Texas Senate Bill SB296

Texas 2019 - 86th Regular

Caption

Relating to the abolition of student loan default or breach of a student loan repayment or scholarship contract as a ground for nonrenewal or other disciplinary action in relation to a professional or occupational license and to certain duties of state agencies and political subdivisions in relation to delinquent or defaulted student loans.

Impact

If enacted, SB296 will significantly alter the landscape of professional licensing in Texas by ensuring that financial obligations, such as student loans, do not interfere with an individual's professional prospects. This could potentially open up opportunities for many professionals who were previously barred from obtaining or renewing licenses due to financial issues. The bill also recognizes the importance of providing support and information regarding loan defaults and encourages licensing agencies to cooperate with financial aid entities without mandating that they assist in recovering debts.

Summary

Senate Bill 296 seeks to reform the current laws concerning the impact of student loan defaults on professional and occupational licenses in Texas. The bill prohibits licensing agencies from denying the issuance or renewal of licenses based solely on an individual's default status on student loans guaranteed by the Texas Guaranteed Student Loan Corporation. By doing so, the bill aims to reduce barriers faced by individuals who may have defaulted on loans but possess qualifications necessary to operate in their respective fields.

Contention

While the bill has garnered support for its intention to assist professionals by protecting their ability to work despite financial setbacks, there are potential points of contention regarding accountability and enforcement. Critics may argue that it could lead to a lack of consequences for individuals who default on their loans, potentially undermining the importance of maintaining good financial standing. Additionally, there is a concern about the balance between protecting professionals and the financial integrity of student loan programs.