S.B. 680, 83rd Texas Legislature – Texas Student Loan Default Prevention and Financial Literacy Pilot

Pilot Program Timeline

Participating Institutions Austin Community College Tarrant County College El Paso Community College Texas A&M International LeTourneau University Texas Chiropractic College Prairie View A&M University Texas State University St. Mary’s University Western Technical College

Objectives of the Pilot The Pilot seeks to increase the numbers of Texas postsecondary students who: Understand the consequences of borrowing to finance postsecondary education Understand the financial consequences of academic and career choices Develop strategies for avoiding student loan delinquency and default

Behaviors Promoted by the Pilot Complete a spending plan or personal budget Develop short-term, mid-range, and long-term financial goals Track student loan borrowing and identify student loan servicer through the National Student Loan Data System, or NSLDS Estimate the expected student loan debt by specific college and academic program; estimate expected debt-to- income ratio (using TG’s Major Choices tool) Determine the average salary for an expected career (using TG’s Career Choices tool or Bureau of Labor Statistics) Estimate an expected monthly student loan repayment (using TG’s College Loans: A Cost Calculator) Compare different student loan repayment plans (using TG’s Repayment Comparison tool) File/renew the Free Application for Federal Student Aid, or FAFSA, on an annual basis; maximize financial aid and community support when financing college Prioritize spending choices given available resources and borrow only what is needed (assessing needs vs. wants) Understand when and how to use credit, know the consequences of credit scores, and check free credit report annually

Pilot Features Default Prevention Plan Train-the-Trainer Integrated Counseling Financial Tips Financial Coaching