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SB 2141

Education, Higher - As introduced, removes various dates by which various reports must be submitted by various entities; makes various changes to the Tennessee student assistance award; requires new and existing transfer pathways to be reviewed on a rotating basis; authorizes the Tennessee higher education commission to conduct private meetings for certain purposes; makes various other changes related to financial aid and higher education. - Amends TCA Title 43, Chapter 6, Part 5 and Title 49.

114th Regular Session (2025-2026)

Modernizes Tennessee higher education by clarifying TSAC aid rules, expanding transfer pathways with rotating reviews and transfer designation institutions, and updating apprentice

Signed by Governor.
#education #higher
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WeVote Research Nonpartisan
Bill Summary · SB 2141

Summary of SB 2141 / HB 2095 (Session 114) — Tennessee

Updated: Based on the introduced bill text and amended version as reflected in the fiscal notes and action history.

Purpose and Intent

  • Modernize and clarify higher education financing and transfer processes in Tennessee.
  • Remove obsolete reporting requirements and adjust reporting timelines for public higher education institutions and THEC.
  • reform rules governing Tennessee student financial aid (TSAC) and strengthen transfer pathways between public institutions.
  • Introduce new concepts such as transfer designation institutions and rotating reviews of transfer pathways.
  • Allow private meetings for certain higher education commission matters, with safeguards against taking public action in private sessions.
  • Exempt certain apprenticeship education from the Tennessee Higher Education Authorization Act for clarity.
  • Remove the University of Tennessee’s Department of University Extension for vocational training (long-standing federal vs. state program context).

Key Provisions and Changes

1) Obsolete Reporting Removed (Sections 1, 2)

  • Deletes certain dated or obsolete reporting requirements for public higher education institutions.
  • THEC is given authority to promulgate rules for TSAC-related financial aid administration, consistent with the Uniform Administrative Procedures Act (UAPA).

2) Tennessee Student Assistance (TSAC) Revisions (Sections 3–7, 9)

  • Defines terms (eligible institutions, eligible programs, FAFSA, financial need, resident, SAI, TSAC) for clarity.
  • Establishes the Tennessee Student Assistance Program (TSAP) administered by TSAC.
  • Eligibility for a TSAC award requires:
    • Tennessee residency
    • Enrollment or intent to enroll in an eligible program at an eligible institution
    • Submission of an application to TSAC
  • Priority for US citizens in award allocation.
  • Payment mechanics:
    • Awards paid directly to the institution, which credits the student account and disburses remaining funds to the student up to cost of attendance.
    • Payments issued in approximately equal installments after each term, contingent on official enrollment and compliance with requirements.
  • Financial need-based: Awards are based on financial need; students with need under $100 are ineligible.
  • Renewal: Based on continued enrollment status, residency, satisfactory progress, and continued financial need.
  • Sanctions for fraud: If an award recipient falsifies information, the award can be revoked with a prohibition on further payments.
  • Reporting/oversight: THEC and TSAC oversight and academic progress data continue (per amendments) with annual reporting to relevant committees.

3) Transfer Pathways and Designations (Sections 16, 19)

  • Establishes new technical Tennessee Transfer Pathways to support student transfer between institutions.
  • THEC must review all new or existing transfer pathways on a rotating basis at least once every five years.
  • Creation of Transfer Designation Institutions:
    • Public and private nonprofit institutions may be designated to prioritize transfer credit success.
    • Designated institutions commit to improving outcomes, accepting non-traditional credits, reducing credit loss, and supporting transfer students.
    • Institutions seeking designation must apply to THEC’s executive director.
  • Pathway structure:
    • Technical transfer pathways can include coursework from applied science or certificate programs and must transfer toward associate or bachelor’s degrees.
    • Core 41-hour general education block is fully transferable; a 19-hour emphasis block toward a major is transferable.
    • Community college associates generally transfer as juniors into public four-year institutions, subject to competitive admission for certain programs.
  • Rotating review and approval threshold:
    • New or existing transfer pathways must be reviewed on a rotating basis at least every five years.
    • Pathways with hours beyond prescribed limits require commission approval.
  • Additional system-wide commitments:
    • Common course numbering; clear articulation of transferable vs. non-transferable courses; dual admissions policies to facilitate cross-institution admission while pursuing a degree pathway.
    • THEC and institutional governance must update plans and report progress annually to legislative chairs.

4) Meetings and Transparency (Section 17)

  • THEC or the Tenn. Commission on Higher Education may hold private meetings for discussions related to senior administration, personnel positions, and contracts, provided no actions are taken in private meetings.

5) Apprenticeships and Workforce Education (Sections 21)

  • Exempts education offered through a registered apprenticeship program (per Tennessee Department of Labor and Workforce Development) from the Tennessee Higher Education Authorization Act of 2016.
  • Apprenticeship-related education is distinguished from standard postsecondary offerings.

6) Miscellaneous Provisions (Sections 8, 10–15, 18, 20, 22–24)

  • Various codification cleanups and removals of obsolete sections.
  • Key sections regarding annual reporting, data dissemination (Fact Book), and other administrative updates.

Affected Parties and Impacts

  • Public institutions of higher education, the University of Tennessee system, state universities, community colleges, and eligible independent institutions.
  • Tennessee Higher Education Commission (THEC) and the Tennessee Student Assistance Corporation (TSAC).
  • Students applying for and receiving TSAC financial aid; students pursuing transfer pathways; and apprentices in registered programs.
  • Private nonprofit and potentially designated transfer institutions.
  • General public through continued transparency and accessible reporting (public meetings, where applicable).

Timelines and Effective Dates

  • Most provisions become effective July 1, 2026, though a subset (Sections 9, 14, 16, 18) take effect upon becoming law due to public welfare clause.
  • Rotation and review requirements for transfer pathways must occur at least every five years.
  • First meeting of the commission upon appointment; subsequent meetings at least four times annually (with online streaming/public access unless exemptions apply).

Fiscal Impact

  • Fiscal notes indicate a NOT SIGNIFICANT impact on state finances.
  • Anticipated creation of fewer than 10 new technical transfer pathways; workload manageable within existing THEC resources.
  • Exemption of apprenticeship programs from the act is not expected to have significant fiscal repercussions, as these are already overseen by the Department of Labor and Workforce Development.

Bottom Line

SB 2141 / HB 2095 updates higher education governance and funding in Tennessee by removing outdated reporting, clarifying TSAC scholarship rules, introducing rotating reviews of transfer pathways, enabling transfer designation institutions, and modernizing apprenticeship and transfer-related provisions. The changes are designed to streamline administration, enhance transferability of credits, and improve transparency without imposing significant new costs.

Compiled from official sources — confirm details with the bill’s official record.

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