Texas Senate Bill SB1163

Texas 2019 - 86th Regular

Caption

Relating to the student loan program administered by the Texas Higher Education Coordinating Board and to the repeal of a related bond program.

Impact

If enacted, SB1163 will impact state education financing by repealing previous provisions related to certain bond programs that were previously used to fund student loans. The amendments are aimed at enhancing the efficiency of the student loan program by consolidating the management of funds, which may benefit students by streamlining the process of obtaining loans. Furthermore, the bill's adjustments to loan repayment schedules, allowing for deferments in cases of financial hardship, represent a shift towards more supportive measures for borrowers.

Summary

Senate Bill 1163 seeks to reform the student loan program administered by the Texas Higher Education Coordinating Board by amending existing provisions in the Education Code. The bill introduces changes to the processes involved in the issuance of bonds that fund the loan program, ensuring that proceeds from bond sales are effectively managed and placed in the specialized student loan auxiliary fund. This shift facilitates a clearer pathway for ensuring funds are available for student loans while also simplifying the management of those funds within the framework of Texas law.

Contention

Notable points of contention surrounding SB1163 may arise from stakeholders concerned about the implications of repealing existing bond programs. Some members of the education community may express worries that reducing the complexity of loan funding could inadvertently limit options available for loans, compromising access to education for certain groups of students. Others might argue for additional safeguards within the amendment process to ensure that students' interests are adequately protected as the bill is finalized.