Bill Summary – FastDemocracy

  
    86(R) SB 2197 - Introduced version - Bill Text
    
        86R3476 MM-F
      
		By:  Flores
        S.B.  No.  2197
      
          A BILL TO BE ENTITLED
        
          AN ACT
        
        relating to alternative education loans and qualified student loan 
      
        bonds.
      
                      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
      
                      SECTION  1.    Sections 53B.02(2) and (7), Education Code, are 
      
        amended to read as follows:
      
                                  (2)    "Alternative education loan" means a loan other 
      
        than a guaranteed student loan that is made to a student, a former 
      
        student, or any other person [or] for the benefit of the [a] student 
      
        or former student for the purpose of financing or refinancing all or 
      
        part of the student's or former student's cost of attendance at an 
      
        accredited institution.   The term includes:
      
                                              (A)    indebtedness that meets the definition of a 
      
        qualified education loan under Section 221(d)(1), Internal Revenue 
      
        Code of 1986; and
      
                                              (B)    indebtedness used to refinance indebtedness 
      
        that meets the definition of a qualified education loan under 
      
        Section 221(d)(1), Internal Revenue Code of 1986.
      
                                  (7)    "Cost of attendance" means all costs of a student 
      
        or former student incurred in connection with that student's [a] 
      
        program of study at an accredited institution, as determined by the 
      
        institution, including tuition and instructional fees, the cost of 
      
        room and board, books, computers, and supplies, and other related 
      
        fees, charges, and expenses.
      
                      SECTION  2.    Sections 53B.47(b), (d), and (h), Education 
      
        Code, are amended to read as follows:
      
                      (b)    An authority may cause money to be expended to make or 
      
        purchase for its account guaranteed student loans that are 
      
        guaranteed by the Texas Guaranteed Student Loan Corporation, other 
      
        guaranteed student loans, or alternative education loans that are 
      
        executed by or on behalf of students or former students [who]:
      
                                  (1)    who are residents of this state; or
      
                                  (2)    who have been admitted to attend or who attended an 
      
        accredited institution within this state.
      
                      (d)    The authority, as a municipal corporation of the state, 
      
        is charged with a portion of the responsibility of the state to 
      
        provide educational opportunities in keeping with all applicable 
      
        state and federal laws.  This [Nothing in this] section may not 
      
        [shall] be construed as a prohibition against establishing policies 
      
        to limit the purchase of guaranteed student loans or alternative 
      
        education loans executed by or on behalf of students or former 
      
        students who are attending or who attended [attending] school in a 
      
        certain geographical area or by or on behalf of students or former 
      
        students who are residents of the area.
      
                      (h)    An alternative education loan may be made under this 
      
        section only by or on behalf of a qualified alternative education 
      
        loan lender.  An alternative education loan may not be in an amount 
      
        in excess of the difference between the cost of attendance and the 
      
        amount of other student-based [student] assistance for which the 
      
        borrower may be eligible [to the student], other than loans under 
      
        Section 428B(a)(1), Higher Education Act of 1965 (20 U.S.C. Section 
      
        1078-2) (relating to parent loans)[, for which the student borrower 
        
          may be eligible].  An alternative education loan covered by this 
      
        subsection is subject to Chapter 342, Finance Code, as applicable, 
      
        except that:
      
                                  (1)    the maximum interest rate on the loan may not 
      
        exceed the rate permitted under Subchapter A, Chapter 303, Finance 
      
        Code; and
      
                                  (2)    application and origination fees may be agreed to 
      
        by the parties and assessed at the inception of the loan, provided 
      
        that if any such fees constitute additional interest under 
      
        applicable law, the effective rate of interest agreed to over the 
      
        stated term of the loan may not exceed the rate allowed by 
      
        Subchapter A, Chapter 303, Finance Code, and accrued unpaid 
      
        interest may be added to unpaid principal at the beginning of the 
      
        agreed repayment period at the borrower's option and in accordance 
      
        with the terms of the agreement for purposes of determining the 
      
        total principal amount due at the inception of the repayment 
      
        period.
      
                      SECTION  3.    Section 1372.002(a), Government Code, is amended 
      
        to read as follows:
      
                      (a)    For purposes of this chapter, a project is:
      
                                  (1)    an eligible facility or facilities that are 
      
        proposed to be financed, in whole or in part, by an issue of 
      
        qualified residential rental project bonds;
      
                                  (2)    in connection with an issue of qualified mortgage 
      
        bonds or qualified student loan bonds, the providing of financial 
      
        assistance to qualified borrowers if those borrowers are 
      
        [mortgagors or students] located in all or any part of the 
      
        jurisdiction of the issuer; or
      
                                  (3)    an eligible facility or facilities that are 
      
        proposed to be financed, in whole or in part, by an issue of bonds 
      
        other than bonds described by Subdivision (1) or (2).
      
                      SECTION  4.    Section 1372.033(g), Government Code, is amended 
      
        to read as follows:



	A BILL TO BE ENTITLED
	AN ACT
	relating to alternative education loans and qualified student loan
	bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Sections 53B.02(2) and (7), Education Code, are
	amended to read as follows:
	(2) "Alternative education loan" means a loan other
	than a guaranteed student loan that is made to a student, a former
	student, or any other person [or] for the benefit of the [a] student
	or former student for the purpose of financing or refinancing all or
	part of the student's or former student's cost of attendance at an
	accredited institution. The term includes:
	(A) indebtedness that meets the definition of a
	qualified education loan under Section 221(d)(1), Internal Revenue
	Code of 1986; and
	(B) indebtedness used to refinance indebtedness
	that meets the definition of a qualified education loan under
	Section 221(d)(1), Internal Revenue Code of 1986.
	(7) "Cost of attendance" means all costs of a student
	or former student incurred in connection with that student's [a]
	program of study at an accredited institution, as determined by the
	institution, including tuition and instructional fees, the cost of
	room and board, books, computers, and supplies, and other related
	fees, charges, and expenses.
	SECTION 2. Sections 53B.47(b), (d), and (h), Education
	Code, are amended to read as follows:
	(b) An authority may cause money to be expended to make or
	purchase for its account guaranteed student loans that are
	guaranteed by the Texas Guaranteed Student Loan Corporation, other
	guaranteed student loans, or alternative education loans that are
	executed by or on behalf of students or former students [~~who~~]:
	(1) who are residents of this state; or
	(2) who have been admitted to attend or who attended an
	accredited institution within this state.
	(d) The authority, as a municipal corporation of the state,
	is charged with a portion of the responsibility of the state to
	provide educational opportunities in keeping with all applicable
	state and federal laws. This [~~Nothing in this~~] section may not
	[~~shall~~] be construed as a prohibition against establishing policies
	to limit the purchase of guaranteed student loans or alternative
	education loans executed by or on behalf of students or former
	students who are attending or who attended [~~attending~~] school in a
	certain geographical area or by or on behalf of students or former
	students who are residents of the area.
	(h) An alternative education loan may be made under this
	section only by or on behalf of a qualified alternative education
	loan lender. An alternative education loan may not be in an amount
	in excess of the difference between the cost of attendance and the
	amount of other student-based [~~student~~] assistance for which the
	borrower may be eligible [~~to the student~~], other than loans under
	Section 428B(a)(1), Higher Education Act of 1965 (20 U.S.C. Section
	1078-2) (relating to parent loans)[~~, for which the student borrower~~
	~~may be eligible~~]. An alternative education loan covered by this
	subsection is subject to Chapter 342, Finance Code, as applicable,
	except that:
	(1) the maximum interest rate on the loan may not
	exceed the rate permitted under Subchapter A, Chapter 303, Finance
	Code; and
	(2) application and origination fees may be agreed to
	by the parties and assessed at the inception of the loan, provided
	that if any such fees constitute additional interest under
	applicable law, the effective rate of interest agreed to over the
	stated term of the loan may not exceed the rate allowed by
	Subchapter A, Chapter 303, Finance Code, and accrued unpaid
	interest may be added to unpaid principal at the beginning of the
	agreed repayment period at the borrower's option and in accordance
	with the terms of the agreement for purposes of determining the
	total principal amount due at the inception of the repayment
	period.
	SECTION 3. Section 1372.002(a), Government Code, is amended
	to read as follows:
	(a) For purposes of this chapter, a project is:
	(1) an eligible facility or facilities that are
	proposed to be financed, in whole or in part, by an issue of
	qualified residential rental project bonds;
	(2) in connection with an issue of qualified mortgage
	bonds or qualified student loan bonds, the providing of financial
	assistance to qualified borrowers if those borrowers are
	[~~mortgagors or students~~] located in all or any part of the
	jurisdiction of the issuer; or
	(3) an eligible facility or facilities that are
	proposed to be financed, in whole or in part, by an issue of bonds
	other than bonds described by Subdivision (1) or (2).
	SECTION 4. Section 1372.033(g), Government Code, is amended
	to read as follows: