each house, as |
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| 60 | 58 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 61 | 59 | | Act does not receive the vote necessary for immediate effect, this |
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| 62 | 60 | | Act takes effect September 1, 2017. |
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| 61 | + | ______________________________ ______________________________ |
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| 62 | + | President of the Senate Speaker of the House |
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| 63 | + | I hereby certify that S.B. No. 887 passed the Senate on |
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| 64 | + | March 20, 2017, by the following vote: Yeas 30, Nays 0. |
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| 65 | + | ______________________________ |
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| 66 | + | Secretary of the Senate |
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| 67 | + | I hereby certify that S.B. No. 887 passed the House on |
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| 68 | + | May 19, 2017, by the following vote: Yeas 141, Nays 3, two |
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| 69 | + | present not voting. |
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| 70 | + | ______________________________ |
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| 71 | + | Chief Clerk of the House |
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| 72 | + | Approved: |
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| 73 | + | ______________________________ |
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| 74 | + | Date |
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| 75 | + | ______________________________ |
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| 76 | + | Governor |
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