Student leaders from across the state announced their support for Proposition 3, which authorizes general obligation bonding authority for the Texas Higher Education Coordinating Board (THECB) to provide low-interest, low-cost student loans. Without voter approval, THECB may be forced to close the state’s longest-running financial aid program to new students by as early as 2013.
“For better or worse, many students rely on loans to help cover the college cost gap,” said Zach Rogers, Student Body President at Baylor University. “At a time when state and family budgets are squeezed, having access to low-cost student loans is critical.” Proposition 3 extends bonding authority for the THECB-administered student loan program known as the College Access Loan. For more than forty years, the state has utilized bonding authority to offer capital to students to help pay for college. In six separate elections since 1965, Texas voters have extended that authority, most recently in 2007 with $500 million.
The THECB program does not rely on state general revenue to repay debt obligations or administer the program. Repayments and fees on outstanding loans generate sufficient revenue to cover bond obligations and operating costs for the program. For this reason, the bond debt incurred by the program does not count against the state debt cap because it has a dedicated revenue source other than tax dollars. “Proposition 3 offers the best of both worlds for Texas,” said Kyle Timmermann President of the Student Body at Hardin-Simmons University in Abilene. “On the one hand, Texas is helping students achieve their higher education goals. On the other hand, students—not taxpayers—are responsible for covering the cost.”
If Proposition 3 is not approved by voters on November 8th, the THECB estimates that current bonding authority limits will be met by the end of 2013. If this happens, the program will no longer be able to offer loans to new students. “The loan program is the longest running state financial aid program in Texas,” explained Carol McDonald, President of Independent Colleges and Universities of Texas, a organization that supports student aid programs. “Student grant programs have been reduced or eliminated at both the state and federal level. We hope that Texas voters will recognize how important this program is to make sure students continue to have access to higher education.”
Since its inception, the state loan program has served more than 340,000 students with $2 billion in loan capital. Today the program offers among the lowest, fixed-interest loans in the nation—5.25 percent. The average loan amount in fiscal year 2010 was $8,300. “We hope Texas voters will judge this program on its merits and not based on other issues,” urged Alexander Clark, Student Body President at Austin College in Sherman. “This program is too important to politicize.”
Student Leaders in Support of Proposition 3
Austin W. Prentice, Student Body President Southern Methodist University-Dallas
Christian Dean, Student Regent University of North Texas-Denton
Vianney Becerra, Student Government President St. Edward’s University-Austin
Meredith Hanna, SGA President Dallas Baptist University-Dallas
Kyle Timmermann, Student Body President Hardin-Simmons University-Abilene, Texas
John Mark Francis, Student Body President East Texas Baptist University-Marshall
Ekitu Kenneth Agbomah, Student Government Association President Huston-Tillotson University-Austin
Valette Reese, Student Government Association President Paul Quinn College-Dallas
Brian C. Rodriguez, Student Government Association President Our Lady of the Lake University-San Antonio
Georgia Lagoudas, Student Association President Rice University-Houston
Mark Kubisch, Student Body President University of Dallas-Dallas
Jill Fadal, Student Regent Texas Tech University-Lubbock
Alexander Clark, Student Body President Austin College-Sherman
Zach Rogers, Student Body PresidentBaylor University-Waco
Steven Champion, Student Regent Texas Southern University-Houston
Jonathan “Johnny” Guajardo,Student Government President University of the Incarnate Word-San Antonio
Kassidy Harris, Student Body President University of Mary Hardin-Baylor-Belton
Chad Hlavaty, Student Body President Jacksonville College-Jacksonville
Gavin B. Ellis, Student Body President Student Government Leadership Association Concordia University Texas-Austin
Kayla Polk, Student Body President Southwestern Assemblies of God University-Waxahachie
Linda Aguilera, Student Regent Midwestern State University-Wichita Falls
