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F I S C A L I M P A C T R E P O R T
SPONSOR Varela
DATE TYPED 02/21/05 HB 774
SHORT TITLE College Loan Interest Charge Calculation
SB
ANALYST Williams
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
See Text
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Appropriation in the General Appropriation Act for the Commission on Higher Educa-
tion, Student Financial Aid program
SOURCES OF INFORMATION
LFC Files
No Response Received From Commission on Higher Education
SUMMARY
Synopsis of Bill
House Bill 774 changes the terms of several loan-for-service programs administered by the
Commission on Higher Education, specifically for students in the fields of medicine, osteopathy,
nursing, allied health, teachers, and Western Interstate Commission for Higher Education
(WICHE) student exchange (loan for service).
Specifically, terms of the loan for service would be revised as follows:
•
A loan would not accrue interest until the commission determines:
o
the loan recipient has terminated his/her education prior to graduation
o
the loan recipient failed to fulfill his/her service obligation
o
cancellation of a contract between the student and commission
•
Contracts would no longer specify accrued interest would be capitalized immedi-
ately upon completion or termination of the student’s education
The bill makes other technical, clean-up changes.