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 bill introduces a new subchapter to the Education Code, detailing definitions, administration, eligibility requirements, and loan terms. The Texas Higher Education Coordinating Board will oversee the program, determining loan terms, implementing rules, and promoting student participation. Key provisions include residency and academic performance criteria, loan amounts based on tuition and fees, and a loan forgiveness process for students who graduate with a minimum GPA of 3.0 within a specified timeframe.

Additionally, the bill creates the Texas B-On-time student loan account, funded through various sources, and allows the Coordinating Board to solicit funds and issue bonds. It repeals previous provisions related to the program and mandates the awarding of loans under the new framework starting in the fall semester of 2025. The bill will take effect immediately if it receives a two-thirds majority vote; otherwise, it will take effect on September 1, 2025.

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)