SB44 - Relating to the establishment and operation of the Texas B-On-time student loan program; authorizing a fee.

  89R340 MM-F     By: Zaffirini S.B. No. 44       A BILL TO BE ENTITLED   AN ACT   relating to the establishment and operation of the Texas B-On-time   student loan program; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 56, Education Code, is amended by adding   Subchapter Q to read as follows:   SUBCHAPTER Q. TEXAS B-ON-TIME LOAN PROGRAM           Sec. 56.451.  DEFINITIONS. In this subchapter:                 (1)     "Coordinating board" means the Texas Higher   Education Coordinating Board.                 (2)  "Eligible institution" means:                       (A)  a general academic teaching institution; or                       (B)     a public junior college that offers one or   more baccalaureate degree programs.                 (3)     "General academic teaching institution" and   "public junior college" have the meanings assigned by Section   61.003.           Sec.   56.452.     PROGRAM NAME; PURPOSE. (a) The student loan   program authorized by this subchapter is known as the Texas   B-On-time loan program, and an individual loan awarded under this   subchapter is known as a Texas B-On-time loan.           (b)     The purpose of this subchapter is to provide no-interest   loans to eligible students to enable those students to earn   baccalaureate degrees at public institutions of higher education in   this state.           Sec.   56.453.     ADMINISTRATION OF PROGRAM; RULES. (a) The   coordinating board shall:                 (1)  administer the Texas B-On-time loan program;                 (2)     determine the repayment and other terms of a Texas   B-On-time loan; and                 (3)     in consultation with the student financial aid   officers of eligible institutions, adopt any rules necessary to   implement the program or this subchapter.           (b)     The coordinating board may charge and collect a loan   origination fee from a person who receives a Texas B-On-time loan to   be used by the board to pay for the operating expenses for making   loans under this subchapter.           (c)     The total amount of Texas B-On-time loans awarded may   not exceed the amount available in the Texas B-On-time student loan   account under Section 56.463.           (d)     The coordinating board, in collaboration with eligible   institutions and other appropriate entities, shall adopt and   implement measures to:                 (1)     improve student participation in the Texas   B-On-time loan program, including strategies to better inform   students and prospective students about the program; and                 (2)     improve the rate of student satisfaction of the   requirements for obtaining Texas B-On-time loan forgiveness.           (e)     The coordinating board, in collaboration with eligible   institutions and appropriate nonprofit or college access   organizations, shall:                 (1)     educate students regarding the eligibility   requirements for forgiveness of Texas B-On-time loans;                 (2)     ensure that students applying for or receiving a   Texas B-On-time loan understand their responsibility to repay any   portion of the loan that is not forgiven; and                 (3)     ensure that students who are required to repay   Texas B-On-time loans receive and understand information regarding   loan default prevention strategies.           Sec.   56.454.     PERSONS NOT ELIGIBLE. A person is not eligible   to receive a Texas B-On-time loan if the person was ever previously   enrolled at an institution of higher education for an academic term   before the academic year in which the person initially applies for a   loan under this subchapter.           Sec.   56.455.     INITIAL ELIGIBILITY FOR LOAN. To be eligible   initially for a Texas B-On-time loan, a person must:                 (1)     be a resident of this state under Section 54.052 or   be entitled, as a child of a member of the armed forces of the United   States, to pay tuition at the rate provided for residents of this   state under Section 54.241;                 (2)  meet one of the following academic requirements:                       (A)     be a graduate of a public or private high   school in this state who graduated not earlier than the 2024-2025   school year and earned a distinguished level of achievement under   the foundation high school program established under Section 28.025   or its equivalent; or                       (B)     be a graduate of a high school operated by the   United States Department of Defense who:                             (i)     graduated from that school not earlier   than the 2024-2025 school year; and                             (ii)     at the time of graduation from that   school was a dependent child of a member of the armed forces of the   United States;                 (3)     be enrolled for a full course load for an   undergraduate student, as determined by the coordinating board, in   a baccalaureate degree program at an eligible institution;                 (4)     be eligible for federal financial aid, except that   a person is not required to meet any financial need requirement   applicable to a particular federal financial aid program; and                 (5)     comply with any additional requirement adopted by   the coordinating board under this subchapter.           Sec.   56.456.     CONTINUING ELIGIBILITY AND ACADEMIC   PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a   Texas B-On-time loan, a person may continue to receive a Texas   B-On-time loan for each semester or term in which the person is   enrolled at an eligible institution only if the person:                 (1)     is enrolled for a full course load for an   undergraduate student, as determined by the coordinating board, in   a baccalaureate degree program at an eligible institution;                 (2)     is eligible for federal financial aid, except that   a person is not required to meet any financial need requirement   applicable to a particular federal financial aid program;                 (3)     makes satisfactory academic progress toward a   degree as determined by the institution at which the person is   enrolled, if the person is enrolled in the person's first academic   year at the institution;                 (4)     completed at least 75 percent of the semester   credit hours attempted by the person in the most recent academic   year and has a cumulative grade point average of at least 2.5 on a   four-point scale or the equivalent on all coursework previously   attempted at institutions of higher education, if the person is   enrolled in any academic year after the person's first academic   year; and                 (5)     complies with any additional requirement adopted   by the coordinating board under this subchapter.           (b)     If a person fails to meet any of the requirements of   Subsection (a) after the completion of any semester or term, the   person may not receive a Texas B-On-time loan for the next semester   or term in which the person enrolls. A person may become eligible   to receive a Texas B-On-time loan in a subsequent semester or term   if the person:                 (1)     completes a semester or term during which the   person is not eligible for a Texas B-On-time loan; and                 (2)  meets all of the requirements of Subsection (a).           (c)     A person who is eligible to receive a Texas B-On-time   loan continues to remain eligible to receive the Texas B-On-time   loan if the person enrolls in or transfers to another eligible   institution.           Sec.   56.457.     WAIVER OF COURSE LOAD REQUIREMENT. (a) The   coordinating board shall adopt rules to allow a person who is   otherwise eligible to receive a Texas B-On-time loan, in the event   of a hardship or other good cause, to receive a Texas B-On-time loan   while enrolled in a number of semester credit hours that is less   than the number of semester credit hours required under Section   56.455 or 56.456, as applicable.           (b)     The coordinating board may not allow a person to receive   a Texas B-On-time loan while enrolled in fewer than six semester   credit hours.           Sec.   56.458.     LOAN USE. A person receiving a Texas B-On-time   loan may use the money to pay for any usual and customary costs of   attendance at an eligible institution incurred by the student,   including tuition, fees, books, and room and board.           Sec.   56.459.     LOAN AMOUNT. (a) The amount of a Texas   B-On-time loan for a semester or term for a student enrolled   full-time at a general academic teaching institution is an amount   determined by the coordinating board as the average statewide   amount of tuition and required fees that a resident student   enrolled full-time in a baccalaureate degree program would be   charged for that semester or term at general academic teaching   institutions.           (b)     The amount of a Texas B-On-time loan for a student   enrolled full-time at a public junior college is an amount   determined by the coordinating board as the average statewide   amount of tuition and required fees that a student who is a resident   of the junior college district and is enrolled full-time in a   baccalaureate degree program would be charged for that semester or   term at public junior colleges.           (c)     Not later than January 31 of each year, the coordinating   board shall publish the amounts of each loan established by the   board for each type of institution for the academic year beginning   the next fall semester.           (d)     If in any academic year the amount of money in the Texas   B-On-time student loan account is insufficient to provide the loans   to all eligible persons in amounts specified by this section, the   coordinating board shall determine the amount of available money   and shall allocate that amount to eligible students in the order in   which the students applied.           Sec.   56.460.     NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF   SCHOOL DISTRICTS. (a) The coordinating board, in consultation   with representatives of the board's financial aid advisory   committee established under Section 61.0776, shall prepare   materials designed to inform prospective students, their parents or   guardians, and their teachers and counselors about the program and   eligibility for a Texas B-On-time loan. The coordinating board   shall distribute to each eligible institution and to each school   district a cop [Text truncated for display. Full text available on LegiScan.]