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THECB authorizes up to $11.5M contract with PHEAA for student loan management software
Summary
The Texas Higher Education Coordinating Board’s Agency Operations Committee approved entering a contract with the Pennsylvania Higher Education Assistance Agency (PHEAA) to provide loan origination and servicing software and related implementation services, not to exceed $11,500,000 and a maximum six‑year term.
The Texas Higher Education Coordinating Board (THECB) Agency Operations Committee voted April 23, 2025, to authorize staff to enter into a contract with the Pennsylvania Higher Education Assistance Agency (PHEAA) to supply student loan management software and implementation services in an amount not to exceed $11,500,000 and for a maximum contract term not to exceed six years.
Caitlin Yost, THECB assistant commissioner for contracts, procurement and grants, told the committee the agency issued a competitive request for offers after its legacy vendor announced it was winding down the product the agency uses. "The agency's current vendor for these services provides us with a legacy software system that the vendor is no longer bringing into the main meaning," Yost said, explaining the need for replacement. THECB's evaluation committee recommended the PHEAA proposal as the best overall value, noting PHEAA will provide origination via a third‑party platform (Campus Door) and servicing via PHEAA’s proprietary system (Compass).
The contract is structured as an initial four‑year term with two one‑year renewal options (total maximum of six years). Yost told the committee the price includes implementation fees and ancillary costs and that PHEAA reported supporting more than 150 third‑party clients.
Board members asked operational and procurement questions during the presentation. Committee members sought clarity on whether PHEAA is a private firm or a public agency; Yost replied that PHEAA "are a state agency for the Commonwealth of Pennsylvania," and that they offer services to third parties. Members also asked where data would be hosted; staff said THECB will seek an exemption from the requirement to use Texas data centers so vendor systems will be hosted on PHEAA networks, and that hosting arrangements will be vetted by the Texas Department of Information Resources for security compliance.
A committee member raised a transparency concern about vendor names appearing on the public agenda while negotiations continue; contracting staff explained the procurement statutes that govern the confidentiality of proposals prior to contract award and said the vendor name is included in supplemental materials.
The committee approved the recommendation to contract with PHEAA by voice vote. Chair Robert Wilson Junior recorded the motion on the floor and the transcript reflects a unanimous voice vote in favor.
Next steps
THECB staff will proceed to finalize procurement paperwork, request the data‑center exemption and complete required security vetting. The board record indicates staff will return with a fully executed contract and required procurement documentation per state requirements.
Provenance
The recommendation and committee discussion are recorded in the April 23, 2025 Agency Operations Committee transcript and the meeting supplemental materials.
