HB319 - Relating to the interest rate for student loans issued by the Texas Higher Education Coordinating Board.

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