TITLE: Relating to clarification of the authorized uses for loans under public institution of higher education emergency loan programs.

SUMMARY: Relating to clarification of the authorized uses for loans under public institution of higher education emergency loan programs.

FULL TEXT:
AN ACT relating to clarification of the authorized uses for loans under public institution of higher education emergency loan programs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter D, Chapter 56, Education Code, is amended to read as follows: SUBCHAPTER D. EMERGENCY TUITION,FEE, AND TEXTBOOK [FEES] LOANS SECTION 2. Section 56.053(a), Education Code, is amended to read as follows: (a) The governing board of each institution shall adopt rules providing for the terms of the loan, subject to the following: (1) the loan must be repaid over a period not to exceed 90 days for a loan made for a regular semester or long summer session or over a proportionately shorter period for loans made for a six-week summer session; (2) the loan must be evidenced by a written or electronic agreement providing for one of the following: (A) interest on the loan at a rate of not more than five percent per year; or (B) an origination fee of not more than 1.25 percent of the amount of the loan; and (3) the loan amount per student may not exceed an amount equal to the tuition,[and] mandatory fees,and cost of textbooks for the courses in which the student is actually enrolling. 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.