student loan help for state workers, if the legislature pays

The text as introduced · 786 words

89R8570 CMO-D

By: Howard
H.B. No. 3030

A BILL TO BE ENTITLED

AN ACT

relating to student loan repayment assistance for certain state

employees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 61, Education Code, is amended by adding

Subchapter N to read as follows:

SUBCHAPTER N. REPAYMENT OF EDUCATION LOANS FOR CERTAIN STATE

EMPLOYEES

Sec. 61.7305. DEFINITION. In this subchapter, "state

employee" means an individual, other than a state officer as

defined by Section 572.002, Government Code, who is employed by:

(1) a state agency;

(2) the Supreme Court of Texas, the Court of Criminal

Appeals of Texas, a court of appeals, or the Texas Judicial Council;

or

(3) either house of the legislature or a legislative

agency, council, or committee, including the Legislative Budget

Board, the Texas Legislative Council, the State Auditor's Office,

and the Legislative Reference Library.

Sec. 61.731. LOAN REPAYMENT ASSISTANCE AUTHORIZED. The

board shall provide, in accordance with this subchapter and board

rules, assistance in the repayment of eligible student loans for

eligible state employees who apply and qualify for the assistance.

Sec. 61.732. ELIGIBILITY. To be eligible to receive loan

repayment assistance under this subchapter, a person must:

(1) apply to the board in a manner prescribed by the

board;

(2) have an income at or below 80 percent of the

statewide median family income, adjusted for family size, that is

established by the United States Department of Housing and Urban

Development; and

(3) at the time of application for repayment

assistance have been employed for at least five years as, and be

currently employed as, a state employee.

Sec. 61.733. LIMITATIONS. A state employee may receive

loan repayment assistance under this subchapter for not more than

five years.

Sec. 61.734. ELIGIBLE LOANS. (a) The board may provide

loan repayment assistance under this subchapter for the repayment

of any student loan for education at an institution of higher

education, a private or independent institution of higher

education, or a public or private out-of-state institution of

higher education accredited by a recognized accrediting agency,

including loans for undergraduate education, received by an

eligible person through any lender.

(b) The board may not provide repayment assistance for a

student loan that is in default at the time of the person's

application.

(c) In each state fiscal biennium, the board shall attempt

to allocate all money appropriated to the board for the purpose of

providing loan repayment assistance under this subchapter.

Sec. 61.735. REPAYMENT. (a) The board shall deliver any

repayment under this subchapter in a lump sum payable:

(1) to both the lender or other holder of the loan and

the state employee; or

(2) directly to the lender or other holder of the loan

on the state employee's behalf.

(b) A repayment under this subchapter may be applied to any

amount due in connection with the loan.

Sec. 61.736. AMOUNT OF REPAYMENT ASSISTANCE. (a) A state

employee may receive loan repayment assistance under this

subchapter in an amount determined by the board.

(b) The total amount of loan repayment assistance awarded

under this subchapter may not exceed the sum of:

(1) the total amount of gifts and grants accepted by

the board for the repayment assistance;

(2) legislative appropriations for the repayment

assistance; and

(3) other money available to the board for the

repayment assistance.

Sec. 61.737. RULES; ADMINISTRATION. (a) The board shall

adopt rules necessary to administer this subchapter.

(b) The board shall distribute to each institution of higher

education or private or independent institution of higher education

and to any appropriate state agency and professional association

copies of the rules adopted under this section and other pertinent

information relating to this subchapter.

(c) The board shall administer the program under this

subchapter in a manner that maximizes any matching funds available

through other sources.

(d) A reasonable amount, not to exceed three percent, of any

money appropriated for purposes of this subchapter may be used to

pay the costs of administering this subchapter.

Sec. 61.738. SOLICITATION AND ACCEPTANCE OF MONEY. The

board may solicit and accept gifts and grants from any public or

private source for the purposes of this subchapter.

SECTION 2. The Texas Higher Education Coordinating Board is

required to provide assistance in the repayment of eligible student

loans for eligible state employees as provided by this Act only if

the legislature appropriates money specifically for that purpose.

If the legislature does not appropriate money specifically for that

purpose, the board may, but is not required to, provide assistance

in the repayment of eligible student loans for eligible state

employees as provided by this Act using other appropriations

available for that purpose.

SECTION 3. This Act takes effect September 1, 2025.