Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Higher Education Student Loans topic
No spam. Unsubscribe anytime.
Committee holds state graduate loan proposal amid questions about funding and oversight
Summary
HB 515, a proposal to create a state-run revolving loan fund for graduate students in programs excluded from federal subsidized loans, was held in committee as members sought input from higher-education institutions and clarity on fund controls and fiscal impacts (fiscal note cites a possible $158 million net sweep and $1.5 million ongoing cost).
The House Revenue & Taxation Committee considered HB 515 (first substitute) Feb. 19 — a sponsor-led proposal to create a state-level, revolving loan program to cover gaps where federal subsidized graduate loans are not available. After extended questioning about fund sources, oversight and fiscal implications, the committee voted to hold the bill for further stakeholder engagement.
Sponsor remarks: The bill’s sponsor described federal changes that exclude many graduate programs from full federal loan eligibility, citing nursing, social work, public health, counseling, physical and occupational therapy, audiology, architecture, accounting and education. She said HB 515 would create a state subsidized loan program that mirrors federal terms and allow degree-granting institutions to place unspent funds into a revolving loan fund administered by the state.
Fiscal concerns: During Q&A, the sponsor read the fiscal note, saying enactment "could result in a net sweep of unspent funds at degree granting institutions of 158,000,000" and that the Board of Higher Education might incur about "$1,500,000.0 in ongoing" administrative costs if it chose to sweep large amounts. Committee members pressed for clarity about whether the Utah System of Higher Education (USHE) had weighed in; the sponsor said the bill had moved faster than expected and she planned additional outreach.
Local control and timing: Members raised governance questions and timing concerns around university budget cycles and who would set program rules. Representative Kyle argued government subsidies can increase costs and expressed skeptical support for subsidizing graduate programs. Representative Coford moved a substitute motion to hold the bill to allow institutions and other stakeholders to participate in drafting; after discussion the committee voted 5–4 to hold HB 515 in committee.
Why it matters: The measure targets workforce shortages in health and other fields by aiming to expand access to affordable graduate financing where federal loans fall short. Opponents warned the bill could alter institutions’ financial management and requires clearer guardrails on rulemaking and the sweep of unspent funds.
What’s next: Sponsor said she will continue outreach and present revised options; the bill remains in committee.
