Texas 2019 - 86th Regular

Texas Senate Bill SB2197 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R3476 MM-F
2	2	By: Flores S.B. No. 2197
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to alternative education loans and qualified student loan
8	8	bonds.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 53B.02(2) and (7), Education Code, are
11	11	amended to read as follows:
12	12	(2) "Alternative education loan" means a loan other
13	13	than a guaranteed student loan that is made to a student, a former
14	14	student, or any other person [or] for the benefit of the [a] student
15	15	or former student for the purpose of financing or refinancing all or
16	16	part of the student's or former student's cost of attendance at an
17	17	accredited institution. The term includes:
18	18	(A) indebtedness that meets the definition of a
19	19	qualified education loan under Section 221(d)(1), Internal Revenue
20	20	Code of 1986; and
21	21	(B) indebtedness used to refinance indebtedness
22	22	that meets the definition of a qualified education loan under
23	23	Section 221(d)(1), Internal Revenue Code of 1986.
24	24	(7) "Cost of attendance" means all costs of a student
25	25	or former student incurred in connection with that student's [a]
26	26	program of study at an accredited institution, as determined by the
27	27	institution, including tuition and instructional fees, the cost of
28	28	room and board, books, computers, and supplies, and other related
29	29	fees, charges, and expenses.
30	30	SECTION 2. Sections 53B.47(b), (d), and (h), Education
31	31	Code, are amended to read as follows:
32	32	(b) An authority may cause money to be expended to make or
33	33	purchase for its account guaranteed student loans that are
34	34	guaranteed by the Texas Guaranteed Student Loan Corporation, other
35	35	guaranteed student loans, or alternative education loans that are
36	36	executed by or on behalf of students or former students [who]:
37	37	(1) who are residents of this state; or
38	38	(2) who have been admitted to attend or who attended an
39	39	accredited institution within this state.
40	40	(d) The authority, as a municipal corporation of the state,
41	41	is charged with a portion of the responsibility of the state to
42	42	provide educational opportunities in keeping with all applicable
43	43	state and federal laws. This [Nothing in this] section may not
44	44	[shall] be construed as a prohibition against establishing policies
45	45	to limit the purchase of guaranteed student loans or alternative
46	46	education loans executed by or on behalf of students or former
47	47	students who are attending or who attended [attending] school in a
48	48	certain geographical area or by or on behalf of students or former
49	49	students who are residents of the area.
50	50	(h) An alternative education loan may be made under this
51	51	section only by or on behalf of a qualified alternative education
52	52	loan lender. An alternative education loan may not be in an amount
53	53	in excess of the difference between the cost of attendance and the
54	54	amount of other student-based [student] assistance for which the
55	55	borrower may be eligible [to the student], other than loans under
56	56	Section 428B(a)(1), Higher Education Act of 1965 (20 U.S.C. Section
57	57	1078-2) (relating to parent loans)[, for which the student borrower
58	58	may be eligible]. An alternative education loan covered by this
59	59	subsection is subject to Chapter 342, Finance Code, as applicable,
60	60	except that:
61	61	(1) the maximum interest rate on the loan may not
62	62	exceed the rate permitted under Subchapter A, Chapter 303, Finance
63	63	Code; and
64	64	(2) application and origination fees may be agreed to
65	65	by the parties and assessed at the inception of the loan, provided
66	66	that if any such fees constitute additional interest under
67	67	applicable law, the effective rate of interest agreed to over the
68	68	stated term of the loan may not exceed the rate allowed by
69	69	Subchapter A, Chapter 303, Finance Code, and accrued unpaid
70	70	interest may be added to unpaid principal at the beginning of the
71	71	agreed repayment period at the borrower's option and in accordance
72	72	with the terms of the agreement for purposes of determining the
73	73	total principal amount due at the inception of the repayment
74	74	period.
75	75	SECTION 3. Section 1372.002(a), Government Code, is amended
76	76	to read as follows:
77	77	(a) For purposes of this chapter, a project is:
78	78	(1) an eligible facility or facilities that are
79	79	proposed to be financed, in whole or in part, by an issue of
80	80	qualified residential rental project bonds;
81	81	(2) in connection with an issue of qualified mortgage
82	82	bonds or qualified student loan bonds, the providing of financial
83	83	assistance to qualified borrowers if those borrowers are
84	84	[mortgagors or students] located in all or any part of the
85	85	jurisdiction of the issuer; or
86	86	(3) an eligible facility or facilities that are
87	87	proposed to be financed, in whole or in part, by an issue of bonds
88	88	other than bonds described by Subdivision (1) or (2).
89	89	SECTION 4. Section 1372.033(g), Government Code, is amended
90	90	to read as follows:
91	91	(g) A qualified nonprofit corporation that receives a
92	92	student loan bond allocation may not:
93	93	(1) transfer the allocation to another entity; or
94	94	(2) loan to another entity, other than a qualified
95	95	borrower, [student] proceeds of bonds issued under the allocation.
96	96	SECTION 5. The change in law made by this Act to Chapter
97	97	1372, Government Code, applies to the allocation of the available
98	98	state ceiling under that chapter beginning with the 2019 program
99	99	year.
100	100	SECTION 6. This Act takes effect September 1, 2019.