SB2995 - Relating to the displacement of student financial aid at a public institution of higher education.

      S.B. No. 2995         AN ACT   relating to the displacement of student financial aid at a public   institution of higher education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 56, Education Code, is   amended by adding Section 56.0094 to read as follows:           Sec.   56.0094.     FINANCIAL AID DISPLACEMENT. (a) In this   section:                 (1)     "Coordinating board" means the Texas Higher   Education Coordinating Board.                 (2)     "Gift aid" means a grant, scholarship, exemption,   waiver, or other financial aid awarded to a student without a   requirement to repay the aid or earn the aid through work.           (b)     The coordinating board shall develop a financial aid   displacement advisory for use by institutions of higher education   under this section that contains:                 (1)     a statement bordered by a line one point in weight   in a font not less than 14 points in size in the following form:           "Financial aid displacement occurs when a student's   financial aid is reduced due to receipt of a private scholarship or   other reasons identified in this advisory.   This practice occurs in   Texas and should be taken into consideration while applying for   financial aid. The institution to which you are applying is   providing in this application a list of recommendations describing   how to maximize your financial aid and ensure that you are prepared   when financial aid displacement occurs. You are encouraged to   reach out to the institution to which you are applying to receive   advice on how to avoid financial aid displacement."; and                 (2)     a list of the most common reasons, as identified by   the coordinating board, for which the amount of gift aid awarded may   be revised or reduced under this chapter.           (c)     Each institution of higher education shall include in   the institution's admission application form or provide in the   institution's admission application form a link to the financial   aid displacement advisory developed under Subsection (b) and, in   plain language:                 (1)  how to apply for gift aid at the institution;                 (2)     the timeline for financial aid processes at the   institution, including application deadlines, suggested deadlines   to report gift aid, and other deadlines of which the institution   determines a prospective student should be made aware;                 (3)     a list of recommendations to aid a prospective   student in maximizing gift aid awards, as determined by the   institution;                 (4)     a list of recommendations for a prospective   student to ensure the student's gift aid will not be reduced; and                 (5)     contact information for an employee or office at   the institution from whom a prospective student may seek advice   regarding gift aid.           (d)     The coordinating board shall adopt rules necessary to   implement this section.          SECTION 2.  Section 56.0094, Education Code, as added by   this Act, applies beginning with the 2025-2026 academic year.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 2995 passed the Senate on   May 12, 2025, by the following vote:  Yeas 30, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 2995 passed the House on   May 28, 2025, by the following vote:  Yeas 81, Nays 57, one   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor