Advisory committee hears legislative interim work and major rule reorganization affecting student aid programs

Financial Aid Advisory Committee, Higher Education Coordinating Board (THECB) · December 12, 2025

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Summary

John Wyatt briefed members on interim legislative activity including a select committee reviewing implementation of Senate Bill 37; agency staff described a major reorganization of THECB rules into new chapters for tuition/exemptions, programs, loan repayment and student loan programs and noted program changes such as an expanded Texas Armed Services Scholarship and a new paramedic exemption.

Members of the Financial Aid Advisory Committee received a legislative and rulemaking briefing that outlined interim legislative activity and a substantial reorganization of the coordinating board's student‑aid rules.

John Wyatt, senior director of government relations, told the committee the House and Senate formed select committees on civil discourse and freedom of speech in higher education and that those committees will review implementation of Senate Bill 37 and other interim charges. He said select-committee work is intended to run during the interim and report findings and recommendations before the next regular legislative session. Wyatt encouraged members to consult the coordinating board's post‑session report (posted online) for a detailed list of enacted bills that affect higher education.

Later in the agenda Chad (filling in for the rulemaking lead) described a large internal reorganization of THECB rules to improve navigation and readability. The agency consolidated tuition- and fee-related rules into a new Chapter 13, grouped grants and program rules in Chapter 22, created Chapter 23 for loan-repayment assistance programs, and established Chapter 24 for student loan program rules. Chad said the reorganization focused on structure and clarity rather than making broad policy changes, though there were some substantive rule updates to align with recent legislation.

Chad listed specific program rule changes: updates to resident-status determinations and a single subchapter for exemptions and waivers (which now includes a paramedic exemption created by recent legislation); changes to the Texas Armed Services Scholarship (including a scholarship maximum increase to $30,000 per year and expanded eligibility and nomination procedures); and TEOG rule updates to reflect statutory requirements (including the top‑25% guarantee and transfer protections). He also noted planned cleanups at the January board meeting and a goal of fewer rules taken in July to allow a mid‑year pause for staff and institutions.

Committee members asked clarifying questions about timing, technical impacts on reporting systems and how institutions would be informed of chapter reorganizations; staff said memos and listserv notices with links to updated rules were already distributed and would be followed by training and webcast sessions next year. The committee approved the 2026 meeting dates by voice vote near the meeting's end (March 5, June 4, Sept. 10, Dec. 10) and tentatively discussed June 4 as the in‑person meeting.

The briefing covered both near-term operational steps and statutory-driven rule updates; staff said they would continue outreach and training to help campuses implement the reorganized rules.