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.

ELIGIBILITY REQUIREMENTS

• Texas resident
• Graduated 2002-2003 academic year or later under the recommended high school program from public or accredited private high school in Texas or received an associate's degree from an eligible institution no earlier than May 1, 2005
• Has not earned a bachelor's degree
• Enrolled full time in an undergraduate or certificate program at an eligible institution, and
• Has completed a FAFSA and is eligible to receive federal financial aid

ANNUAL LOAN AMOUNTS FOR 2009-2010 ACADEMIC YEAR

Students attending eligible:

• 4-year public and private institutions: $3,040/semester ($6,080/year)
• 2-year public and private junior colleges: $890/semester ($1,780/year)
• Public technical colleges: $1,340/semester ($2,680/year)

A 3% origination fee will be deducted from the loan proceeds.

ONLINE ORIENTATION

All renewal students are required to complete both the new mandatory B-On-Time Online Orientation and the Online Loan Application Certification. Once you accept your award, please allow one business day to get access to the Online Orientation. To complete the Orientation visit https://finaid.utpa.edu/BOTORIENTATION. After completing the Online Orientation, you will need to complete the Online Loan Application Certification. Below you will find the link needed to complete the electronic application.

For any assistance completing the Online Orientation, please contact us at 956-381-2144.

ELECTRONIC APPLICATION CERTIFICATION PROCESS

For Summer 2009, you will be able to update your awarded BOT loan beginning on or after June 1, 2009. BOT funds will be disbursed beginning the 1st week in June for Summer I session, on or after the first week in Summer 2 session. Please complete your Application Certification/Promissory Note at www.hhloans.com.

For any assistance completing this process, please contact the Coordinating Board at 888-263-4403.

RENEWAL ELIGIBILITY

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 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 hrs.

FORGIVENESS REQUIREMENTS

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 data 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.

IRS regulations indicate that these loans must be reported as taxable income when they are forgiven.
For more information, please call the Texas Higher Education Coordinating Board in Austin (512) 427-6340 or toll-free (outside Austin metro) 1-800-242-3062.