HBA-SEP H.B. 3054 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3054
By: Rangel
Higher Education
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Approximately 75 percent of student financial aid awarded nationwide is
from federal aid programs such as the Pell grant or federal loans.  The
remainder comes from institutional and state aid such as the Texas Public
Educational Grant program and the Toward EXcellence, Access, and Success
(TEXAS) grant program, created by the 76th Legislature.  The Texas Higher
Education Coordinating Board limited the amount of the TEXAS grant awarded
to each student to $2,650, which is the statewide average of tuition and
fees.  Currently, a student who receives a TEXAS grant is unable to use a
Pell grant or loans to offset tuition and fees higher than $2,650.  In
these cases, financial aid officers at institutions of higher education may
be forced to withhold other sources of state aid from other students in
need of financial aid in order to first consider TEXAS grant recipients who
may have tuition and fee costs above the state average. House Bill 3054
authorizes an institution to use a loan or a Pell grant to cover any
difference in the amount of a TEXAS grant and the actual amount of tuition
and required fees at the institution. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3054 amends the Education Code to authorize an institution of
higher education to use a loan or a Pell grant to cover any difference in
the amount of a Toward EXcellence, Access, & Success grant and the actual
amount of tuition and required fees at the institution.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.