| 1 | 1 | | 89R2052 KJE-D |
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| 2 | 2 | | By: Guillen H.B. No. 319 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the interest rate for student loans issued by the Texas |
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| 10 | 10 | | Higher Education Coordinating Board. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 52.321, Education Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | Sec. 52.321. STANDARDS CONCERNING ABILITY TO REPAY CERTAIN |
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| 15 | 15 | | LOANS. In establishing requirements to be met by applicants for |
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| 16 | 16 | | student loans authorized by the board under this chapter, the board |
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| 17 | 17 | | may not establish standards relating to demonstration of ability to |
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| 18 | 18 | | repay a federally insured student loan that are stricter for a |
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| 19 | 19 | | certain class of applicants than for other applicants, except: |
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| 20 | 20 | | (1) in cases where the applicant attends a school with |
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| 21 | 21 | | a loan default rate of 15 percent or more; or |
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| 22 | 22 | | (2) as provided by Section 52.36. |
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| 23 | 23 | | SECTION 2. Section 52.36, Education Code, is amended to |
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| 24 | 24 | | read as follows: |
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| 25 | 25 | | Sec. 52.36. LOAN INTEREST AND FEES. (a) The board shall |
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| 26 | 26 | | [from time to time] fix the interest to be charged for a [any] |
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| 27 | 27 | | student loan at a rate that ensures that the average interest rate |
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| 28 | 28 | | fixed for student loans under this chapter is sufficient to pay the |
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| 29 | 29 | | interest on outstanding bonds, any expenses incident to their |
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| 30 | 30 | | issuance, sale, and retirement, and all or a portion of the board's |
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| 31 | 31 | | expenses related to the operation of the student loan program. |
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| 32 | 32 | | (b) In fixing the interest rate for a student loan, the |
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| 33 | 33 | | board shall ensure that the rate corresponds to the risk that the |
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| 34 | 34 | | applicant will timely repay the loan, determined according to the |
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| 35 | 35 | | following factors and using the most recent data available: |
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| 36 | 36 | | (1) whether the applicant's proposed degree or |
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| 37 | 37 | | certificate program leads to a high-demand occupation in the region |
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| 38 | 38 | | of the participating higher educational institution at which the |
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| 39 | 39 | | applicant is enrolled; |
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| 40 | 40 | | (2) the projected salary or wages for the occupation |
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| 41 | 41 | | identified under Subdivision (1); and |
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| 42 | 42 | | (3) the percentage of the participating higher |
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| 43 | 43 | | educational institution's students in the applicant's proposed |
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| 44 | 44 | | degree or certificate program who obtain employment in that field |
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| 45 | 45 | | after graduation. |
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| 46 | 46 | | (c) Interest shall be postponed by the board as long as a |
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| 47 | 47 | | student is enrolled at a participating institution and may be |
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| 48 | 48 | | postponed at the board's discretion as long as a student is enrolled |
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| 49 | 49 | | at any other higher educational institution, provided that the |
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| 50 | 50 | | total interest paid is to be equal to that fixed at the time the note |
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| 51 | 51 | | evidencing the loan is executed. |
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| 52 | 52 | | (d) [(b)] The board may charge and collect loan origination |
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| 53 | 53 | | fees from borrowers for use in offsetting in whole or in part the |
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| 54 | 54 | | operating expenses for the loans. |
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| 55 | 55 | | SECTION 3. This Act applies beginning with student loans |
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| 56 | 56 | | issued for the 2026 spring semester. |
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| 57 | 57 | | SECTION 4. This Act takes effect September 1, 2025. |
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