Bill > HB281

This bill introduces a new performance-based review system for degree and certificate programs at public higher education institutions in Texas, focusing on the relationship between student loan debt and graduate earnings. The Texas Higher Education Coordinating Board will now be required to review program performance every five years, assessing the median student loan debt as a percentage of median annual earnings for graduates at different degree levels (two years for undergraduate, three years for master's, and five years for doctoral programs). Programs will be assigned performance ratings ranging from "reward" (75% or less debt-to-earnings) to "sunset" (over 125% debt-to-earnings), with significant consequences for programs receiving lower ratings. Programs rated as "sanction" or "sunset" will be ineligible for certain funding increases, and those with a "sunset" rating will be prohibited from enrolling new students, required to allow current students to complete their programs, and ultimately consolidated or eliminated. The bill aims to ensure that higher education programs provide meaningful economic value to students by closely monitoring the financial outcomes of their graduates. An exception is made to preserve core curriculum courses, ensuring that essential educational components are not inadvertently eliminated. The new performance review system will take effect on September 1, 2025, giving institutions time to prepare for the new evaluation criteria.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB281