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Bill

SB 44

Relating to the establishment and operation of the Texas B-On-time student loan program; authorizing a fee.

89th Legislature (2025) Introduced by Judith Zaffirini

Texas SB 44 creates B-On-time student loan program with state-authorized fee collection to fund operations and provide alternative student financing.

Referred to Education K-16
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Bill Summary · SB 44

Legislative bill overview

SB 44 establishes the Texas B-On-time student loan program and authorizes the state to collect a fee to support its operations. The bill creates a mechanism for providing student loans while generating revenue through fees charged to borrowers or lenders. This represents a state-level intervention in student financing alongside federal loan programs.

Why is this important

Student loan accessibility and affordability directly affect educational attainment rates and economic mobility for Texas residents. A state-administered loan program could offer alternatives to federal loans or private lending, potentially affecting borrowing costs and terms for thousands of students. The fee structure will determine whether this program is self-sustaining or requires general revenue support.

Potential points of contention

  • Fee structure and burden: The amount and method of fee collection could make loans more or less affordable than existing federal or private alternatives, raising questions about whether fees are reasonable or excessive
  • Program viability and defaults: Questions about loan repayment rates, default management, and whether the state has capacity to administer and enforce loan collection effectively
  • Market competition concerns: Whether a state loan program duplicates existing federal offerings or creates unfair competition with private lenders, and whether resources would be better directed toward grants or other aid

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

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