Texas B-On-Time Loan Program
The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If the student meets specified goals, the entire loan amount can be forgiven upon graduation. Your institution's Registrar will determine if you are eligible. If this loan is offered to you, the financial aid office will instruct you to complete an application and promissory note online.
|Have completed a FAFSA and be eligible to receive federal financial aid|
|Be enrolled full time in an undergraduate degree or certificate program at an eligible institution and|
|Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces|
|Have graduated in the 2002-2003 academic year or later from a high school operated by the U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in Texas|
|Have earned an associate’s degree from an eligible institution no earlier than May 1, 2005|
ANNUAL LOAN AMOUNTS FOR 2012-13
|4-year public and private institutions: $3,650 semester ($7,700/year)|
To maintain eligibility for future disbursements, the student must:To maintain eligibility for future disbursements, the student must:
|In the 1st Academic Year - make satisfactory academic progress toward a degree or certificate as determined by the institution.|
|In the 2nd and Subsequent Academic Years - complete at least 75 % of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education.|
A student may not receive B-On-Time loans for more than 150 hours.
Texas B-On-Time (BOT) Loan has a 6-month grace period from the date the student ceases to be enrolled at least half-time at an eligible institution. Repayment begins after the expiration of the 6-month grace period. The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00. BOT loans have a 0% interest rate.
Deferments for education enrollment or forbearance (financial hardship) are available. If the account defaults and a judgment is entered against the borrower, interest will begin to accrue at the legal rate described in the Terms and Notices from the date of judgment until the entire debt is paid in full.
A Texas B-On-Time Loan shall be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:
|graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:|
|4 calendar years after the date the student initially enrolled in an eligible institution,|
|5 calendar years after the date the student initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete; or|
|2 calendar years after the date the student initially enrolled in a public or private 2-year institution;
|graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree or certificate.|
Forgiven B-On-Time loans must be reported to the IRS as taxable income.
Please apply online here.
For more information, review Coordinating Board Rules, Chapter 21, Subchapter E , Texas Education Code, Chapter 56 or please call us in Austin (512) 427-6340 or toll-free (outside Austin metro) 1-800-242-3062.
The College Access Loan (CAL) Program provides an alternative type of educational loans to Texas students that attend colleges and universities in Texas. Students do not have to demonstrate financial need to receive these loans, which may be used to cover all or part of a student's Expected Family Contribution (EFC).
Deduct your federal aid from the cost of attending your school to determine the amount of the CAL loan you could receive.
Who can apply?
- Be a Texas resident;
- Be enrolled in:
- a course of study leading to an associate's or higher degree at least half-time or
- an approved Alternative Educator Certification Program; and
- Meet the satisfactory academic progress requirements set by the institution; and
- Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements.
How much can be awarded?
Students may borrow no less than $100 and up to the cost of attendance minus any other financial aid.
The following fee will be deducted from each College Access Loan:
- A 3% origination fee if both the borrower and cosigner have a good credit standing, or
- A 5% origination fee if either the borrower or cosigner, but not both has a good credit standing.
What requirements are there for cosigners?
- Be at least 21 years of age,
- Have a regular source of income,
- Not be the borrower or the spouse of the borrower,
- Receive a favorable credit evaluation, and
- Be a permanent U.S. resident or a U.S. citizen and reside in the U.S. or in a U.S. territory.
Cosigning a loan will impact your credit. In line with financial industry practice, THECB reports cosigner account obligations to the credit reporting agency(ies). The reporting is at the loan level, with each loan reported as a tradeline. If you cosign on several loans you will see a negative impact on your credit score since the credit industry views a cosigner obligation as equivalent to that of the actual borrower. If the borrower becomes delinquent or defaults on the loan, those actions will affect your credit as well. As a cosigner, you are required to pay the loan back if the borrower fails to meet his/her repayment obligation.
2011-2012 INTEREST RATE
A fixed annual rate of 5.25%. Interest is not capitalized.
College Access Loans have a six-month grace period from the date a borrower ceases to be enrolled as at least a half-time student at an eligible institution before repayment begins. Loan balances under $30,000 have a ten-year repayment period with minimum monthly payments of $50. Balances of $30,000 or more are paid over 20 years. The loan will not be sold to another lender; THECB will service the loan until it is paid in full. Postponements of loan repayment and income-sensitive or graduated repayment schedules are available.
How can I apply?
You can apply on-line now!
Where can I get more information?
For more information, see the Coordinating Board Rules, Chapter 21, Subchapter C, the Coordinating Board Rules, Chapter 21, Subchapter X, and the Texas Education Code, Chapter 52.