Texas Senate Bill SB2197

Texas 2019 - 86th Regular

Caption

Relating to alternative education loans and qualified student loan bonds.

Impact

The changes proposed in SB2197 could significantly influence the landscape of educational funding in Texas. By expanding the definitions and framework concerning alternative education loans, the bill may enhance the ability of residents to secure financing for their education needs without being bound solely to guaranteed student loans. This could open up avenues for individuals who might not qualify for federal loans or who prefer different lending terms.

Summary

SB2197 focuses on issues related to alternative education loans and qualified student loan bonds in the state of Texas. The bill defines 'alternative education loans' as loans made to students or former students for educational purposes that are not guaranteed by traditional student loan programs. This legislation aims to improve the accessibility of financial resources for students attending accredited institutions, allowing for potentially more flexible financing options compared to traditional loans.

Contention

While the bill aims to provide better financial options, it may also raise concerns regarding the implications of less regulated lending practices. Critics may argue that this could lead to exploitative lending conditions, particularly for vulnerable borrowers who lack the necessary financial literacy to navigate alternative loan products effectively. Some stakeholders may be particularly wary of interests rates and repayment terms associated with these non-traditional loan products, urging stronger regulatory measures to protect borrowers.