Texans to Vote on Amendment to Fund College Access Loans
Texas government officials are working to convince voters this November to pass an amendment to the state Constitution that will continue a low-interest student loan program run by the Texas Higher Education Coordinating Board.
Officials estimate that over half of Texas students use student loans to cover all or part of their higher education costs. This amendment will allow the Board to continue providing the popular College Access Loans. These loans are available to Texas students this fall at a fixed 5.25% interest rate.
The proposition would authorize the coordinating board a total bonding capacity of $1.86 billion. That’s equivalent to the cumulative total of general obligation bonds voters have approved for the program over the course of numerous elections since 1965, when the program began. Passage would also allow recently approved legislation to take effect that would increase the limit on the amount the coordinating board could loan each year from $125 million to $350 million.
The program is touted as being self-sustaining and having no cost to taxpayers, which officials hope gives the public little reason not to support it. College Access Loans have also bucked a national trend by seeing their default rates lower in the past few years, even in the face of the country’s recent economic troubles.
To learn more about the College Access Loans program, visit the Board’s website.