S.B. No. 44 establishes the Texas B-On-time student loan program, designed to provide no-interest loans to eligible students pursuing baccalaureate degrees at public institutions in Texas. The program will be administered by the Texas Higher Education Coordinating Board, which will set loan terms, implement rules, and ensure student participation. Eligibility criteria include residency requirements, academic performance standards, and enrollment status. The Coordinating Board is also permitted to charge a loan origination fee to cover operational costs. Students can use the loans for various educational expenses, and repayment is deferred while they are enrolled. Loans may be forgiven if students graduate with a specified GPA.

The bill introduces a framework for loan forgiveness, stipulating that students who earn a baccalaureate degree with a cumulative GPA of at least 3.0 within a designated time frame will have their loans forgiven. It also creates the Texas B-On-time student loan account, funded by gifts, grants, and legislative appropriations, with funds restricted to the loan program's operation. The bill amends existing sections of the Education Code to support the program's funding and management, allowing the Coordinating Board to solicit gifts, issue bonds, and appropriate funds. Additionally, it repeals Section 56.0092 and makes necessary amendments to ensure proper allocation of bond sale proceeds. The program is set to begin in the fall semester of 2025, with the Coordinating Board responsible for adopting initial rules for loan awards.

Statutes affected:
Introduced: Education Code 52.89, Education Code 52.90, Education Code 52.91, Education Code 56.0092 (Education Code 52, Education Code 56)