Texas 2025 - 89th Regular

Texas Senate Bill SB44 Compare Versions

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Old	New	Differences
1	1	89R340 MM-F
2	2	By: Zaffirini S.B. No. 44
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment and operation of the Texas B-On-time
10	10	student loan program; authorizing a fee.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 56, Education Code, is amended by adding
13	13	Subchapter Q to read as follows:
14	14	SUBCHAPTER Q. TEXAS B-ON-TIME LOAN PROGRAM
15	15	Sec. 56.451. DEFINITIONS. In this subchapter:
16	16	(1) "Coordinating board" means the Texas Higher
17	17	Education Coordinating Board.
18	18	(2) "Eligible institution" means:
19	19	(A) a general academic teaching institution; or
20	20	(B) a public junior college that offers one or
21	21	more baccalaureate degree programs.
22	22	(3) "General academic teaching institution" and
23	23	"public junior college" have the meanings assigned by Section
24	24	61.003.
25	25	Sec. 56.452. PROGRAM NAME; PURPOSE. (a) The student loan
26	26	program authorized by this subchapter is known as the Texas
27	27	B-On-time loan program, and an individual loan awarded under this
28	28	subchapter is known as a Texas B-On-time loan.
29	29	(b) The purpose of this subchapter is to provide no-interest
30	30	loans to eligible students to enable those students to earn
31	31	baccalaureate degrees at public institutions of higher education in
32	32	this state.
33	33	Sec. 56.453. ADMINISTRATION OF PROGRAM; RULES. (a) The
34	34	coordinating board shall:
35	35	(1) administer the Texas B-On-time loan program;
36	36	(2) determine the repayment and other terms of a Texas
37	37	B-On-time loan; and
38	38	(3) in consultation with the student financial aid
39	39	officers of eligible institutions, adopt any rules necessary to
40	40	implement the program or this subchapter.
41	41	(b) The coordinating board may charge and collect a loan
42	42	origination fee from a person who receives a Texas B-On-time loan to
43	43	be used by the board to pay for the operating expenses for making
44	44	loans under this subchapter.
45	45	(c) The total amount of Texas B-On-time loans awarded may
46	46	not exceed the amount available in the Texas B-On-time student loan
47	47	account under Section 56.463.
48	48	(d) The coordinating board, in collaboration with eligible
49	49	institutions and other appropriate entities, shall adopt and
50	50	implement measures to:
51	51	(1) improve student participation in the Texas
52	52	B-On-time loan program, including strategies to better inform
53	53	students and prospective students about the program; and
54	54	(2) improve the rate of student satisfaction of the
55	55	requirements for obtaining Texas B-On-time loan forgiveness.
56	56	(e) The coordinating board, in collaboration with eligible
57	57	institutions and appropriate nonprofit or college access
58	58	organizations, shall:
59	59	(1) educate students regarding the eligibility
60	60	requirements for forgiveness of Texas B-On-time loans;
61	61	(2) ensure that students applying for or receiving a
62	62	Texas B-On-time loan understand their responsibility to repay any
63	63	portion of the loan that is not forgiven; and
64	64	(3) ensure that students who are required to repay
65	65	Texas B-On-time loans receive and understand information regarding
66	66	loan default prevention strategies.
67	67	Sec. 56.454. PERSONS NOT ELIGIBLE. A person is not eligible
68	68	to receive a Texas B-On-time loan if the person was ever previously
69	69	enrolled at an institution of higher education for an academic term
70	70	before the academic year in which the person initially applies for a
71	71	loan under this subchapter.
72	72	Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible
73	73	initially for a Texas B-On-time loan, a person must:
74	74	(1) be a resident of this state under Section 54.052 or
75	75	be entitled, as a child of a member of the armed forces of the United
76	76	States, to pay tuition at the rate provided for residents of this
77	77	state under Section 54.241;
78	78	(2) meet one of the following academic requirements:
79	79	(A) be a graduate of a public or private high
80	80	school in this state who graduated not earlier than the 2024-2025
81	81	school year and earned a distinguished level of achievement under
82	82	the foundation high school program established under Section 28.025
83	83	or its equivalent; or
84	84	(B) be a graduate of a high school operated by the
85	85	United States Department of Defense who:
86	86	(i) graduated from that school not earlier
87	87	than the 2024-2025 school year; and
88	88	(ii) at the time of graduation from that
89	89	school was a dependent child of a member of the armed forces of the
90	90	United States;
91	91	(3) be enrolled for a full course load for an
92	92	undergraduate student, as determined by the coordinating board, in
93	93	a baccalaureate degree program at an eligible institution;
94	94	(4) be eligible for federal financial aid, except that
95	95	a person is not required to meet any financial need requirement
96	96	applicable to a particular federal financial aid program; and
97	97	(5) comply with any additional requirement adopted by
98	98	the coordinating board under this subchapter.
99	99	Sec. 56.456. CONTINUING ELIGIBILITY AND ACADEMIC
100	100	PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
101	101	Texas B-On-time loan, a person may continue to receive a Texas
102	102	B-On-time loan for each semester or term in which the person is
103	103	enrolled at an eligible institution only if the person:
104	104	(1) is enrolled for a full course load for an
105	105	undergraduate student, as determined by the coordinating board, in
106	106	a baccalaureate degree program at an eligible institution;
107	107	(2) is eligible for federal financial aid, except that
108	108	a person is not required to meet any financial need requirement
109	109	applicable to a particular federal financial aid program;
110	110	(3) makes satisfactory academic progress toward a
111	111	degree as determined by the institution at which the person is
112	112	enrolled, if the person is enrolled in the person's first academic
113	113	year at the institution;
114	114	(4) completed at least 75 percent of the semester
115	115	credit hours attempted by the person in the most recent academic
116	116	year and has a cumulative grade point average of at least 2.5 on a
117	117	four-point scale or the equivalent on all coursework previously
118	118	attempted at institutions of higher education, if the person is
119	119	enrolled in any academic year after the person's first academic
120	120	year; and
121	121	(5) complies with any additional requirement adopted
122	122	by the coordinating board under this subchapter.
123	123	(b) If a person fails to meet any of the requirements of
124	124	Subsection (a) after the completion of any semester or term, the
125	125	person may not receive a Texas B-On-time loan for the next semester
126	126	or term in which the person enrolls. A person may become eligible
127	127	to receive a Texas B-On-time loan in a subsequent semester or term
128	128	if the person:
129	129	(1) completes a semester or term during which the
130	130	person is not eligible for a Texas B-On-time loan; and
131	131	(2) meets all of the requirements of Subsection (a).
132	132	(c) A person who is eligible to receive a Texas B-On-time
133	133	loan continues to remain eligible to receive the Texas B-On-time
134	134	loan if the person enrolls in or transfers to another eligible
135	135	institution.
136	136	Sec. 56.457. WAIVER OF COURSE LOAD REQUIREMENT. (a) The
137	137	coordinating board shall adopt rules to allow a person who is
138	138	otherwise eligible to receive a Texas B-On-time loan, in the event
139	139	of a hardship or other good cause, to receive a Texas B-On-time loan
140	140	while enrolled in a number of semester credit hours that is less
141	141	than the number of semester credit hours required under Section
142	142	56.455 or 56.456, as applicable.
143	143	(b) The coordinating board may not allow a person to receive
144	144	a Texas B-On-time loan while enrolled in fewer than six semester
145	145	credit hours.
146	146	Sec. 56.458. LOAN USE. A person receiving a Texas B-On-time
147	147	loan may use the money to pay for any usual and customary costs of
148	148	attendance at an eligible institution incurred by the student,
149	149	including tuition, fees, books, and room and board.
150	150	Sec. 56.459. LOAN AMOUNT. (a) The amount of a Texas
151	151	B-On-time loan for a semester or term for a student enrolled
152	152	full-time at a general academic teaching institution is an amount
153	153	determined by the coordinating board as the average statewide
154	154	amount of tuition and required fees that a resident student
155	155	enrolled full-time in a baccalaureate degree program would be
156	156	charged for that semester or term at general academic teaching
157	157	institutions.
158	158	(b) The amount of a Texas B-On-time loan for a student
159	159	enrolled full-time at a public junior college is an amount
160	160	determined by the coordinating board as the average statewide
161	161	amount of tuition and required fees that a student who is a resident
162	162	of the junior college district and is enrolled full-time in a
163	163	baccalaureate degree program would be charged for that semester or
164	164	term at public junior colleges.
165	165	(c) Not later than January 31 of each year, the coordinating
166	166	board shall publish the amounts of each loan established by the
167	167	board for each type of institution for the academic year beginning
168	168	the next fall semester.
169	169	(d) If in any academic year the amount of money in the Texas
170	170	B-On-time student loan account is insufficient to provide the loans
171	171	to all eligible persons in amounts specified by this section, the
172	172	coordinating board shall determine the amount of available money
173	173	and shall allocate that amount to eligible students in the order in
174	174	which the students applied.
175	175	Sec. 56.460. NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF
176	176	SCHOOL DISTRICTS. (a) The coordinating board, in consultation
177	177	with representatives of the board's financial aid advisory
178	178	committee established under Section 61.0776, shall prepare
179	179	materials designed to inform prospective students, their parents or
180	180	guardians, and their teachers and counselors about the program and
181	181	eligibility for a Texas B-On-time loan. The coordinating board
182	182	shall distribute to each eligible institution and to each school
183	183	district a copy of the materials prepared under this subchapter.
184	184	(b) Each school district shall notify its middle school
185	185	students, junior high school students, and high school students,
186	186	those students' teachers and counselors, and those students'
187	187	parents or guardians of the Texas B-On-time loan program and the
188	188	eligibility requirements of the program.
189	189	Sec. 56.461. LOAN PAYMENT DEFERRED. The repayment of a
190	190	Texas B-On-time loan received by a student under this subchapter is
191	191	deferred as long as the student remains continuously enrolled in a
192	192	baccalaureate degree program at an eligible institution.
193	193	Sec. 56.462. LOAN FORGIVENESS. A student who receives a
194	194	Texas B-On-time loan shall be forgiven the amount of the student's
195	195	loan if the student is awarded a baccalaureate degree at an eligible
196	196	institution with a cumulative grade point average of at least 3.0 on
197	197	a four-point scale or the equivalent:
198	198	(1) within:
199	199	(A) four calendar years after the date the
200	200	student initially enrolled in an institution of higher education if
201	201	the student is awarded a degree other than a degree in a program
202	202	that the institution certifies to the coordinating board is a
203	203	program that requires more than four years to complete; or
204	204	(B) five calendar years after the date the
205	205	student initially enrolled in an institution of higher education if
206	206	the student is awarded a degree in a program that the institution
207	207	certifies to the coordinating board is a program that requires more
208	208	than four years to complete; or
209	209	(2) with a total number of semester credit hours that
210	210	is not more than six hours more than the minimum number of semester
211	211	credit hours required to complete the degree, including transfer
212	212	credit hours and excluding hours earned:
213	213	(A) exclusively by examination;
214	214	(B) for a course for which the student received
215	215	credit toward the student's high school academic requirements; and
216	216	(C) for developmental coursework that an
217	217	institution of higher education required the student to take under
218	218	Subchapter F-1, Chapter 51, or under the provisions of former
219	219	Section 51.306 or former Section 51.3062.
220	220	Sec. 56.463. TEXAS B-ON-TIME STUDENT LOAN ACCOUNT. (a) The
221	221	Texas B-On-time student loan account is an account in the general
222	222	revenue fund. The account consists of gifts and grants and
223	223	legislative appropriations received under Section 56.464 and other
224	224	money required by law to be deposited in the account.
225	225	(b) Money in the Texas B-On-time student loan account may be
226	226	used only to pay the costs of the coordinating board related to the
227	227	operation of the Texas B-On-time loan program and as otherwise
228	228	provided by this subchapter.
229	229	Sec. 56.464. FUNDING. (a) The coordinating board may
230	230	solicit and accept gifts and grants from any public or private
231	231	source for the purposes of this subchapter.
232	232	(b) The coordinating board may issue and sell general
233	233	obligation bonds under Subchapter F, Chapter 52, for the purposes
234	234	of this subchapter.
235	235	(c) The legislature may appropriate money for the purposes
236	236	of this subchapter.
237	237	SECTION 2. Section 52.89, Education Code, is amended by
238	238	amending Subsection (c) and adding Subsection (c-1) to read as
239	239	follows:
240	240	(c) The board shall deposit to the credit of the fund any
241	241	proceeds from the sale of bonds, excluding:
242	242	(1) any accrued interest on the bonds which shall be
243	243	deposited in the board interest and sinking fund relating to the
244	244	bonds; and
245	245	(2) proceeds from the sale of bonds issued by the board
246	246	under Section 56.464(b) to provide Texas B-On-time student loans[,
247	247	as that subsection existed immediately before September 1, 2015].
248	248	(c-1) Notwithstanding Subsection (c), proceeds from the
249	249	sale of bonds issued by the board under Section 56.464(b) to provide
250	250	Texas B-On-time student loans may be deposited to the credit of the
251	251	fund by resolution of the board.
252	252	SECTION 3. Sections 52.90(a) and (b), Education Code, are
253	253	amended to read as follows:
254	254	(a) The board:
255	255	(1) shall make a loan from the fund to a student who
256	256	qualifies for a loan under Subchapter C; and
257	257	(2) may make a loan from the fund to a student who
258	258	qualifies for a Texas B-On-time student loan under Subchapter Q,
259	259	Chapter 56.
260	260	(b) Loans from the fund are governed by Subchapter C of this
261	261	chapter or Subchapter Q, Chapter 56, as appropriate, as if made
262	262	under that subchapter, except to the extent of conflict with this
263	263	subchapter.
264	264	SECTION 4. The heading to Section 52.91, Education Code, is
265	265	amended to read as follows:
266	266	Sec. 52.91. BONDS FOR [FORMER] TEXAS B-ON-TIME STUDENT LOAN
267	267	PROGRAM.
268	268	SECTION 5. Section 52.91, Education Code, is amended by
269	269	amending Subsections (a) and (c) and adding Subsection (b) to read
270	270	as follows:
271	271	(a) The board shall deposit to the credit of the Texas
272	272	B-On-time student loan account established under Section 56.463 or
273	273	former Section 56.0092 any proceeds from the sale of bonds issued by
274	274	the board to fund Texas B-On-time student loans under Section
275	275	56.464(b), [as that subsection existed immediately before
276	276	September 1, 2015,] other than:
277	277	(1) accrued interest on the bonds, which shall be
278	278	deposited to the credit of the interest and sinking fund related to
279	279	the bonds; and
280	280	(2) any proceeds from the sale of the bonds that the
281	281	board by resolution deposits to the student loan auxiliary fund
282	282	under Section 52.89(c-1).
283	283	(b) The board by resolution may establish, as provided by
284	284	Section 52.03, one or more interest and sinking funds to be used for
285	285	any purpose relating to the Texas B-On-time student loan program
286	286	established under Subchapter Q, Chapter 56.
287	287	(c) The board shall repay bonds described by Subsection (a)
288	288	using proceeds from the bonds, legislative appropriations, and
289	289	money collected by the board as repayment for Texas B-On-time
290	290	student loans awarded by the board [under Section 56.0092(c) for a
291	291	semester or term occurring before the 2020 fall semester]. The
292	292	board may also repay the bonds by using tuition set aside under
293	293	Section 56.465, as that section existed immediately before
294	294	September 1, 2015, for a semester or term occurring before the 2015
295	295	fall semester. The board may not repay the bonds with money
296	296	collected by the board as repayment for student loans awarded by the
297	297	board under Subchapter C.
298	298	SECTION 6. Section 56.0092, Education Code, is repealed.
299	299	SECTION 7. (a) The Texas Higher Education Coordinating
300	300	Board and the eligible institutions shall award loans under the
301	301	Texas B-On-time loan program established under Subchapter Q,
302	302	Chapter 56, Education Code, as added by this Act, beginning with the
303	303	2025 fall semester.
304	304	(b) The Texas Higher Education Coordinating Board shall
305	305	adopt the initial rules for awarding loans under the Texas
306	306	B-On-time loan program established under Subchapter Q, Chapter 56,
307	307	Education Code, as added by this Act, as soon as practicable after
308	308	the effective date of this Act.
309	309	SECTION 8. This Act takes effect immediately if it receives
310	310	a vote of two-thirds of all the members elected to each house, as
311	311	provided by Section 39, Article III, Texas Constitution. If this
312	312	Act does not receive the vote necessary for immediate effect, this
313	313	Act takes effect September 1, 2025.