Texas Legislation Recap
Texas passed student debt letter legislation in May 2017, requiring higher education institutions that enroll students receiving state financial aid administered by the Texas Higher Education Coordinating Board to notify student loan borrowers annually, in an electronic communication, about their indebtedness.
What information must schools report in order to meet the requirements of the law?
The notification must include:
- An estimate of the total amount of state (distributed by the institution) and federal education loans (not limited to what they received at the institution) incurred by the student.
- Identification of the types of education loans included in the institution’s estimate.
- An estimate of the total payoff amount, or a range of that amount, including principal and interest for the total amount of state and federal education loans incurred by the student.
- An estimate of the monthly loan repayment amount (including principal and interest) that the student might incur for the total amount of state and federal education loans incurred by the student.
Are there any additional requirements or statements?
Yes, schools must include a disclaimer regarding the accuracy of the disclosure noting that it is not a complete and official record of the student’s education loan debt and providing and explanation why it may be inaccurate including and explanation that for a transfer student, the institutions’ estimates regarding state loans only reflect the state loans incurred by the student for their attendance at the institution and that the institution’s estimates are general in nature and not intended as a guarantee or promise.
Here's how to navigate it
Student debt letters are a great way to help you retain the students you've worked so hard to enroll. But for an already overworked staff, debt letter legislation can feel like just one more area requiring compliance. Our free downloadable resources can help you find your way!
