Texas Senate Bill SB1237

Texas 2021 - 87th Regular

Caption

Relating to authorizing the Texas Higher Education Coordinating Board to award grants to public institutions of higher education for alternative student financial assistance plans.

Note

The Texas Higher Education Coordinating Board is tasked with evaluating the effectiveness of these financial assistance plans and will provide an annual report to the legislature, highlighting the outcomes and any recommended legislative actions, maintaining a degree of oversight on the bill’s implementation.

Impact

The legislation modifies Chapter 61 in the Education Code by adding a new section focused on grants for student financial assistance. It allows institutions to propose innovative financial aid plans that align with the objectives set by the coordinating board, thereby broadening the range of financial assistance available to students. By mandating that institutions adopt specific plans to manage the funds—restricted to legitimate educational costs—the bill ensures that resources are effectively utilized, ultimately aiding students in their academic pursuits without derailing institutional financial health.

Summary

SB1237 aims to enhance financial support for students attending public institutions of higher education in Texas by authorizing the Texas Higher Education Coordinating Board to award grants for alternative student financial assistance plans. This initiative is designed to ensure that schools can provide effective financial aid options that meet the changing needs of students, particularly those who demonstrate financial need. The bill introduces a competitive application process that institutions must navigate to access these funds, promoting accountability and strategic use of financial aid resources.

Contention

Despite the bill's supportive framework, there may be points of contention regarding the competitive nature of the grant application process, as some institutions might argue that it could disadvantage smaller or underfunded colleges that lack the resources to develop competitive proposals. Additionally, the stipulation that only students meeting specific financial need criteria can benefit from these grants could lead to concerns over the equitable distribution of financial aid, particularly for non-traditional students or those from low-income backgrounds. The requirement for geographic and demographic diversity in grant awards could also spark discussions about ensuring representation across various institutional profiles.