HB 319

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
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
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
(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
(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.