87R1567 KJE-D
By: Powell S.B. No. 2021
A BILL TO BE ENTITLED
AN ACT
relating to student loan forgiveness for certain public service
employees or interns.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 61, Education Code, is amended by adding
Subchapter OO to read as follows:
SUBCHAPTER OO. PUBLIC SERVICE STUDENT LOAN FORGIVENESS PROGRAM
Sec. 61.9971. LOAN FORGIVENESS AUTHORIZED. The board shall
provide, in accordance with this subchapter and board rules, loan
forgiveness of eligible student loans for eligible public service
employees.
Sec. 61.9972. ELIGIBILITY. To be eligible to receive loan
forgiveness under this subchapter, a person must:
(1) have earned a baccalaureate degree at a public or
private institution of higher education in this state;
(2) be employed or interning in this state with:
(A) a state agency or political subdivision of
the state; or
(B) an organization exempt from federal income
taxation under Section 501(a), Internal Revenue Code of 1986, by
being described as an exempt organization by Section 501(c)(3) of
that code; and
(3) comply with any other requirement adopted by the
board under this subchapter.
Sec. 61.9973. ELIGIBLE LOANS. The board may provide
forgiveness under this subchapter for the following amounts owed
for the cost of education at a public or private institution of
higher education:
(1) a loan made under Chapter 52;
(2) an amount owed in repayment of a scholarship
awarded under Subchapter FF; or
(3) a Texas B-On-time student loan made under former
Section 56.463.
Sec. 61.9974. AMOUNT OF FORGIVENESS; LIMITATIONS. (a)
Subject to Subsection (b), a person may receive loan forgiveness
under this subchapter for each year the person establishes
eligibility for the forgiveness in an amount not to exceed $5,000
per year.
(b) A person may not receive loan forgiveness under this
subchapter for more than four years.
(c) The total amount of loan forgiveness provided under this
subchapter may not exceed $10 million for a state fiscal biennium.
(d) If in any state fiscal biennium the amount of money
available for loan forgiveness under this subchapter is
insufficient to provide loan forgiveness to all eligible persons
for that biennium, the board shall prioritize awarding loan
forgiveness to eligible persons who are employed or interning with
health-care providers or other entities affected by the coronavirus
disease (COVID-19) pandemic, as determined by the board.
Sec. 61.9975. GIFTS, GRANTS, AND DONATIONS. The board may
solicit and accept gifts, grants, and other donations from any
public or private source for the purpose of this subchapter.
Sec. 61.9976. REPORT. Not later than December 1 of each
year, the board shall submit to the governor, the lieutenant
governor, and the speaker of the house of representatives a report
on the loan forgiveness program under this subchapter.
Sec. 61.9977. RULES. (a) The board shall adopt rules
necessary to administer this subchapter, including rules:
(1) establishing guidelines for qualifying employment
and internships, including requiring at least 20 hours of work per
week; and
(2) making any necessary adjustments to the qualifying
loan programs to account for loan forgiveness under this
subchapter.
(b) In adopting rules, the board shall consult with the
governor's office, the Texas Workforce Commission, the Texas
Association of Counties, the Texas Association of School Boards,
the Texas Municipal League, and the Texas Conference of Urban
Counties.
SECTION 2. The Texas Higher Education Coordinating Board
shall begin awarding loan forgiveness under Subchapter OO, Chapter
61, Education Code, as added by this Act, to eligible persons
beginning January 1, 2022.
SECTION 3. Not later than December 1, 2022, the Texas Higher
Education Coordinating Board shall submit the initial report
required by Section 61.9976, Education Code, as added by this Act.
SECTION 4. This Act takes effect September 1, 2021.