Texas Senate Bill SB35

Texas 2019 - 86th Regular

Caption

Relating to the establishment and operation of the Texas B-On-time student loan program.

Impact

This legislative proposal aims to positively impact state laws related to student financing by incorporating provisions for loan forgiveness based on academic performance. If a student graduates with a cumulative GPA of at least 3.0 within the designated time frame, the amount of their loan may be forgiven, allowing them to enter the workforce without the heavy debt burden traditionally associated with college education. This initiative aligns with the state’s broader educational goals and recognizes the increasing importance of higher education in today’s economy.

Summary

Senate Bill 35 seeks to establish and operate the Texas B-On-time student loan program, which will offer no-interest loans to eligible students pursuing baccalaureate degrees at public institutions of higher education in Texas. The bill introduces a structured framework for administering these loans, with significant involvement from the Texas Higher Education Coordinating Board. The loans are designed to enhance access to higher education and to alleviate the financial burden on students, thereby fostering a more educated workforce in the state.

Contention

While the overarching goal of SB35 is to democratize access to higher education, potential points of contention arise surrounding eligibility requirements. The program stipulates that students who have previously enrolled in higher education prior to the academic year of their loan application are ineligible, which may disproportionately affect non-traditional students or those returning to education later in life. The specifics of loan repayment and the sustainability of the funding for the program also raise concerns among some stakeholders. Additionally, there may be discussions regarding the adequacy of financial support when faced with the rising costs of higher education.