Texas Administrative Code Title 19

Education: As effective August 6, 2010

Chapter 21

Subchapter A

§21.1: Fund Requirements for Student Loan Bonds Interest and Sinking Fund

There shall be deposited into the interest and sinking fund the following.

(1) From the proceeds of the bonds, an amount of money sufficient to pay the interest on the bonds for a period of 24 months from the date of the bonds. Such funds so deposited should remain in the interest and sinking fund until used for the original purpose for which they were deposited. Bond resolutions provide that on the direction of the board, such money may be transferred to the Texas opportunity plan fund to the extent that it will not be needed because of money received as repayment of student loans and interest thereon, and such transfers should be made only when loan demand has exceeded expectations and no other source of funds for loans is available. It is the intent of this procedure to reduce transfers between funds to a minimum.

(2) From the proceeds of the bonds, an amount which, when added to the amount now to the credit of the reserve portion, will be equal to the average annual principal and interest requirements on the bonds and the outstanding bonds. Such funds so deposited in the reserve portion of the interest and sinking fund should remain in the reserve portion and be used only in cases of emergency when no other source of funds is available other than first monies coming into the state treasury, or to make final payments of principal and interest to become due on the bonds. The amount of average annual principal and interest requirements shall be recomputed only at such times as immediately after each sale of additional bonds; or, in the event no bond sales occur during a fiscal year, only at the close of a fiscal year.

(3) Money received in each fiscal year as repayment of student loans granted under the Act and interest thereon, including interest payments received from the federal government on behalf of student borrowers, sufficient to pay the interest on and principal of bonds to become due during the ensuing fiscal year and sufficient to maintain the reserve portion equal to the average annual principal and interest requirements on all bonds, outstanding bonds, and additional bonds at the time unpaid.

(4) Money required by the constitutional provision and the Act to be transferred into the interest and sinking fund by the state treasurer out of first monies coming into the treasury of the State of Texas in each fiscal year not otherwise appropriated by the constitution.

(5) Money in the interest and sinking fund, including the reserve portion, shall be used only for the purpose of paying interest on and principal of the bonds.

Comments

Source Note: The provisions of this §21.1 adopted to be effective January 1, 1976.

§21.2: Determination of Tuition Rate for Nonresident and Foreign Students

(a) Prior to January 1 of each calendar year in which the academic year begins, or as soon thereafter as is practicable, the Coordinating Board shall determine the tuition rate for nonresident and foreign students enrolled in general academic teaching and health-related institutions except in programs leading to a D.D.S., M.D., D.O., D.V.M., or law degree, and report the rate to the appropriate institutions.

(b) The rate set per semester credit hour is to equal the average of the nonresident undergraduate tuition charged to a resident of this state at a public state university in each of the five most populous states other than Texas.

Comments

Source Note: The provisions of this §21.2 adopted to be effective March 8, 1989, 14 TexReg 985; amended to be effective December 26, 1995, 20 TexReg 10595.

§21.3: Loan Repayment Deferral and Loan Forgiveness for Emergency Loans for Tuition, Fees and Books Made Under Texas Education Code, §56.051

(a) An institution shall defer the repayment of emergency loans for tuition, fees and books, in accordance with guidelines adopted by the governing board of the institution. The deferred repayment, however, must begin on the earlier of the following dates: the first day of the ninth month after the last month in which the borrower was enrolled in a public institution of higher education, or the fifth anniversary of the date on which the loan was executed. An institution may extend the time for repayment of loans for students who enroll in graduate or professional degree programs for up to three years, but not longer than one year beyond the time when the student fails to be enrolled in the institution on at least a half-time basis.

(b) An institution shall forgive an emergency loan to an individual who has been certified by a physician as being physically or mentally incapable of employment, resulting in a financial hardship that would make repayment infeasible. The physician's certification would need to indicate that the individual's extreme financial hardship condition is expected to continue and would likely make repayment infeasible for the succeeding five years.

(c) An institution shall maintain documentation justifying the deferral of repayments or the forgiveness of emergency loans for review by the State Auditor.

Comments

Source Note: The provisions of this §21.3 adopted to be effective January 3, 1992, 16 TexReg 7486; amended to be effective March 16, 1995, 20 TexReg 1532; amended to be effective August 19, 2001, 26 TexReg 6019; amended to be effective November 28, 2005, 30 TexReg 7853

§21.4: Collection of Tuition

(a) Unless a student's payment due date has been postponed due to pending disbursements of financial aid as described in subsection (b), of this section, the following conditions shall apply in the collection of tuition and/or tuition and fees at institutions of higher education and in the conducting of enrollment audits.

(1) On or before the dates for reporting official enrollments to the Texas Higher Education Coordinating Board each enrollment period, each community college shall collect in full from each student that is to be counted for formula funding purposes the amounts set as tuition by the respective governing boards.

(2) On or before the 20th class day for each regular semester and the 15th class day for each summer session, institutions other than community colleges shall collect from each student who is to be counted for state formula funding appropriations, the tuition and fees (mandatory and optional) established by state law or by the respective governing boards.

(3) Valid contracts with the United States government for instruction of eligible military personnel, approved financial assistance, and valid contracts with private business and public-service type organizations or institutions such as hospitals, may be considered as collected tuition and fees; the amount of collected tuition and fees may be adjusted pursuant to terms of the contract once actual collections are made.

(4) Returned checks must be covered by a transfer from a self-supporting auxiliary enterprise fund or other non-state fund source (e.g., food service, bookstore) within ten days of the date the institution receives the returned check in order for contact hours to be presented to the state for funding.

(5) Auxiliary enterprise or other non-state fund sources may not be reimbursed with state-provided funds.

(6) Institutions must retain records of individual student tuition or tuition and fee payment and returned checks for verification by the State Auditor.

(b) Payment Options for Students with Delayed Financial Aid.

(1) If an institution's financial aid office has awarded aid to a student but the institution has not received the relevant disbursements by the date that tuition and fees must be paid, the student's aid is delayed. If the student agrees to assign to the institution a portion of the awards equal to the amount of tuition and fees to be met with financial aid payments, the governing board may postpone the due date for the portion of the tuition and or tuition and fee payment that will be met through financial aid funds and the hours to be paid for with the financial aid may be counted for formula funding purposes.

(2) If, after the student's due date is postponed, the student becomes ineligible to receive one or more of the pending financial aid awards or the award amount is less than the amount of tuition and fees due, the governing board is to grant the student a repayment period for the unpaid amount that:

(A) does not exceed 30 days,

(B) allows for multiple payments, if necessary, and

(C) entails a processing fee not to exceed 5 percent of the total amount to be collected.

(3) An institution may deny academic credits for hours completed in the semester or term if the student fails to pay the full tuition and fee amount by the end of the 30-day repayment period.

(c) A student paying tuition and fees by installments shall be granted the options of delayed payment outlined in subsection (b) of this section (relating to Payment Options for Students with Delayed Financial Aid) if he or she is awaiting the disbursement of financial aid.

Comments

Source Note: The provisions of this §21.4 adopted to be effective March 16, 1995, 20 TexReg 1532; amended to be effective May 23, 2002, 27 TexReg 4335; amended to be effective November 28, 2005, 30 TexReg 7853

§21.5: Refund of Tuition and Fees at Public Community/Junior and Technical Colleges

(a) A community/junior or technical college, as soon as practicable, shall at a minimum refund mandatory fees and tuition in excess of the minimum tuition collected for courses from which the students drop or withdraw, according to the following schedule. For courses which meet on what the college considers a regular schedule, class days refer to the number of calendar days the institution normally meets for classes, not the days a particular course meets. For courses which meet on an unusual or irregular schedule, the college may exercise professional judgement in defining a class day. The indicated percentages are to be applied to the tuition and mandatory fees collected for each course from which the student is withdrawing. The college may not delay a refund on the grounds that the student may withdraw from the institution or unit later in the semester or term. The institution may assess a nonrefundable $15 matriculation fee if the student withdraws from the institution before the first day of classes.

(1) Coordinating Board approved semester-length courses for which semester credit hours are awarded:

(A) A 100% refund is to be made for courses dropped prior to the first class day.

(B) During the fall or spring semester or comparable trimester:

(i) during the first 15 class days, 70%;

(ii) during the 16th through 20th class days, 25%;

(iii) after the 20th class day, none; and

(C) Six-week summer semester:

(i) during the first five class days, 70%;

(ii) during the sixth and seventh class days, 25%;

(iii) after the seventh class day, none.

(2) For flex entry and non-semester-length courses with a census date other than the 12th class day (fourth class day for a six-week summer semester):

(A) prior to the first class day, 100%;

(B) after classes begin, see table:

Attached Graphic

(b) A community/junior or technical college must follow the applicable refund policy outlined in subsection (a)(1) and (2) of this section for courses associated with any program which is approved for Title IV federal funding. The institution may determine a refund policy for any other program.

(c) Prior to the census date, community and technical colleges may allow hours to be dropped and re-added without penalty to the student if the exchange is an equal one. When the charges for dropped hours are greater than for the hours added, the refund policy outlined above is to be applied to the net charges being dropped. If the charges for hours being added exceed the charges for hours being dropped, the student must pay the net additional charges.

(d) Separate withdrawal refund schedules may be established for optional fees such as intercollegiate athletics, cultural entertainment, parking and yearbooks.

(e) A community/junior or technical college shall refund tuition and fees paid by a sponsor, donor, or scholarship to the source rather than directly to the student who has withdrawn if the funds were made available through the institution.

(f) A community/junior or technical college may terminate student services and privileges, such as health services, library privileges, facilities usage, and athletic and cultural entertainment tickets when a student withdraws from the institution.

(g) If a student withdraws because the student is called into active military service, the institution, at the student's option, shall:

(1) refund the tuition and fees paid by the student for the semester in which the student withdraws;

(2) grant a student, who is eligible under the institution's guidelines, an incomplete grade in all courses by designating "withdrawn-military" on the student's transcript; or

(3) as determined by the instructor, assign an appropriate final grade or credit to a student who has satisfactorily completed a substantial amount of course work and who has demonstrated sufficient mastery of the course material.

Comments

Source Note: The provisions of this §21.5 adopted to be effective December 26, 1995, 20 TexReg 10595; amended to be effective September 13, 1996, 21 TexReg 8504; amended to be effective November 26, 1997, 22 TexReg 11358

§21.6: Student Compliance with Selective Service Registration

(a) An individual may not receive a loan, grant, scholarship, or other financial assistance funded by state revenue, including federal funds or gifts and grants accepted by this state, or receive a student loan guaranteed by this state or the Texas Guaranteed Student Loan Corporation, unless the individual files a statement of the individual's Selective Service status with the institution or other entity granting or guaranteeing the financial assistance as required by this section.

(b) Rules and guidelines to be used in administering the Texas Education Code, §51.9095 will be the same as those used for students receiving federal financial aid.

Comments

Source Note: The provisions of this §21.6 adopted to be effective June 2, 1998, 23 TexReg 5672.

§21.7: Tuition and Fee Definitions

The definitions found in Chapter 13, Subchapter H of this title (relating to Reporting of Tuition and Fees), are to be applied to all tuition and fee exemption and waiver programs provided under Texas Education Code, Chapter 54.

Comments

Source Note: The provisions of this §21.7 adopted to be effective August 15, 2006, 31 TexReg 6331

§21.8: Definition of Student Financial Need

Unless otherwise specified in statute or rule, a student's financial need is defined as the difference between the student's cost of attendance as determined by the institution and the student's expected family contribution as calculated using the United States Department of Education's federal methodology.

Comments

Source Note: The provisions of this §21.8 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.9: Collection of Tuition Set Aside for Texas B-On-Time Loan Program

(a) By August 31 of each year the Coordinating Board shall disseminate to institutions of higher education guidelines for calculating the tuition to be set aside during the upcoming academic year for the Texas B-On-Time Loan Program as established in Texas Education Code §56.465.

(b) By September 30 of each year the Coordinating Board shall:

(1) review data reported to it by institutions of higher education for the prior fiscal year regarding collected resident undergraduate designated tuition charged in excess of $46 per semester credit hour;

(2) compare the amount collected by institutions with the amount deposited in the fund established by Texas Education Code §56.463; and

(3) require institutions to reconcile, by December 31st of the same calendar year, any amounts deposited in the fund that are greater than or less than 5 percent of the amount reported in paragraph (1) of this section.

Comments

Source Note: The provisions of this §21.9 adopted to be effective August 26, 2009, 34 TexReg 5682

Subchapter B

§21.21: Authority and Purpose

Texas Education Code, §54.075, requires the Board to adopt rules to carry out the purposes of Texas Education Code, Subchapter B, concerning the determination of resident status for tuition purposes.

Comments

Source Note: The provisions of this §21.21 adopted to be effective May 21, 2008, 33 TexReg 3939

§21.22: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Census date--The date in an academic term for which an institution is required to certify a person's enrollment in the institution for the purposes of determining formula funding for the institution.

(2) Coordinating Board or Board--The Texas Higher Education Coordinating Board.

(3) Core Residency Questions--The questions promulgated by the Board to be completed by a person and used by an institution to determine if the person is a Texas resident. For enrollments prior to the 2008 - 2009 academic year, institutions may use the core questions developed and distributed by the Board in 1999 or later, including the core questions included in the Texas Common Application, or the core questions set forth in current Board rules or posted on the Texas Higher Education Coordinating Board web site. The core questions to be used for enrollments for and after the 2008 - 2009 academic year shall be the core questions in the Texas Common Application or core questions posted on the Board web site.

(4) Dependent--A person who:

(A) is less than 18 years of age and has not been emancipated by marriage or court order; or

(B) is eligible to be claimed as a dependent of a parent of the person for purposes of determining the parent's income tax liability under the Internal Revenue Code of 1986.

(5) Domicile--A person's principal, permanent residence to which the person intends to return after any temporary absence.

(6) Eligible for Permanent Resident Status--a person who has filed an I-485 application for permanent residency and has been issued a fee/filing receipt or notice of action by the United States Citizenship and Immigration Services (USCIS) showing that his or her I-485 has been reviewed and has not been rejected.

(7) Established a domicile in Texas--A person has established a domicile in Texas if he or she has met the conditions shown in §21.24(d) of this title (relating to Determination of Resident Status).

(8) Eligible Nonimmigrant--A person who has been issued a type of nonimmigrant visa by the USCIS that permits the person to establish a domicile in the United States.

(9) Financial need--An economic situation that exists for a student when the cost of attendance at an institution of higher education is greater than the resources the family has available for paying for college. In determining a student's financial need an institution must compare the financial resources available to the student to the institution's cost of attendance.

(10) Gainful employment--Activities intended to provide an income to a person or allow a person to avoid the expense of paying another person to perform the tasks (as in child care or the maintenance of a home). A person who is self-employed, employed as a homemaker, or who is living off his/her earnings may be considered gainfully employed for purposes of establishing residency, as may a person whose primary support is public assistance.

(11) General Academic Teaching Institution--The University of Texas at Austin; The University of Texas at El Paso; The University of Texas of the Permian Basin; The University of Texas at Dallas; The University of Texas at San Antonio; Texas A&M University, Main University; The University of Texas at Arlington; Tarleton State University; Prairie View A&M University; Texas Maritime Academy (now Texas A&M University- Galveston); Texas Tech University; University of North Texas; Lamar University; Lamar State College--Orange; Lamar State College--Port Arthur; Texas A&M University--Kingsville; Texas A&M University--Corpus Christi; Texas Woman's University; Texas Southern University; Midwestern State University; University of Houston; University of Texas--Pan American; The University of Texas at Brownsville; Texas A&M University--Commerce; Sam Houston State University; Texas State University--San Marcos; West Texas A&M University; Stephen F. Austin State University; Sul Ross State University; Angelo State University; and The University of Texas at Tyler, and as defined in Texas Education Code, §61.003(3).

(12) Institution or institution of higher education--Any public technical institute, public junior college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003(8).

(13) Legal guardian--A person who is appointed guardian under the Texas Probate Code, Chapter 693, or a temporary or successor guardian.

(14) Maintain a residence--To physically reside in a location. The maintenance of a residence is not interrupted by a temporary absence from the state, as provided in §21.24(e) of this title (relating to Determination of Resident Status).

(15) Managing conservator--A parent, a competent adult, an authorized agency, or a licensed child-placing agency appointed by court order issued under the Texas Family Code, Title 5.

(16) Nonresident tuition--The amount of tuition paid by a person who does not qualify as a Texas resident under this subchapter unless such person qualifies for a waiver program under §21.29 of this title (relating to Waiver Programs for Certain Nonresident Persons).

(17) Nontraditional secondary education--A course of study at the secondary school level in a nonaccredited private school setting, including a home school.

(18) Parent--A natural or adoptive parent, managing or possessory conservator, or legal guardian of a person. The term does not include a step-parent.

(19) Possessory conservator--A natural or adoptive parent appointed by court order issued under the Texas Family Code, Title 5.

(20) Private high school--A private or parochial school in Texas.

(21) Public technical institute or college--The Lamar Institute of Technology or any campus of the Texas State Technical College System.

(22) Regular semester--A fall or spring semester, typically consisting of 16 weeks.

(23) Residence--A person's home or other dwelling place.

(24) Residence Determination Official--The primary individual at each institution who is responsible for the accurate application of state statutes and rules to individual student cases.

(25) Resident tuition--The amount of tuition paid by a person who qualifies as a Texas resident under this subchapter.

(26) Temporary absence--Absence from the State of Texas with the intention to return, generally for a period of less than five years.

(27) United States Citizenship and Immigration Services (USCIS)--The bureau of the U.S. Department of Homeland Security that is responsible for the administration of immigration and naturalization adjudication functions and establishing immigration services policies and priorities.

Comments

Source Note: The provisions of this §21.22 adopted to be effective May 21, 2008, 33 TexReg 3939; amended to be effective August 25, 2008, 33 TexReg 6813

§21.23: Effective Date of this Subchapter

Each institution shall apply these rules beginning with enrollments for the Fall Semester, 2006.

Comments

Source Note: The provisions of this §21.23 adopted to be effective May 21, 2008, 33 TexReg 3939

§21.24: Determination of Resident Status

(a) The following persons shall be classified as Texas residents and entitled to pay resident tuition at all institutions of higher education:

(1) a person who:

(A) graduated from a public or accredited private high school in this state or, as an alternative to high school graduation, received the equivalent of a high school diploma in this state, including the successful completion of a nontraditional secondary education; and

(B) maintained a residence continuously in this state for:

(i) the thirty-six months immediately preceding the date of graduation or receipt of the diploma equivalent, as applicable; and

(ii) the 12 months preceding the census date of the academic semester in which the person enrolls in an institution.

(2) a person who:

(A) established a domicile in this state not less than 12 months before the census date of the academic semester in which the person enrolls in an institution; and

(B) maintained a residence continuously in the state for the 12 months immediately preceding the census date of the academic semester in which the person enrolls in an institution.

(3) a dependent whose parent:

(A) established a domicile in this state not less than 12 months before the census date of the academic semester in which the person enrolls in an institution; and

(B) maintained a residence continuously in the state for the 12 months immediately preceding the census date of the academic semester in which the person enrolls in an institution.

(b) The following non-U. S. citizens may establish a domicile in this state for the purposes of subsection (a)(2) or (3) of this section:

(1) a Permanent Resident;

(2) a person who is eligible for permanent resident status, as defined in §21.22(6) of this title (relating to Definitions);

(3) an eligible nonimmigrant that holds one of the types of visas listed in Chart I and incorporated into this subchapter for all purposes;

Attached Graphic

(4) a person classified by the USCIS as a Refugee, Asylee, Parolee, Conditional Permanent Resident, or Temporary Resident;

(5) a person holding Temporary Protected Status, and Spouses and Children with approved petitions under the Violence Against Women Act (VAWA), an applicant with an approved USCIS I-360, Special Agricultural Worker, and a person granted deferred action status by USCIS;

(6) a person who has filed an application for Cancellation of Removal and Adjustment of Status under Immigration Nationality Act 240A(b) or a Cancellation of Removal and Adjustment of Status under the Nicaraguan and Central American Relief Act (NACARA), Haitian Refugee Immigrant Fairness Act (HRIFA), or the Cuban Adjustment Act, and who has been issued a fee/filing receipt or Notice of Action by USCIS; and

(7) a person who has filed for adjustment of status to that of a person admitted as a Permanent Resident under 8 United States Code 1255, or under the "registry" program (8 United States Code 1259), or the Special Immigrant Juvenile Program (8 USC 1101(a)(27)(J)) and has been issued a fee/filing receipt or Notice of Action by USCIS.

(c) The domicile of a dependent's parent is presumed to be the domicile of the dependent unless the dependent establishes eligibility for resident tuition under subsection (a)(1) of this section.

(d) A domicile in Texas is presumed if, at least 12 months prior to the census date of the semester in which he or she is to enroll, the person owns real property in Texas, owns a business in Texas, or is married to a person who has established a domicile in Texas. Gainful employment other than work-study and other such student employment can also be a basis for establishing a domicile.

(e) The temporary absence of a person or a dependent's parent from the state for the purpose of service in the U.S. Armed Forces, Public Health Service, Department of Defense, U.S. Department of State, as a result of an employment assignment, or for educational purposes, shall not affect a person's ability to continue to claim that he or she is a domiciliary of this state. The person or the dependent's parent shall provide documentation of the reason for the temporary absence.

(f) The temporary presence of a person or a dependent's parent in Texas for the purpose of service in the U.S. Armed Forces, Public Health Service, Department of Defense or service with the U.S. Department of State, or as a result of any other type of employment assignment does not preclude the person or parent from establishing a domicile in Texas.

Comments

Source Note: The provisions of this §21.24 adopted to be effective May 21, 2008, 33 TexReg 3939; amended to be effective August 25, 2008, 33 TexReg 6813

§21.25: Information Required to Initially Establish Resident Status

(a) To initially establish resident status under §21.24 of this title (relating to Determination of Resident Status):

(1) a person who qualifies for residency under §21.24(a)(1) of this title shall provide the institution with:

(A) a completed set of Core Residency Questions; or

(B) a copy of supporting documentation along with a statement of the dates and length of time the person has resided in this state, as relevant to establish resident status under this subchapter and a statement by the person that the person's presence in this state for that period was for the purpose of establishing and maintaining a domicile in Texas.

(2) a person who qualifies for residency under §21.24(a)(2) or (3) of this title shall provide the institution with a completed set of Core Residency Questions.

(b) An institution may request that a person provide documentation to support the answers to the Core Residency Questions. A list of appropriate documents is included in Revised Chart III, which is incorporated into this subchapter for all purposes. In addition, the institution may request documents that support the information the student may provide in the core questions, Section H.

Attached Graphic

(c) If a person who establishes resident status under §21.24(a)(1) of this title is not a Citizen of the United States or a Permanent Resident, the person shall, in addition to the other requirements of this section, provide the institution with a signed affidavit, stating that the person will apply to become a Permanent Resident as soon as the person becomes eligible to apply. The affidavit shall be required only when the person applies for resident status and shall be in the form provided in Chart II and incorporated into this subchapter for all purposes.

Attached Graphic

(d) An institution shall not impose any requirements in addition to the requirements established in this section for a person to establish resident status.

Comments

Source Note: The provisions of this §21.25 adopted to be effective May 21, 2008, 33 TexReg 3939; amended to be effective August 25, 2008, 33 TexReg 6813

§21.26: Continuing Resident Status

(a) Except as provided under subsection (c) of this section, a person who was enrolled in an institution for any part of the previous state fiscal year and who was classified as a resident of this state under Chapter 54, Subchapter B, Texas Education Code, in the last academic period of that year for which the person was enrolled is considered to be a resident of this state for purposes of this subchapter, as of the beginning of the following fall semester. If an institution acquires documentation that a person is a continuing student who was classified as a resident at the previous institution, no additional documentation is required. The person is not required to complete a new set of Core Questions.

(b) Except as provided by subsection (c) of this section, a person who has established resident status under this subchapter is entitled to pay resident tuition in each subsequent academic semester in which the person enrolls at any institution.

(c) A person who enrolls in an institution after two or more consecutive regular semesters during which the person is not enrolled in a public institution shall submit the information required in §21.25 of this title (relating to Information Required to Establish Resident Status), and satisfy all the applicable requirements to establish resident.

Comments

Source Note: The provisions of this §21.26 adopted to be effective May 21, 2008, 33 TexReg 3939

§21.27: Reclassification Based on Additional or Changed Information

(a) If a person is initially classified as a nonresident based on information provided through the set of Core Residency Questions, the person may request reclassification by providing the institution with supporting documentation as described in Revised Chart III, which is incorporated into §21.25(b) of this title (relating to Information Required to Initially Establish Resident Status).

(b) A person shall provide the institution with any additional or changed information which may affect his or her resident or nonresident tuition classification under this subchapter.

(c) An institution may reclassify a person who had previously been classified as a resident or nonresident under this subchapter based on additional or changed information provided by the person.

(d) Any change made under this section shall apply to the first succeeding semester in which the person is enrolled, if the change is made on or after the census date of that semester. If the change is made prior to the census date, it will apply to the current semester.

Comments

Source Note: The provisions of this §21.27 adopted to be effective May 21, 2008, 33 TexReg 3939

§21.28: Errors in Classification

(a) If an institution erroneously permits a person to pay resident tuition and the person is not entitled or permitted to pay resident tuition under this subchapter, the institution shall charge nonresident tuition to the person beginning with the semester following the date that the institution discovers the error.

(b) Not later than the first day of the following semester, the institution may notify the person that he or she must pay the difference between resident and nonresident tuition for each previous semester in which the student should not have paid resident tuition, if:

(1) the person failed to provide to the institution, in a timely manner after the information becomes available or on request by the institution, any information that the person reasonably should know would be relevant to an accurate classification by the institution under this subchapter information; or

(2) the person provided false information to the institution that the person reasonably should know could lead to an erroneous classification by the institution under this subchapter.

(c) If the institution provides notice under subsection (b) of this section, the person shall pay the applicable amount to the institution not later than the 30th day after the date the person is notified of the person's liability for the amount owed. After receiving the notice and until the amount is paid in full, the person is not entitled to receive from the institution a certificate or diploma, if not yet awarded on the date of the notice, or official transcript that is based at least partially on or includes credit for courses taken while the person was erroneously classified as a resident of this state.

(d) If an institution erroneously classified a person as a resident of this state under this subchapter and the person is entitled or permitted to pay resident tuition under this subchapter, that person is not liable for the difference between resident and nonresident tuition under this section.

(e) If an institution erroneously classifies a person as a nonresident and the person is a resident under this subchapter, the institution shall refund the difference in resident and nonresident tuition for each semester in which the student was erroneously classified and paid the nonresident tuition rate.

Comments

Source Note: The provisions of this §21.28 adopted to be effective May 21, 2008, 33 TexReg 3939

§21.29: Waiver Programs for Certain Nonresident Persons

A person who is classified as a nonresident under the provisions of this section shall be permitted to pay resident tuition, if the person qualifies for one of the following waiver programs:

(1) Economic Development and Diversification Program.

(A) A nonresident person, (including a Citizen, a Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) whose family has been transferred to Texas by a company established as part of the state's Economic Development and Diversification Program not earlier than five years before the relevant enrollment date, and a person's spouse and children shall pay resident tuition as soon as they move to Texas, if the person provides the institution with a letter of intent to establish Texas as his/her home. A person who moves to Texas to attend an institution before his/her family is transferred is permitted to pay the resident tuition beginning with the first semester or term after the family moves to the state.

(B) After the family has maintained a residence in Texas for 12 months, the person may request a change in classification in order to pay resident tuition.

(C) A current list of eligible companies is maintained on the Coordinating Board web site at www.collegeforalltexans.com.

(2) Program for Teachers, Professors, their Spouses and Dependents.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) employed as a teacher or professor at least half time on a regular monthly salary basis (not as hourly employee) by an institution shall pay resident tuition at any institution in the state and the spouse and dependent children of the nonresident person shall also pay resident tuition.

(B) This waiver program is applicable only during the person's periods of employment.

(C) If a spouse or dependent child of the teacher or professor attends an institution other than the employing institution, the employing institution shall provide a letter to the spouse or child's institution verifying the employment of the teacher or professor.

(3) Program for Teaching Assistants and Research Assistants, their Spouses and Dependents.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) employed by an institution as a teaching or research assistant on at least a half-time basis in a position related to his/her degree program shall pay resident tuition at any institution in this state and the spouse and dependent children of the nonresident person shall also pay resident tuition.

(B) The employing institution shall determine whether or not the person's employment relates to the degree program.

(C) If a spouse or dependent child of the teacher or professor attends an institution other than the employing institution, the employing institution shall provide a letter to the spouse or child's institution verifying the employment of the teaching or research assistant.

(D) This waiver program is applicable only during the person's periods of employment.

(4) Program for Competitive Scholarship Recipients.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) who receives a competitive scholarship from the institution may be allowed to pay resident tuition.

(B) In order for the person to be eligible for this waiver program, the competitive scholarship must:

(i) total at least $1,000 for the period of time covered by the scholarship, not to exceed 12 months; and

(ii) be awarded by a scholarship committee authorized in writing by the institution's administration to grant scholarships that permit this waiver of nonresident tuition; and

(iii) be awarded according to criteria published in the institution's paper or electronic catalog, available to the public in advance of any application deadline; and

(iv) be awarded under circumstances that cause both the funds and the selection process to be under the control of the institution; and

(v) permit awards to both resident and nonresident persons.

(C) The scholarship award shall specify the semester or semesters for which the scholarship is awarded and a waiver of nonresident tuition under this provision shall not exceed the semester or semesters for which the scholarship is awarded.

(D) If the scholarship is terminated for any reason prior to the end of the semester or semesters for which the scholarship was initially awarded, the person shall pay nonresident tuition for any semester following the termination of the scholarship.

(E) The total number of persons receiving a waiver of nonresident tuition in any given semester under this provision shall not exceed 5 percent of the students enrolled in the same semester in the prior year in that institution.

(F) If the scholarship recipient is concurrently enrolled at more than one institution, the waiver of nonresident tuition is only effective at the institution awarding the scholarship. An exception for this rule exists for a nonresident person who is simultaneously enrolled in two or more institutions of higher education under a program offered jointly by the institutions under a partnership agreement. If one of the partnership institutions awards a competitive scholarship to a person, the person is entitled to a waiver of nonresident tuition at the second institution.

(G) If a nonresident person is awarded a competitive academic scholarship or stipend under this provision and the person is accepted in a clinical biomedical research training program designed to lead to both a doctor of medicine and doctor of philosophy degree, he or she is eligible to pay the resident tuition rate.

(H) A student awarded a competitive scholarship prior to fall 2009 that entitled him or her to pay resident tuition in the 2009-2010 academic year is entitled to continue paying resident tuition in subsequent semesters if awarded competitive scholarships in keeping with this paragraph and if the student remains enrolled in the same certificate or degree program. This provision expires August 1, 2014.

(5) Programs for Lowered Tuition for Individuals from Bordering States or Mexico.

(A) Programs that Require Reciprocity. Waivers of nonresident tuition made through each of the following three programs for persons from states neighboring Texas must be based on reciprocity and the institution shall not grant these waivers unless the institution has been provided with a current written agreement with a similar institution in the other state, agreeing to lower tuition for Texas students attending that institution. A participating Texas institution shall file a copy of such agreements with the Board and the agreements shall not be more than 2 years old. The amount of tuition charged shall not be less than the Texas resident tuition rate.

(i) Persons residing in New Mexico, Oklahoma, Arkansas or Louisiana may pay a lowered nonresident tuition when they attend Texas A&M Texarkana, Lamar State College-Port Arthur, Lamar State College-Orange or any public community or technical college located in a county adjacent to their home state.

(ii) Persons residing in New Mexico and Oklahoma may pay a lowered nonresident tuition when they attend a public technical college located within 100 miles of the border of their home state.

(iii) Persons residing in counties or parishes of New Mexico, Oklahoma, Arkansas or Louisiana adjacent to Texas may pay a lowered nonresident tuition at any institution.

(iv) If a person or a dependent child's family moves to Texas from a bordering state after the person or dependent child has received a waiver of nonresident tuition based on reciprocity as described in this section, the person is eligible for a continued waiver of nonresident tuition for the 12-month period after the relocation to Texas.

(B) Programs That Do Not Require Reciprocity. Persons who reside in another state may pay a lowered nonresident tuition not less than $30 per semester credit hour above the current resident tuition rate when they attend a general academic teaching institution located within 100 miles of the Texas border if:

(i) the governing board of the institution approves the tuition rate as in the best interest of the institution and finds that such a rate will not cause unreasonable harm to any other institution; and

(ii) the Commissioner approves the tuition rate. This obligation to obtain the approval of the Commissioner is continuing and approval to participate in this waiver program must be obtained at least every two years.

(C) Programs for Residents of Mexico. Subject to the following provisions, persons who are currently residents of Mexico and those persons who are temporarily residing outside of Mexico but with definite plans to return to Mexico shall pay resident tuition.

(i) An unlimited number of residents of Mexico who have demonstrated financial need and attend a general academic teaching institution or a component of the Texas State Technical College System, if the institution or component is located in a county adjacent to Mexico, Texas A&M University-Corpus Christi, Texas A&M University-Kingsville, the University of Texas at San Antonio, or Texas Southmost College shall pay resident tuition.

(ii) A limited number of residents of Mexico who have financial need may attend a general academic teaching institution or campus of the Texas State Technical College System located in counties not adjacent to Mexico and pay resident tuition This waiver program is limited to the greater of two students per 1000 enrollment, or 10 students per institution.

(iii) An unlimited number of residents of Mexico who have demonstrated financial need and register in courses that are part of a graduate degree program in public health conducted by an institution in a county immediately adjacent to Mexico shall pay resident tuition.

(6) Program for the beneficiaries of the Texas Tomorrow Fund. A person who is a beneficiary of the Texas Tomorrow Fund shall pay resident tuition and required fees for semester hours paid under the prepaid tuition contract. If the person is not a Texas resident, all tuition and fees not paid under the contract shall be paid at the nonresident rate.

(7) Program for Inmates of the Texas Department of Criminal Justice. All inmates of the Texas Department of Criminal Justice shall pay resident tuition.

(8) Program for Foreign Service Officers. A Foreign Service officer employed by the U.S. Department of State and enrolled in an institution shall pay resident tuition if the person is assigned to an office of the U.S. Department of State that is located in Mexico.

(9) Program for Registered Nurses in Postgraduate Nursing Degree Programs. An institution may permit a registered nurse authorized to practice professional nursing in Texas to pay resident tuition and fees without regard to the length of time that the registered nurse has resided in Texas, if the nurse:

(A) is enrolled in a program designed to lead to a master's degree or other higher degree in nursing; and

(B) intends to teach in a program in Texas designed to prepare students for licensure as registered nurses.

(10) Programs for Military and Their Families. Members of the U.S. Armed Forces, Army National Guard, Air National Guard, Army, Air Force, Navy, Marine Corps or Coast Guard Reserves and Commissioned Officers of the Public Health Service, and their Spouses or Dependent Children.

(A) Assigned to Duty in Texas. Nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, Army, Air Force, Navy, Marine Corps or Coast Guard Reserves and Commissioned Officers of the Public Health Service who are assigned to duty in Texas, and their spouses, or dependent children, shall pay resident tuition. To qualify, the person shall submit during his or her first semester of enrollment in which he or she will be using the waiver program, a statement from an appropriately authorized officer in the service, certifying that he or she (or a parent) will be assigned to duty in Texas on the census date of the term he or she plans to enroll and that he or she, if a member of the National Guard or Reserves, is not in Texas only to attend training with Texas units. Such persons shall pay resident tuition so long as they reside continuously in Texas or remain continuously enrolled in the same degree or certificate program. For purposes of this subsection, a person is not required to enroll in a summer semester to remain continuously enrolled.

(B) After Assignment to Duty in Texas. A spouse and/or dependent child of a nonresident member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who has been reassigned elsewhere after having been assigned to duty in Texas shall pay resident tuition so long as the spouse or child resides continuously in Texas. For purposes of this subsection, a person is not required to enroll in a summer semester to remain continuously enrolled.

(C) Out-of-State Military. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who is stationed outside of Texas shall pay resident tuition if the spouse and/or child moves to this state and files a statement of intent to establish residence in Texas with the institution that he or she attends.

(D) Survivors. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who died while in service, shall pay resident tuition if the spouse and/or child moves to Texas within 60 days of the date of death. To qualify, a person shall submit satisfactory evidence to the institution that establishes the date of death of the member and that the spouse and/or dependent child has established a domicile in Texas.

(E) Spouse and Dependents who Previously Lived in Texas. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who previously resided in Texas for at least six months shall pay resident tuition, if the member or commissioned officer, at least 12 months prior to the census date of the spouse's or dependent child's enrollment in an institution:

(i) filed proper documentation with the military or Public Health Service to change his/her permanent residence to Texas and designated Texas as his/her place of legal residence for income tax purposes; and

(ii) registered to vote in Texas, and

(iii) has satisfied a least one of the following requirements for the 12 months prior to the first day of the relevant semester:

(I) ownership of real estate in Texas with no delinquent property taxes;

(II) registration of an automobile in Texas; or

(III) execution of a currently-valid will deposited with a county clerk in Texas that indicates he/she is a resident of Texas.

(F) Honorably Discharged Veterans. A former member of the U.S. Armed Forces or Commissioned Officer of the Public Health Service and his/her spouse and/or dependent child shall pay resident tuition for any semester beginning prior to the first anniversary of separation from the military or health service, if the former member:

(i) had, at least one year preceding the census date of the term or semester, executed a document with U.S. Armed Forces or Public Health Service that is in effect on the census date of the term or semester and that changed his/her permanent residence to Texas and designated Texas as his/her place of legal residence for income tax purposes; and

(ii) had registered to vote in Texas for at least 12 months prior to the census date of the term or semester; and

(iii) provides documentation that the member has, not less than 12 months prior to the census date of the term in which he or she plans to enroll, taken 1 of the 3 following actions:

(I) purchased real estate in Texas with no delinquent property taxes;

(II) registered an automobile in Texas; or

(III) executed a currently-valid will that has been deposited with a county clerk in Texas that indicates he/she is a resident of Texas.

(G) NATO Forces. Non-immigrant aliens stationed in Texas under the agreement between the parties to the North Atlantic Treaty regarding status of forces, their spouses and dependent children, shall pay resident tuition.

(H) Radiological Science Students at Midwestern State University. Members of the U.S. Armed Forces stationed outside the State of Texas who are enrolled in a bachelor of science or master of science degree program in radiological sciences at Midwestern State University by instructional telecommunication shall pay resident tuition and other fees or charges provided for Texas residents, if they began the program of study while stationed at a military base in Texas.

(I) Persons Eligible for Federal Education Benefits for Veterans, their Spouses and Children. Persons eligible for benefits under the federal Post 9/11 Veterans Educational Assistance Act of 2008, or any other federal law authorizing educational benefits for veterans, are eligible to pay the resident tuition rate without regard to the length of time they have been in the state, as are their spouses and children (including stepchildren), if they meet the following conditions:

(i) file a letter of intent with their institution to establish residency in Texas;

(ii) reside in this state while enrolled in the institution;

(iii) if qualifying as a child, be 25 years of age or younger on the first day of the term in which the person is registering unless meeting the hardship provisions described in clause (iv) of this subparagraph; and

(iv) if the child applying for an exemption under this provision is 25 years of age or older but can provide proof to the institution of severe illness or other debilitating condition that affected the person's ability to use the benefit before reaching that age, the child's period of eligibility to use the waiver shall be extended for a length of time equal to the period of illness or incapacity.

(11) Program for the Center for Technology Development and Transfer. Under agreements authorized by Texas Education Code, §65.45, a person employed by the entity with whom the University of Texas System enters into such an agreement, or the person's spouse or child, may pay resident tuition when enrolled in a University of Texas System institution.

§21.30: Residence Determination Official

Each institution shall designate an individual that is employed by the institution as a Residence Determination Official who shall be knowledgeable of the requirements set out in this subchapter and the applicable statutes.

Comments

Source Note: The provisions of this §21.30 adopted to be effective May 21, 2008, 33 TexReg 3939; amended to be effective May 26, 2010, 35 TexReg 4153

Subchapter C

§21.51: Purpose

This subchapter establishes rules relating to the administration of several student loan programs that have been authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.

Comments

Source Note: The provisions of this §21.51 adopted to be effective May 22, 2003, 28 TexReg 3950

§21.52: Authority

Unless otherwise noted in a section, the authority for these provisions is provided by the Texas Education Code, §§52.31-52.40.

Comments

Source Note: The provisions of this §21.52 adopted to be effective May 22, 2003, 28 TexReg 3950

§21.53: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Alternative Educator Certification Program--an approved educator preparation program, delivered by entities approved by the State Board for Educator Certification under the provisions of Texas Administrative Code, §228.10, specifically designed as an alternative to a traditional undergraduate certification program, for individuals already holding at least a baccalaureate degree.

(2) Auxiliary Fund--the Student Loan Auxiliary Fund authorized in the Texas Education Code, Chapter 52, §§52.81 - 52.90.

(3) Board--the Texas Higher Education Coordinating Board.

(4) CAL or CALP--College Access Loan Program.

(5) Career college--an educational institution that is not a public or private nonprofit educational institution and is approved by the U.S. Secretary of Education under the Higher Education Act of 1965, as amended, and the regulations found in 34 C.F.R. §600.5.

(6) Commissioner--the Commissioner of Higher Education.

(7) Cosigner/Accommodation Party--one who signs a student loan promissory note and thereby assumes liability for the debt and all fees and expenses associated with the note, who is not a direct beneficiary of the proceeds of the loan.

(8) Cost of Attendance--expenses, including direct educational costs (tuition, fees, books, and supplies) as well as indirect educational costs (room and board, transportation, and personal expenses) incurred by a typical student receiving financial aid in attending a particular college.

(9) Default--the failure of a borrower and cosigner, if any, to make loan installment payments when due for a total of 180 days for CAL and HELP loans and 270 days for FFELP and HEAL loans.

(10) Deferment--any period during which a borrower, upon adequate showing of entitlement under the terms of the particular lending program, shall be eligible to suspend payments.

(11) FFELP--the Federal Family Education Loan Program, formerly the Guaranteed Student Loan Program, authorized by the Higher Education Act of 1965, as amended, 20 U.S.C. §§1071 - 1087-4. Included in the FFELP are Federal Stafford Loans and Federal Supplemental Loans for Students.

(12) Forbearance--discretionary permission from the Commissioner or his designees that allows a borrower to cease payments temporarily, or allows an extension of time for making payments, or temporarily reduces the payment amount from the amount that was previously scheduled.

(13) FSL--the Robert T. Stafford Federal Student Loan Program to be known as "Federal Stafford Loans," formerly known as Stafford Loans and Guaranteed Student Loans, which included Federal Insured Student Loans. FSLs are made under provisions of the Federal Family Education Loan Program; but, for purposes of this subchapter, the acronym FSL will designate those rules specific to FSL.

(14) FSLS--Federal Supplemental Loans for Students, formerly known as Supplemental Loans for Students and Auxiliary Loans for Students. The FSLS are made under provisions of the Federal Family Education Loan Program; but, for purposes of this subchapter, the acronym FSLS will designate those rules specific to FSLS.

(15) Fund--the Texas Opportunity Plan Fund as created by the Constitution of the State of Texas, Article III, 50b; the Student Loan Revenue Bond Fund authorized in the Texas Education Code, Chapter 56, Subchapter H; and/or the Student Loan Auxiliary Fund, authorized in the Texas Education Code, Chapter 52, Subchapter F.

(16) HEAL or HEALP--Health Education Assistance Loan Program authorized by the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(17) HELP--Health Education Loan Program.

(18) Hinson-Hazlewood College Student Loan Program, or Program--the commonly used name for the Board program which provides and administers FFELP, CAL, HEAL, and HELP student loans under the authority of Texas Education Code, §§52.31 - 52.40.

(19) Hinson-Hazlewood College Student Loan Program Officer--a full-time administrative official of an institution who will act as the Board's on-campus agent.

(20) Regional Education Service Center--a center established and operated by the Commissioner of Education under Texas Education Code, Chapter 8.

(21) Resident of Texas--a resident of the State of Texas as determined in accordance with §§21.21 - 21.27 of this title (relating to Determining Residence Status). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

(22) Revenue Bond Fund--the Student Loan Revenue Bond Fund, authorized in the Texas Education Code, Chapter 56, Subchapter H.

Comments

Source Note: The provisions of this §21.53 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective December 7, 2003, 28 TexReg 10756; amended to be effective November 28, 2005, 30 TexReg 7855

§21.54: Eligibility of Institutions

(a) The following institutions or entities located in Texas and approved by the U.S. Department of Education for the purpose of guaranteeing the Board against loss due to the death, disability, or default of borrower shall be eligible to participate in the Program:

(1) Institutions of Higher Education as defined in Texas Education Code, §61.003(8);

(2) Private or Independent Institutions of Higher Education as defined in Texas Education Code, §61.003(15);

(3) Career colleges that offer degree programs approved by the Board under §§12.1 - 12.46 of this title (relating to Career Schools and Colleges); and

(4) Nonprofit private postsecondary educational institutions accredited by an agency recognized by the Board in §7.4(a) of this title (relating to Exemptions, Revocation of Exemptions, and Certificates of Authorization).

(b) Entities, including Regional Education Services Centers, approved by the State Board of Educator Certification under the provisions of §228.10 of the Texas Administrative Code (relating to Approval Process) to offer an alternative certification program shall be eligible to participate in the program without being approved by the U.S. Department of Education for the purpose of guaranteeing the Board against loss due to death, disability, or default of borrower.

(c) Each eligible institution shall designate a full-time administrative official of the institution who will act as the Board's on-campus agent. This officer shall certify all institutional transactions and activities with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the Fund. The Hinson-Hazlewood College Student Loan Program Officer may authorize other student financial aid officials at the institution to certify Hinson-Hazlewood College Student Loan Program applications.

(d) Each eligible institution shall promptly report student borrower changes in enrollment status to the Board directly or to the National Student Clearinghouse.

Comments

Source Note: The provisions of this §21.54 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective November 28, 2005, 30 TexReg 7855; amended to be effective May 21, 2008, 33 TexReg 3939

§21.55: Eligibility of Students

(a) Subject to the requirement in subsection (b) of this provision, the Commissioner may authorize, or cause to be authorized, Hinson-Hazlewood College Student Loans to students at any eligible institution which certifies that the student meets program qualifications, if the student:

(1) is a resident of Texas as defined in these regulations;

(2) has been accepted for regular, non-probationary enrollment at an eligible institution and is adjudged by the institution to have the ability to benefit from the instruction or training to be provided; or, in the case of a student already attending such institution, is in good standing and is making satisfactory progress toward his or her educational goals as determined by the institution;

(3) is enrolled in at least one half of the normal full-time course workload as determined by the institution;

(4) has provided the Board with a statement of the estimated cost of attendance at the institution for that student;

(5) has insufficient resources to finance his or her education;

(6) has provided information on two references who live at separate addresses and are expected to know the student's current address at all times throughout the life of the loan;

(7) has signed a promissory note acknowledging his or her obligations and responsibilities to the fund;

(8) for CALP loans, has received a favorable evaluation of his/her credit report or has obtained the signature of a qualified cosigner/accommodation party who has received a favorable evaluation of his/her credit report;

(9) enrolled in a degree program approved by the Board under the provisions of §§12.1 - 12.46 of this title (relating to Career Schools and Colleges) and is otherwise eligible under the provisions of this section for a student enrolled in a career college;

(10) for FSLP, has been issued or will be issued a student loan under any loan program administered by the Board.

(b) When certifying a non-guaranteed loan, the institution shall certify that the amount of the loan does not exceed the difference between the cost of attendance and other forms of student assistance for which the student is eligible, with the exception of Federal Plus loans, whether or not the student actually receives such assistance.

(c) If the institution to which the student has been accepted for enrollment was not an eligible institution, as defined in §21.54 of this title (relating to Eligibility of Institutions) on May 1, 1985, the student shall provide evidence that the student is unable to obtain a guaranteed student loan from a commercial lender.

Comments

Source Note: The provisions of this §21.55 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective December 7, 2003, 28 TexReg 10756; amended to be effective November 28, 2005, 30 TexReg 7855; amended to be effective August 15, 2006, 31 TexReg 6332; amended to be effective August 16, 2007, 32 TexReg 4976; amended to be effective May 21, 2008, 33 TexReg 3939

§21.56: Requirements of Cosigner/Accommodation Party

(a) A cosigner/accommodation party shall:

(1) be at least 21 years of age or older;

(2) have a regular source of income;

(3) have received a favorable evaluation of his/her credit report; and

(4) reside in the United States or a U.S. territory and be a U.S. citizen or permanent resident of the United States.

(b) A spouse may not act as the cosigner/accommodation party for the student.

(c) CAL or HELP cosigners/ accommodation parties are guarantors of payment and not of collection; it is not necessary for the Board to demonstrate that the borrower is insolvent before it may pursue collection against the cosigner/accommodation party.

Comments

Source Note: The provisions of this §21.56 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective November 28, 2005, 30 TexReg 7855; amended to be effective May 16, 2006, 31 TexReg 3872

§21.57: Notice to Borrowers

On the application, the Board shall provide information regarding the rights and responsibilities of the borrower of a Hinson-Hazlewood College Student Loan. The borrower shall certify on the application that he or she has read and understood his or her responsibilities.

Comments

Source Note: The provisions of this §21.57 adopted to be effective May 22, 2003, 28 TexReg 3950

§21.58: Amount of Loan

(a) Amount of Loan. The amount of loan shall not exceed the amount that the student needs in order to meet reasonable expenses as a student.

(b) Annual and Aggregate Loan Limit. The maximum annual and aggregate loan amounts for any eligible student shall be determined from time to time by the Commissioner. In no case shall the maximum annual loan amount be greater than the annual cost of attendance for the student at the eligible institution.

Comments

Source Note: The provisions of this §21.58 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective November 28, 2005, 30 TexReg 7855

§21.59: Loan Origination Fees

(a) Each FSL student borrower shall pay an origination fee in an amount that is determined from time to time by the United States Department of Education. The fee is deducted from the loan proceeds at the time of disbursement.

(b) Each CAL and HELP student borrower shall pay an origination fee in an amount that is determined from time to time by the Commissioner. The fee is deducted from the loan proceeds at the time of disbursement.

Comments

Source Note: The provisions of this §21.59 adopted to be effective May 22, 2003, 28 TexReg 3950

§21.60: Loan Interest

(a) FSL. The interest rate charged for loans shall be determined from time to time by the Commissioner, shall be simple interest, and shall accrue on the outstanding principal from the date of disbursement. FSLs made pursuant to this subchapter are eligible for interest subsidy and interest is charged to the borrower in accordance with the Higher Education Act of 1965, as amended, 20 U.S.C. §§1071 - 1087-4, and 34 Code of Federal Regulations Part 682.

(b) CALP. The interest rate charged for loans shall be set from time to time by the Commissioner, shall be simple interest, and shall begin to accrue on the outstanding principal from the date of disbursement. These loans are not eligible for interest subsidy.

(c) HEAL. The interest rate charged for loans shall be determined from time to time by the Commissioner, and interest shall accrue on the outstanding principal from the date of disbursement.

(d) HELP. The interest rate charged for loans shall be determined from time to time by the Commissioner, and interest shall accrue on the outstanding principal.

Comments

Source Note: The provisions of this §21.60 adopted to be effective May 22, 2003, 28 TexReg 3950

§21.61: Disbursements to Students

(a) No disbursement shall be made to any student until he or she has executed a promissory note payable to the program for the full amount of any loan plus interest and other authorized fees. In addition, for CAL loans, a cosigner's signature may be also required in accordance with the provisions of §21.55(a)(8) of this title (relating to Eligibility of Students).

(b) The original of such executed promissory note shall be forwarded to the Board immediately.

(c) For the purposes of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

Comments

Source Note: The provisions of this §21.61 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective May 16, 2006, 31 TexReg 3872; amended to be effective May 21, 2008, 33 TexReg 3939

§21.62: Repayment of Loans

(a) Period of loan repayment.

(1) FSL. All loans shall be repaid in accordance with the statutes and regulations governing the Federal Family Education Loan Program.

(2) FSLS. All loans shall be repaid in accordance with the statutes and regulations governing the Federal Family Education Loan Program.

(3) CAL.

(A) The repayment period shall be calculated based upon the amount borrowed, but in no case shall exceed 20 years.

(B) The repayment period shall begin no earlier than six months after the date on which the student ceases to carry, at an eligible institution, at least one half the normal full-time course load as determined by the institution.

(4) HEAL. All loans shall be repaid in accordance with the statutes and regulations governing the Health Education Assistance Loan Program, authorized by the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(5) HELP. All loans extended under this program by the Board shall be repaid in the manner and under the statutes, rules and guidelines governing HEALP.

(b) Minimum repayment amount.

(1) FSL. The Board shall provide a repayment schedule in which all of the FSL notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. In no case will the minimum annual repayment on the account be less than $600.

(2) FSLS. The Board shall provide a repayment schedule in which all of the FSLS notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. In no case will the minimum annual repayment on the account be less than $600.

(3) CAL. The Board shall provide a repayment schedule in which all of the CAL notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. In no case will the minimum annual repayment on the account be less than $600.

(4) HEAL. The Board shall provide a repayment schedule in which all of the HEAL notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. The minimum annual repayment shall not be less than the amount provided by 42 USCS 292(d).

(5) HELP. The Board shall provide a repayment schedule in which all of the HEAL notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. The minimum annual repayment shall not be less than the amount that would have been provided by 42 U.S.C.S. §292(d), if the loan had been extended by the HEAL program.

(c) Prepayment. Any loans made through the program may be prepaid without penalty.

(d) Deferments.

(1) The Commissioner shall grant deferments of loan repayment for FSL and FSLS loans as required by The Higher Education Act of 1965, as amended, 20 U.S.C. §§1071 - 1087-4.

(2) The Commissioner shall grant deferments of loan repayment for HEAL and HELP loans in the manner and under the circumstances provided for the HEAL loans in the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(3) Interest on non-subsidized loans (FSLS, HEAL, and HELP) which accrues during authorized deferment periods shall be charged to the borrower. Interest on FSLs which accrues during authorized deferment periods shall be charged to the United States Department of Education, unless the borrower has lost eligibility for federal interest subsidy benefits as described in federal law.

(4) Authorized deferments for FSL and FSLS loans shall extend the maximum repayment period.

(5) Authorized deferments for HEAL and HELP loans shall not extend the maximum repayment period.

(6) Deferments are available to any borrower whose account is not in default and who makes an adequate showing of entitlement. A borrower whose account is in default is not eligible for a deferment.

(e) Forbearance. The Commissioner may grant periods of forbearance for unusual financial hardship on any account that is held by the Board if the borrower presents the Commissioner or his designee with a writing setting forth the reasons therefore, and the Commissioner or his designee determines that the borrower's account history justifies such action. Borrowers of federally insured loans may have rights to certain additional types of forbearances under the applicable program's statutes and rules.

(f) Late charges. A charge of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), whichever is less, shall be assessed if the past due amount is not received within 20 days of the scheduled due date. These charges shall be collected for late payment of all sums due and payable under the Hinson-Hazlewood Loan Program.

(g) Collection charges. In the case of delinquent accounts, the Commissioner may authorize the assessment of charges necessary to collect the loan which may include court costs fees, attorney fees, skip-trace fees, and long-distance telephone charges.

(h) Application of payments. In accordance with the terms of the promissory note, the Commissioner shall determine the priority order in which payments shall be applied to interest, late charges, principal, collections costs and any other charges.

Comments

Source Note: The provisions of this §21.62 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective November 28, 2005, 30 TexReg 7855; amended to be effective May 16, 2006, 31 TexReg 3872; amended to be effective May 21, 2008, 33 TexReg 3939

§21.63: Deceased or Disabled Borrowers and Cosigners

(a) Upon final verification of the death or determination of permanent and total disability of a borrower, all loans through the Program shall be discharged unless there is a judgment against the borrower and the Commissioner determines that a release of the borrower's liability is not in the best interest of the Program.

(b) Verification of death and determination of permanent and total disability of a borrower or cosigner through the FSL, FSLS, and CAL programs shall be made in accordance with the governing provisions of the FSL program.

(c) Verification of death or determination of permanent and total disability of a borrower or cosigner through the HEAL and HELP programs shall be made in accordance with the governing provisions of the HEAL program.

(d) The final verification of death and determination of permanent and total disability of a borrower or cosigner shall be made by the appropriate official for each loan program as follows:

(1) for FSL, the United States Secretary of Education;

(2) for FSLS, the United States Secretary of Education;

(3) for CAL, the Commissioner;

(4) for HEAL, the United States Secretary of Health and Human Services; and

(5) for HELP, the Commissioner.

(e) Upon final verification of the death or determination of permanent and total disability of a borrower, the liability of the cosigner/accommodation party for that borrower shall be discharged.

(f) Upon final verification of the death or determination of permanent and total disability of a cosigner, the Commissioner shall determine if the release of the liability of the cosigner is in the best interest of the loan program and, if so, shall authorize a release of the cosigner's liability, whether or not there is a judgment against the cosigner.

Comments

Source Note: The provisions of this §21.63 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective August 15, 2006, 31 TexReg 6332

§21.64: Enforcement of Collection

(a) Suit. When any CAL or HELP borrower or cosigner fails or refuses to make as many as five monthly payments due in accordance with an executed note, the full amount of remaining principal, accrued interest and other charges shall become due and payable immediately. When as many as six payments have been missed, the loan will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the outstanding balance.

(b) When a borrower defaults on a FSL or FSLS account, the Board may file a default claim with the appropriate guarantor. When a borrower defaults on a HEAL account, the Board may file suit in order to perfect a default claim with the United States Secretary of Health and Human Services. Repayment amounts and prerogatives may be radically different after an account has been assigned to a guarantor.

(c) Bar on Student Records and Re-registration. The Coordinating Board shall make available to each institution a report of Hinson-Hazlewood borrowers who attended the institution and are delinquent in the repayment of one or more loan accounts with the Board. The institution shall place a hold on the students' records and registration for classes. The Board's report shall also identify borrowers who have corrected the delinquent status of their accounts in order that an official certified copy of such records may be released, and/or the student may re-register in the institution. Exceptions to this section must be approved by the Commissioner in advance of release of an official certified copy of the records or re-registration.

Comments

Source Note: The provisions of this §21.64 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective May 21, 2008, 33 TexReg 3939

Subchapter D

§21.81: Administration

The Coordinating Board, Texas College and University System, or its successor or successors, hereafter referred to as the board, shall administer the student loan program authorized by the Hinson-Hazlewood College Student Loan Act pursuant to Texas Constitution, Article III, §50b. Such personnel and other expenses as may be required to properly administer this program are to be provided in the biennial appropriation acts.

Comments

Source Note: The provisions of this §21.81 adopted to be effective January 1, 1976.

§21.82: Delegation of Powers and Duties

The board delegates to the commissioner of higher education the powers, duties, and functions authorized by the Act, except those relating to the sale of bonds and the letting of contracts for insurance.

Comments

Source Note: The provisions of this §21.82 adopted to be effective January 1, 1976.

§21.83: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Accepted for enrollment--The student has completed all steps in the admissions procedure necessary for enrollment in a participating institution.

(2) Act--Chapter 101, 59th Legislature, 1965, designated as the Hinson-Hazlewood College Student Loan Act, compiled as Texas Education Code, Chapter 52.

(3) Board--The Coordinating Board, Texas College and University System.

(4) Commissioner--The commissioner of higher education, the chief executive officer of the board.

(5) Cosigner--A cosigner of a note executed under authority of the Hinson-Hazlewood College Student Loan Act shall be any person signing such a note, other than the student borrower, who is over 21 years of age and who is gainfully employed full time. Such person may be a relative and may be self-employed or in the employ of another person. A cosigner is jointly and severally responsible for all interim notes signed by the maker and himself.

(6) Delinquency rate--The delinquency rate of an institution of record is the total dollar amount of loans made to student borrowers who have failed to make six or more monthly payments divided by the total dollar amount of loans made to student borrowers in repayment at the institution of record expressed as a percent.

(7) First-time borrower--A student who has never received a loan from the Hinson-Hazlewood College Student Loan Program.

(8) Fund--The Texas opportunity plan fund as created by Texas Constitution, Article III, §50b.

(9) Graduate or professional student--Any student who has been accepted for enrollment as a graduate or professional student by the graduate dean or other authorized agent of the participating institution.

(10) Institution of record--The last participating institution of which a student borrower was granted a loan as reflected by records of the board.

(11) Insufficient resources to finance his college education--The reasonable expenses as a student at the participating institution during the period in which the applicant is applying for a loan are greater than the financial resources available to him during such period.

(12) Loan commitment--The assurance given by the commissioner to the institution that a loan will be made when the borrower is otherwise eligible to receive a loan. A loan commitment may be given by the commissioner regardless of the then current delinquency rate of the institution.

(13) Recommended for a loan by two reputable persons in his home community--The student must be recommended for a loan by two persons from his home community who can testify to the student's financial responsibility. Such recommendations must contain favorable statements concerning the student's ability to apply himself to the tasks at hand, his ability to manage his financial affairs, and his moral character. In addition, persons making such recommendation must commit themselves to bring moral suasion to bear on the student to repay the loan in full and such persons shall also commit themselves to furnish information concerning the current location of the student to officials of the board. One recommendation may be submitted by a relative provided that a complete explanation of the relationship to the student is included.

(14) Resident of Texas--Any person who meets the requirements of the Texas Education Code, Chapter 54, and rules and regulations for determining residence status pursuant to the Texas Education Code, Chapter 54, adopted by the board.

Comments

Source Note: The provisions of this §21.83 adopted to be effective January 1, 1976.

§21.84: Investment of Funds

All monies standing to the credit of the reserve portion of the interest and sinking fund and any monies in the Texas opportunity plan fund in excess of the amount necessary for student loans may be invested by the commissioner, after seeking the advice and counsel of the investment committee of the board and after following such directives as may be given from time to time by the board, in direct obligations of the United States or its agencies or in other obligations unconditionally guaranteed by the United States, or bonds of the State of Texas, or of the several counties or municipalities or other political subdivisions of the State of Texas; provided, however, that money in the interest and sinking fund, except for that which is in the reserve portion of such fund, may be invested only in direct obligations of or unconditionally guaranteed by the United States which are scheduled to mature prior to the date money must be available for use for its intended purpose. All of such bonds and obligations owned in the interest and sinking fund or in the Texas opportunity plan fund are defined as "securities." Such securities owned in the interest and sinking fund or in the Texas opportunity plan fund may be sold at the prevailing market price.

Comments

Source Note: The provisions of this §21.84 adopted to be effective January 1, 1976.

§21.85: Participating Institutions

(a) Criteria. A participating institution of higher education shall be any institution of higher education within the State of Texas which:

(1) admits as regular students only those persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such a certificate;

(2) is legally authorized within the state to provide a program of education beyond secondary education;

(3) provides an educational program for which it awards a bachelor's degree or associate degree, or provides not less than two years of course work acceptable for credit toward such degrees;

(4) is a public or other nonprofit institution; and

(5) is accredited by a nationally recognized accrediting agency or association listed by the National Commission on Accrediting. An institution not so accredited must be one whose credits are fully and freely accepted on transfer by at least three institutions which are so accredited. Each nonaccredited institution shall submit annually not later than July 1 three letters from accredited institutions attesting to the fact that said institutions will accept credits from the nonaccredited institution. Annual approval of nonaccredited institutions will be effective for the state fiscal year beginning September 1 and ending August 31. Each institution must enter into an agreement with the board, the terms of which shall be specified by the board.

(b) Students attending other institutions. Any student attending an institution other than a participating institution shall not be eligible for a loan from the Texas opportunity plan fund.

(c) Records and reporting. Each participating institution shall keep adequate records reflecting all transactions with respect to the fund. None of the responsibilities of the participating institution can be delegated. Participating institutions shall submit such reports and information as the commissioner may require in connection with the administration of the Act and shall comply with such provisions as he or the state auditor may find necessary to insure the correctness and verification of such reports. An annual report as prescribed shall be forwarded to the commissioner by each participating institution within 60 days of the close of each fiscal year. All records pertaining to each applicant shall be retained by the participating institution for a period of two years in the case of an applicant who was not awarded a loan and, in the case of an applicant who is awarded a loan, such records shall be retained until requisitioned by the commissioner.

(d) Compliance by participating institutions. If, at any time, after notice and opportunity for hearing, the commissioner determines that the requirements for an institution's participation in the Act are no longer met or that any monies in the fund or to be deposited therein have been disbursed by the participating institution for purposes for which the fund is legally unavailable and such diversions have not been restored, no further disbursements of monies to the participating institution shall be permitted to be made from the fund and no further disbursements of any monies held in trust by the participating institution for loans to students shall be permitted until there is no longer any failure of such compliance by the participating institution.

(e) Compliance by student. If, at any time, after notice and opportunity for hearing, it is determined that any monies in the fund or to be deposited therein have been disbursed to a student for purposes for which the fund is legally unavailable and such diversions have not been restored, no further disbursements of monies to such student shall be permitted to be made from the fund and no further disbursements of any monies held in trust by the participating institution for loans to such student shall be permitted until there is no longer any failure of such compliance by the student and such monies disbursed to the student for purposes for which the fund is legally unavailable become due and payable to the fund immediately.

(f) Designation of institutional representative. Each participating institution shall designate a fulltime administrative official of the institution as the Hinson-Hazlewood College Student Loan Program officer who shall be the person to certify all institutional transactions and activities with respect to the fund and responsible for all records and reports reflecting the transactions with respect to the fund.

(g) Discrimination by participating institution prohibited. Title VI of the Civil Rights Act of 1964 states: "No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving federal assistance." Therefore all transactions with respect to the fund shall be made in compliance with the Civil Rights Act of 1964, and further provided that students transferring from any other institution shall be considered for loans the same as students attending the participating institution.

(h) Student conviction of criminal activities. Participating institutions shall determine, after notice and opportunity for hearing, whether a student applicant for a loan has been convicted by any court of record of any crime which was committed after the date of adoption of this section under the provisions of either House Bill 141, 61st Legislature, 1969, and subsequent amendments thereto, or the Federal Higher Education Amendments of 1968 (Public Law 90-575), §504, and subsequent amendments thereto. The participating institution which such convicted student attends shall not recommend for a period of two years such student for a loan under the authority of this section, then any participating institution which such student subsequently attends shall not recommend such student for the remainder of the two-year period for a loan under the Hinson-Hazlewood College Student Loan Act.

(i) Termination of agreement. A participating institution which desires to terminate its participation in the fund must notify the board at least 60 days prior to such termination. All transactions with respect to the fund must be completed prior to the effective date of the termination and required forms for all transactions must be filed in the office of the board prior to termination. All records of each student borrower in the institution who is under the fund are to be forwarded to the board. Original interim notes must be forwarded to the board by registered mail and insured for the face amount of all such notes forwarded by mail. All students enrolled in the institution who have a loan from the fund shall be notified by the institution of their termination of the agreement between the institution and the board.

(j) Delinquency rates and institutional participation. A participating institution shall be notified by the commissioner when said institution's delinquency rate reaches 5.0% as defined in §21.83 of this title (relating to Definitions). At such time as the delinquency rate of the institution reaches 10%, said institution may be suspended from participation in the program by the commissioner. If within the succeeding 30-day period the institution can show that the delinquency rate has been lowered below 10%, as reflected in the records of the board, the commissioner may reinstitute participation without further action. After 30 days the institution may request a public hearing with the board to show cause why the suspension of participation should not be continued. The formal request for a public hearing shall be made to the commissioner by the chief administrative officer of the institution. Hearings shall be scheduled by the chairman of the board at such time as a quorum of the board can be assembled.

Comments

Source Note: The provisions of this §21.85 adopted to be effective January 1, 1976.

§21.86: Qualifications for Loans

(a) Qualification criteria.

(1) The commissioner may authorize, or cause to be authorized, loans from the fund to qualified students at any participating institution provided the applicant:

(A) is a resident of Texas;

(B) has been accepted for enrollment at a participating institution for at least one-half the normal academic course load of the institution;

(C) has established that he has insufficient resources to finance his college education;

(D) has been recommended by two reputable persons in his home community;

(E) has completed an application for a loan on the form prescribed by the commissioner;

(F) has been recommended for a loan by the Hinson-Hazlewood College Student Loan Program officer; and

(G) has complied with such other provisions of this subchapter as are required of such student.

(2) In no event shall a higher standard of academic performance be required of an applicant than the minimum standard for enrollment in the participating institution, and such student must be meeting the minimum academic requirements of the institution at the beginning of the semester in which any loan is made. First-time enrolled students must meet the minimum standard for enrollment at the time a loan is made. If a student who is otherwise eligible for a loan can be enrolled in the participating institution, he is eligible for a loan. No loan shall be made to an undergraduate student whose course load in the semester or term in which the loan is made is less than one-half the normal course load, as determined by the participating institution, for a full-time undergraduate student enrolled in the same program at the participating institution. No loan may be made to a graduate or professional student who is not making satisfactory progress toward the completion of his educational program as determined by the participating institution.

(b) Authorization of loans. The commissioner may authorize, or cause to be authorized, loans from the fund to qualified students at any participating institution provided there is on file with the commissioner the following:

(1) a certification by the participating institution that each applicant meets the qualifications for a loan as provided in this section and a recommendation by the Hinson-Hazlewood College Student Loan Program officer that a loan from the fund be made to each applicant named in the form prescribed by the commissioner;

(2) a copy of the student's completed application for a loan;

(3) a copy of each recommendation by reputable persons in the student's home community;

(4) a copy of the computation of the financial resources available to the student as shown on the application or a computation of financial resources available submitted by College Scholarship Service or American College Testing Program.

Comments

Source Note: The provisions of this §21.86 adopted to be effective January 1, 1976.

§21.87: Amount of Loan

(a) Change in reasonable expenses. The maximum amount of the loan to any qualified applicant for an academic year is $1,500, but shall not exceed the amount that the student needs in order to meet reasonable expenses as a student. A change in either financial resources or reasonable expenses of the student which results in an increase in the financial need of the student may make the student eligible for additional loan funds. A change in either financial resources or reasonable expenses of the student which results in a decrease in the financial need of the student shall make the student responsible for the immediate repayment of any overcommitment of loan funds. Repayment may be restored to the fund by a cash payment or by the reduction of any pending loan disbursement to the student.

(b) Maximum amount of loan. The total outstanding principal balance to any individual student may not exceed $7,500 at any time.

(c) Financial resources available to the applicant. Financial resources available to the applicant shall be determined by an analysis prepared by College Scholarship Service or American College Testing Program which the applicant submits, or by another similar method as described on the application.

(d) Reasonable expenses for a student. Reasonable expenses for a student at an eligible institution shall be determined by the commissioner after consultation with representatives of the eligible institution. Lists of reasonable expenses for typical students shall be submitted to the commissioner by the eligible institution prior to April 1 of each year for use in the following summer session and in the following academic year. The lists shall follow such format as may be prescribed by the commissioner. Each eligible institution may submit as many lists of reasonable expenses as is required to properly reflect the different typical expense categories of students attending the institution. When more than one list is submitted, each list should be labeled so as to identify the category of students to be served by that list. On individual loan applications, the amounts listed for typical students must be adjusted downward when necessary to reflect the circumstances of the applicant. If a listed amount must be increased to properly reflect the reasonable expenses of an individual applicant, then justification for the increased amount must accompany the individual application with such increased amount subject to approval or disapproval by the commissioner.

(e) Determination of amount of loan. The amount of the loan shall be no greater than the amount reasonable expenses as a student exceeds the financial resources available to the applicant and in no event greater than the maximum amount of loan as specified in subsection (b) of this section.

(f) Identification of student records. All records of each student who is a borrower under the Texas Opportunity Plan Fund shall be so identified in the office of the registrar at each participating institution. Each student borrower under said program shall obtain a release authorized by the Hinson-Hazlewood College Student Loan Program officer before any records are made available to him by the registrar. Such release may be authorized by the Hinson-Hazlewood College Student Loan Program officer following an exit interview as prescribed in subsection (h) of this section.

(g) Preloan interview. Each applicant shall be interviewed by the Texas Opportunity Plan Loan officer or his designated representative prior to the approval of an initial loan under the Act. The Hinson-Hazlewood College Student Loan Program officer or his designated representative shall inform the applicant of his responsibilities as a borrower.

(h) Exit interview and student status report. Prior to the end of each enrollment period an exit interview shall be conducted by the Hinson-Hazlewood College Student Loan Program officer or his designated representative with each student borrower who is currently enrolled in the participating institution. A roster of student borrowers will be forwarded to each participating institution by the board prior to the end of each enrollment period. Information on each student borrower shall be obtained on the format prescribed by the board.

Comments

Source Note: The provisions of this §21.87 adopted to be effective January 1, 1976; amended to be effective May 19, 1981, 6 TexReg 1609.

§21.88: Payments to Student

No payment shall be made to any student until he and a cosigner as prescribed in §21.83 of this title (relating to Definitions) shall have executed an interim note payable to the Texas opportunity plan fund for the full amount of any authorized loan plus interest. A copy of such executed interim note shall be forwarded to the commissioner immediately and the original interim note shall be retained by the participating institution in a place safe from fire and theft. For the purposes of any contract executed by him; and the defense that he was a minor at the time he executed a note shall not be available to him in any action arising on said note. Payments by the participating institution to students executing such notes may be made monthly or for each semester depending upon the demonstrated capacity of the student to manage his financial affairs as determined by the participating institution. Disbursements are to be made by the participating institution pursuant to the contract between the board and the institution executed in conformity with the Act. No funds shall be distributed to a participating institution except to make payments to a student under a loan authorized by the Act. In cases of extreme hardship in which it is impossible or extremely difficult to obtain a cosigner, participating institutions shall create an institutional loan committee or utilize such an existing committee to determine whether such hardship justified the granting of the loan to the student without a cosigner. Such a committee shall be composed of at least three persons, one of whom shall be an executive officer of a local bank, savings and loan association, or credit union. The duty of the institutional loan committee is to conduct a personal interview with each student who cannot obtain a cosigner and to recommend to the institutional loan officer, after such interview, whether or not the student should be granted a loan under the program.

Comments

Source Note: The provisions of this §21.88 adopted to be effective January 1, 1976.

§21.89: Term of Loans

Principal amounts of all authorized loans shall be repaid in installments over a period of not less than five years (unless sooner repaid) nor more than 10 years beginning not earlier than nine months nor later than one year after the date on which the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution except:

(1) as provided in §21.92(d) of this title (relating to Repayment of Loans); and

(2) that the period of the loan may not exceed 15 years from the execution of the note or written agreement evidencing it.

Comments

Source Note: The provisions of this §21.89 adopted to be effective January 1, 1976.

§21.90: Loan Interest

(a) Interest rates. The interest rate to be charged for any student loan shall be 6.0% per annum on all loans made under the Hinson-Hazlewood College Student Loan Act on or before August 31, 1969, and the interest rate to be charged for any student loan made on or after September 1, 1969, shall be 7.0% per annum, and such interest shall accrue from the date of the note evidencing the loan is executed. Except for loans subject to the interest subsidy provisions of the Higher Education Act of 1965, Title IV, Part B, §428(a), as amended, and 45 Code of Federal Regulations Part 177, payment of interest by an undergraduate student shall be postponed so long as such student is enrolled in an institution of higher education for at least one-half of the normal course load, as determined by the institution, and payment of interest by a graduate or professional student shall be postponed so long as such student is enrolled in an institution of higher education and is making satisfactory progress toward the completion of his program, provided that such interest shall accrue from the date of the note evidencing the loan is executed.

(b) Federal interest benefits. Loans made pursuant to this subchapter are eligible for interest subsidy to be paid in accordance with Public Law 89-329, the Higher Education Act of 1965, and 45 Code of Federal Regulations Part 177. Students desiring these benefits shall complete forms required by the United States Office of Education and submit such forms to the Hinson-Hazlewood College Student Loan Program officer at the institution at which the loan is made. Students who do not desire to use these benefits shall waive these benefits in writing. Students who do not meet the qualifications as set forth in 45 Code of Federal Regulations Part 177 will be notified by the Hinson-Hazlewood College Student Loan Program officer.

Comments

Source Note: The provisions of this §21.90 adopted to be effective January 1, 1976.

§21.91: Insurance

(a) Contracts. The board shall contract with any insurance company or companies licensed to do business in Texas for insurance on the life of all student borrowers in an amount sufficient to retire the principal and interest owed on all loans made on or before August 31, 1969, as provided in the Act. The cost of such insurance shall be paid by the student borrowers. No contract for insurance as provided for in this section may be approved except by the board, and during a regular meeting attended by a quorum of the total board membership.

(b) Insurance costs. The cost of such life insurance as provided for in subsection (a) of this section in an amount sufficient to cover each student borrower's indebtedness to the fund made on or before August 31, 1969, shall be at the rate of $.12 per $1,000 per month, and shall remain in effect on all such loans until they are fully repaid. The rate shall remain effective until changed by the board.

(c) Repayment by United States commissioner of loans of deceased or disabled borrowers. If a student borrower who has received a loan under the Hinson-Hazlewood College Student Loan Act on September 1, 1969, and thereafter with respect to which a portion of the interest is payable by the United States commissioner of education under the Higher Education Act of 1965, Title IV, Part B, §428(a), as amended, or would be payable but for the adjusted family income of the borrowers, dies or becomes permanently and totally disabled (as determined in accordance with regulations of the United States commissioner of education), then the United States commissioner of education shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.

Comments

Source Note: The provisions of this §21.91 adopted to be effective January 1, 1976.

§21.92: Repayment of Loans

(a) Repayment of any loan and interest authorized under the Act shall be made directly to the fund and shall be made monthly in an amount of not less than $15 or an amount to be approved by the commissioner and shall begin not later than nine months after the date the student ceases to carry at any higher educational institution at least one-half the full-time academic workload as determined by the institution and in no event later than five years from the date the first note evidencing a loan under the Act is executed. The commissioner may authorize a period longer than five years from the date the first note evidencing a loan under the Act is executed before beginning repayment of loans to medical, dental, and other students seeking professional or graduate degrees. The commissioner may extend the time for beginning repayment of a loan to any student due to unusual financial hardships, subject to approval by the attorney general. Student borrowers must file with the commissioner a written request for postponement of a loan due to unusual financial hardships. Such requests shall contain the student borrower's permanent address, his income during the postponement period, the length of time for which the postponement is requested, and a statement of the circumstances creating such financial hardship. Students will be notified as to the disposition of their request for postponement.

(b) Payout note. At such time as a student is no longer qualified to borrow from the fund or no longer expects to borrow from the fund, the participating institution shall cause the student borrower to execute a payout note. The principal amount of the payout note shall be the aggregate amount of the interim notes plus accrued interest and cost of insurance on the life of the student borrower. The repayment schedule of the principal amount of the payout note plus interest and cost of insurance, in monthly installments, shall be set forth on the instrument. The original executed payout note shall be forwarded by registered mail to the commissioner immediately.

(c) Failure to execute payout note. Failure to execute a payout note makes all interim notes due and payable immediately. All records, including transcripts or diplomas, will be withheld from a student until a payout note is executed.

(d) Postponement of the repayment of loans. The postponement of the repayment of a Texas opportunity plan loan may be made under the following conditions.

(1) Continuing education. A student borrower may petition the commissioner for a postponement on the repayment of a loan from the fund provided that he has filed with the commissioner a request for postponement of repayment of loan (Form 019) and a verification of his enrollment in an institution of higher education by the appropriate administrative official of the institution in which he is enrolled. Such verification shall be made by the appropriate administrative official of the institution at the beginning of each semester while the student borrower is enrolled in the institution of higher education. It is the responsibility of the student borrower to see that such verification is on file with the commissioner.

(2) Financial hardship. The repayment of a loan from the fund may be postponed for a reasonable period of time provided that the student borrower can provide the commissioner with evidence of financial hardship. All income and expense information submitted by the student borrower must be supported by a certified federal income tax return. The student borrower will be notified by the commissioner of the disposition of the student's request after the commissioner has caused the petition to be evaluated on its individual merits.

Comments

Source Note: The provisions of this §21.92 adopted to be effective January 1, 1976.

§21.93: Enforcement of Collection

When any person who has received a loan authorized by the Act shall have failed or refused to make as many as six monthly payments due in accordance with an executed note, then the full amount of remaining principal and interest shall become due and payable immediately and the amount due, the person's name and last known address, and such other information as may be requested by the commissioner shall be reported by the participating institution to the commissioner who shall report such persons to the attorney general. Suit for such remaining sum shall be instituted by the attorney general or any county or district attorney acting for him in the county of the person's residence, the county in which is located the institution at which the person was last enrolled, or in Travis County, unless the attorney general shall find reasonable justification for delaying suit and shall so advise the commissioner in writing. Upon notification by the commissioner of default on a Texas opportunity plan fund loan, the Hinson-Hazlewood College Student Loan Program officer shall cause the records, including transcripts, of the student borrower to become unavailable to him or any other person outside the institution who may request them until the participating institution has been notified by the commissioner that such default has been corrected.

Comments

Source Note: The provisions of this §21.93 adopted to be effective January 1, 1976.

§21.94: Institutional Refunds to Student Borrowers

At such time as a student is no longer qualified to borrow from the fund and refunds are payable to such a student borrower by the participating institution, such refunds shall be subject to the established refund schedule of the participating institution as published in the institutional catalogue; provided, however, that any such refunds shall be made first to the fund, except in the case of loans previously canceled by insurance claims, and deposited to the credit of such student borrower. Such refunds shall not exceed the aggregate amount of all interim notes plus accrued unpaid interest and cost of insurance on the life of the student borrower.

Comments

Source Note: The provisions of this §21.94 adopted to be effective January 1, 1976.

§21.95: Cancellation of Loans

The commissioner may cancel the repayment of a loan received by a person who earns a professional doctor of medicine degree or a doctorate of psychology and who is employed by the Texas Youth Council, the State Department of Public Welfare, the Texas Department of Corrections, or the Department of Mental Health and Mental Retardation. Such cancellation shall be in compliance with a contract to be entered between the commissioner and the eligible person as provided in the Texas Education Code, §52.40.

Comments

Source Note: The provisions of this §21.95 adopted to be effective January 1, 1976.

§21.96: Advisory Committees

The board may appoint such advisory committees from outside its membership as it deems necessary to assist it in achieving the purposes of the Act.

Comments

Source Note: The provisions of this §21.96 adopted to be effective January 1, 1976.

§21.97: Contracts

In achieving the goals outlined in the Act and the performance of functions assigned to it, the board is authorized to contract with any other state governmental agency as authorized by law, with any agency of the United States government and with corporations, associations, partnerships, and individuals.

Comments

Source Note: The provisions of this §21.97 adopted to be effective January 1, 1976.

§21.98: Gifts and Grants

The board may accept gifts, grants, or donations of real or personal property from any individual, group, association, or corporation or the United States government subject to such limitations or conditions as may be provided by law and provided that gifts, grants, or donations of money shall be deposited in the state treasury in the Texas opportunity plan fund, separately accounted for, and expended in accordance with the specific purpose for which given under such conditions as may be imposed by the donor and as provided by law.

Comments

Source Note: The provisions of this §21.98 adopted to be effective January 1, 1976.

§21.99: Audit

All transactions under the provisions of the Act shall be subject to audit by the state auditor.

Comments

Source Note: The provisions of this §21.99 adopted to be effective January 1, 1976.

§21.100: Annual Report

The board shall make a report of the operation of the Texas opportunity plan to the governor annually and to the legislature not later than December 1 prior to the regular session of the legislature, which report shall include, for the state as a whole and for each participating institution:

(1) the number of loans;

(2) the maximum loan;

(3) the minimum loan;

(4) total loans;

(5) a list of persons who have failed or refused to make as many as six monthly payments on any note, showing the amount due and the person's last known address; and

(6) such other information as will describe the effectiveness of the loan program.

Comments

Source Note: The provisions of this §21.100 adopted to be effective January 1, 1976.

Subchapter E

§21.121: Authority and Purpose

(a) Authority. Unless otherwise noted in a section, the authority for these provisions is provided by the Texas Education Code, §§56.451 - 56.465.

(b) Purpose. This subchapter establishes rules relating to the administration of the Texas B-On-Time student loan program that has been authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.

Comments

Source Note: The provisions of this §21.121 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 26, 2009, 34 TexReg 5683

§21.122: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education.

(3) Degree in Architecture--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 04.0201 of the Texas CIP Codes.

(4) Degree in Engineering--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 14 of the Texas CIP Codes.

(5) Default--The failure of a borrower to make loan installment payments for a total of 180 days.

(6) Recommended or Distinguished Achievement Program-Advanced High School Program--The high school curriculum recommended under §28.025(a) of the Texas Education Code.

(7) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B, of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons). Nonresident students eligible to pay resident tuition rates are not included unless they qualify as eligible nonresidents under §21.124(a)(1) of this title (relating to Initial Eligibility for Loans).

(8) Texas CIP Codes--Classification codes for degree programs, agreed upon by institutions and approved by the Board, based on curricular content belonging to categories within the federal Classification of Instructional Programs (CIP) published by the National Center for Educational Statistics. Texas CIP Codes are available at http://www.thecb.state.tx.us/apps/ProgramInventory/.

Comments

Source Note: The provisions of this §21.122 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective November 28, 2005, 30 TexReg 7856; amended to be effective August 15, 2006, 31 TexReg 6332; amended to be effective November 30, 2009, 34 TexReg 8523

§21.123: Institutions

(a) Institutions that are eligible for Texas B-On-Time loans are institutions of higher education as defined in Texas Education Code, §61.003(8), and private or independent institutions of higher education as defined in Texas Education Code, §61.003(15).

(b) The Board shall provide a roster of its borrowers to each eligible institution prior to the end of each enrollment period. Within a reasonable period after the institution receives the roster, the Office of the Registrar shall identify all records of each student, and the institution shall supply information on each student borrower to the Board in a form prescribed by the Commissioner.

(c) In any academic year, if there are insufficient funds available to provide Texas B-On-Time loans to all eligible students, the Board will allocate funds to the institutions in proportion to the size of their full-time undergraduate populations. The institutions shall award the loans to the students according to financial need.

Comments

Source Note: The provisions of this §21.123 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.124: Initial Eligibility for Loans

(a) The Commissioner may authorize Texas B-On-Time Loans to students at any eligible institution which certifies that the student:

(1) is a resident of Texas as defined in these rules or beginning with the 2005-2006 academic year, be entitled, as a child of a member of the armed forces of the United States, to pay tuition at the rate provided for residents of this state under §54.058 of the Texas Education Code; and

(2) meets one of the following academic requirements:

(A) graduated not earlier than the 2002-2003 school year under the Recommended or Distinguished Achievement Program-Advanced High School Program from a public or accredited private high school in Texas;

(B) beginning with the 2005-2006 academic year, graduated not earlier than the 2002-2003 school year from a high school operated by the United States Department of Defense and at the time of graduation was a dependent child of a member of the armed forces of the United States; or

(C) received an associate degree from an eligible institution not earlier than May 1, 2005;

(3) has not been granted a baccalaureate degree;

(4) is enrolled for a full-time course load, as determined by the institution, in an undergraduate degree or certificate program at an eligible institution;

(5) is eligible for federal financial aid, except that the student is not required to meet any financial need requirements applicable to other financial aid programs;

(b) A student is not required to be 18 years of age at the time that he or she establishes eligibility for participation in the program; for the purpose of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

(c) If program funds are not sufficient to provide Texas B-On-Time Loans to all qualified students, priority must be given to students with demonstrated financial need.

Comments

Source Note: The provisions of this §21.124 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975; amended to be effective November 28, 2005, 30 TexReg 7856; amended to be effective August 15, 2006, 31 TexReg 6332

§21.125: Continued Eligibility for Loans

(a) After initially qualifying for a Texas B-On-Time loan, a student may continue to receive a Texas B-On-Time loan for each semester or term at an eligible institution if he or she continues to meet all initial eligibility requirements in §21.124 of this title (relating to Initial Eligibility for Loans) and additionally:

(1) as of the end of the person's first academic year he or she meets the satisfactory academic progress requirements as indicated by the financial aid office of his or her institution.

(A) If a student ends his/her first year in the program without meeting the academic progress requirements of his/her institution, he/she may not get back into the program until the institution has determined that the student has met its academic performance requirements.

(B) A loan recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the current institution's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(2) As of the end of the second and subsequent years, the student must complete at least 75 percent of the hours attempted in his/her most recent academic year, and maintain an overall grade point average of at least 2.5 on a four point scale or its equivalent, for all coursework attempted at public or private or independent institutions of higher education.

(A) The completion rate calculations may be made in keeping with institutional policies.

(B) Grade point average calculations may be made in keeping with institutional policies except that if a loan recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

(C) A loan recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the program's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(3) enrolls in a program leading to a bachelor's degree within 12 months after the month in which the student received an undergraduate certificate or associate's degree.

(b) A student may not receive a Texas B-On-Time loan for more than 150 semester credit hours or the equivalent. If, in any given academic period, a student drops courses so that he or she is no longer taking a full-time course load as determined by the institution, and the Board does not receive a refund of the Texas B-On-Time loan for that period, the dropped courses will be counted toward the calculation of the 150-hour limit.

(c) If a person fails to meet any of the requirements for receiving a continuation award as outlined in Subsection (a) of this section after completion of any year, the person may not receive a Texas B-On-Time Loan until he or she completes courses while not receiving a Texas B-On-Time Loan and meets all the requirements of Subsection (a)(2) of this section as of the end of that period of enrollment.

Comments

Source Note: The provisions of this §21.125 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975

§21.126: Disbursement to Students

(a) No disbursement shall be made to any student until:

(1) for loans made from the proceeds of tax-exempt bonds, the institution has certified that the amount of the loan does not exceed the difference between the cost of attendance and other forms of student assistance for which the student is eligible, with the exception of Federal Plus loans, whether or not the student actually receives such assistance;

(2) the student has submitted an application containing the names of two personal references who live at different addresses and who are expected to know the student's whereabouts at all times throughout the life of the loan;

(3) the student certifies that he or she has read and understands the rights and responsibilities of a borrower of a Texas B-On-Time Loan;

(4) the student has executed a promissory note payable to the program for the full amount of any loan plus other authorized fees; and

(5) the Board has received the original of such executed promissory note.

(b) Electronically transferred funds must be disbursed to the student or returned to the Board on or before the 120th day after the electronic funds transfer date.

(c) A person receiving a Texas B-On-Time loan may use the money to pay for any usual and customary costs of attendance incurred by the student at an eligible institution, including tuition, fees, books, and room and board.

(d) Each student borrowing a Texas B-On-Time loan shall pay an origination fee in an amount that is determined from time to time by the Commissioner. The fee is deducted from the loan proceeds at the time of disbursement. The rate of the loan origination fee shall be posted on the Board's web site.

Comments

Source Note: The provisions of this §21.126 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975; amended to be effective August 15, 2006, 31 TexReg 6332; amended to be effective November 19, 2006, 31 TexReg 9290; amended to be effective August 26, 2009, 34 TexReg 5683

§21.127: Hardship Provisions

(a) In the event of a hardship or for other good cause, the Program Officer at an eligible institution may allow an otherwise eligible person to receive a B-On-Time loan while enrolled for an equivalent of less than full-time but at least six semester hours. Such conditions are not limited to, but include:

(1) a showing of a severe illness or other debilitating condition that may affect the student's academic performance;

(2) an indication that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance; or

(3) the requirement of fewer than nine hours to complete one's degree plan.

(b) If the onset of a condition that constitutes a hardship should occur after a student has enrolled for a full-time course load, and the institution determines that the student is justified by his or her circumstances in dropping to no fewer than six semester hours, the institution may also make a determination that the dropped courses will not count against the 75 percent requirement described in §21.125(a)(2)(A) of this title (relating to Continued Eligibility for Loans), or toward the 150 hour maximum described in §21.125(b) of this title (relating to Continued Eligibility for Loans). Among the circumstances that the institution may take into consideration in making this determination is whether the student has dropped below full-time in other academic periods while receiving loans under this program.

(c) Each institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.

Comments

Source Note: The provisions of this §21.127 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975; amended to be effective February 21, 2006, 31 TexReg 1024

§21.128: Loan Amount

(a) For students at public and private or independent four-year institutions, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident undergraduate students at general academic teaching institutions.

(b) For students at public technical institutes, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident students in an associate degree or certificate programs at public technical institutes.

(c) For students at public community/junior colleges and private or independent junior colleges, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load at a public junior college for students who are residents of junior college districts.

(d) In January of each year, the program's annual loan limits for the following academic year shall be posted on the Board's web site.

Comments

Source Note: The provisions of this §21.128 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.129: Forgiveness of Loans

A Texas B-On-Time loan shall be forgiven if the student is awarded an undergraduate degree or certificate from an eligible institution, and the student either:

(1) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, and received:

(A) a baccalaureate degree within four calendar years after the date the student initially enrolled in an eligible institution;

(B) a baccalaureate degree within five calendar years after the date the student initially enrolled in an eligible institution if the institution has reported or will report that the student graduated with a degree in architecture, engineering, or any other program that the institution certifies to the Board is a program that requires more than four years to complete;

(C) a degree or certificate from a two-year program within two calendar years after the date the student initially enrolled in an eligible institution;

(D) a certificate from a one-year program within one calendar year after the date the student initially enrolled in an eligible institution; or

(2) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, with a total number of course credit hours, including transfer credit hours and hours earned exclusively by examination, and excluding dual credit course hours, and hours earned for developmental coursework that an institution required the student to take under Texas Education Code, §51.3062 (relating to Success Initiative), or under the former provisions of Texas Education Code, §51.306 (relating to Texas Academic Skills Program), that is not more than:

(A) six hours more than the number of credit hours required to complete a two-year certificate or a baccalaureate degree; or

(B) three hours more than the number of credit hours required to complete a one-year certificate.

Comments

Source Note: The provisions of this §21.129 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975; amended to be effective November 28, 2005, 30 TexReg 7856; amended to be effective November 30, 2009, 34 TexReg 8523

§21.130: Loan Interest

There shall be no interest charged for a Texas B-On-Time Loan unless a judgment is obtained against the borrower for default in payment. If a judgment should be taken, the interest rate shall be the amount specified in §304.003 of the Texas Finance Code, (relating to Judgment Interest Rate: Interest Rate or Time Price Differential Not in Contract).

Comments

Source Note: The provisions of this §21.130 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.131: Repayment of Loans

(a) All loans extended under this program to any borrower shall be placed by the Board into an "account," with the full amount of principal and any fees and costs that accrue over the life of the loans to be repaid in monthly installments which shall be calculated to repay the account over a period of not more than 15 years from the beginning of the repayment period. In no case will the minimum annual repayment on the account be less than $900.

(b) The repayment period shall begin no earlier than six months after the date on which the student ceases to be enrolled continuously in an eligible institution, as determined by the institution.

(c) An education deferment is available to any borrower whose account is not in a default status and who provides the Board with documentation of enrollment for at least a half-time course load.

(d) The Commissioner may grant periods of forbearance in the form of postponed or reduced payments for unusual financial hardship if the Board receives a written request stating the circumstances that merit such consideration.

(e) A charge of 5 percent of the scheduled monthly payment or five dollars ($5.00), whichever is less, shall be assessed if the past due amount is not received within 20 days of the scheduled due date. These charges shall be collected for late payment of all sums due and payable and shall be taken out of the next payment received by the Board.

(f) In the case of delinquent accounts, the Commissioner may authorize the assessment of charges necessary to collect the loan, which may include returned check fees, court costs fees, attorney fees, skip-trace fees, and long-distance telephone charges.

(g) In accordance with the terms of the promissory note, the Commissioner shall determine the priority order in which the payments shall be applied to late charges, collection costs, principal, and any other charges.

Comments

Source Note: The provisions of this §21.131 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 26, 2009, 34 TexReg 5683

§21.132: Deceased or Disabled Borrowers

(a) All loans through the Texas B-On-Time Loan Program are discharged in the event of the borrower's death or permanent and total disability.

(b) Verification of death, and determination of permanent and total disability of a borrower through the Texas B-On-Time Loan Program, shall be made in accordance with student loan industry standards.

(c) The final determination of permanent and total disability of a borrower shall be made by the Commissioner.

Comments

Source Note: The provisions of this §21.132 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.133: Enforcement of Collection

(a) When any Texas B-On-Time borrower fails to make as many as five monthly payments due in accordance with his or her repayment schedule, the full amount of remaining principal and other charges shall become due and payable immediately.

(b) When as many as six payments have been missed, the loans will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the unpaid balance plus court costs, attorney fees, and judgment interest, as described in §21.130 of this title (relating to Loan Interest).

(c) All records of each student who is a borrower under this Subchapter shall be so identified in the Office of the Registrar at each eligible institution. The institution may not release an official certified copy of such records, nor may any student in this program re-register for classes in the institution, until the Texas B-On-Time program officer at the institution certifies to the registrar that the borrower's B-On-Time account is in good condition. The Commissioner must approve exceptions to this section in advance of the institution's release of an official certified copy of the records or of the borrower's re-registration.

(d) In accordance with state law, the Board will notify the Comptroller of Public Accounts when a borrower's account has become 90 days or more past due. Until the delinquency is cured, no state warrant other than a wage warrant will be released to the borrower. This prevents the delinquent borrower from receiving further warrants for state student financial aid.

Comments

Source Note: The provisions of this §21.133 adopted to be effective December 7, 2003, 28 TexReg 10757

Subchapter F

§21.151: Authority and Purpose

(a) Authority for this subchapter is provided in Texas Education Code, §61.087, Matching Scholarships to Retain Students in Texas.

(b) The purpose of this program is to enable eligible institutions to use funds appropriated to it to encourage Texas students to attend college in Texas rather than go to college out of state.

Comments

Source Note: The provisions of this §21.151 adopted to be effective December 28, 1999, 24 TexReg 11749; amended to be effective August 25, 2008, 33 TexReg 6814

§21.152: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Program officer--The individual on a college campus who is designated by the institution's Chief Executive Officer to represent the program described in this subchapter on that campus. Unless otherwise designated by the Chief Executive Officer, the Director of Student Financial Aid shall serve as program officer.

(2) Resident of Texas--A resident of the State of Texas as determined in accordance with Subchapter B of this chapter (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons). Nonresident students eligible to pay resident tuition rates are not included.

Comments

Source Note: The provisions of this §21.152 adopted to be effective December 28, 1999, 24 TexReg 11749; amended to be effective August 25, 2008, 33 TexReg 6814

§21.153: Eligible Institutions

Eligible institutions include institutions of higher education and private or independent institutions of higher education as defined in the Texas Education Code, Chapter 61.003.

Comments

Source Note: The provisions of this §21.153 adopted to be effective December 28, 1999, 24 TexReg 11749

§21.154: Eligible Students

To be eligible to receive an award through this program, a student must:

(1) be a resident of Texas;

(2) provide proof to the Texas institution that he or she has been offered a non-athletic scholarship or grant, including an offer of payment of tuition, fees, room and board, or a stipend, by an out-of-state institution; and

(3) have been accepted for admission to the out-of-state institution offering the assistance.

Comments

Source Note: The provisions of this §21.154 adopted to be effective December 28, 1999, 24 TexReg 11749; amended to be effective August 25, 2008, 33 TexReg 6814

§21.155: Funds for Awards

(a) Upon receipt of proof that a student is eligible, an eligible institution may use any funds appropriated to the institution or other funds that the institution may use for the awarding of scholarships or grants, to offer the student an award that matches the offer from the out-of-state institution.

(b) In identifying which funds may be used for making matching scholarships through this subchapter, the institution must exclude funds for any program for which the student recipient would be disqualified by federal or state statute, donor specifications, or any funds that are otherwise restricted by law.

Comments

Source Note: The provisions of this §21.155 adopted to be effective December 28, 1999, 24 TexReg 11749

§21.156: Reporting Requirements

(a) For all students offered a matching award through the program described in this subchapter, the institution shall report on an annual basis to the board:

(1) the race or ethnicity, gender, and high school of graduation of each student;

(2) the name of the competing out-of-state institution;

(3) the types and amounts of all scholarships or grants offered by the out-of-state institution for which the reporting institution offered a matching award under this subchapter; and

(4) the types and amounts of all matching scholarships or grants offered by the reporting institution.

(b) For all students accepting a matching award through the program described in this subchapter, the institution shall report to the board:

(1) the race or ethnicity, gender, and high school of graduation of each student;

(2) the name of the competing out-of-state institution;

(3) the types and amounts of all scholarships or grants offered by the out-of-state institution for which the reporting institution offered a matching award under this subchapter; and

(4) the types and amounts of all matching scholarships or grants awarded by the reporting institution.

(c) Each reporting institution shall also report to the board the methods it has used to encourage Texas high school graduates to attend the reporting institution.

Comments

Source Note: The provisions of this §21.156 adopted to be effective December 28, 1999, 24 TexReg 11749

Subchapter G

§21.171: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Loan Repayment Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §56.352.

(b) Purpose. The purpose of the Teach for Texas Loan Repayment Assistance Program is to recruit and retain classroom teachers in communities and subjects for which there is an acute shortage of teachers in Texas.

Comments

Source Note: The provisions of this §21.171 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective May 21, 2008, 33 TexReg 3940

§21.172: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Classroom Teacher--A person who is employed full-time by a public school district and in that capacity teaches at least four hours each day. The term does not include a teacher's aide or a full-time administrator.

(3) Program--Teach for Texas Loan Repayment Assistance Program.

(4) Service Period--A period of service of at least 9 months of a 12-month academic year.

(5) Default--For purposes of this subchapter, a loan is considered in default if it is reduced to judgment.

Comments

Source Note: The provisions of this §21.172 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.173: Priorities of Application Acceptance

Acceptance of applications will depend upon the availability of funds. An application deadline will be established each year and published on the Board's web site. Applications will be ranked according to the following criteria:

(1) Renewal applicants shall be given priority over first-time applicants unless a break in service periods has occurred.

(2) Financial need as evidenced by the total amount of student loan indebtedness.

(3) Severity of shortage of teachers in the community or teaching field as described in §21.174 of this title, (relating to Eligible Teacher).

Comments

Source Note: The provisions of this §21.173 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.174: Eligible Teacher

To be eligible for loan repayment an individual must:

(1) be certified in a teaching field identified by the Texas Education Agency as experiencing a critical shortage of teachers in this state in the year in which the individual receives the assistance, and have for at least one year taught full-time, and be currently teaching full-time at the preschool, primary, or secondary level in a public school in this state in that teaching field; or

(2) be a certified educator in the year in which the individual receives the assistance, and have for at least one year taught full-time, and be currently teaching full-time at the preschool, primary, or secondary level in a public school in this state in a community identified by the Texas Education Agency as having an acute shortage of teachers; and:

(3) submit a completed application to the Board by the stated deadline.

Comments

Source Note: The provisions of this §21.174 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975

§21.175: Eligible Education Loan

An eligible education loan is one that:

(1) is evidenced by a promissory note or other writing which explicitly requires the loan proceeds to be used to pay for costs incurred for attendance at public or private institution of higher education; and

(2) is not in default at the time of the application.

Comments

Source Note: The provisions of this §21.175 adopted to be effective December 7, 2003, 28 TexReg 10757

§21.176: Repayment of Education Loans

Eligible education loans shall be repaid under the following conditions:

(1) the annual repayment(s) shall be in one disbursement made co-payable to the teacher and the holder(s) of the loan(s);

(2) the annual repayment amount is the lesser of $5,000 or the total unpaid balance of the loans(s) and the aggregate amount of loan repayment shall not exceed $20,000; and

(3) the teacher shall not receive loan repayment assistance for more than five years.

Comments

Source Note: The provisions of this §21.176 adopted to be effective December 7, 2003, 28 TexReg 10757

Subchapter H

§21.191: Purpose

The purpose of the Teacher Education Loan Program is to provide loans to persons who are regularly employed as teachers in public schools in the state and who are enrolled in a course that will lead to a certificate or endorsement to teach a primary or secondary grade subject in which a teacher shortage exists as determined by the State Board of Education. The program also will provide loans to qualified undergraduate and graduate students who are enrolled in a program leading to certification as a classroom teacher or leading to a master's degree in a field for which the person is seeking certification or already holds certification.

Comments

Source Note: The provisions of this §21.191 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.192: Administration

The Coordinating Board, Texas College and University System, or its successor or successors, shall administer the teacher education loan fund and the Teacher Education Loan Program.

Comments

Source Note: The provisions of this §21.192 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.193: Delegation of Powers and Duties

The board delegates to the commissioner the powers, duties, and functions authorized by the Texas Education Code, Chapter 54, Subchapter C.

Comments

Source Note: The provisions of this §21.193 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.194: Designation of Institutional Representative

Unless otherwise specified by the chief executive officer of the institution, the Hinson-Hazlewood College Student Loan Program officer shall serve as the Teacher Education Loan Program officer and shall be the board's on-campus agent with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the fund.

Comments

Source Note: The provisions of this §21.194 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.195: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Accredited public school--Any public school in the state that is accredited by the State Board of Education.

(2) Approved teacher education program--A teacher education program whose graduates are eligible for certification as teachers by the State Board of Education.

(3) Board--The Coordinating Board, Texas College and University System.

(4) Certification--A credential from the State Board of Education to teach in Texas.

(5) Commissioner--The commissioner of higher education, the chief executive officer of the board.

(6) Consecutive semesters--Semesters which immediately follow one another, excluding summer.

(7) Cosigner--A cosigner of a note executed under the authority of the Teacher Education Loan Program shall be such a person signing a note, other than the loan recipient, who is over 21 years of age and who is gainfully employed full time or otherwise demonstrates financial responsibility. Such a person may be a relative, except a spouse, and may not be a student. A cosigner is jointly and severally responsible for all promissory notes issued through the program and signed by the maker and him/herself.

(8) Eligible institution--An eligible institution shall be any institution of higher education within the State of Texas that:

(A) admits as regular students only those persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such a certificate;

(B) is legally authorized within the state to provide a program of education beyond secondary level;

(C) provides an educational program for which it awards a bachelor's degree;

(D) is a public or other nonprofit institution;

(E) is accredited by the Southern Association of Colleges and Schools;

(F) is an institution having its parent campus in Texas; and

(G) offers courses which will lead to teacher certification or endorsement by the State Board of Education.

(9) Endorsement--Completion of specific course work approved by the State Board of Education which enables a teacher to teach in a field other than that for which certification was obtained.

(10) Fund--Teacher Education Loan Program fund.

(11) Graduate student--Any student who is pursuing a program, or has a bachelor's degree and is enrolled in courses which are normally part of a program, leading to a graduate or professional degree or certificate at an institution of higher education and has successfully completed the equivalent of at least three years of full-time study at an institution of higher education either prior to entrance into the program or as part of the program itself.

(12) Enrolled for at least one-half of a full course load--Formal admission to a program and enrollment in an eligible institution leading to teacher certification or a master's degree in a field in which the person holds teacher certification or is seeking certification. Enrollment as an undergraduate must be for six or more semester or quarter credit hours. Enrollment as a graduate must be for four and one-half or more semester or quarter credit hours. Enrollment as an undergraduate or graduate in a summer semester must be for six or more semester or quarter credit hours.

(13) Junior--A student who has accumulated at least 60 hours of course credit at an institution of higher education and has declared his or her intentions to pursue teacher certification.

(14) Pro rata--A proportionate basis upon which amounts of loans will be scaled, depending upon the share of a full-time course load being carried.

(15) Regularly employed as a teacher by a public school--A teacher who teaches more than 20 hours a week, who provides at least 175 days of instruction per year (not including substitute teaching), and who participates in at least eight days of inservice training and preparation per year.

(16) Resident of Texas--A bona fide resident of Texas as defined in the Texas Education Code, §§54.052, 54.054, and 54.055. Nonresidents classified as Texas residents for purposes of paying Texas resident tuition and fees are excluded.

(17) Shortage area--As defined by the State Board of Education.

(18) Summer semester--The equivalent of 12 weeks of study regardless of the number of sessions.

Comments

Source Note: The provisions of this §21.195 adopted to be effective December 17, 1984, 9 TexReg 6125.

§21.196: Qualifications for Loans

(a) Loans to teachers. The commissioner may authorize loans to teachers, provided such applicant:

(1) is regularly employed as a teacher by a public school in Texas;

(2) is enrolled in a course required by rule of the State Board of Education as a qualification for a certificate or an endorsement to teach a primary or secondary grade subject for which the State Board of Education has officially recognized there to be a teacher shortage; and

(3) has received a favorable evaluation of credit reports by the board.

(b) Loans to students. The commissioner may authorize loans to qualified students provided such applicant:

(1) is a Texas resident as defined in regulations adopted by the board;

(2) is enrolled for at least one-half of a full course load as a junior, senior, or graduate student in an approved teacher education program leading to certification as a classroom teacher or to a master's degree in a field for which the person is seeking teacher certification or already holds teacher certification;

(3) has a grade point average equal to at least 3.0 on a 4.0 scale in courses taken while enrolled at least half time at an institution of higher education and completed before the semester in which the loan is awarded;

(4) enters into an agreement with the board to maintain a grade point average of at least 3.0 on a 4.0 scale in courses taken after receiving a teacher education loan, to become certified as a classroom teacher, and to teach in an elementary or secondary school in Texas or to repay the teacher education loan on terms adopted by the board;

(5) has not defaulted on other student loans; and

(6) meets other requirements the board may set.

(c) General criteria. The commissioner may authorize loans to students or teachers, provided such applicant:

(1) has been counseled by the Teacher Education Loan Program officer regarding obligations and responsibilities to the loan program;

(2) has provided the board the names and addresses of three references, one of which may be a credit reference--a credit reference must be provided by qualified teachers; other references must have known the applicant at least two years and may not be relatives or students;

(3) has provided the board with the name and address of the person who will cosign the borrower's promissory note;

(4) has not received a teacher education loan for more than four regular or summer semesters;

(5) has provided evidence of knowledge of the institution's accreditation status as a condition to receiving the loan if the institution is placed on public probation by the appropriate accrediting agency; and

(6) has complied with other provisions of these rules as required to become an eligible recipient.

(d) Authorization of loans. The commissioner may authorize, or cause to be authorized, loans to qualified students at any eligible institution provided there is on file with the commissioner:

(1) a certification by the eligible institution that each applicant meets the qualifications for a teacher education loan and a recommendation by the Teacher Education Loan Program officer that a loan be made;

(2) any supplemental information that may be required;

(3) an institutional certification that, in the best opinion of the Teacher Education Loan Program officer, the student can reasonably be expected to repay the loan in a timely manner, along with other amounts that he or she may owe, in a maximum period of five years after entering repayment status.

(e) Duplication of aid prohibited. Under no circumstances is a person to be considered for a teacher education loan if he or she receives a future teacher loan during the same registration period.

Comments

Source Note: The provisions of this §21.196 adopted to be effective December 17, 1984, 9 TexReg 6127.

§21.197: Allocation of Funds

The commissioner shall allocate and/or reallocate funds annually or at other times to be determined by the commissioner, based upon the number of full-time Texas resident students of appropriate classification enrolled in approved teacher education programs in eligible institutions in Texas.

Comments

Source Note: The provisions of this §21.197 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.198: Amount of Loan

(a) Students enrolled in an approved teacher education program. Students meeting the qualifications stated in §21.196 of this title (relating to Qualifications for Loans) may receive up to $1,000 in loans for each of four regular semesters or summer sessions of study.

(b) Regularly employed teachers. Teachers who meet the qualifications stated in §21.196 of this title (relating to Qualifications for Loans) may receive up to $1,000 in loans for each of four regular semesters or summer sessions of study on a pro rata basis, depending upon the number of courses in which enrolled.

(c) Aggregate maximum of loans. The total of loans to any eligible person may not exceed $4,000 or a lesser amount equal to the total borrowed during four regular semesters or summer sessions of study.

Comments

Source Note: The provisions of this §21.198 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.199: Notification of Availability of Teacher Education Loans

The financial aid director at each participating institution must notify the dean of the school of education at that institution annually prior to the beginning of the fall semester of the availability of the teacher education loan.

Comments

Source Note: The provisions of this §21.199 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.200: Payments to Students

(a) No payment shall be made to any student until he or she has executed a promissory note payable to the teacher education loan fund for the full amount of any authorized loan plus interest and other fees, has obtained the signature of a cosigner, and has entered into an agreement with the board to teach in an elementary or secondary school in Texas or to repay the teacher education loan on terms specified in these sections. The original of such executed promissory note shall be forwarded immediately to the commissioner.

(b) For purpose of any contract executed by the borrower, the defense that he or she was a minor at the time he or she executed a promissory note shall not be available to him or her in any action arising on said note.

Comments

Source Note: The provisions of this §21.200 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.201: Student Status

(a) If, during a borrower's enrollment, the borrower ceases to pursue teacher certification in a shortage area or withdraws from an approved teacher education program, the program officer must notify the board promptly. Further, the program officer must notify the board when a borrower ceases to be enrolled at least half time and provide the board with information on how to locate the borrower.

(b) A roster of student borrowers will be forwarded to each eligible institution by the board prior to the end of each enrollment period. Information on each student borrower shall be obtained in a form prescribed by the commissioner.

Comments

Source Note: The provisions of this §21.201 adopted to be effective December 21, 1984, 9 TexReg 6126.

§21.202: Period of Loans

The principal amounts of all authorized loans shall be repaid in installments over a period of not more than five years unless sooner repaid. Repayments shall begin in accordance with the following.

(1) Loan periods for regularly employed teachers. Teachers who return to school to attain a new endorsement or recertification to teach in a subject area determined to have a teacher shortage shall begin repayment not earlier than the beginning of the third consecutive semester spent as other than a teacher in an accredited public elementary or secondary school in Texas.

(2) Loan periods for students. Students who are enrolled for at least one half of a full course load as a junior, senior, or graduate student in an approved teacher education program leading to certification as a classroom teacher or to a master's degree in a field for which the person is seeking certification or already holds certification shall begin repayment not earlier than 18 months after certification or completing their master's degree.

(3) Loan periods for teachers not maintaining loan program requirements. Repayment shall begin not earlier than the beginning of the third consecutive semester spent as other than a teacher in an accredited public elementary or secondary school in Texas.

(4) Loan periods for students not maintaining loan program requirements. Repayment shall begin not earlier than nine months after a student ceases to be enrolled for at least one half of a full course load or changes to a degree plan other than for teacher certification or master's degree work in his or her field of previous certification.

Comments

Source Note: The provisions of this §21.202 adopted to be effective December 17, 1984, 9 TexReg 6127.

§21.203: Loan Interest

The interest on teacher education loans shall be simple interest and the interest rate to be charged shall be a fixed rate set from time to time by the commissioner and ratified by the board. Interest shall accrue from the date of disbursement until the loans are either totally repaid or cancelled.

Comments

Source Note: The provisions of this §21.203 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.204: Repayment of Loans

(a) Although loans may be prepaid at any time without penalty, repayment shall begin as provided in §21.202 of this title (relating to Period of Loans) and shall extend over such period authorized therein.

(b) The board will provide a repayment schedule calling for the minimum payment amount sufficient to repay all loans made under this subchapter over the maximum authorized period. In no case will the minimum annual repayment be less than $600 on all such loans.

(c) The commissioner may postpone required periodic installments of principal and any accrued interest during any authorized period. Any such periods shall not be included in determining the five-year repayment period.

(d) A charge of 5.0% of the monthly payment or $5.00, whichever is less, shall be assessed on any payment received later than 10 days from the due date of such payment. Such charges shall be collected out of the first payments made in excess of the interest then due.

(e) The cosigner may not be held responsible for the repayment of the loan, accrued interest, and other charges if the borrower dies or becomes totally and permanently disabled.

Comments

Source Note: The provisions of this section 21.204 adopted to be effective December 17, 1984, 9 TexReg 6127.

§21.205: Loan Cancellation

The commissioner may authorize cancellation of loans to students seeking teacher certification and to regularly employed teachers who return to school for endorsement or recertification to teach in the following circumstances.

(1) Any regularly employed teacher who resumes regular employment as a classroom teacher not later than the beginning of the third consecutive semester after returning to school for recertification or endorsement as a teacher is entitled to have loans canceled by semester, beginning with the loan of highest amount, with one semester's loan canceled for each semester of regular employment as a teacher in an accredited public elementary or secondary school in Texas.

(2) Any student borrower who begins regular employment as a classroom teacher within 18 months of certification is entitled to have loans canceled by semester with one semester's loan canceled for each semester of regular employment as a teacher in an accredited public elementary or secondary school in Texas.

Comments

Source Note: The provisions of this §21.205 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.206: Postponements

The commissioner may delay the repayment requirement for recipients enrolled on at least a half-time basis at an eligible institution. These deferment periods are not included when calculating the maximum repayment period. The commissioner may also waive or delay repayment for recipients who give evidence of extreme financial hardship, in which case the period of postponement will be included in determining the maximum repayment periods. The board may require payments on the interest being accrued during the time of a postponement.

Comments

Source Note: The provisions of this §21.206 adopted to be effective December 17, 1984, 9 TexReg 6126.

§21.207: Enforcement of Collection

(a) When any person who has received a loan authorized by this law shall have failed or refused to make as many as six monthly payments due in accordance with a promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The person's name and last known address and other information as requested by the commissioner shall be reported to the attorney general. Suit for the remaining sum shall be instituted by the attorney general or any county or district attorney acting for him in the county of the person's residence or in Travis County, unless the attorney general shall find reasonable justification for delaying suit and shall so advise the commissioner in writing.

(b) Upon notification by the commissioner of default on a teacher education loan, the educational institution shall cause the records, including transcripts of the loan recipient, to become unavailable to her or him or any other person outside the institution until the participating institution has been notified by the commissioner that such default has been corrected. Should the default continue beyond at least 60 days from the date suit service was obtained, the commissioner will cause a judgment to be entered which may be filed in the county records where service was obtained and will release such judgment once the borrower has completed the repayment of the debt as stipulated in the judgment.

(c) In all cases of default, the loan recipient will be responsible for the payment of principal and other accrued charges, including interest, late charge, skiptracing fees, court costs, and attorney fees.

Comments

Source Note: The provisions of this §21.207 adopted to be effective December 17, 1984, 9 TexReg 6128.

Subchapter I

§21.221: Purpose

The purpose of the Future Teacher Loan Program is to provide loans to students preparing to teach subjects for which teachers are critically needed.

Comments

Source Note: The provisions of this §21.221 adopted to be effective December 17, 1984, 9 TexReg 6129.

§21.222: Administration

The Coordinating Board, Texas College and University System, or its successor or successors, shall administer the Future Teacher Loan Program.

Comments

Source Note: The provisions of this §21.222 adopted to be effective December 17, 1984, 9 TexReg 6129.

§21.223: Delegation of Powers and Duties

The board delegates to the commissioner of higher education the powers, duties and functions, except those relating to the letting of contracts for insurance.

Comments

Source Note: The provisions of this §21.223 adopted to be effective December 17, 1984, 9 TexReg 6129.

§21.224: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Approved teacher education program--A teacher education program whose graduates are eligible for certification by the State Board of Education.

(2) Board--The Coordinating Board, Texas College and University System.

(3) Commissioner--The commissioner of higher education, the chief executive officer of the board.

(4) Cosigner--A cosigner of a note executed under the authority of the Future Teacher Loan Program shall be such a person signing a note, other than the loan recipient, who is over 21 years of age and who is gainfully employed or otherwise demonstrates financial responsibility. Such person may be a relative, except a spouse, and may not be a student. A cosigner is jointly and severally responsible for all promissory notes issued through the program and signed by the maker and him or herself.

(5) Fund--The future teacher loan fund.

(6) Graduate student--Any student who is pursuing a program, or has a bachelor's degree and is enrolled in courses which are normally part of a program, leading to a graduate or professional degree or certificate at an institution of higher education and has successfully completed the equivalent of at least three years of full-time study at an institution of higher education either prior to entrance into the program or as part of the program itself.

(7) Resident of Texas--A bona fide resident of Texas as defined in the Texas Education Code, §§54.052, 54.054, and 54.055. Nonresidents classified as Texas residents for purposes of paying Texas resident tuition and fees are excluded.

Comments

Source Note: The provisions of this §21.224 adopted to be effective December 17, 1984, 9 TexReg 6129.

§21.225: Loans

All loans through the Future Teacher Loan Program may be subject to the provisions of the Higher Education Act of 1965, Title IV, Part B, as amended, and the regulations thereof (45 Code of Federal Regulations Part 177). Copies of these federal rules and statutes are on file in the offices of the board.

Comments

Source Note: The provisions of this §21.225 adopted to be effective December 17, 1984, 9 TexReg 6125.

§21.226: Eligible Institutions

(a) Criteria. An eligible institution shall be any Texas institution of higher education within the State of Texas which:

(1) admits as regular students only those persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such certificate;

(2) is legally authorized within the state to provide a program of education beyond secondary level;

(3) provides an educational program for which it awards a bachelor's degree;

(4) is a public or other nonprofit institution;

(5) is an eligible institution under the provisions of the Higher Education Act of 1965, Title IV, Part B, as amended, if the loan is subject to those provisions;

(6) is accredited by the Southern Association of Colleges and Schools; and

(7) is an institution which has its parent campus within the State of Texas.

(b) Evidence of institution's accreditation status. If the institution is placed on public probation by the appropriate accrediting agency, students applying for loans shall provide evidence of knowledge of the school's accreditation status as a condition to receiving the loan.

(c) Students attending other institutions. Any students attending an institution other than an eligible institution as set forth in subsection (a) of this section shall not be eligible for a loan from the future teacher loan fund.

(d) Compliance by student. If, at any time, after notice and opportunity for hearing, it is determined that any monies in the fund or to be deposited therein have been disbursed to a student for purposes for which the fund is legally unavailable and such diversions have not been restored, no further disbursements of monies to such students shall be permitted to be made from the fund until there is no longer any failure of compliance by the student. Monies disbursed to the student for purposes for which the fund is legally unavailable become due and payable to the fund immediately.

(e) Designation of institutional representative. Unless otherwise specified by the chief executive officer of the institution, the Hinson-Hazlewood College Student Loan Program officer shall serve as the Future Teacher Loan Program officer and shall be the board's on-campus agent to certify all institutional transactions and activities with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the fund.

(f) Discrimination by eligible institution prohibited. The Civil Rights Act of 1964, Title VI, states: "No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving federal assistance." Therefore, all transactions with respect to the fund shall be made in compliance with the Civil Rights Act of 1964; and all students transferring from any other institution shall be considered for loans the same as students attending the eligible institution.

(g) Default rate. Whenever the default rate on loans made through an eligible institution exceeds 10% of all such loans on which repayments are due, the volume of loans to be available to students at that institution may be reduced in accordance with a formula to be established by the board.

Comments

Source Note: The provisions of this §21.226 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.227: Qualifications for Loans

(a) Criteria. The commissioner may authorize, or cause to be authorized, loans to qualified students at any eligible institution, provided the applicant:

(1) is a resident of Texas as defined in these regulations;

(2) has a grade point average of at least 3.0 on a 4.0 scale in courses taken while enrolled at least half time at an institution of higher education and completed not later than the semester before the semester in which the loan is awarded;

(3) has been accepted for admission into an approved teacher education program;

(4) has established, under criteria adopted by the State Board of Education, that he or she is preparing to teach a primary or secondary grade subject considered to be in critical need of teachers;

(5) has established financial need;

(6) is carrying at least one-half of the normal full-time workload as determined by said institution;

(7) has provided the fund with a statement of the institution which sets forth a schedule of the tuition and fees applicable to that student and its estimate of the cost of room and board for such a student;

(8) has been recommended by two adults in his or her home community who have known him or her for at least two years and who are not relatives or students;

(9) has provided the board with the name and address of the person who will cosign the borrower's promissory note;

(10) has been counseled by the Future Teacher Loan Program officer regarding obligations and responsibilities to the loan program and has signed a statement acknowledging such;

(11) has complied with such other provisions of these rules as are required; and

(12) has not defaulted on other student loans.

(b) Authorization of loans. The commissioner may authorize, or cause to be authorized, loans from the fund to qualified students at any eligible institution, provided there is on file with the commissioner:

(1) a certification by the eligible institution that each applicant meets the qualifications for a loan as provided in subsection (a) of this section and a recommendation by the Future Teacher Loan Program officer that a loan from the fund be made;

(2) any supplemental information that may be required;

(3) an institutional certification that, in the best opinion of the Future Teacher Loan Program officer, the student can reasonably be expected to repay the loan in a timely manner, along with other amounts that he or she may owe, in a maximum period of 10 years after entering repayment status.

(c) Duplication of aid prohibited. Under no circumstances is a person to be considered for a future teacher loan if he or she receives a teacher education loan during the same registration period.

Comments

Source Note: The provisions of this §21.227 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.228: Allocation of Funds

The commissioner shall allocate and/or reallocate funds annually and at other times to be determined by the commissioner, based upon the number of full-time Texas resident students of appropriate classification enrolled in approved teacher education programs in eligible institutions in Texas.

Comments

Source Note: The provisions of this §21.228 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.229: Amount of Loan

The maximum amount of loan to any qualified applicant in a fiscal year is $2,500. The total of loans to any eligible person through the Future Teacher Loan Program may not exceed $5,000. A change in either financial resources or reasonable expenses of the student shall make the student responsible for the immediate repayment of any overcommitment of loan funds. Prior to recommending the loan, the institutional loan program officer shall make certain that the student is properly utilizing all other appropriate forms of student financial assistance.

Comments

Source Note: The provisions of this §21.229 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.230: Reasonable Expenses for a Student

Reasonable expenses for a student at an eligible institution shall be determined by the commissioner after consultation with representatives of the eligible institution. Lists of reasonable expenses for typical students shall be submitted to the commissioner by the eligible institution prior to April 1 of each year for use in the following summer session and in the following academic year. The lists shall follow the formats prescribed by the commissioner. Each eligible institution may submit as many lists of reasonable expenses as are required to properly reflect the different typical expense categories of students attending the institution. When more than one list is submitted, each list should be labeled so as to identify the category of student to be served by that list. On individual loan applications, the amounts listed for typical students must be adjusted downward when necessary to reflect the circumstances of the applicant. If a listed amount must be increased to properly reflect the reasonable expenses of an individual applicant, then justification for the increased amount must accompany the individual application with such increased amount subject to approval or disapproval by the commissioner.

Comments

Source Note: The provisions of this §21.230 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.231: Notification of Availability of Future Teacher Loans

The financial aid director at each participating institution must notify the dean of the school of education at that institution annually prior to the beginning of the fall semester of the availability of the future teacher loan.

Comments

Source Note: The provisions of this §21.231 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.232: Identification of Student Records

All records of each student who is a borrower under the future teacher loan fund shall be so identified in the office of the registrar at each eligible institution. An official certified copy of such records may be released, and/or the student may reregister in the eligible institutional only upon certification by the designated institutional representative that the borrower's account is in good condition. Exceptions to this rule must be approved by the commissioner in advance of release of an official certified copy of the records or reregistration.

Comments

Source Note: The provisions of this §21.232 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.233: Preloan Interview

Each applicant shall be interviewed by the designated loan program officer or his or her representative prior to recommending of an initial loan. The loan program officer or his or her designated representative shall inform the applicant of his or her responsibilities as a borrower and shall certify that such preloan counseling session has been conducted by a qualified financial aid counselor. If necessary for the convenience of the applicant, the preloan interview may be conducted by or under the supervision of the loan program officer at a participating institution nearer to the applicant's home than is the institution to be attended.

Comments

Source Note: The provisions of this §21.233 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.234: Payments to Student

No payment shall be made to any student until he or she has executed a promissory note payable to the future teacher loan fund for the full amount of any authorized loan plus interest, applicable insurance charges, and other fees and has obtained the signature of a cosigner. The loan amount, interest, applicable insurance charges, and other fees shall be in accordance with provisions set forth in the Higher Education Act of 1965, Title IV, Part B, as amended, and the regulations thereof (45 Code of Federal Regulations Part 177) if the loan is made subject to those provisions. The original of such executed promissory note shall be forwarded to the commissioner immediately, and a copy shall be retained by the eligible institution. For the purposes of any contract executed by him or her, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on said note. No funds shall be distributed to an eligible institution except to make payments to a student under a loan authorized by the Act.

Comments

Source Note: The provisions of this §21.234 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.235: Student Status

(a) If, during a borrower's enrollment, the borrower ceases to pursue teacher certification in a shortage area or withdraws from an approved teacher education program, the program officer must notify the board promptly. Further, the program officer must notify the board when a borrower ceases to be enrolled at least half-time and provide the board with information on how to locate the borrower.

(b) A roster of student borrowers shall be forwarded to each eligible institution by the board prior to the end of each enrollment period. Information on each student borrower shall be obtained in a form prescribed by the commissioner.

Comments

Source Note: The provisions of this §21.235 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.236: Period of Loans

Except as provided in §21.238 of this title (relating to Repayment under Provisions of Public Law 89-239, the Higher Education Act of 1965, of Loans of Deceased or Disabled Borrowers), the principal amounts of all authorized loans shall be repaid in installments over a period of not less than five years (unless sooner repaid) nor more than 10 years, beginning not earlier than six months nor later than nine months after the date on which the student ceases to carry at an eligible institution at least one half the normal full-time academic workload as determined by the institution.

Comments

Source Note: The provisions of this §21.236 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.237: Loan Interest

The interest on future teacher loans shall be simple interest and the interest rate to be charged shall be a fixed rate set from time to time by the commissioner and ratified by the board. Interest shall accrue from the date of disbursement until the loans are either totally repaid or canceled. Loans made pursuant to these rules may be eligible for interest subsidy to be paid in accordance with Public Law 89-239, the Higher Education Act of 1965, and 45 Code of Federal Regulations Part 177.

Comments

Source Note: The provisions of this §21.237 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.238: Repayment under Provisions of Public Law 89-329, the Higher Education Act of 1965, as Amended, of Loans of Deceased or Disabled Borrowers

If a student borrower has received a loan through the Future Teacher Loan Program with respect to which a portion of the interest is payable by the U.S. Secretary of Education under the Higher Education Act of 1965, Title IV, Part B, §428(a), or would be payable but for the adjusted family income of the borrower, dies or becomes permanently and totally disabled (as determined in accordance with the regulations of the United States secretary of education), then the commissioner shall seek to have the borrower's liability on the loan discharged under provisions of Public Law 89-329.

Comments

Source Note: The provisions of this §21.238 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.239: Repayment of Loans

(a) Although a loan may be prepaid at any time without penalty, repayment of the loan shall begin as provided in §21.236 of this title (relating to Period of Loans) and shall extend over such period as authorized therein. The board will provide a repayment schedule calling for the minimum payment amount sufficient to repay all loans over the maximum authorized period. In no case will the minimum annual repayment be less than $600.

(b) The commissioner may delay the repayment requirement for recipients enrolled on at least a half-time basis at an eligible institution. These deferment periods are not included when calculating the maximum repayment period. The commissioner may also waive or delay repayment for recipients who give evidence of extreme financial hardship, in which case the period of postponement will be included in determining the maximum repayment period. The commissioner may require payments on the interest being accrued during the time of a postponement.

(c) For loans made under provisions of the federal Guaranteed Student Loan Program, the commissioner shall postpone required periodic installments of principal during any period authorized by applicable federal law. For loans guaranteed through the federal Guaranteed Student Loan Program, postponement periods are those described in the Higher Education Act of 1965, Title IV, Part B, and the regulations thereof (45 Code of Federal Regulations Part 177). Any such period shall not be included in determining the 10-year repayment period provided in §21.236 of this title (relating to Period of Loans). Interest on loans guaranteed through the Guaranteed Student Loan Program shall accrue during periods of postponement and be paid by the Federal Interest Subsidy Program.

(d) A charge of 5.0% of the monthly payment or $5.00, whichever is less, shall be assessed on any payment received later than 10 days from the due date of such payment. Such charges shall be collected out of the first payments made in excess on interest charges then due.

(e) The cosigner may not be held responsible for the repayment of the loan, accrued interest, and other charges if the borrower dies or becomes totally and permanently disabled.

Comments

Source Note: The provisions of this §21.239 adopted to be effective December 17, 1984, 9 TexReg 6130.

§21.240: Cancellation of Certain Loan Repayments

(a) The board may cancel the repayment of a loan received by a student who is regularly employed by a school district in the state and is teaching a subject considered to be in critical need of teachers under rules adopted by the State Board of Education.

(b) A person who wishes to apply for a loan cancellation must enter into a contract with the board at the time the loan is requested that provides the following:

(1) a payment is not due from the person as long as he or she is employed by a school district in this state and is teaching a subject considered to be in critical need of teachers under rules adopted by the State Board of Education;

(2) half of the total amount of the loan plus interest due is to be canceled after the person has taught a subject considered to be in critical need of teachers for two school years, and the remainder is to be canceled after the person has taught a subject considered to be in critical need of teachers for two additional school years;

(3) repayment of the loan and interest is to begin immediately if the person leaves employment with a school district in this state or discontinues teaching a subject considered to be in critical need of teachers before the end of two school years after the date the person began teaching;

(4) repayment of one-half of the loan and interest is to begin immediately if the person ceases to teach in a school district in this state or discontinues teaching a subject considered to in critical need of teachers before the end of four school years after the date the person began teaching;

(5) on completion of four years of teaching, the loan, principal, and interest, shall be fully canceled; and

(6) interest continues to accrue until the loan is canceled or repaid.

(c) The board shall publicize the availability of the loan cancellation procedures provided by this section at institutions of higher education that offer approved teacher education programs.

Comments

Source Note: The provisions of this §21.240 adopted to be effective December 17, 1984, 9 TexReg 6127.

§21.241: Enforcement of Collections

When any person who has received a loan through the Future Teacher Loan Program shall have failed or refused to make as many as five monthly payments due in accordance with an executed note, the full amount of remaining principal and accrued interest shall become due and payable immediately. When as many as six payments have been missed, the attorney general, at the request of the commissioner, shall file suit for the outstanding balance.

Comments

Source Note: The provisions of this §21.241 adopted to be effective December 17, 1984, 9 TexReg 6130.

Subchapter J

§21.251: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter J, Repayment of Certain Physician Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.531 - 61.540.

(b) Purpose. The purpose of the Physician Education Loan Repayment Program is to encourage qualified physicians to practice medicine in a health professional shortage area designated by the U. S. Department of Health and Human Services, and provide health care services to recipients under the medical assistance program authorized by the Texas Human Resources Code, Chapter 32, and to enrollees under the child health plan program authorized by the Texas Health and Safety Code, Chapter 62.

Comments

Source Note: The provisions of this §21.251 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.252: Administration

The Texas Higher Education Coordinating Board, or its successor or successors, shall administer the Physician Education Loan Repayment Program and may enter into a memorandum of understanding with the Texas Department of State Health Services to perform specified duties in administering the program.

Comments

Source Note: The provisions of this §21.252 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.253: Dissemination of Information

The Texas Higher Education Coordinating Board shall disseminate information about the Physician Education Loan Repayment program to health-related institutions of higher education, appropriate state agencies, interested professional associations, and the public.

Comments

Source Note: The provisions of this §21.253 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.254: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) CHIP--The Children's Health Insurance Program, authorized by the Texas Health and Safety Code, Chapter 62.

(3) Commissioner--The commissioner of higher education, the chief executive officer of the Board.

(4) Federally Qualified Health Center--Any entity in Texas defined under 42 USC §1396d (l)(2)(B).

(5) DSHS--The Texas Department of State Health Services.

(6) Full-time Service--An average of at least 32.5 hours of direct patient care per week during the service period at the HPSA practice site.

(7) HPSAs--Health Professional Shortage Areas (HPSAs) are designated by the U. S. Department of Health and Human Services (HHS) as having shortages of primary medical care, dental or mental health providers and may be geographic (a county or service area), demographic (low income population) or institutional (comprehensive health center, federally qualified health center or other public facility). Designations meet the requirements of Sec. 332 of the Public Health Service Act, 90 Stat. 2270-2272 (42 U.S.C. 254e). Texas HPSAs are recommended for designation by HHS based on analysis of data by DSHS.

(8) Medicaid--The medical assistance program authorized by Chapter 32, Texas Human Resources Code.

(9) Primary Care Specialty--Family medicine, family practice, general practice, obstetrics/gynecology, general internal medicine, general pediatrics, medicine-pediatrics, psychiatry, or geriatrics.

(10) Rural HPSA--A HPSA-designated county or a HPSA-designated area or population in a county of less than 50,000 people.

(11) Service Period--A period of 12 consecutive months qualifying a physician for loan repayment.

Comments

Source Note: The provisions of this §21.254 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.255: Loan Repayment Assistance Under Former Law; Saving Provision

Physicians qualifying for loan repayment assistance on the basis of applications submitted to the Board before September 1, 2009, may receive loan repayment assistance pursuant to §§61.531 - 61.539 of the Texas Education Code, the statute in effect prior to the passage of House Bill 2154, 81st Texas Legislature.

Comments

Source Note: The provisions of this §21.255 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.256: Eligibility

(a) To be eligible for the Board to reserve loan repayment funds, a physician must:

(1) ensure that the Board or its designee has received the completed application by the stated deadline;

(2) be a U.S. citizen or a Legal Permanent Resident and, at the time of application, hold a Full Physician License from the Texas Medical Board, with no restrictions;

(3) not be currently fulfilling another obligation to provide medical services as part of a scholarship agreement, a student loan agreement, or another student loan repayment agreement;

(4) during the first, second, and third service period, if the physician has not earned and maintained board certification, be eligible to take the exam for board certification from:

(A) an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a primary care specialty, or

(B) an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a specialty other than primary care if the DSHS determines there is a critical need for the applicant's specialty in the HPSA where the practice is located; and

(5) agree to provide four consecutive service periods in a HPSA.

(b) To be eligible to receive loan repayment assistance, a physician must:

(1) have completed one, two, three, or four consecutive service periods in a HPSA;

(2) during the service period, have provided direct patient care to:

(A) Medicaid enrollees and

(B) CHIP enrollees.

(3) for loan repayment based on the fourth service period, have earned certification from an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a primary care specialty, or in a specialty other than primary care if the DSHS has determined that there is a critical need for the applicant's specialty in the HPSA where the practice is located.

Comments

Source Note: The provisions of this §21.256 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.257: Application Ranking Criteria

If there are not sufficient funds to award loan repayment assistance for all eligible physicians whose applications are received by the stated deadline, applications shall be ranked according to the following criteria, in priority order:

(1) renewal applications, with first priority assigned to those for primary care;

(2) applications from primary care physicians practicing in rural geographic whole-county HPSAs and applications from physicians practicing in Federally Qualified Health Centers or practice sites that accept payments on a sliding fee scale and follow a policy of providing health care to all who present for care;

(3) HPSA score for applicant practice location.

Comments

Source Note: The provisions of this §21.257 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.258: Eligible Lender and Eligible Education Loan

(a) The Board shall retain the right to determine the eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, medical and graduate medical education and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, or private foundation.

(b) To be eligible for repayment, an education loan must:

(1) be evidenced by a promissory note for loans to pay for the cost of attendance for undergraduate, graduate, or medical education;

(2) not have been made during residency;

(3) not be in default at the time of the physician's application;

(4) not have an existing obligation to provide service for loan forgiveness through another program;

(5) not be subject to repayment through another student loan repayment or loan forgiveness program;

(6) if the loan was consolidated with other loans, the physician must provide documentation of the portion of the consolidated debt that was originated to pay for the cost of attendance for the physician's undergraduate, graduate, or medical education; and

(7) not be an education loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative.

Comments

Source Note: The provisions of this §21.258 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.259: Amount of Repayment Assistance

(a) A physician whose total student loan indebtedness is at least $160,000 may receive repayment assistance based on full-time service for the following amounts:

(1) for the first service period, $25,000;

(2) for the second service period, $35,000;

(3) for the third service period, $45,000;

(4) for the fourth service period, $55,000.

(b) If a physician's total student loan indebtedness is less than $160,000, the annual loan repayment amounts based on full-time service will be the amounts required to repay the indebtedness over a period of four years, with annual increases that are proportional to the annual increases for physicians whose student loan indebtedness is at least $160,000.

(c) A physician may receive prorated loan repayment assistance based on the percentage of full-time service provided for each service period, if providing direct patient care for a minimum of 20 hours per week for each service period.

Comments

Source Note: The provisions of this §21.259 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.260: Limitations

(a) The total amount of repayment assistance to a physician may not exceed $160,000 over a period of no more than four periods of service.

(b) Except under circumstances determined by the Board and DSHS to constitute good cause, failure to meet the program requirements will result in non-payment for that service period and removal from the program. Additionally, providers who do not meet the requirements will be ineligible to apply for other loan repayment programs in Texas.

Comments

Source Note: The provisions of this §21.260 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.261: Disbursement of Loan Repayment Assistance

(a) The annual loan repayment amount may be disbursed in the form of:

(1) one or multiple state warrants co-payable to the physician and the holder(s) of the loan(s), or

(2) one or multiple state warrants or electronic payments delivered directly to the holder(s) on the physician's behalf.

(b) The Board shall follow Internal Revenue Service requirements for reporting of loan repayment assistance to physicians during each calendar year.

Comments

Source Note: The provisions of this §21.261 adopted to be effective November 30, 2009, 34 TexReg 8524

§21.262: Reporting of Retention Rates

Prior to September 1 of every even-numbered year, the Board shall report to the Legislative Budget Board and the Governor the results of annual verification of the practice sites of physicians who have completed a Physician Education Loan Repayment Program agreement to practice in a HPSA to determine short-term and long-term rates of retention in those shortage areas and counties.

Comments

Source Note: The provisions of this §21.262 adopted to be effective November 30, 2009, 34 TexReg 8524

Subchapter K

§21.281: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter B, Tuition Rates. These rules establish procedures to administer the program authorized in §54.207, Students from Other Nations of the American Hemisphere, more commonly known as the Good Neighbor Scholarship Program.

(b) Purpose. The purpose of the Good Neighbor Scholarship Program is to encourage academically talented students from the countries of the Western (American) hemisphere to pursue higher education in the State of Texas, thus establishing a beneficial link between the State of Texas and the home countries of the students.

Comments

Source Note: The provisions of this §21.281 adopted to be effective August 16, 2004, 29 TexReg 7976

§21.282: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Eligible country--A politically independent nation, other than Cuba and the United States, located in the Western, or American hemisphere.

(4) Native-born citizen of an eligible country--A person who is a citizen of an eligible country and who was born in that country or who was born abroad, if at least one of his or her parents was a citizen of the eligible country and not permanently residing in a foreign country.

(5) Resident of an eligible country--A person who is a citizen of a country and has that country as his or her place of home residence and who intends to return to that country to live immediately after finishing the educational program for which this scholarship will be used.

(6) Scholastically qualified--Meets the basic admissions requirements of the nominating institution.

Comments

Source Note: The provisions of this §21.282 adopted to be effective August 16, 2004, 29 TexReg 7976; amended to be effective August 15, 2006, 31 TexReg 6333; amended to be effective May 21, 2008, 33 TexReg 3940

§21.283: Eligible Institutions

(a) Texas public institutions of higher education are eligible to participate in the Good Neighbor Scholarship Program.

(b) Program Officer. The chief executive officer at each participating institution shall name the principal international student advisor or another appropriate person to serve as the Good Neighbor Scholarship Program Officer. The Program Officer shall certify all scholarship applications and activities with respect to the Good Neighbor Scholarship Program and shall be responsible for all related records and reports.

Comments

Source Note: The provisions of this §21.283 adopted to be effective August 16, 2004, 29 TexReg 7976

§21.284: Eligible Students

To be eligible for a Good Neighbor Scholarship a person must:

(1) be a bona fide nativeborn citizen and resident of an eligible country;

(2) have resided in the Western (American) Hemisphere for a period of at least five years;

(3) demonstrate that he or she is scholastically qualified for admission to the nominating institution;

(4) not be a member of the Communist Party;

(5) be recommended for a scholarship by an eligible institution;

(6) have a statement on file with his or her institution that indicates the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law; and

(7) be enrolled in an eligible institution willing to waive the person's tuition.

Comments

Source Note: The provisions of this §21.284 adopted to be effective August 16, 2004, 29 TexReg 7976; amended to be effective May 21, 2008, 33 TexReg 3940

§21.285: Selection Procedures

(a) Each year eligible institutions may submit scholarship recommendations (applications) to the Board. Applications for the 12-month awards must be submitted to the Board no later than March 15.

(1) Prioritization. Participating institutions will assign priority numbers to their applicants, so that if all applicants cannot receive scholarships the Board will know which applicants are given highest priority by the nominating institutions. Within the confines of the basic allotment formula the Board will do its best to accommodate institutional priorities.

(2) Basic allotment. From the pool of valid applications submitted, the Board shall select:

(A) up to 10 students per eligible country, plus

(B) 35 students from a Latin American country designated by the United States Department of State.

(3) Reallocation of unused scholarships. In the event any nation fails to have 10 students available and qualified for scholarships or if the designated country fails to have 35 such students, the Board may allocate such unused scholarships as determined appropriate, with priority being given to students from Mexico, except that the total of all scholarships shall not exceed 235 in a year. If an institution notifies the Board by October 15 of a selected student's failure to use the offered scholarship, the Board will offer the scholarships to the first statewide alternate for that country. Awards canceled after October 15 will be allowed to lapse.

(b) Under no circumstances shall any special consideration be given to applicants who are related to employees of the Board.

Comments

Source Note: The provisions of this §21.285 adopted to be effective August 16, 2004, 29 TexReg 7976; amended to be effective May 14, 2007, 32 TexReg 2640

§21.286: Award Amount

Students selected to receive awards through the Good Neighbor Scholarship Program may be exempted from the payment of tuition for the 12-month period beginning with the fall semester following the students' selection as recipients.

Comments

Source Note: The provisions of this §21.286 adopted to be effective August 16, 2004, 29 TexReg 7976

§21.287: Dissemination of Information and Rules

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

Comments

Source Note: The provisions of this §21.287 adopted to be effective August 16, 2004, 29 TexReg 7976

Subchapter L

§21.301: Purpose

The purpose of the Paul Douglas Teacher Scholarship Program is to provide scholarships to enable and encourage outstanding high school graduates and recent GED certificate recipients who demonstrate an interest in teaching to pursue teaching careers at the preschool, elementary, or secondary level.

Comments

Source Note: The provisions of this §21.301 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.302: Administration

The Texas Higher Education Coordinating Board, or its successor or successors, shall administer the Paul Douglas Teacher Scholarship Program.

Comments

Source Note: The provisions of this §21.302 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.303: Delegation of Powers and Duties

The board delegates to the commissioner of higher education the powers, duties, and functions of the Act, as provided in this subchapter.

Comments

Source Note: The provisions of this §21.303 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.304: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Academic year--The period of time during which a full-time student is expected to complete the equivalent of one of the following:

(A) two semesters;

(B) two trimesters;

(C) three quarters.

(2) Act--The Higher Education Act of 1965, as amended.

(3) Approved teacher education program--A course of study leading to certification as a teacher at the preschool, elementary school, or secondary school level, as determined by the Texas Higher Education Coordinating Board.

(4) Award year--The period of time from July 1 of one year through June 30 of the following year.

(5) Board--The Texas Higher Education Coordinating Board.

(6) Capitalized interest--Unpaid accrued interest added to the principal amount.

(7) Commissioner--The commissioner of higher education, the chief executive officer of the board.

(8) Full-time student--A student enrolled in an institution of higher education, other than a correspondence school, who is carrying a full-time academic workload as determined by the institution under standards applicable to all students enrolled in that student's program.

(9) Fund--The Paul Douglas Teacher Scholarship fund.

(10) The governor's committee--A seven-member statewide panel appointed by the governor for the purpose of selecting scholarship recipients.

(11) Resident of Texas--A legal resident of Texas as defined in the Texas Education Code, §§54.052, 54.054, and 54.055. Nonresidents classified as Texas residents for purposes of paying Texas resident tuition and fees are excluded.

(12) Scholar--A scholarship recipient.

(13) Scholarship--An award made to an individual under this subchapter for one academic year.

(14) Scholarship period--The period of time for which the scholarship is intended.

(15) Teacher shortage area--As defined by the United States Secretary of Education.

Comments

Source Note: The provisions of this §21.304 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.305: Scholarship

All scholarships awarded through the Paul Douglas Teacher Scholarship Program are subject to the provisions of the Higher Education Act of 1965, Title V, Part C, as amended, and the regulations thereof (34 Code of Federal Regulations Part 653). Copies of these federal rules and statutes are on file in the offices of the board.

Comments

Source Note: The provisions of this §21.305 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.306: Eligible Institutions of Higher Education

(a) Criteria. An eligible institution shall be any institution of higher education which:

(1) admits as regular students only those persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such certificate;

(2) is legally authorized to provide a program of education beyond secondary level;

(3) provides an educational program for which it awards at least an associate degree;

(4) is a public or other nonprofit institution;

(5) is accredited by the Southern Association of Colleges and Schools if the institution is within the state of Texas; or

(6) is currently accredited by a nationally recognized accrediting agency or association that the secretary determines to be a reliable authority as to the quality of training offered in accordance with the Act, §1201(A), if the institution is outside the state of Texas.

(b) Evidence of institution's accreditation status. If the institution is placed on public probation by the appropriate accrediting agency, scholars applying for scholarships shall provide evidence of knowledge of the school's accreditation status as a condition to receiving the scholarship.

(c) Students attending other institutions. Any student attending an institution other than an eligible institution, as set forth in subsection (a) of this section (relating to criteria for eligible institutions), shall not be eligible for a scholarship from the fund. Scholars who continue to seek certification through an ineligible institution are responsible for repaying the scholarship.

(d) Designation of institutional representative. Unless otherwise specified by the chief executive officer of the institution, the Hinson-Hazlewood College Student Loan Program officer shall serve as the Paul Douglas Teacher Scholarship Program officer for Texas institutions, shall be the board's on-campus agent to certify all institutional transactions and activities with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the fund.

Comments

Source Note: The provisions of this §21.306 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.307: Qualifications for Scholarships

The commissioner may authorize, or cause to be authorized, scholarships to qualified students at any eligible institution, provided the applicant:

(1) is a United States citizen, national, or permanent resident as defined in 34 Code of Federal Regulations §653.41;

(2) is a legal resident of the State of Texas as defined in these regulations;

(3) has graduated from high school or is scheduled to graduate by the end of the secondary school year; or has received a certificate of high school equivalency for successfully completing the Test of General Educational Development (GED);

(4) ranks in the top 10% of his or her graduating class; or has GED test scores recognized by the state as being equivalent to ranking in the top 10% of high school graduates in Texas, or nationally, in the academic year for which the eligibility determination is being made;

(5) maintains satisfactory progress as determined by the institution of higher education the student is attending, in accordance with the criteria established in 34 Code of Federal Regulations §668.16(e) of the student assistance general provisions regulations;

(6) is enrolled full-time in an eligible institution and is pursuing a course of study leading to certification as a classroom teacher; graduate study that is not required for initial certification is not included;

(7) is not ineligible to receive assistance as a result of default on a federal student loan or otherwise, as provided under 34 Code of Federal Regulations §§75.60-75.62; and

(8) has been counseled by the program officer regarding responsibilities to the scholarship program and has signed a statement acknowledging such.

Comments

Source Note: The provisions of this §21.307 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.308: Criteria for Selecting Scholars

From among the qualified applicants, the scholars will be selected using the following criteria:

(1) high school and/or college grade point average (GPA) or GED score as applicable;

(2) pursuit of a field of study in a teacher shortage area as determined by the United States Secretary of Education;

(3) financial need as determined by the financial aid administrator at the institution of higher education to be attended by the scholar;

(4) grade level; priority given to juniors and seniors in college; and

(5) rank given by the governor's committee based on an essay, extracurricular activities, and a teacher recommendation.

Comments

Source Note: The provisions of this §21.308 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.309: Special Consideration

(a) As required under the Higher Education Amendments of 1992, §523(d), at least 75% of the scholars will be selected on the basis of selection criteria that include criteria to give special consideration to individuals who:

(1) intend to teach or provide related services to students with disabilities;

(2) intend to teach limited English-proficient students;

(3) intend to teach preschool-age children;

(4) intend to teach in schools serving inner city, rural, or geographically isolated areas;

(5) intend to teach in curricular areas or geographic areas where there are demonstrated shortages of qualified teachers;

(6) are from disadvantaged backgrounds, including low income, racial and ethnic minorities and the disabled, and from groups historically underrepresented in the teaching profession or in the curricular areas in which they are preparing to teach.

(b) The board may waive the requirements of subsection (a) of this section for not more than 25% of all individuals receiving a scholarship under this subchapter.

Comments

Source Note: The provisions of this §21.309 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.310: Award Amounts

The maximum award to each scholar may be $5,000 for each academic year not to exceed four years. The amount of the award, when combined with any other Title IV student financial assistance funds awarded to the scholar, may not exceed the scholar's cost of attendance. If a scholarship, when added to the amount the scholar is to receive for the same academic year under Title IV of the Act, would otherwise exceed the scholar's cost of attendance, as defined for the National Direct Student Loan Program in 34 Code of Federal Regulations §674.11, the scholarship shall not be reduced by the amount in which the combined awards would be in excess of the scholar's cost of attendance, but shall be taken into account in determining eligibility for other forms of financial assistance. Subsequent scholarships will also require certification of the award amount by the financial aid office.

Comments

Source Note: The provisions of this §21.310 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.311: Criteria for Subsequent Scholarships

In order to be considered for subsequent scholarships qualified applicants must be:

(1) enrolled as a full-time student in a postsecondary institution that is currently accredited by a nationally recognized accrediting agency or association that the Secretary determines to be a reliable authority as to the quality of training offered, in accordance with the Act, §1202(a);

(2) pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, as recognized by the Texas Higher Education Coordinating Board, but not including graduate study that is not required for initial teacher certification; and

(3) maintaining satisfactory progress toward a degree, or if the student already has a degree, toward teacher certification, as determined by the postsecondary institution the student is attending, in accordance with the criteria established in 34 Code of Federal Regulations §668.16(e) of the Student Assistance General Provisions regulations.

Comments

Source Note: The provisions of this §21.311 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.312: Application Priority Deadlines

A system of priority deadlines will be administered by the board to process applications.

(1) Initial applications arriving at the board on or before June 30 of each year will be given equal priority. Applications received after that date will be processed on a first come-first served basis until funds are depleted.

(2) Subsequent scholarship applications must be received by the board on or before June 30 to ensure the qualified applicant of receiving the full scholarship for which he or she is eligible, provided funds are available.

(3) Eligible applications received after June 30 will be honored as long as funds are available and applications for subsequent scholarships will receive priority. If available funds are insufficient to honor all applications for subsequent scholarships, the Board will prorate reductions in order to fulfill its obligation to subsequent scholars.

Comments

Source Note: The provisions of this §21.312 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.313: Notification of Availability of Paul Douglas Teacher Scholarship

The financial aid director at each participating institution shall annually inform the dean of the school of education at that institution of the availability of the Paul Douglas Teacher Scholarship funds.

Comments

Source Note: The provisions of this §21.313 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.314: Expenditure of Funds

In each award year, the board, if possible, will expend all program funds received from the federal government for that award year and all funds received prior to that award year from principal or interest payments, except that the board may reserve for expenditures in the following award year an amount less than $5,000 as well as any funds awarded but returned or not expended.

Comments

Source Note: The provisions of this §21.314 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.315: Payments to Students

(a) No payment shall be made to any scholar until he or she has executed a promissory note payable to the fund for the full amount of any authorized scholarship plus interest and other fees. The scholar must execute a commitment to teach full-time in a public or private nonprofit preschool, elementary, or secondary school in any state or teach children with disabilities or with limited English proficiency on a full-time basis in a private nonprofit institution. The original of such executed promissory note and commitment to teach shall be forwarded immediately to the commissioner.

(b) For the purpose of any contract executed by the scholar, the defense that he or she was a minor at the time he or she executed a promissory note shall not be available to him or her in any action arising on said note.

Comments

Source Note: The provisions of this §21.315 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.316: Student Status

(a) If, during a scholar's enrollment, the scholar ceases to pursue teacher certification, the program officer must notify the board promptly. Further, the program officer must notify the board when a scholar ceases to be enrolled and provide the board with information on how to locate the borrower.

(b) A roster of scholars will be forwarded to each eligible institution by the board prior to the end of each enrollment period. Information on each scholar shall be obtained in a form prescribed by the commissioner.

Comments

Source Note: The provisions of this §21.316 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.317: Scholarship Conditions

To receive a scholarship, a scholar shall enter into an agreement with the board under which he or she agrees to the following:

(1) teach on a full-time basis in any state as determined by the institution or agency for which the scholar is teaching, for a period of not less than two years for each year in which scholarship assistance was received or in an area designated by the United States Secretary of Education as provided by the Higher Education Act, §428(b)(4), as amended, one year for each year of scholarship assistance was received in one of the following:

(A) a public or private nonprofit preschool, elementary, or secondary school in any state;

(B) in a private nonprofit institution, teach children with disabilities or with limited English proficiency;

(2) fulfill the teaching obligation described in paragraph (1) of this section within 10 years after completing the postsecondary education degree program for which the scholarship was awarded;

(3) pursue a course of study leading to certification at the preschool, elementary, or secondary level as recognized by the Texas Higher Education Coordinating Board but not including graduate study that is not required for initial teacher certification;

(4) provide the board evidence of compliance with paragraphs (1)-(3) of this section;

(5) repay the amount of the scholarship received, prorated according to the fraction of the teaching obligation not completed, as determined by the board, and pay interest and reasonable collection fees if the condition of paragraphs (1)-(4) of this section are not met; and

(6) maintain eligibility for this scholarship through the following:

(A) enroll as a full-time student in an eligible institution;

(B) pursue a course of study leading to certification at the preschool, elementary, or secondary level as recognized by the Texas Higher Education Coordinating Board but not including graduate study that is not required for initial teacher certification; and

(C) maintain satisfactory progress as determined by the institution of higher education that the scholar is attending and comply with §21.311 of this title (relating to Criteria for Subsequent Scholarships).

Comments

Source Note: The provisions of this §21.317 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.318: Noncompliance with the Scholarship Conditions

If the board determines that the scholar is not complying with the scholarship conditions in §21.317 of this title (relating to Scholarship Conditions) then the board will treat the scholarship as a loan as stated in the signed promissory note.

Comments

Source Note: The provisions of this §21.318 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.319: Period of Loan

The principal amounts of loans shall be repaid in installments over a period of not more than 10 years. (See §21.321 of this title (relating to Repayment of Loans).)

Comments

Source Note: The provisions of this §21.319 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.320: Loan Interest

(a) Capitalized Interest. Interest accrues from the date of each initial scholarship payment if the board has determined that the scholar is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, or the day after that portion of the scholarship period for which the teaching obligation has been fulfilled. From the time capitalized interest begins to accrue to the time the repayment period begins (as described in §21.321 of this title (relating to Repayment of Loans)), the interest charge is adjusted annually and is set by the United States Secretary of Education by regulation at the rate that in no event is higher than the greater of the rate applicable to loans under Part B of Title IV, HEA, or §428(A) and §428(B) of the HEA during the same 12-month period. The board shall capitalize any accrued unpaid interest the time it establishes the scholar's repayment schedule.

(b) Interest Rate. The interest rate is adjusted annually and is set by the United States Secretary of Education by regulation at the rate that in no event is higher than the greater of the rate applicable to loans under Part B of Title IV, HEA, or §428(A) and §428(B) of the HEA during the same 12-month period.

(c) Interest Rate Applicable During the Repayment Period. The interest rate applicable during the repayment period is the interest rate prescribed by the United States Secretary of Education by regulation that is in effect as of the beginning date of the repayment period.

Comments

Source Note: The provisions of this §21.320 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.321: Repayment of Loans

A scholar shall begin repayment on the first day of the first calendar month after:

(1) the board determines that the scholar has ceased to pursue a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, but not before six months have elapsed after the cessation of the scholar's full-time enrollment in such a course of study;

(2) the date the scholar informs the board that he or she does not plan to fulfill the teaching obligation;

(3) the latest date, as determined by the board, on which the scholar must begin teaching in order to have completed the teaching obligation within 10 years after completing the postsecondary education for which the scholarship was awarded.

Comments

Source Note: The provisions of this §21.321 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.322: Minimum Repayment Amounts

(a) Although loans may be prepaid at any time without penalty, except for capitalized interest, repayment shall begin as provided in §21.321 of this title (relating to Repayment of Loans) and shall extend over such period authorized in §21.319 of this title (relating to Period of Loan).

(b) The board will provide a repayment schedule calling for the minimum payment amount sufficient to repay all loans made under this subchapter over the maximum authorized period. Annual repayments will amount to no less than $1,200 or the unpaid balance, whichever is less, unless the scholar's inability to pay this amount because of his or her financial condition has been established to the satisfaction of the board. The board shall not require repayments amounting to more than $1,200 annually unless higher payments are needed to complete the entire repayment within the 10-year period referred to in §21.319 of this title (relating to Period of Loan).

Comments

Source Note: The provisions of this §21.322 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.323: Deferments

(a) To qualify for any deferments, the scholar must notify the board of his or her claim to a deferment and submit written proof acceptable to the board that he or she is:

(1) engaged in a full-time course of study at an institution of higher education, as defined in §1201(a) of the HEA;

(2) serving, not in excess of three years, on active duty as a member of Vista, the Peace Corps, or a member of the armed services of the United States;

(3) temporarily totally disabled, for a period not to exceed three years, as established by a sworn affidavit of a qualified physician;

(4) unable to secure employment for a period not to exceed 12 months by reason of the care required by a disabled child, spouse, or parent;

(5) seeking and unable to find full-time employment for a single period not to exceed 12 months;

(6) seeking and unable to find full-time employment as a teacher in a public or private nonprofit preschool, elementary, or secondary school and unable to satisfy the terms of the repayment schedule. This deferment is limited to a single period not to exceed 27 months.

(b) The board shall extend the 10-year loan repayment period by a period equal to the length of any deferment granted by the board. If the scholar proves his or her financial hardship to the board's satisfaction, then the board may extend the 10-year loan repayment period for a period as determined by the board.

(c) During the time a scholar qualifies for any of the deferments in subsection (a) of this section, he or she need not make scholarship payments.

Comments

Source Note: The provisions of this §21.323 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

§21.324: Enforcement of Collection

(a) When a scholar who has received a loan authorized by this law shall have failed or refused to make as many as six monthly payments due in accordance with a promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The scholar's name and last known address and other information as requested by the commissioner shall be reported to the attorney general. Suit for the remaining sum shall be instituted by the attorney general or any county or district attorney acting for him in the county of the scholar's residence or in Travis County, unless the attorney general shall find reasonable justification for delaying suit and shall so advise the commissioner in writing.

(b) Upon notification by the commissioner of default on this loan, the educational institution shall cause the records, including transcripts of the scholar, to become unavailable to him or her or any other person outside the institution until the participating institution has been notified by the commissioner that such default has been corrected. Should the default continue beyond at least 60 days from the date suit service was obtained, the commissioner will cause a judgment to be entered which may be filed in the county records where the service was obtained and will release such judgment once the scholar has completed the repayment of the debt as stipulated in the judgment.

(c) In all cases of default, the scholar will be responsible for the payment of principal and all accrued charges, including interest, late charges, skiptracing fees, court costs, and attorney fees.

Comments

Source Note: The provisions of this §21.324 adopted to be effective January 5, 1994, 18 TexReg 9851.

§21.325: Provisions for Disability and Death

The board shall cancel a scholar's repayment obligations if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the scholar is unable to teach on a full-time basis because the scholar is permanently, totally disabled; or

(2) on the basis of a death certificate, or other evidence of death that is conclusive under state law, that the scholar has died.

Comments

Source Note: The provisions of this §21.325 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

Subchapter M

§21.401: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 56, Subchapter E. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.071 - 56.078.

(b) Purpose. The purpose of the Texas College Work-Study Program is to provide eligible students with jobs, funded in part by the State of Texas, to enable those students to attend eligible institutions of higher education in Texas and, through a mentorship program, provide assistance to students on academic probation.

Comments

Source Note: The provisions of this §21.401 adopted to be effective August 16, 2004, 29 TexReg 7977; amended to be effective November 28, 2005, 30 TexReg 7857; amended to be effective May 16, 2006, 31 TexReg 3873

§21.402: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(5) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(6) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines. Federal and state veterans' educational and special combat pay benefits are not to be considered in determining a student's financial need.

(7) General academic teaching institution--The University of Texas at Austin; The university of Texas at El Paso; The University of Texas of the Permian Basin; The University of Texas at Dallas; The University of Texas at San Antonio; Texas A&M University, Main University; The University of Texas at Arlington; Tarleton State University; Prairie View A&M University; Texas Maritime Academy (now Texas A&M University of Galveston); Texas Tech University; University of North Texas; Lamar University; Lamar State College--Orange; Lamar State College--Port Arthur; Texas A&M University--Kingsville; Texas A&M University--Corpus Christi; Texas Woman's University; Texas Southern University; Midwestern State University; University of Houston; University of Texas--Pan American; the University of Texas at Brownsville; Texas A&M University--Commerce; Sam Houston State University; Texas State University--San Marcos; West Texas A&M University; Stephen F. Austin State University; Sul Ross State University; Angelo State University; The University of Texas at Tyler; and any other college, university, or institution so classified as provided in this chapter or created and so classified, expressly or impliedly, by law.

(8) Half-time student--For undergraduates, a person who is enrolled or is expected to be enrolled for the equivalent of six or more semester credit hours. For graduate students, a person who is enrolled or is expected to be enrolled for the equivalent of 4.5 or more semester credit hours.

(9) Institution of Higher Education or Institution--Any public technical institute, public junior college, public senior college or university, medical or dental unit or other agency of higher education as defined in Texas Education Code, §61.003(8).

(10) Program--The Texas College Work-Study Program.

(11) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(12) Resident of Texas--A resident of the State of Texas as determined in accordance with Subchapter B of this chapter (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

Comments

Source Note: The provisions of this §21.402 adopted to be effective August 16, 2004, 29 TexReg 7977; amended to be effective November 28, 2005, 30 TexReg 7857; amended to be effective May 16, 2006, 31 TexReg 3873; amended to be effective August 16, 2007, 32 TexReg 4976; amended to be effective August 25, 2008, 33 TexReg 6814; amended to be effective May 26, 2010, 35 TexReg 4154

§21.403: Institutions

(a) Eligibility.

(1) Any public, private, or independent institution of higher education as defined by Texas Education Code, §61.003, except a theological or religious seminary, is eligible to participate in the general work-study program. Only general academic teaching institutions may participate in the mentorship program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise the Board and work-study award recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of work-study funds shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting.

(A) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

(B) Penalties for Late Reports and/or Refunds.

(i) An institution that postmarks or electronically submits a report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each report that is postmarked or submitted electronically more than a week late. The penalty may also be invoked if the report is timely, but refunds owed to the Program by the institution are not made to the Board or the State Comptroller's Office within one week after due.

(iii) The Commissioner may assess more severe penalties against an institution if any report or refund is received by the Board more than one month after its due date.

(iv) The maximum penalty for a single year is 30 percent of the school's allocation. If penalties are invoked in two consecutive years, the institution may be penalized an additional 20 percent.

(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer and copied to the financial aid director. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title (relating to Agency Administration).

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Texas College Work-Study Program.

Comments

Source Note: The provisions of this §21.403 adopted to be effective August 16, 2004, 29 TexReg 7977; amended to be effective November 28, 2005, 30 TexReg 7857

§21.404: Eligible Student Employees

(a) To be eligible for employment in the general work-study program a person shall:

(1) be a Texas resident as defined by Board rules;

(2) be enrolled for at least the number of hours required of a half-time student, and be seeking a degree or certification in an eligible institution;

(3) establish financial need in accordance with Board procedures; and

(4) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law.

(b) A person is not eligible to participate in the work-study program if the person:

(1) concurrently receives an athletic scholarship;

(2) is enrolled in a seminary or other program leading to ordination or licensure to preach for a religious sect or to be a member of a religious order.

Comments

Source Note: The provisions of this §21.404 adopted to be effective August 16, 2004, 29 TexReg 7977; amended to be effective November 28, 2005, 30 TexReg 7857; amended to be effective May 16, 2006, 31 TexReg 3873; amended to be effective August 16, 2007, 32 TexReg 4976; amended to be effective August 25, 2008, 33 TexReg 6814

§21.405: Eligible Employers

(a) An eligible institution may enter into agreements with outside employers to participate in the general work-study program. To be eligible to participate, an employer must:

(1) provide part-time employment to an eligible student in nonpartisan and nonsectarian activities;

(2) provide, insofar as is practicable, employment to an eligible student that is related to the student's academic interests;

(3) use Texas college work-study program positions only to supplement and not to supplant positions normally filled by persons not eligible to participate in the work-study program; and

(4) unless eligible for a waiver of matching funds under subsection (b) of this section, provide not less than 25 percent of an employed student's wages and 100 percent of other employee benefits for the employed student from sources other than federal college work-study program funds, if the employer is a nonprofit entity; or

(5) provide not less than 50 percent of an employed student's wages and 100 percent of other employee benefits for the employed student, if the employer is a profit-making entity.

(b) Institutions eligible to receive Title III funds from the U. S. Department of Education are exempted from the general work-study program requirement to provide 25 percent of an employed student's wages, if they provide the Board with a copy of a current Title III eligibility letter from the U. S. Department of Education.

Comments

Source Note: The provisions of this §21.405 adopted to be effective August 16, 2007, 32 TexReg 4977

§21.406: Award Amounts and Uses

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that purpose, plus matching funds provided by the students' employers.

(b) Award Amount. No award amount shall exceed a student's financial need.

(c) Uses. No general work-study funds earned through this program may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

Comments

Source Note: The provisions of this §21.406 adopted to be effective August 16, 2007, 32 TexReg 4977

§21.407: Allocation and Disbursement of Funds

(a) Allocations. The Board shall allocate work-study funds to participating institutions in proportion to the financial need of the students at each school. At the beginning of each year or upon request by the institution, the year's full allocation or funds needed for immediate disbursement to students will be provided to each participating institution for use in reimbursing students for their work.

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber all funds allocated to them. On that date, institutions lose claim to their unencumbered funds and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed

(c) Unless given specific permission by the Board to use funds for summer awards, schools will be required to utilize their state work-study funds for employment during the nine-month academic year (fall and spring terms).

Comments

Source Note: The provisions of this §21.407 adopted to be effective August 16, 2007, 32 TexReg 4977

§21.408: Dissemination of Information and Rules

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

Comments

Source Note: The provisions of this §21.408 adopted to be effective August 16, 2007, 32 TexReg 4977

§21.409: Authority to Transfer Funds

Institutions participating in a combination of the Toward EXcellence, Access and Success Grant, Tuition Equalization Grant, and Texas College Work-Study Programs, in accordance with instructions from the Board, may transfer in a given fiscal year up to the lesser of 10 percent or $10,000 between these programs.

Comments

Source Note: The provisions of this §21.409 adopted to be effective August 16, 2007, 32 TexReg 4977

Subchapter N

§21.430: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in §§56.351 through 56.356.

(b) Scope. The rules set forth in this subchapter are applicable to the persons with financial need who are seeking educator certification.

(c) Purpose. The purpose of the Teach for Texas Conditional Grant Program is to encourage students to become teachers and to encourage these newly certified teachers to teach in fields having a critical shortage of teachers or in communities having a critical shortage of teachers.

Comments

Source Note: The provisions of this §21.430 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.431: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Academic period--A twelve-month period designated by an eligible institution.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Community experiencing a critical shortage of teachers--As defined by the Commissioner of Education.

(5) Eligible Institution--Institutions of higher education and private or independent institutions of higher education, as defined in the Texas Education Code, Chapter 61.003, that offer an educator certification program (not applicable in the case of alternative educator certification programs).

(6) Enrolled for at least a three-quarter time--For undergraduates, enrolled for the equivalent of nine semester credit hours in a regular semester.

(7) Enrolled at least half time--For undergraduates, enrolled for the equivalent of six semester credit hours in a regular semester.

(8) Program--The Teach for Texas Conditional Grant Program.

(9) Recipient--A person who has received a Teach for Texas Conditional Grant.

(10) Program Completion Date--The date the recipient is considered to have completed the requirements of the educator certification program and is eligible to take the appropriate ExCET exam.

(11) Satisfactory Academic Progress--A student makes satisfactory academic progress toward completion of an educator certification program if he/she completes at least 75% of the semester credit hours attempted in the student's most recent academic year and earns an overall grade point average of at least 2.5 on a four-point scale on coursework previously attempted at institutions of higher education.

Comments

Source Note: The provisions of this §21.431 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.432: Priorities of Application Approval

Applications will be ranked according to the following priorities, in addition to other factors relating to the efficient use of funds furthering the program purpose:

(1) Renewal applicants shall be given priority over first-time applicants.

(2) Applicants who demonstrate the greatest financial need.

(3) Contingent upon available funding, applicants who demonstrate no financial need shall be considered based upon criteria such as earliest anticipated program completion date and residency.

Comments

Source Note: The provisions of this §21.432 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.433: Requirements for Eligible Institution

(a) Each eligible institution shall designate a Teach for Texas Conditional Grant program officer to administer the program. Unless otherwise designated by the chief executive officer, the Director of Student Financial Aid shall serve as program officer. If the day-to-day administration of this program is delegated to a student financial aid officer, the Director of Student Financial Aid must notify the Board and provide the name and telephone number for that person.

(b) All institutions participating in the program described in this subchapter must meet Board reporting requirements for the Teach for Texas Conditional Grant in a timely fashion.

Comments

Source Note: The provisions of this §21.433 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.434: Eligible Students

To be eligible a student must:

(1) be seeking educator certification and agree to teach full-time at the preschool, primary, or secondary level in a public school in Texas:

(A) in a teaching field certified by the Commissioner of Education as experiencing a critical shortage of teachers in Texas in the year in which the student receives the grant; or

(B) in a public school in Texas in a community certified by the Commissioner of Education as experiencing a critical shortage of teachers:

(i) in any year in which the person receives a Teach for Texas Conditional Grant; or

(ii) in any subsequent year in which the person fulfills the teaching obligation;

(2) be enrolled at least three-quarter time in an approved institution as a junior, senior, or, in the case of a person who has received a baccalaureate degree be:

(A) a renewal recipient enrolled in post baccalaureate courses required to complete the educator certification program; and

(B) in the first academic year in an educator certification program;

(3) make satisfactory academic progress toward completion of the educator certification program;

(4) be recommended by the dean of the college or school of education at the approved institution; and

(5) not have been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance, as defined by Chapter 481, Health and Safety Code, unless the student has:

(A) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(B) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter.

Comments

Source Note: The provisions of this §21.434 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.435: Three-Year Grant Eligibility Period

A person may not receive a conditional grant through the program for more than 90 course hours or if more than three years has passed since the first award.

Comments

Source Note: The provisions of this §21.435 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.436: Hardship and Other Good Cause

Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at an eligible institution in determining whether or not these circumstances warrant exception to the 90-hour grant eligibility limitation, the satisfactory academic progress requirements, the requirement to be enrolled at least three-quarter time, the requirement to complete the educator certification program within the three-year grant eligibility period, the requirement to begin fulfilling the service obligation not later than 18 months after the certification program completion date, and the requirement to fulfill the five-year service obligation within a six-year period. Such situations include, but are not limited to, the following:

(1) a severe illness or other debilitating condition that may affect the recipient's ability to make satisfactory academic progress in the baccalaureate or educator certification program;

(2) responsibility for the care of a temporarily disabled dependent that may affect the recipient's ability to make satisfactory academic progress in the baccalaureate or educator certification program; or

(3) similar circumstances preventing the recipient from completing the five-year teaching obligation within six years after the date the person began to fulfill the teaching obligation.

Comments

Source Note: The provisions of this §21.436 adopted to be effective November 26, 2001, 26 TexReg 9614; amended to be effective May 23, 2002, 27 TexReg 4336

§21.437: Amount of Grant

(a) The maximum aggregate amount of a Teach for Texas Conditional Grant shall equal four times the current annual amount of the TEXAS Grant for a student enrolled at Texas public four-year institution of higher education. A student may receive a TEXAS Grant and a Teach for Texas Grant for the same academic period.

(b) The Coordinating Board shall pay the amount of the grant in installments based on the number of remaining semesters the student anticipates being enrolled in the educator certification program. The Coordinating Board may adjust the amount of a grant for a semester or term, or award a supplemental grant, to ensure that a grant recipient who meets the program requirements receives the maximum aggregate grant amount allowed.

Comments

Source Note: The provisions of this §21.437 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.438: Eighteen-Month Period Before Employment

The recipient must become certified to teach in Texas and must begin fulfilling the five-year service obligation not later than 18 months after the certification program completion date.

Comments

Source Note: The provisions of this §21.438 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.439: Service Obligation Period

(a) A recipient must teach full-time for five years as:

(1) a teacher certified in and teaching in a field having a critical shortage of teachers; or

(2) a certified teacher in a community experiencing a critical shortage of teachers.

(b) A recipient must complete a five-year service obligation.

(c) The service obligation period begins on the first day the recipient begins qualified employment.

(d) During the service obligation period, the recipient shall provide the Board with regular, periodic reports of his or her teaching status.

Comments

Source Note: The provisions of this §21.439 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.440: Conditions of Grant

(a) The Teach for Texas Conditional Grant becomes a loan and shall be reported to credit reporting agencies when the recipient fails to:

(1) remain enrolled at least half-time in an eligible educator certification program;

(2) make satisfactory academic progress in the educator certification program;

(3) complete the educator certification program within the three-year grant eligibility period;

(4) be certified as a teacher within eighteen months after the program completion date;

(5) begin the service obligation within eighteen months after the program completion date;

(6) maintain continuous full-time teaching and complete the five-year teaching obligation within six years of beginning the service obligation period; or

(7) provide a regular, periodic report of enrollment or employment status and location to the Board within a reasonable period of time as determined by the Board.

(b) Recipients must sign a promissory note acknowledging the conditional nature of the grant and promising to repay the outstanding principal, interest, and reasonable collection costs, if the grant conditions are not fulfilled.

Comments

Source Note: The provisions of this §21.440 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.441: Loan Interest

(a) The interest rate charged on Teach for Texas Conditional Grants shall be determined by the Commissioner and shall be a fixed, simple interest rate.

(b) Interest begins to accrue upon the date the grant becomes a loan or the program completion date, whichever is earlier.

(c) Interest does not accrue during of periods of educational deferment.

Comments

Source Note: The provisions of this §21.441 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.442: Repayment of Loans

(a) The Teach for Texas Conditional Grant shall be repaid in installments over a period of not more than ten years from the date the grant becomes a loan.

(b) A recipient shall begin making payments within sixty days of the date on which the Teach for Texas Conditional Grant becomes a loan.

(c) The repayment amount shall be based upon the proportion of the remaining unfulfilled service obligation.

(d) The minimum repayment amount is $1,200 annually or an amount required to repay the loan within 10 years, whichever is greater.

Comments

Source Note: The provisions of this §21.442 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.443: Educational Deferments

Deferments apply only to qualified recipients during periods of eligible enrollment during the six-year eligibility period.

Comments

Source Note: The provisions of this §21.443 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.444: Forbearance

Periods of forbearance may be granted to recipients of Teach for Texas Conditional Grants in repayment under certain documented circumstances as determined by the Board. Periods of forbearance shall extend the ten-year repayment period.

Comments

Source Note: The provisions of this §21.444 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.445: Enforcement of Collection

(a) When a recipient of a Teach for Texas Conditional Grant shall have failed to make six monthly payments in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The recipient's name and last known address and other information as requested by the Commissioner shall be reported to the Attorney General or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the Attorney General shall find reasonable justification for delaying suit and shall advise the Commissioner in writing.

(b) Upon notification by the Commissioner of default on the loan, the educational institution shall cause the records, including transcripts of the recipient, to become unavailable to him or her or any other person outside the institution until the participating institution has been notified by the Commissioner that default has been corrected.

(c) In all cases of default, the recipient shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

Comments

Source Note: The provisions of this §21.445 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.446: Provisions for Disability and Death

The Board shall cancel a recipient's repayment or service obligation if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach on a full-time basis because the recipient is permanently, totally disabled; or

(2) on the basis of a death certificate, that the recipient has died. In the case of death, the Board may pursue collection from the recipient's estate if the debt has been reduced to judgment before the death of the recipient.

Comments

Source Note: The provisions of this §21.446 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.447: Advisory Committee

The Board's Financial Aid Advisory Committee shall function as the advisory committee to the Board in the administration of the program described in this subchapter.

Comments

Source Note: The provisions of this §21.447 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.448: Dissemination of Information

The Board and its advisory committee are responsible for publishing and disseminating general information and program rules for the Teach for Texas Conditional Grant Program to approved Texas institutions of higher education, appropriate associations, and other interested entities.

Comments

Source Note: The provisions of this §21.448 adopted to be effective November 26, 2001, 26 TexReg 9614

Subchapter O

§21.465: Purpose

The purpose of the Early Childhood Care Provider Student Loan Repayment Program is to recruit and retain qualified child-care providers who serve in licensed Texas child-care facilities and whose duties consist primarily of providing child care or education to children less than four years old.

Comments

Source Note: The provisions of this §21.465 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.466: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Child-care facility--A child-care facility licensed through the Division of Child Care Licensing of the Department of Protective and Regulatory Services.

(2) Default--A loan is considered in default if it is reduced to judgment.

(3) Early childhood care provider--A person who works 31 hours or more a week in a child-care facility, whether as an employee, owner, or volunteer, and whose duties consist primarily of providing child care or education to children less than four years of age.

(4) Early childhood degree or equivalent--An associate, baccalaureate, or graduate degree in early childhood development or the equivalent of early childhood development.

(5) Education loan--A loan made to an individual for the purpose of attending a public or independent institution of higher education.

(6) General academic teaching institution--As defined in the Texas Education Code, §61.003.

(7) Institution of higher education--A public or private and independent institution of higher education as defined in the Texas Education Code, §61.003, and an out-of-state institution that is accredited by a recognized accrediting agency.

(8) Recognized accrediting agency--The Southern Association of Colleges and Schools and any other association or organization so designated by the board.

(9) Repayment(s)--Financial assistance for repaying education loans.

(10) Service obligation--A period of specified service in return for repayment assistance.

Comments

Source Note: The provisions of this §21.466 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.467: Priorities of Application Acceptance and Selection Criteria

(a) Acceptance of applicants shall depend on the availability of appropriated and other funds designated to support the program. Selection of applicants to participate in the program shall be based upon criteria approved by the commissioner in order to use limited funds effectively. The selection criteria may include, among other things, an assessment of an applicant's financial need.

(b) Renewal applicants shall be given priority over first-time applicants.

(c) In any year in which funds are insufficient for the number of eligible applicants, the board may encumber Early Childhood Care Provider Student Loan Repayment Funds.

Comments

Source Note: The provisions of this §21.467 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.468: Eligible Education Loan

An education loan eligible for repayment is one that:

(1) was obtained for purposes of attending any public or independent institution of higher education;

(2) is evidenced by a promissory note:

(A) for funds through a federal or state loan program for higher education,

(B) with language that clearly indicates that loan proceeds must be used for direct and indirect expenses at an eligible institution, or

(C) for consolidating education loans;

(3) does not entail a service obligation as a child care provider;

(4) shall not be repaid through a similar program administered by the state or federal government, another state or territory of the United States, or by a foreign country; and

(5) is not in default at the time of the early childhood care provider's application.

Comments

Source Note: The provisions of this §21.468 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.469: Qualifications for Participation

A person qualified for participation in the program must:

(1) be a United States citizen, national, or permanent resident of the United States;

(2) hold an associate, baccalaureate, or graduate degree in early childhood development or the equivalent of early childhood development from a public or independent institution of higher education accredited by a recognized accrediting agency;

(3) be employed as an early childhood care provider in a Texas child-care facility;

(4) apply for participation in the program and enter into an agreement with the board as an early childhood care provider; and

(5) sign a promissory note.

Comments

Source Note: The provisions of this §21.469 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.470: Participation Agreement

The participation agreement signed by the early childhood care provider shall specify the contractual conditions of any repayments provided to the early childhood care provider including, but not limited to, the following:

(1) the two-year service requirement must be completed to avoid repayment of funds to the board;

(2) the number of additional years of service for which an early childhood care provider may receive repayment assistance beyond the two-year service requirement;

(3) the difference in conditions between repayments made to the early childhood care provider during the required two-year service period and repayments made during any subsequent years of service;

(4) the beginning of the two-year service requirement effective the date of the agreement;

(5) the cancellation of the service obligation due to death or total and permanent disability;

(6) the early childhood care provider's promise to repay all funds paid to him or her by the board for service should he or she cease to provide child-care in a child-care facility any time during the required two-year service period;

(7) the effect of appropriations and availability of funds on repayment assistance;

(8) the manner in which loan repayments are made; and

(9) any other conditions necessary to fulfill the intent of the statute or to maintain the integrity of the program.

Comments

Source Note: The provisions of this §21.470 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.471: Amount of Repayments and Limitations

(a) The amount of repayments and the timeliness of repayments of education loans of a child-care provider are dependent upon appropriations and availability of funds. The board may delay repayments in times of insufficient funds.

(b) The total annual loan repayments may not exceed the lesser of the following:

(1) 15% of the total of all remaining scheduled payments of all education loans based upon a leveled payment schedule on the date of the participation agreement;

(2) the actual annual amount of the loan payments required by the note and holder of the education loans; or

(3) an amount set by the board equal to the maximum amount of resident tuition and required fees paid by a person enrolled as a full-time student at a general academic teaching institution in Texas for the most recent academic year, excluding summer school.

Comments

Source Note: The provisions of this §21.471 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.472: Repayments During the Required Two-Year Service Period

(a) The board may encumber repayment assistance funds for each qualified early childhood care provider for the required two-year service obligation.

(b) The board shall disburse repayments at the end of each year of service.

(c) The board shall issue a disclosure statement with each disbursement.

(d) Repayments shall be made copayable to the child-care provider and the holder of the education loan notes.

(e) The board shall provide the early childhood care provider a completed IRS 1099 form annually for repayments disbursed during the required two-year period.

Comments

Source Note: The provisions of this §21.472 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.473: Repayments Beyond the Required Two-Year Service Period

(a) To the extent funding is available, an early childhood care provider may qualify to receive repayments for three additional years of service in an eligible facility after completing the required two years of service.

(b) The eligible early childhood care provider must apply annually at the beginning of the twelve-month service period.

(c) To remain eligible, the early childhood care provider must provide twelve consecutive full months of eligible service.

(d) Repayments shall be made for services rendered in the preceding twelve months.

(e) Repayments are for services rendered and do not have to be repaid; consequently, no promissory note is required for repayments beyond the required two-year period of service.

(f) Repayments shall be made copayable to the early childhood care provider and the holder of the education loan notes.

(g) The board shall provide the early childhood care provider a completed IRS 1099 form annually.

Comments

Source Note: The provisions of this §21.473 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.474: Terms of Early Childhood Care Provider Student Loans

(a) Early childhood care providers receiving repayments during the required two-year service period who fail to complete service within the two years specified in the participation agreement must repay all repayments received according to the stipulations in the promissory note signed with the participation agreement.

(b) Early childhood care provider student loans may be reported to credit reporting agencies.

(c) Early childhood care provider student loan recipients are responsible for repaying not only the board but also holders of any outstanding education loan notes.

(d) The board may require a creditworthy payment guarantor or cosigner designated on the promissory note.

(e) The principal amount of all early childhood care provider student loans shall be repaid in installments in a period not to exceed five years.

(f) The interest on early childhood care provider student loans shall be simple interest, and the interest rate shall be a fixed rate set by the commissioner. Interest shall accrue from the date of the disbursement of the first repayment.

(g) The first payment shall be due at least 60 days after the date the early childhood care provider ceases to provide eligible services.

(h) The board shall provide a payment schedule calling for a minimum payment amount sufficient to repay all amounts included in the promissory note(s). The minimum annual amount required shall be $600 or the amount required to repay the remaining balance within five years, whichever is greater.

(i) A charge of five percent (5%) of the monthly payment or five dollars ($5.00), whichever is less, shall be assessed for any payment received later than twenty days from the due date of such payment. Such charges shall be collected out of the first payments made in excess of the interest due with these payments.

(j) Periods of forbearance may be granted to recipients of the early childhood care provider student loans under certain documented circumstances as determined by the board. Periods of forbearance shall extend the five-year repayment period.

Comments

Source Note: The provisions of this §21.474 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.475: Enforcement of Collection

(a) When a recipient or payment guarantor/cosigner of a loan shall have failed to make as many as six monthly payments due in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The recipient's and payment guarantor/cosigner's names and last known addresses and other information as requested by the commissioner shall be reported to the attorney general or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the attorney general shall find reasonable justification for delaying suit and shall advise the commissioner in writing.

(b) In all cases of default, the recipient and payment guarantor/cosigner shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

Comments

Source Note: The provisions of this §21.475 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.476: Provisions for Disability and Death

The board may cancel a recipient's payment or service obligation if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the recipient is unable to work because the recipient is permanently, totally disabled; or

(2) on the basis of a death certificate, that the recipient has died. In the case of death, the board may pursue collection from the recipient's estate if the debt has been reduced to judgment before the death of the recipient.

Comments

Source Note: The provisions of this §21.476 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.477: Dissemination of Information

The Board shall distribute rules and pertinent information about the Early Childhood Care Provider Student Loan Repayment Program to Texas institutions of higher education offering a degree program in early childhood development and equivalent degrees and to appropriate associations, facilities, and other entities.

Comments

Source Note: The provisions of this §21.477 adopted to be effective December 28, 1999, 24 TexReg 11750

Subchapter P

§21.500: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter L, Financial Aid for Professional Nursing Students and Vocational Nursing Students and Loan Repayment Program for Certain Nurses. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.651 - 61.658.

(b) The purpose of the Professional Nurses' Student Loan Repayment Program is to promote the health care and health educational needs of the citizens of Texas by encouraging qualified professional nurses to practice in Texas.

Comments

Source Note: The provisions of this §21.500 adopted to be effective July 3, 1990, 15 TexReg 3571; amended to be effective November 28, 2004, 29 TexReg 10771

§21.501: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The commissioner of higher education, the chief executive officer of the Board.

(3) Financial need--A measure of the applicant's need for financial assistance, measured in terms of family income, family size, and total education-related indebtedness.

(4) Pro rata--A proportionate basis upon which payment amounts will be scaled, depending upon the share of a state employee's full work year worked by the loan repayment recipient.

(5) Professional nurse--An individual who is a licensed Registered Nurse in the State of Texas.

(6) Service period--A twelve-month period for which a professional nurse qualifies for repayment of student loans.

Comments

Source Note: The provisions of this §21.501 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.502: Eligible Lender and Holder

The Board shall retain the right of determining eligibility of lenders and holders of student loans to which payments may be made. An eligible lender or holder shall, in general, make or hold loans made to individuals for purposes of attending postsecondary institutions and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, licensed Texas hospital, licensed Texas long-term care facility, secondary market, governmental agency, pension fund, private foundation, or insurance company provided the loan conforms to the definition of an eligible student loan as provided in this subchapter.

Comments

Source Note: The provisions of this §21.502 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.503: Eligible Professional Nurse

A nurse who is licensed by the Board of Nurse Examiners for the State of Texas and against whom no formal charge is unresolved and against whom no professional disciplinary action has been taken.

Comments

Source Note: The provisions of this §21.503 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.504: Eligible Student Loan

A student loan eligible for repayment is one that:

(1) was obtained through an eligible lender for purposes of attending a postsecondary institution;

(2) is not a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;

(3) does not have an existing service obligation; and

(4) is not in default at the time of the nurse's application for repayment.

Comments

Source Note: The provisions of this §21.504 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.505: Advisory Committee

The Board shall appoint a ten-member advisory committee as provided by Chapter 61, Subchapter L, of the Texas Education Code. The purposes of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Professional Nurses' Student Loan Repayment Program;

(2) advise the Board on the priorities of emphasis among the scholarship, matching fund, and loan repayment programs provided for in Chapter 61, Subchapter L, of the Texas Education Code;

(3) advise the Board on the amount of money needed to fund adequately the Professional Nurses' Student Loan Repayment Program;

(4) advise the Board on the establishment of priorities among the criteria for consideration of application approval which are named in Chapter 61, Subchapter L, of the Texas Education Code and in these rules;

(5) advise the Board on nursing shortage areas; and

(6) assist the Board in the dissemination of information on the Professional Nurses' Student Loan Repayment Program.

Comments

Source Note: The provisions of this §21.505 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.506: Qualifications for Student Loan Repayment

The commissioner may authorize or cause to be authorized repayment of student loans made to an eligible Professional Nurse who

(1) has submitted the appropriate application to the Board;

(2) has been practicing in Texas for at least one year immediately preceding loan repayment as a member of a nursing faculty, as a nurse anesthetist, advanced nurse practitioner, certified nurse midwife or clinical nurse specialist; and

(3) is currently practicing in Texas as a professional nurse in a position which requires a professional nurse.

Comments

Source Note: The provisions of this §21.506 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.507: Priorities of Application Approval

The advisory committee shall advise the Board on priorities of application approval based upon the following criteria (not in priority order):

(1) geographical area of nursing practice;

(2) employment by a state agency;

(3) employment on a nonprofit nursing school faculty;

(4) whether the person is a practicing nurse in an area with an acute nursing shortage;

(5) financial need.

Comments

Source Note: The provisions of this §21.507 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.508: Prior Conditional Approval

Prior conditional approval of applications for repayment of loans may be granted by the Board. Such approval may occur no earlier than the beginning of the applicant's final year of education or the beginning of the applicant's service period. Repayments are dependent upon the availability of funds.

Comments

Source Note: The provisions of this §21.508 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.509: Repayment of Student Loans

Eligible student loans of eligible professional nurses shall be repaid under the following conditions:

(1) a total annual repayment on behalf of an eligible Professional Nurse shall not exceed the unpaid principal and interest owed on one or more eligible loans, or $2,000.00, whichever is less;

(2) repayment shall be made at the end of each service period;

(3) student loan repayment(s) may be renewed annually upon successful completion of the application process, but for no more than a total of 3 years;

(4) the annual repayment(s) shall be made co-payable to the eligible professional nurse and to any eligible lender(s) or holder(s), to be applied to the outstanding balance of the loan;

(5) the annual repayment(s) may be made for verified full-time or for verified part-time service on a pro rata basis.

Comments

Source Note: The provisions of this §21.509 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.510: Expanded Professional Nurses' Student Loan Repayment Program

The expanded Professional Nurses' Student Loan Repayment Program is limited to federally-funded repayments on education loans on behalf of eligible professional nurses whose service period ended on October 1, 1990, or later. Payments in the expanded program must be matched with an equivalent amount of state funds. The Commissioner may authorize repayment of eligible education loans made to an eligible professional nurse who first qualifies for a state-funded repayment and additionally qualifies for a federal repayment under federal guidelines.

Comments

Source Note: The provisions of this §21.510 adopted to be effective November 28, 2004, 29 TexReg 10771

§21.511: Dissemination of Information

The Board shall publish and disseminate, with the assistance of the advisory committee, information about the Professional Nurses' Student Loan Repayment Program to postsecondary institutions which offer professional nursing programs. In addition, information shall be provided to appropriate state agencies and any interested professional associations of professional nurses, employers of professional nurses and associations of employers of professional nurses.

Comments

Source Note: The provisions of this §21.511 adopted to be effective November 28, 2004, 29 TexReg 10771

Subchapter Q

§21.530: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter L, Financial Aid for Professional Nursing Students and Vocational Nursing Students and Loan Repayment Program for Certain Nurses. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, Sections 61.651 through Section 61.658.

(b) The purpose of the Licensed Vocational Nurses' Student Loan Repayment Program is to promote the health care needs of the citizens of Texas by encouraging qualified licensed vocational nurses to practice in Texas.

Comments

Source Note: The provisions of this §21.530 adopted to be effective July 3, 1990, 15 TexReg 3572; amended to be effective November 28, 2004, 29 TexReg 10772

§21.531: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--the Texas Higher Education Coordinating Board.

(2) Commissioner--the commissioner of higher education, the chief executive officer of the Board.

(3) Pro rata--a proportionate basis upon which payment amounts will be scaled, depending upon the share of a state employee's full work year worked by the loan repayment recipient.

(4) LVN--Licensed Vocational Nurse who is licensed to work as such in the State of Texas by the Board of Nurse Examiners for the State of Texas.

(5) Service period--a twelve-month period for which a licensed vocational nurse qualifies for repayment of student loans.

Comments

Source Note: The provisions of this §21.531 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.532: Eligible Lender and Holder

The Board shall retain the right of determining eligibility of lenders and holders of student loans to which payments may be made. An eligible lender or holder shall, in general, make or holds loans made to individuals for purposes of attending postsecondary institutions, and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, licensed Texas hospital, licensed Texas long-term care facility, secondary market, governmental agency, pension fund, private foundation, or insurance company provided the loan conforms to the definition of an eligible student loan as described in this subchapter.

Comments

Source Note: The provisions of this §21.532 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.533: Eligible Nurse

A nurse who is licensed by the Board of Nurse Examiners for the State of Texas and against whom no professional disciplinary action has been taken. Further, the nurse must provide the Board all data required to determine his or her eligibility.

Comments

Source Note: The provisions of this §21.533 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.534: Eligible Student Loan

A student loan eligible for repayment is one that:

(1) was obtained through an eligible lender for the purpose of attending an accredited vocational nursing program,

(2) is not a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;

(3) does not entail a service obligation; and

(4) is not in default at the time of the nurse's application for repayment.

Comments

Source Note: The provisions of this §21.534 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.535: Advisory Committee

The Board shall appoint an eight-member advisory committee as provided in Chapter 61, Subchapter L, of the Texas Education Code. The purposes of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Licensed Vocational Nurses' Student Loan Repayment Program;

(2) advise the Board on the establishment of priorities among the criteria for consideration of application acceptance which are named in Chapter 61, Subchapter L, of the Texas Educational Code and in these rules; and

(3) assist the Board in the dissemination of information on the Licensed Vocational Nurses' Student Loan Repayment Program.

Comments

Source Note: The provisions of this §21.535 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.536: Qualification for Student Loan Repayment

The commissioner may authorize or cause to be authorized repayment of student loans made to an eligible LVN who:

(1) has submitted the appropriate application to the Board; and

(2) has been employed in Texas for at least one year as a vocational nurse in a position which requires the services of a vocational nurse.

Comments

Source Note: The provisions of this §21.536 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.537: Priorities of Application Approval

The advisory committee shall advise the Board on priorities of application approval based upon the following criteria (not in priority order):

(1) minority status;

(2) scholastic performance;

(3) geographical area of nursing practice;

(4) financial need;

(5) whether the person receives Aid to Families with Dependent Children or participates in another public welfare program;

(6) employment by a state agency;

(7) employment by a nonprofit nursing school faculty;

(8) whether the person is a practicing nurse in an area with an acute nursing shortage;

(9) whether the eligible nurse has previously received a repayment; and

(10) whether the eligible nurse has had a complaint filed against his/her nursing license.

Comments

Source Note: The provisions of this §21.537 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.538: Prior Conditional Approval

Prior conditional approval of applications for repayment of loans may be granted by the Board. Such approval may occur no earlier than the beginning of the applicant's final year of education or the beginning of the applicant's service period. Repayments are dependent upon licensure and employment. Repayments are dependent also upon the availability of funds.

Comments

Source Note: The provisions of this §21.538 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.539: Repayment of Student Loans

Eligible student loans of eligible nurses shall be repaid under the following conditions:

(1) a total annual repayment on behalf of an eligible LVN shall not exceed the unpaid balance owed on one or more eligible loans, or $1,000.00 whichever is less;

(2) repayment shall be made at the end of each service period;

(3) student loan repayment(s) may be renewed annually upon successful completion of the application process, but for no more than a total of three years;

(4) the annual repayment(s) shall be made co-payable to the eligible nurse and to any eligible lender(s) or holder(s), to be applied to the outstanding balance of the loan; and

(5) the annual repayment(s) may be made for verified full-time service or for verified part-time service, on a pro rata basis, if the employer has provided a favorable recommendation on behalf of the nurse.

Comments

Source Note: The provisions of this §21.539 adopted to be effective November 28, 2004, 29 TexReg 10772

§21.540: Dissemination of Information

The Board shall publish and disseminate, with the assistance of the advisory committee, information about the Licensed Vocational Nurses' Student Loan Repayment Program to facilities which offer approved programs in vocational nursing. In addition, information shall be provided to appropriate state agencies and any interested professional associations of LVNs, employers of LVNs and associations of employers of LVNs.

Comments

Source Note: The provisions of this §21.540 adopted to be effective November 28, 2004, 29 TexReg 10772

Subchapter R

§21.560: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter T, Repayment of Certain Dental Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.901 - 61.910.

(b) The purpose of the Dental Education Loan Repayment Program is to recruit and retain qualified dentists to provide dental services in areas of the state that are underserved with respect to dental care.

Comments

Source Note: The provisions of this §21.560 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective August 16, 2004, 29 TexReg 7977

§21.561: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Underserved Area with Respect to Dental Care -- Federally designated Dental Health Professional Shortage Areas of Texas (Dental HPSAs), federally funded community health clinics in Texas, or other practices that provide services to populations that are critically underserved with respect to dental care.

(2) Service Period -- A twelve-month period of service that qualifies an eligible dentist for an annual education loan repayment, beginning on the date the application is received by the Board or the date eligible service began, whichever is later.

(3) Program -- The Dental Education Loan Repayment Program.

Comments

Source Note: The provisions of this §21.561 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.562: Dissemination of Information

The Board shall distribute rules and pertinent information about the Dental Education Loan Repayment Program to each dental school in the state and appropriate state agencies, professional associations, and other entities.

Comments

Source Note: The provisions of this §21.562 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.563: Priorities of Application Acceptance

Acceptance of applicants will depend upon the availability of appropriated funds and will be made on a first-come, first-served basis. Renewal applicants will be given priority over first-time applicants.

Comments

Source Note: The provisions of this §21.563 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.564: Eligible Education Loan

An education loan that is eligible for repayment is one that:

(1) was obtained through a lender for purposes of attending an eligible institution of higher education;

(2) is evidenced by a promissory note:

(A) for funds obtained through a federal or state loan program for higher education;

(B) with language that clearly indicates that loan proceeds must be used for direct and indirect expenses at an eligible institution; or

(C) for consolidating education loans; and

(3) does not entail a service obligation and is not being repaid through another loan repayment program.

Comments

Source Note: The provisions of this §21.564 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective May 23, 2002, 27 TexReg 4336

§21.565: Eligible Dentist

To be eligible for loan repayment, an applicant must:

(1) be licensed by the Texas State Board of Dental Examiners and have no disciplinary action against him/her;

(2) provide at least twelve consecutive months of general or pediatric dental services in an area that is underserved with respect to dental care; and

(3) submit a completed application to the board, agreeing to meet the conditions of loan repayment through the program.

Comments

Source Note: The provisions of this §21.565 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.566: Repayment of Education Loans

Eligible education loans of qualified dentists shall be repaid under the following conditions:

(1) the annual repayment(s) shall be made co-payable to the dentist and the holder(s) of the loan(s);

(2) the annual repayment(s) shall be made within a time frame determined by the Board upon the dentist's completion of each twelve-month service period;

(3) the maximum annual repayment amount shall be based on full-time eligible services;

(4) pro-rated loan repayment can be made based on service in an eligible area that is less than full-time during the twelve month period;

(5) contingent upon availability of funds and the applicant's having met all program requirements at the end of the service period, prior conditional approval shall be communicated to eligible dentists; and

(6) the commissioner of higher education may determine award amounts providing incentives for continuous service and service in the most underserved areas.

Comments

Source Note: The provisions of this §21.566 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective May 23, 2002, 27 TexReg 4336; amended to be effective November 30, 2009, 34 TexReg 8527

Subchapter S

§21.590: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §61.701 through §61.708.

(b) Scope. The rules define applicable terms and provide the conditions for eligibility and repayment of education loans for persons who have received a doctoral degree on or after September 1, 1994, from an institution of higher education and are employed as a full-time faculty member with instructional duties in an institution of higher education that is located in a county that borders Mexico.

(c) Purpose. The purpose of these rules is to implement the Border County Doctoral Faculty Education Loan Repayment Program in order to recruit and retain persons holding a doctoral degree to become and/or remain full-time faculty with instructional duties in Texas institutions of higher education located in counties that border Mexico.

Comments

Source Note: The provisions of this §21.590 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective November 27, 2002, 27 TexReg 10920

§21.591: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Institution of Higher Education--A public or private and independent institution as defined in the Texas Education Code, §61.003, and an out-of-state

(2) Recognized Accrediting Agency--The Southern Association of Colleges and Schools and any other association or organization so designated by the board.

(3) Student Loan in Default--Student loan debt that has been reduced to a judgment.

(4) Service Period--A period of service equal to a minimum of nine months of a 12-month academic year that qualifies an eligible doctoral faculty member for an annual education loan repayment.

(5) Program--The Border County Doctoral Faculty Education Loan Repayment Program.

Comments

Source Note: The provisions of this §21.591 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective November 27, 2002, 27 TexReg 10920

§21.592: Dissemination of Information

The Board shall distribute rules and pertinent information about the Border County Doctoral Faculty Education Loan Repayment Program to the personnel office at each institution of higher education located in a Texas county that borders Mexico, appropriate professional associations, and other entities.

Comments

Source Note: The provisions of this §21.592 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.593: Priorities of Application Acceptance

Acceptance of applicants will depend upon the availability of appropriated funds. Renewal applicants will be given priority over first-time applicants. Prior conditional approval shall be communicated to eligible faculty, contingent upon availability of funds and the applicant's having met all program requirements at the end of the service period.

Comments

Source Note: The provisions of this §21.593 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.594: Eligible Education Loan

An education loan that is eligible for repayment is one that:

(1) was obtained through a lender for the purpose of attending an eligible institution of higher education;

(2) is evidenced by a promissory note:

(A) for funds obtained through a federal or state loan program for higher education;

(B) with language that clearly indicates that loan proceeds must be used for direct and indirect expenses at an eligible institution; or

(C) for consolidating education loan;

(3) is not in default at the time the application is received by the board; and

(4) does not entail a service obligation.

Comments

Source Note: The provisions of this §21.594 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.595: Eligible Faculty

To be eligible for participation in the program, an applicant must:

(1) have received a doctoral degree on or after September 1, 1994, from an institution of higher education;

(2) be employed as a full-time faculty member with instructional duties in an institution of higher education that is located in a county that borders Mexico; and

(3) submit a completed application to the board, agreeing to meet the conditions of loan repayment through the program.

Comments

Source Note: The provisions of this §21.595 adopted to be effective December 28, 1999, 24 TexReg 11750

§21.596: Repayment of Education Loans

Eligible education loans of qualified faculty members shall be repaid under the following conditions:

(1) the annual repayment(s) shall be made co-payable to the faculty member and the holder(s) of the loan(s);

(2) the annual repayment(s) shall be made upon the faculty member's completion of the service period; and

(3) the maximum annual loan repayment amount shall be $5,000.

Comments

Source Note: The provisions of this §21.596 adopted to be effective December 28, 1999, 24 TexReg 11750; amended to be effective November 27, 2002, 27 TexReg 10920

Subchapter T

§21.610: Purpose

Pursuant to the Jamie Schanbaum Act, this subchapter creates the procedure by which a first-time student of an institution of higher education, including a transfer student, residing in on-campus housing, will show evidence of being immunized against bacterial meningitis.

Comments

Source Note: The provisions of this §21.610 adopted to be effective November 30, 2009, 34 TexReg 8527

§21.611: Authority

Texas Education Code, §51.9192, Subchapter Z, establishes the requirement for bacterial meningitis vaccination for certain students and identifies exceptions to that requirement. This subchapter applies only to first-time students or transfer students enrolling in public or private or independent institutions of higher education on or after January 1, 2010, who plan to live in on-campus dormitories or other on-campus housing facilities.

Comments

Source Note: The provisions of this §21.611 adopted to be effective November 30, 2009, 34 TexReg 8527

§21.612: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Evidence of Vaccination--Acceptable evidence of vaccination includes:

(A) the month, day, and year the vaccination was administered;

(B) the signature or stamp of the physician or his/her designee, or public health personnel;

(C) an official immunization record generated from a state or local health authority; or

(D) an official record received from school officials, including a record from another state.

(2) First-time student--A student who has not previously enrolled at a public, private, or independent institution of higher education, or a dual enrollment or a transfer student who was previously enrolled at a public, private, or independent institution of higher education.

(3) Health practitioner--Any person authorized by law to administer a vaccination.

(4) Institution of Higher Education--Any public technical institute, public junior college, public senior college or university, medical or dental unit or other agency of higher education as defined in Texas Education Code, §61.003(8).

(5) On-campus housing--Student housing facilities located on the campus of an institution of higher education, such as dormitories, sorority and fraternity houses, privately owned residence halls, and apartments.

(6) Private or independent institution of higher education--Includes only a private or independent college or university as defined in Texas Education Code §61.003(15).

Comments

Source Note: The provisions of this §21.612 adopted to be effective November 30, 2009, 34 TexReg 8527

§21.613: Immunization Requirement

(a) A first-time student attending an institution of higher education or private or independent institution of higher education, including a transfer student, who plans to reside in, or has applied for on-campus housing and has been approved to reside in an on-campus dormitory or other on-campus student housing facility must show evidence of vaccination against bacterial meningitis.

(b) Each institution of higher education that has on-campus housing for students must designate an office and administrative official to receive from the student evidence of having been vaccinated against bacterial meningitis.

(c) Evidence of the student having received the vaccination from an appropriate health practitioner must be received by the administrative official at the institution of higher education. The student must have received the vaccination at least 10 days prior to the student taking up residence in on-campus housing. This information shall be maintained in accordance with Family Education Rights and Privacy Act Regulations, and with Health Insurance Portability and Accountability Act.

Comments

Source Note: The provisions of this §21.613 adopted to be effective November 30, 2009, 34 TexReg 8527

§21.614: Exceptions

(a) A student, or a parent or guardian of a student, is not required to submit evidence of receiving the vaccination against bacterial meningitis if the student, or a parent or guardian of a student, submits to the institution:

(1) an affidavit or a certificate signed by a physician who is duly registered and licensed to practice medicine in the United States, in which it is stated that, in the physician's opinion, the vaccination required would be injurious to the health and well-being of the student; or

(2) an affidavit signed by the student stating that the student declines the vaccination for bacterial meningitis for reasons of conscience, including a religious belief. A conscientious exemption form from the Texas Department of State Health Services must be used.

(b) The exception noted in subsection (a)(2) of this section does not apply during a disaster or public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency declared by an appropriate official or authority from the Texas Department of State Health Services and is in effect for the location of the institution the student attends.

Comments

Source Note: The provisions of this §21.614 adopted to be effective November 30, 2009, 34 TexReg 8527

Subchapter V

§21.680: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.357 through 56.358.

(b) Scope. The rules set forth in this subchapter are applicable to persons who show financial need and who enroll in an alternative certification program approved by the State Board for Educator Certification.

(c) Purpose. The purpose of the Teach for Texas Alternative Certification Conditional Grant Program is to attract to the teaching profession persons with undergraduate degrees who have expressed an interest in teaching, to support the certification of those persons as classroom teachers, and to encourage these newly certified teachers to teach in fields having a critical shortage of teachers or to teach in communities having a critical shortage of teachers.

Comments

Source Note: The provisions of this §21.680 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.681: Definitions

The following words and terms, when used in these sections, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Alternative Certification Program--an alternative certification educator preparation program approved by the State Board for Educator Certification (SBEC).

(2) Board--The Texas Higher Education Coordinating Board.

(3) Certification officer--The individual designated by the State Board for Educator Certification as the "Certification Officer" at an approved certification program.

(4) Certified Teacher--A person who has passed the appropriate certification exams and has been fully certified by the Texas State Board for Educator Certification (SBEC).

(5) Commissioner--The Commissioner of Higher Education.

(6) Community Experiencing a Critical Shortage of Teachers--As defined by the Texas Commissioner of Education.

(7) Good cause--See §21.436 of this title (relating to Teach for Texas Conditional Grant Program), "Hardship and Other Good Cause."

(8) Loan--A Teach for Texas Alternative Certification Conditional Grant that has become a loan because the grant conditions have not been fulfilled.

(9) Program Completion Date--The date the recipient is considered to have completed the requirements of the educator certification program and is eligible to take the appropriate ExCET exam.

(10) Program officer--The individual designated by the State Board for Educator Certification as the "Program Director" at an approved certification program.

(11) Recipient--A person who has received a Teach for Texas Alternative Certification Conditional Grant.

(12) Steady Progress--As defined by the individual program officer midway through the alternative certification program.

(13) Shortage Field--Subject or area of study designated by the Texas Commissioner of Education as having a critical shortage of teachers.

Comments

Source Note: The provisions of this §21.681 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.682: Application Acceptance and Selection Criteria Priorities

(a) Selection of applicants to receive grants shall be made either on a first-come, first-served basis or an annual application deadline and criteria for ranking applications that include an applicant's financial resources as well as the efficient use of funds will also be established by the Board.

(b) Applicants from all regions of Texas shall be given the opportunity to apply for and receive the conditional grant.

Comments

Source Note: The provisions of this §21.682 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.683: Agreement to Program Requirements

The program officer at each approved certification program shall sign an agreement acknowledging the requirements of the Teach for Texas Alternative Certification Conditional Grant Program.

Comments

Source Note: The provisions of this §21.683 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.684: Eligible Recipient

To be eligible an applicant must:

(1) be seeking educator certification and agree to teach full-time at the preschool, primary, or secondary level in a public school in Texas:

(A) in a teaching field designated by the Commissioner of Education as experiencing a critical shortage of teachers in Texas in the year in which the student receives the grant; or

(B) in a public school in Texas in a community designated by the Commissioner of Education as experiencing a critical shortage of teachers:

(i) in any year in which the person receives a Teach for Texas Alternative Certification Conditional Grant; or

(ii) in any subsequent year in which the person fulfills the teaching obligation; and

(2) be enrolled in an alternative educator certification program and be employed as a classroom teacher in a public school in Texas or be under contract to begin teaching following completion of the certification program;

(3) make steady progress toward completion of the educator certification program;

(4) be recommended for a Teach for Texas Alternative Certification Conditional Grant award by the program officer at the alternative certification program, and;

(5) not have been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance, as defined by Chapter 481, Health and Safety Code, unless the student has:

(A) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(B) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter.

Comments

Source Note: The provisions of this §21.684 adopted to be effective November 26, 2001, 26 TexReg 9614; amended to be effective November 27, 2002, 27 TexReg 10920

§21.685: Hardship and Other Good Cause

Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at an approved institution in determining whether or not circumstances warrant exception to the steady progress requirement and also the requirement to fulfill the five-year teaching obligation within a six-year period. Such situations include, but are not limited to, the following:

(1) a severe illness or other debilitating condition that may affect the recipient's ability to make steady progress in the alternative educator certification program or in completing the five-year teaching obligation; or

(2) responsibility of the recipient for the care of a temporarily disabled dependent that may affect the recipient's ability to make steady progress in the alternative educator certification program or in completing the five-year teaching obligation.

Comments

Source Note: The provisions of this §21.685 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.686: Amount of Award

The maximum amount of a Teach for Texas Alternative Conditional Grant shall equal two times the current annual amount of the TEXAS Grant for a student enrolled at a Texas four-year public institution of higher education.

Comments

Source Note: The provisions of this §21.686 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.687: Eighteen-Month Period Before Employment

The recipient must become certified to teach in Texas and must begin fulfilling the five-year service obligation not later than 18 months after the program completion date.

Comments

Source Note: The provisions of this §21.687 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.688: Service Obligation Period

(a) A recipient must teach full-time for five years as:

(1) a teacher certified in and teaching in a field having a critical shortage of teachers; or

(2) a certified teacher in a community experiencing a critical shortage of teachers.

(b) A recipient must complete a five-year service obligation.

(c) The service obligation period begins on the first day the recipient begins qualified employment.

(d) During the service obligation period, the recipient shall provide the Board with regular, periodic reports of his or her teaching status.

Comments

Source Note: The provisions of this §21.688 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.689: Conditions of Grant

(a) The Teach for Texas Alternative Certification Conditional Grant becomes a loan and shall be reported to credit reporting agencies when the recipient fails to:

(1) remain enrolled in or to make steady progress in the educator certification program;

(2) become certified as a teacher within eighteen months after the program completion date;

(3) begin the service obligation within eighteen months after the program completion date;

(4) maintain continuous full-time teaching and complete the five-year teaching obligation within six years of beginning the service obligation period;

(5) provide regular, periodic reports of enrollment or employment status and location to the Board within a reasonable period of time, as determined by the Board.

(b) Recipients must sign a promissory note acknowledging the conditional nature of the grant and promising to repay the outstanding principal, interest, and reasonable collection costs if the grant conditions are not fulfilled.

Comments

Source Note: The provisions of this §21.689 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.690: Loan Interest

(a) The interest rate on loans shall be determined by the Commissioner and shall be a fixed simple interest rate.

(b) Interest begins to accrue as of the date the grant becomes a loan, or the date the certification program was completed, whichever is earlier.

(c) Interest does not accrue during periods of eligible teaching.

Comments

Source Note: The provisions of this §21.690 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.691: Repayment of Loans

(a) The Teach for Texas Alternative Certification Conditional Loan shall be repaid in installments over a period of not more than ten years from the date the grant becomes a loan.

(b) A recipient shall begin making payments within sixty days of the date on which the Teach for Texas Alternative Certification Conditional Grant becomes a loan.

(c) The loan amount to be repaid shall be based upon the proportion of the remaining unfulfilled service obligation.

(d) The minimum repayment amount is $1,200 annually, or an amount required to repay the loan within 10 years, whichever is greater.

Comments

Source Note: The provisions of this §21.691 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.692: Forbearance

Periods of forbearance may be granted on loans under certain documented circumstances as determined by the Board. Periods of forbearance shall extend the ten-year repayment period.

Comments

Source Note: The provisions of this §21.692 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.693: Enforcement of Collection

(a) When a recipient of a Teach for Texas Alternative Certification Conditional Grant shall have failed to make six monthly payments due in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The recipient's name and last known address, and other information as requested by the Commissioner, shall be reported to the Attorney General or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the Attorney General finds reasonable justification for delaying suit and advises the Commissioner in writing.

(b) In all cases of default, the recipient shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

Comments

Source Note: The provisions of this §21.693 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.694: Provisions for Disability and Death

The Board shall cancel a recipient's repayment or service obligation if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach full-time because the recipient is permanently, totally disabled;

(2) on the basis of a death certificate, that the recipient has died; in the case of death, the Board may pursue collection from the recipient's estate if the debt has been reduced to judgment before the death of the recipient.

Comments

Source Note: The provisions of this §21.694 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.695: Advisory Committee

The Board's Financial Aid Advisory Committee shall function as the advisory committee to the Board in the administration of the program described in this subchapter.

Comments

Source Note: The provisions of this §21.695 adopted to be effective November 26, 2001, 26 TexReg 9614

§21.696: Dissemination of Information

The Board and its advisory committee are responsible for publishing and disseminating general information and program rules for the Teach for Texas Alternative Certification Conditional Grant Program to approved Texas institutions of higher education, educator certification programs, appropriate associations, and other interested entities.

Comments

Source Note: The provisions of this §21.696 adopted to be effective November 26, 2001, 26 TexReg 9614

Subchapter W

§21.710: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter DD, Repayment of Certain Education Loans Owed by Certain State Attorneys. These rules establish procedures to administer the program as prescribed in the Texas Education Code, §§61.9721 - 61.9732.

(b) Purpose. The purpose of the Education Loan Repayment Program for Attorneys Employed by the Office of the Attorney General is to recruit and retain attorneys in the Office of the Attorney General of the State of Texas.

Comments

Source Note: The provisions of this §21.710 adopted to be effective August 21, 2005, 30 TexReg 4650; amended to be effective November 29, 2007, 32 TexReg 8495

§21.711: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Attorney General--the Office of the Attorney General of the State of Texas (OAG).

(2) Board--the Texas Higher Education Coordinating Board.

(3) Commissioner--the Commissioner of Higher Education.

(4) Program--the Education Loan Repayment Program for Attorneys Employed by the Office of the Attorney General.

(5) Eligible School of Law--a School of Law in Texas which is accredited by the American Bar Association.

(6) Institution or Institution of Higher Education--an institution of higher education as defined in Texas Education Code, §61.003(8) or a private or independent institution of higher education, as defined in Texas Education Code, §61.003(15).

Comments

Source Note: The provisions of this §21.711 adopted to be effective August 21, 2005, 30 TexReg 4650

§21.712: Application Review Committee

The Board shall rely on the recommendations of an application review committee in making awards of repayment assistance. The committee shall be composed of a minimum of three attorneys who are, at the time of the application review, employed by the Office of the Attorney General. Additional members may include attorneys employed by either the Office of the Attorney General or by the State Bar of Texas. The purpose of the committee shall be to:

(1) advise the Board on appropriate rules for the Program;

(2) advise the Board on the amount of money needed to adequately fund the Program;

(3) advise the Board on the format and content of the applications for repayment;

(4) assist the Board in the dissemination of information about the Program;

(5) prepare an application scoring tool for use in selection and referral of eligible applicants for acceptance into the program. The scoring tool shall establish the priorities among the various criteria for consideration of application approval, taking into consideration the current needs of the Office of the Attorney General for recruitment and retention of eligible attorneys;

(6) evaluate each applicant separately, using the scoring tool to rank qualified applicants for award; and

(7) select and refer applicants to the Board for awarding of loan repayment assistance.

Comments

Source Note: The provisions of this §21.712 adopted to be effective August 21, 2005, 30 TexReg 4650

§21.713: Application Approval

Approval of applicants will depend upon the availability of funds, and the recommendations of the Application Review Committee.

Comments

Source Note: The provisions of this §21.713 adopted to be effective August 21, 2005, 30 TexReg 4650

§21.714: Eligible Attorney

To be eligible for loan repayment assistance, an applicant must:

(1) be licensed by the State Bar of Texas at the time application is made;

(2) submit a completed application to the Office of the Attorney General on or before the annual deadline of December 1 of each year;

(3) have been employed full-time for at least one year by the Office of the Attorney General;

(4) be in good standing with the State Bar of Texas and the Office of the Attorney General; and

(5) have not received more than two previous awards of annual repayment assistance under this Program.

Comments

Source Note: The provisions of this §21.714 adopted to be effective August 21, 2005, 30 TexReg 4650; amended to be effective November 29, 2007, 32 TexReg 8495

§21.715: Eligible Education Loan

An eligible education loan is one that:

(1) was obtained through a lender for purposes of attending an eligible school of law or for undergraduate education at an institution of higher education, or was obtained though a lender for purposes of consolidating education loans,

(2) does not entail a service obligation and is not being repaid through another loan repayment program,

(3) is not an education loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a relative,

(4) is not in default at the time of application, and

(5) is evidenced by a promissory note or other writing signed by the participant which explicitly requires the loan proceeds to be used to pay for costs incurred for attendance at a public or private institution of higher education.

Comments

Source Note: The provisions of this §21.715 adopted to be effective August 21, 2005, 30 TexReg 4650; amended to be effective November 29, 2007, 32 TexReg 8495

§21.716: Education Loan Repayments

The Application Review Committee shall inform the Board when applicants have satisfactorily met all eligibility requirements and have been selected for an award, and the Board shall arrange for the disbursement of the award. Annual assistance payments to eligible recipients must meet the following conditions:

(1) the annual award shall be:

(A) co-payable to the attorney and the holder(s) of the loan(s), and forwarded to the applicant to submit to his or her holder; or

(B) made payable to the holder and forwarded directly, or sent by electronic funds transfer to the holder by the Board;

(2) the annual award amount shall be determined by the Commissioner, with input from the Application Review Committee, but shall not exceed $6,000; and

(3) repayments shall be applied in the manner that is usual and customary for the holder.

Comments

Source Note: The provisions of this §21.716 adopted to be effective August 21, 2005, 30 TexReg 4650; amended to be effective November 29, 2007, 32 TexReg 8495

Subchapter Z

§21.800: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter L, Financial Aid for Professional Nursing Students and Vocational Nursing Students and Loan Repayment Program for Certain Nurses. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.651 - 61.658.

(b) The purpose of the Graduate Nurses' Education Loan Repayment Program is to promote the health educational needs and health care of the citizens of Texas by encouraging qualified graduate professional nurses to serve as faculty in nursing education programs as advanced nurse practitioners.

Comments

Source Note: The provisions of this §21.800 adopted to be effective March 13, 1991, 16 TexReg 1364; amended to be effective November 28, 2004, 29 TexReg 10775

§21.801: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Advanced nurse practitioner--An individual who is a licensed Registered Nurse in the State of Texas, practicing as a clinical specialist, nurse anesthetist, nurse midwife, or nurse practitioner.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Commissioner--The commissioner of higher education, the chief executive officer of the Board.

(4) Pro rata--A proportionate basis upon which payment amounts will be scaled, depending upon the share of a state employee's full work year worked by the loan repayment recipient.

(5) Professional nurse--For purposes of this program, an individual holding a masters or the doctoral degree in nursing who is a licensed Registered Nurse in the State of Texas.

(6) Service period--A twelve-month period for which a professional nurse qualifies for repayment of student loans.

Comments

Source Note: The provisions of this §21.801 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.802: Eligible Lender and Holder

The Board shall retain the right of determining eligibility of lenders and holders of student loans to which payments may be made. An eligible lender or holder shall, in general, make or hold loans made to individuals for purposes of attending postsecondary institutions and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, licensed Texas hospital, licensed Texas long-term care facility, secondary market, governmental agency, pension fund, private foundation, or insurance company provided the loan conforms to the definition of an eligible student loan as provided in this subchapter.

Comments

Source Note: The provisions of this §21.802 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.803: Eligible Professional Nurse

A nurse who holds a masters or doctoral degree in nursing, is licensed by the Board of Nurse Examiners for the State of Texas and against whom no formal charge is unresolved and against whom no professional disciplinary action has been taken.

Comments

Source Note: The provisions of this §21.803 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.804: Eligible Education Loan

An education loan eligible for repayment is one that:

(1) was obtained through an eligible lender for purposes of attending a postsecondary institution;

(2) is not a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;

(3) does not have an existing service obligation; and

(4) is not in default at the time of the nurse's application for repayment.

Comments

Source Note: The provisions of this §21.804 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.805: Eligible Nursing Program

An eligible nursing program is any such program that is

(1) accredited by the Board of Nurse Examiners for the State of Texas, and

(2) follows the Civil Rights Act of 1964, Title V (Public Law 88-353) in avoiding discrimination in admissions.

Comments

Source Note: The provisions of this §21.805 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.806: Advisory Committee

The Board shall appoint a ten-member advisory committee as provided by Chapter 61, Subchapter L, of the Texas Education Code. The purposes of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Graduate Nurses' Education Loan Repayment Program and

(2) assist the Board in the dissemination of information on the Graduate Nurses' Education Loan Repayment Program.

Comments

Source Note: The provisions of this §21.806 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.807: Qualifications for Education Loan Repayment

The commissioner may authorize or cause to be authorized repayment of education loans made to an eligible Professional Nurse who

(1) has submitted the appropriate application to the Board;

(2) has been serving on the nursing faculty of an eligible nursing program in a position requiring a graduate professional nurse for at least one year preceding loan repayment;

(3) has been practicing in Texas for at least one year immediately preceding loan repayment as an advanced nurse practitioner in a position which requires the services of an advanced nurse practitioner; and

(4) is currently serving on the nursing faculty of an eligible nursing program in a faculty position which requires a graduate professional nurse or is currently practicing in Texas as an advanced nurse practitioner in a position which requires an advanced nurse practitioner.

Comments

Source Note: The provisions of this §21.807 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.808: Prior Conditional Approval

Prior conditional approval of applications for repayment of loans may be granted by the Board. Such approval may occur no earlier than the beginning of the applicant's final year of education or the beginning of the applicant's service period. Repayments are dependent upon the availability of funds.

Comments

Source Note: The provisions of this §21.808 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.809: Repayment of Education Loans

Eligible education loans of eligible professional nurses shall be repaid under the following conditions:

(1) A total annual repayment to one or more eligible lenders shall not exceed the applicant's unpaid principal and interest owed on one or more eligible loans, or $7,000.00, whichever is less.

(2) Repayment shall be made at the end of each service period.

(3) Education loan repayment(s) may be renewed annually upon successful completion of the application process, but the aggregate repayment amounts may not exceed $39,000.

(4) The annual repayment(s) shall be made co-payable to the eligible professional nurse and to any eligible lender(s) or holder(s), to be applied to the outstanding balance of the loan.

(5) The annual repayment(s) may be made for verified full-time or for verified part-time service on a pro rata basis.

Comments

Source Note: The provisions of this §21.809 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.810: Expanded Graduate Nurses' Education Loan Repayment Program

The expanded Graduate Nurses' Education Loan Repayment Program is limited to federally-funded repayments on education loans on behalf of eligible professional nurses whose service period ends on October 1, 1991, or later. Payments in the expanded program must be matched on the basis of 70 percent state funds and 30 percent federal funds. The Commissioner may authorize repayment of eligible education loans made to an eligible professional nurse who first qualifies for a state-funded repayment and additionally qualifies for a federal repayment under federal guidelines.

Comments

Source Note: The provisions of this §21.810 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.811: Dissemination of Information

The Board shall publish and disseminate, with the assistance of the advisory committee, information about the Graduate Nurses' Education Loan Repayment Program to postsecondary institutions which offer professional nursing programs. In addition, information shall be provided to appropriate state agencies and any interested professional associations of professional nurses, employers of professional nurses and associations of employers of professional nurses.

Comments

Source Note: The provisions of this §21.811 adopted to be effective November 28, 2004, 29 TexReg 10776

Subchapter AA

§21.901: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 54, Subchapter B, Tuition Rates. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §54.060(c) and (d), Resident of Bordering State or Nation or Participant in Student Exchange Program: Tuition.

(b) The purpose of the reciprocal educational exchange program is to enable Texas students of participating institutions to afford to participate in exchange programs with foreign institutions in order to help them better understand the culture, language, needs, and expectations of other nations of the world.

Comments

Source Note: The provisions of this §21.901 adopted to be effective January 3, 1992, 16 TexReg 7487; amended to be effective July 21, 1992, 17 TexReg 4881; amended to be effective January 5, 1994, 18 TexReg 9851; amended to be effective November 26, 1997, 22 TexReg 11358; amended to be effective August 10, 2000, 25 TexReg 7353; amended to be effective November 28, 2004, 29 TexReg 10776

§21.902: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Citizen of Another Nation--A citizen or permanent resident of a nation other than the United States who resides in the nation of which he or she is a citizen or permanent resident and who plans to return to that nation to live immediately after finishing his/her program of study in Texas.

(3) Commissioner--The commissioner of higher education, the chief executive officer of the Board.

(4) Full-time Enrollment or Study--For undergraduates, the equivalent of at least 12 semester credit hours per semester or as defined by the institution. For graduates, the equivalent of at least 9 semester credit hours per semester or as defined by the institution.

(5) Originating Institution--The institution from which a participant is relocating as a participant in the exchange program.

(6) Participating Nation--A nation other than the United States with institutions which have entered into exchange agreements with one or more institutions of higher education in Texas under the provisions of this subchapter.

(7) Receiving Institution--The institution in which a participant enrolls or studies.

Comments

Source Note: The provisions of this §21.902 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.903: Eligible Institution

An institution eligible to participate in the exchange program must:

(1) be a public or private degree-granting institution of higher education located in a nation other than the United States whose programs have recognition of official validity, or

(2) be a public institution of higher education in Texas, and

(3) designate a program officer who will be responsible for all transactions relating to the exchange program.

Comments

Source Note: The provisions of this §21.903 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.904: Eligible Persons

A person is eligible to participate in the exchange program if he/she:

(1) has been enrolled for one or more semesters at the originating institution,

(2) is a citizen or permanent resident of a participating nation or an individual enrolled in a public institution of higher education in Texas,

(3) is nominated by his/her originating institution,

(4) meets the admissions requirements and any restrictive enrollment criteria of the receiving institution,

(5) enrolls or studies on a full-time basis at the receiving institution, and

(6) has not participated in the exchange program for more than 12 months.

Comments

Source Note: The provisions of this §21.904 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.905: Tuition Rate to be Paid

(a) If a reciprocal exchange program requires a tuition payment, the tuition rate to be paid by participants will be either the relevant rate normally paid at Texas institutions or the rate normally charged nationals or residents of other nations by their institutions. Tuition rates paid by participants will be defined by the agreements entered into by the participating institutions. The method of charging and collecting tuition is to be negotiated between the two institutions involved in the exchange. The tuition rate and payment may be any of the following methods:

(1) pay the relevant tuition rate of receiving institution, paid to the receiving institution,

(2) pay the relevant tuition rate of the originating institution, paid to the receiving institution, or

(3) pay the relevant tuition rate of the originating institution, paid at the originating institution.

(b) A participant no longer participating in the exchange program, but continuing to enroll in the receiving institution will be expected to pay the rate charged other nonresident students beginning with the first enrollment period after the participant discontinues his/her participation in the exchange program.

Comments

Source Note: The provisions of this §21.905 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.906: Reciprocity

The number of units of instruction exchanged would ideally be equal in any given year. If balance is not attained in any one year and more students from other nations are participating in the program than are students from Texas, parity is to be established within a five-year period.

Comments

Source Note: The provisions of this §21.906 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.907: Assurances

Each participating institution must maintain records in the appropriate office which would include

(1) proof of each participant's eligibility and

(2) formally-executed exchange agreements with each exchange partner institution.

Comments

Source Note: The provisions of this §21.907 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.908: Formula Funding

When a Reciprocal Educational Exchange Program exchange takes place, the Texas institution may request formula funding for the hours taken by foreign students attending classes in Texas. They may not request formula funding for their students who go abroad under this reciprocal exchange program.

Comments

Source Note: The provisions of this §21.908 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.909: Transcripts for Courses Taken Abroad

It is recommended that any course taken by a Texas student through study abroad be noted as such on the transcript, so that students participating in exchange programs will be given full credit for this unique experience when they apply for transfers, for admission to graduate school and/or for employment.

Comments

Source Note: The provisions of this §21.909 adopted to be effective November 28, 2004, 29 TexReg 10776

§21.910: Reporting Requirements

Each year each participating Texas institution shall provide a prior-year program report to the Board on a form provided by the Board and by a deadline specified by the Board. The report shall include such things as the number of students who have participated in the exchange program, and the names and locations of the institutions with which the exchanges have taken place. Each institution is to define, demonstrate and report the basis on which their student exchanges are reciprocal.

Comments

Source Note: The provisions of this §21.910 adopted to be effective November 28, 2004, 29 TexReg 10776; amended to be effective August 25, 2008, 33 TexReg 6814

Subchapter BB

§21.931: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 54, Subchapter B, Tuition Rates. These rules establish procedures to administer the subchapter as prescribed in §54.060(b) and (d).

(b) Scope. The rules set forth in this subchapter are applicable to determining eligibility of needy students from Mexico to pay resident tuition rates at certain public institutions of higher education in Texas.

(c) Purpose. The purpose of the programs is to encourage students from Mexico with limited financial resources to enroll in certain Texas public institutions of higher education.

Comments

Source Note: The provisions of this §21.931 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.932: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Citizen of Mexico--A citizen or permanent resident of Mexico who resides in Mexico and who plans to return to Mexico to live immediately after finishing his/her educational program.

(3) Commissioner--The commissioner of higher education, the chief executive officer of the board.

(4) Full-time Enrollment--For undergraduates, enrollment for the equivalent of at least 12 semester credit hours per semester. For graduates, enrollment for the equivalent of at least 9 semester credit hours per semester.

Comments

Source Note: The provisions of this §21.932 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.933: Eligible Institutions

(a) Pilot Program. Any general academic teaching institution or component of the Texas State Technical College System as defined in §61.003 of the Texas Education Code is eligible to participate in the pilot program.

(b) Border County Program. A border county program is an instructional program offered by any general academic institution or component of the Texas State Technical College System located in a county bordering Mexico, or by Texas A&M University-Kingsville, by Texas A&M University-Corpus Christi, or The University of Texas at San Antonio.

Comments

Source Note: The provisions of this §21.933 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.934: Eligible Students for the Pilot Program

(a) A student is eligible, if he/she:

(1) is a citizen of Mexico,

(2) meets the admissions requirements and any restrictive enrollment criteria of the institution in which he/she enrolls,

(3) enrolls on a full-time basis unless fewer hours are needed for graduation, and

(4) shows financial need after the financial resources of the foreign student and the student's family are considered in keeping with Board guidelines.

(b) A student admitted for enrollment at an eligible institution prior to July 12, 1991 may not participate in the pilot program unless able to prove financial need that was unknown at the time of admission.

(c) Although financial need is the primary eligibility criterion for the pilot program, institutions may set priorities in selecting participants from among eligible students.

Comments

Source Note: The provisions of this §21.934 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.935: Eligible Students for the Border County Program

A student is eligible, if he/she:

(1) is a citizen of Mexico,

(2) meets the admissions requirements and any restrictive enrollment criteria of the institution in which he/she enrolls, and

(3) shows financial need after the financial resources of the foreign student and the student's family are considered in keeping with Board guidelines.

Comments

Source Note: The provisions of this §21.935 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.936: Tuition Rate to be Paid

Students participating in either the pilot program or the border county program will be eligible to enroll by paying a tuition rate equal to the resident rate.

Comments

Source Note: The provisions of this §21.936 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.937: Numbers of Students Eligible to Participate in the Programs

(a) Border County Program. Each border county program institution listed in §21.933 of this title (relating to Eligible Institutions) may enroll an unlimited number of eligible students.

(b) Pilot Program. Each general academic teaching institution or component of the Texas State Technical College System not located in a county immediately adjacent to Mexico, except Texas A&M University-Kingsville, The University of Texas at San Antonio, and Texas A&M University-Corpus Christi may enroll up to two (2) eligible students per thousand of the institution's overall enrollment. Institutions with fewer than 5,000 students may enroll up to ten (10) eligible students.

Comments

Source Note: The provisions of this §21.937 adopted to be effective February 25, 2002, 27 TexReg 1329

§21.938: Reporting Requirements

Each year each participating institution shall provide a program report to the Board on a form provided by the Board and by a deadline specified by the Board. The report will include such information as the number of students enrolling in the institution through the program and the amount of tuition waived.

Comments

Source Note: The provisions of this §21.938 adopted to be effective February 25, 2002, 27 TexReg 1329; amended to be effective August 25, 2008, 33 TexReg 6814

Subchapter CC

§21.950: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter K, Early High School Graduation Scholarship Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.201 - 56.209.

(b) Purpose. The purpose of the Early High School Graduation Scholarship Program is to increase the efficiency of the Foundation School Program and provide financial assistance to eligible students.

Comments

Source Note: The provisions of this §21.950 adopted to be effective August 16, 2004, 29 TexReg 7979

§21.951: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Graduate, To--To complete all the academic requirements, including course work and examinations, for graduation from high school. This definition does not apply to individuals who meet these requirements but choose to continue enrollment beyond the end of the term in which they meet the graduation requirements.

(4) Institutional aid--Funds which have not originated from any government source.

(5) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer is responsible for all activities with respect to the program, including all records and reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(6) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B, of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

Comments

Source Note: The provisions of this §21.951 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective August 15, 2006, 31 TexReg 6335; amended to be effective November 27, 2007, 32 TexReg 8495; amended to be effective May 21, 2008, 33 TexReg 3941

§21.952: Institutions

(a) Eligibility.

(1) Any public institution of higher education as defined by Texas Education Code, §61.003, is eligible to participate in the Early High School Graduation Scholarship Program. Private or independent institutions as defined by Texas Education Code, §61.003, are eligible only if they agree to provide scholarship recipients with at least an equal amount of institutional aid.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting. Each participating institution must meet Board reporting requirements, in particular the submission of the Financial Aid Database Report, in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must agree to submit to program reviews of activities related to the Early High School Graduation Scholarship Program.

Comments

Source Note: The provisions of this §21.952 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective August 15, 2006, 31 TexReg 6335

§21.953: Eligible Students

(a) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school before September 1, 2005 must:

(1) be a resident of Texas; and

(2) have completed the requirements for a high school diploma in not more than thirty-six consecutive months having completed all years of high school in Texas; and

(3) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law.

(b) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school on or after September 1, 2005, but prior to June 15, 2007, must:

(1) be a resident of Texas;

(2) have attended high school exclusively in one or more public high schools in this state;

(3) have successfully completed the Recommended or Distinguished Achievement Program-Advanced High School Program established under Texas Education Code, §28.025, unless the principal or other authorized representative of the student's high school provides a written explanation along with the student's transcript and exemption program application that the courses in the Recommended or Advanced High School Program which the student did not complete were unavailable to the student at the appropriate time in his or her high school career because of:

(A) shortage of qualified teachers;

(B) lack of enrollment capacity; or

(C) another cause not within the person's control, an explanation for which is provided on the transcript by the official;

(4) have graduated:

(A) in not more than 41 consecutive months; or

(B) in not more than 45 consecutive months, if the student graduated with at least 30 hours of college credit; and

(5) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law.

(c) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school on or after June 15, 2007, must:

(1) be a citizen of the United States or otherwise lawfully authorized to be present in the United States;

(2) have attended one or more public high schools in Texas for the majority of time the person attended high school;

(3) have successfully completed the Recommended or Distinguished Achievement Program-Advanced High School Program established under Texas Education Code, §28.025, unless the principal or other authorized representative of the student's high school provides a written explanation along with the student's transcript and exemption program application that the courses in the Recommended or Advanced High School Program which the student did not complete were unavailable to the student at the appropriate time in his or her high school career because of:

(A) shortage of qualified teachers;

(B) lack of enrollment capacity; or

(C) another cause not within the person's control, an explanation for which is provided on the transcript by the official;

(4) have graduated from a public high school in Texas:

(A) in not more than 41 consecutive months; or

(B) in not more than 46 consecutive months, if the student graduated with at least 30 hours of college credit; and

(5) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law.

(d) A student's eligibility to receive a tuition credit under the Early High School Graduation Scholarship Program begins with the first regular semester or term following the student's graduation, exclusive of summer sessions that immediately follow the student's graduation. A student's eligibility to receive a tuition credit under the program ends six years after it begins, unless the student seeks and is granted an extension under §21.960 of this title (relating to Hardship Extensions).

(e) The months to graduation will be measured beginning with the student's first full month in ninth grade through the date the high school certifies as the date the student completes all the requirements for graduation.

Comments

Source Note: The provisions of this §21.953 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective November 28, 2005, 30 TexReg 7866; amended to be effective August 15, 2006, 31 TexReg 6335; amended to be effective August 16, 2007, 32 TexReg 4977; amended to be effective November 27, 2007, 32 TexReg 8495; amended to be effective May 21, 2008, 33 TexReg 3941

§21.954: The Application and Awarding Process

(a) Application forms and instructions developed by the Board will be distributed primarily through school district offices throughout the state. The Board will also provide them to financial aid offices of approved institutions, and students will be able to request the forms directly from the Board and/or download them from the College for Texans web site.

(b) The application has three parts. The completed forms must be certified by the high school principal on behalf of the student applicant.

(1) Parts I and III are to be completed for all applicants who graduated prior to September 1, 2005.

(2) Parts I, II, and III are to be completed for all applicants who graduated on or after September 1, 2005.

(c) If a student is incorrectly certified by a school district as eligible for an exemption, the school district is responsible for reimbursing the program for any funds that might be issued to the student through the program.

(d) High school counselors are to send the completed and signed applications certified by the principal to the Board for processing. Applications should not be sent to the Board more than 30 days prior to a student's high school graduation date.

(e) Applications will be processed by the Board as they are submitted by the high schools.

(f) As soon as possible after processing applications, the Board will notify the relevant institutions, students and school districts of the students' eligibility for awards. The Board will issue an award letter to the institution named in the student's application. Only one copy of the letter will be sent to the institution. If the letter is lost or if verification is needed prior to the receipt of the letter, the institution can document the student's eligibility by printing a copy of the relevant student's entry from the Board's verification web site.

(g) If the student graduated from high school prior to June 15, 2007, institutions must confirm that the student is a resident of Texas before they can grant a scholarship through the program outlined in this subchapter. If the student graduated from high school on or after June 15, 2007, institutions must confirm that the student is a citizen of the United States or otherwise lawfully authorized to be present in the United States before they can grant a scholarship through the program outlined in this subchapter.

(h) If the student chooses to attend an institution other than the one indicated in the application, he or she should advise the Board of the change and the Board will send the new institution a letter of eligibility and an award may be made at that institution after the student's residency is confirmed.

(i) No student may receive awards for the same term through more than one institution. Students who are concurrently enrolled will need to select the college through which they wish to receive awards. If a student's selection is not the school originally scheduled for an award, it is the student's responsibility to notify the Board.

Comments

Source Note: The provisions of this §21.954 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective November 28, 2005, 30 TexReg 7866; amended to be effective August 15, 2006, 31 TexReg 6335; amended to be effective November 19, 2006, 31 TexReg 9291; amended to be effective May 21, 2008, 33 TexReg 3941

§21.955: Source of Funding

Amounts sufficient to reimburse colleges for scholarships awarded to students who meet the eligibility requirements of the program will be drawn from funds appropriated for Foundation School Program allocations and transferred to the Board by the Commissioner of Education.

Comments

Source Note: The provisions of this §21.955 adopted to be effective August 16, 2004, 29 TexReg 7979

§21.956: Award Amounts and Processing Cycle

(a) Amounts for students graduating prior to September 1, 2005.

(1) The aggregate amount of state credit that shall be awarded to a student through this program may not exceed $1,000 to be applied only toward tuition.

(2) A student who is attending a private or independent institution may not receive a greater state tuition credit in any enrollment period than the amount of institutional aid that is provided by the institution and credited in the same manner, during that enrollment period.

(3) If a state credit awarded through the Early High School Graduation Scholarship Program is more than the amount of the student's first semester's tuition, the balance of the student's award may be used in subsequent semesters.

(4) State credits may not be used for continuing education classes that do not receive formula funding.

(b) For students who graduate on or after September 1, 2005:

(1) the aggregate amount of state credit that may be awarded to a student through this program is:

(A) $2,000 to apply toward tuition and mandatory fees if the student completed the Recommended or Distinguished Achievement Program-Advanced High School Program and graduated from high school in 36 consecutive months or less and an additional $1,000 if the person graduated with at least 15 hours of college credit; or

(B) $500 to apply toward tuition and mandatory fees if the student completed the Recommended or Distinguished Achievement Program-Advanced High School Program and graduated from high school in more than 36 consecutive months but not more than 41 consecutive months and an additional $1,000 if the person graduated with at least 30 hours of college credit; or

(C) $1,000 to apply toward tuition and mandatory fees if the student completed the Recommended or Distinguished Achievement Program-Advanced High School Program and, either:

(i) graduated prior to June 15, 2007, from high school in more than 41 consecutive months but not more than 45 consecutive months with at least 30 hours of college credit, or

(ii) graduated on or after June 15, 2007, from high school in more than 41 consecutive months but not more than 46 consecutive months with at least 30 hours of college credit.

(2) A student who is attending a private or independent institution may not receive a greater state tuition credit in any enrollment period than the amount of institutional aid that is provided by the institution and credited in the same manner, during that enrollment period.

(3) State credits may not be used for continuing education classes that do not receive formula funding.

(c) Form of Award--Exemption or Reimbursement.

(1) If applications are processed and announced in time, institutions should exempt recipients from the payment of relevant charges and then request reimbursement from the Board.

(2) If applications are processed and/or announced too late for the student to be exempted from such payments at registration, the student may be required to pay these charges first, and then be reimbursed by the institution when reimbursement funds are received from the Board.

Comments

Source Note: The provisions of this §21.956 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective November 28, 2005, 30 TexReg 7866; amended to be effective August 15, 2006, 31 TexReg 6335; amended to be effective August 16, 2007, 32 TexReg 4977; amended to be effective November 27, 2007, 32 TexReg 8495

§21.957: Reimbursements

(a) Source of Funding. The funds used to reimburse institutions or students for awards made through the Early High School Graduation Scholarship program will come from the state's Foundation School Fund.

(b) Requesting Reimbursements. To request reimbursement for student awards, institutions must complete and submit a Request for Reimbursement Form designed and distributed by the Board. Such forms must be submitted to the Board with sufficient documentation (student billing information) to confirm that the requests are being made for authorized charges.

(c) Disbursements by the Board. The Board will process institutional Requests for Reimbursement at least once a month and will subsequently have appropriate amounts transferred to institutions by the State Comptroller's office. Such funds are to be used by the institution either to reimburse itself (if it exempted the students from the payment of the relevant charges) or to reimburse students for the relevant charges they paid to the institution.

(d) Transfers from the Foundation Program. At least once a year the Board will request a transfer of funds from the Foundation School Fund for use in reimbursing institutions or students for their Early High School Graduation Scholarship program awards.

Comments

Source Note: The provisions of this §21.957 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective August 15, 2006, 31 TexReg 6335

§21.958: Refunds

The institution attended by an Early High School Graduation Scholarship program award recipient who withdraws from a class or drops classes during the term for which the award was made will be expected to make a refund to the Early High School Graduation Scholarship Program for an amount calculated in accordance with the institution's general refund policies.

Comments

Source Note: The provisions of this §21.958 adopted to be effective August 16, 2004, 29 TexReg 7979

§21.959: Hardship Provisions

An otherwise eligible student as defined under §21.953(a) and (b) of this subchapter and who is unable to use his or her scholarship within the allotted six years, may petition the Board for an extension. Such extensions may be granted on the basis of hardships or other good causes, including but not limited to:

(1) a severe illness or other debilitating condition;

(2) responsibility for the care of a sick, injured, or needy person; or

(3) active duty or other service in the United States armed forces.

Comments

Source Note: The provisions of this §21.959 adopted to be effective August 16, 2004, 29 TexReg 7979; amended to be effective November 28, 2005, 30 TexReg 7866; amended to be effective August 15, 2006, 31 TexReg 6335

§21.960: Dissemination of Information and Rules

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

Comments

Source Note: The provisions of this §21.960 adopted to be effective August 16, 2004, 29 TexReg 7979

Subchapter DD

§21.970: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 56, Subchapter J, Minority Doctoral Incentive Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.161 - 56.171.

(b) The purpose of the Minority Doctoral Incentive Program of Texas is to increase the number of minority students pursuing doctoral degrees and to increase minority representation among the faculty and academic administrators in public and independent institutions of higher education in Texas.

Comments

Source Note: The provisions of this §21.970 adopted to be effective March 14, 1996, 21 TexReg 1764; amended to be effective November 28, 2004, 29 TexReg 10777

§21.971: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Academic administrator--a person employed in an educational department of an institution of higher education in a supervisory position that is not classified under the state position classification plan.

(2) Board--the Texas Higher Education Coordinating Board.

(3) Board-approved program--For purposes of this Minority Doctoral Incentive Program of Texas only, a Board-approved graduate or professional degree program shall include appropriately-accredited programs offered through both public and independent institutions of higher education, as defined in §61.003 of the Texas Education Code.

(4) Commissioner--the commissioner of higher education, the chief executive officer of the Board.

(5) Faculty member--as defined in §51.101 of the Education Code.

(6) Full-time enrollment--as defined by the eligible institution of higher education.

(7) Fund--the Minority Doctoral Incentive Program of Texas fund

(8) Institution of higher education--any public institution of higher education as defined by §61.003 of the Texas Education Code, or an independent institution of higher education that is located in Texas and is accredited by a recognized accrediting agency as defined by §61.003 of the Texas Education Code.

(9) Mentor--a designated faculty member at the institution of higher education in which an eligible doctoral student is enrolled.

(10) Minority--a member of an ethnic group which is significantly underrepresented in an academic discipline, as determined by the Commissioner.

(11) Program--the Minority Doctoral Incentive Program of Texas.

(12) Resident of Texas--a bona fide Texas resident as defined in Chapter 54, Subchapter B, §§54.052, 54.054, and 54.055 of the Texas Education Code. In general, independent individuals 18 years of age or over who move into the state and who are gainfully employed within the state for a period of 12 months prior to enrolling in an institution of higher education are entitled to classification as residents. If such 12 months residence, however, can be shown not to have been for the purpose of establishing residence in the state but to have been for some other purpose, the individuals are not entitled to be classified as residents. Students enrolling in an institution of higher education prior to having resided in the state for 12 months immediately preceding time of enrollment shall be classified as nonresidents for tuition purposes. Persons who resided in Texas for at least five years prior to moving from the state, and who have returned to the state for residence purposes before having resided out of the state for a year, shall be classified as residents.

Comments

Source Note: The provisions of this §21.971 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.972: Eligible Lender or Holder

The Board shall retain the right of determining eligibility of lenders and holders of education loans to which payments may be made under provisions of this program. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of attending postsecondary institutions and shall not be any private individual. An eligible lender or holder may be, but is not limited to, the Board, a bank, savings and loan association, credit union, institution of higher education, secondary student loan market, governmental agency, pension fund, private foundation, or insurance company provided the education loan conforms to the definition of an eligible education loan described in this subchapter. A lender or holder must be willing to abide by the provisions of the law and rules of this program to be considered eligible.

Comments

Source Note: The provisions of this §21.972 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.973: Eligible Education Loan

An eligible loan is any loan made to an eligible student for educational purposes at the graduate or professional level that

(1) is not made to oneself from one's own insurance policy, pension plan or from the private funds, insurance policy, or pension plan of a spouse or other relative;

(2) is obtained in pursuit of a doctoral degree or a master's degree with a demonstrated commitment to pursue a doctoral degree;

(3) is made to cover reasonable expenses related to attendance in the program;

(4) is made during one year of an academic course of study that does not exceed four consecutive years or is among other eligible education loans made for an academic course of study that does not exceed four consecutive years;

(5) does not exceed $14,000 during a twelve month period;

(6) does not entail a service obligation;

(7) will not be repaid through a similar program administered by the federal government, another state or territory of the United States, or by a foreign country;

(8) is made at simple interest;

(9) is evidenced by a promissory note providing for repayment of principal, interest, and any collections charges;

(10) is made for the fall semester 1994 or after;

(11) is made by an eligible lender; and

(12) is an education loan for which payments are not more than 90 days past due at the time the program begins making payments on behalf of a qualified borrower

(13) is a loan covered by terms of the guarantee of payment described in §21.980, Guarantee of Payment of Education Loans.

Comments

Source Note: The provisions of this §21.973 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.974: Responsibilities of Institutional Personnel

(a) The chief executive officer of the institution shall

(1) nominate eligible doctoral students for participation in the program based upon academic achievement, career interest, and other relevant factors the institution considers important and

(2) name a mentor for each nominated student.

(b) The chief executive officer or his designee shall complete a portion of the doctoral student's application for the program.

(c) A mentor named by the chief executive officer of the institution shall

(1) inform the eligible doctoral student in writing of his role as mentor,

(2) sponsor the eligible doctoral student, and

(3) assist the student in pursuing a master's or doctoral degree.

(d) The chief executive officer of the institution shall designate the student financial aid director of the institution as the officer of the Minority Doctoral Incentive Program of Texas who shall

(1) complete the financial portion of the doctoral student's application for the program,

(2) be the Board's on-campus agent to certify all institutional transactions and activities with respect to the program funds, and

(3) be responsible for all records and reports reflecting the transactions with respect to the program funds.

Comments

Source Note: The provisions of this §21.974 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.975: Qualifications for Participation in the Program

An eligible doctoral student must be a minority as defined in §21.973 of these rules and

(1) be a bona fide resident of Texas or a resident of a state having a program similar to this program. Eligible nonresidents shall qualify to pay the same tuition as do Texas residents.

(2) indicate an intent to earn a doctoral degree,

(3) be nominated to participate in this program by the chief executive officer of the institution,

(4) have a mentor in the doctoral program or in the masters program leading to the doctoral degree,

(5) be accepted for full-time enrollment or be enrolled full time in a Board-approved graduate or professional degree program leading to a doctoral degree or be accepted for full-time enrollment or enrolled full time in a Board-approved master's degree program leading to a doctoral degree,

(6) not have defaulted on any education loan, and

(7) have submitted to the Board a properly completed application

(A) for participation in the program and

(B) for a conditional guarantee of loan repayment.

Comments

Source Note: The provisions of this §21.975 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.976: Priority of Application Acceptance

Acceptance of applicants by the Board will depend upon the availability of funds. Residents of Texas will receive priority. The Commissioner will provide for the review, evaluation, and approval of applications for the program based on degree of under-representation in an academic field.

Comments

Source Note: The provisions of this §21.976 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.977: Responsibilities and Liabilities of the Eligible Doctoral Student

(a) A conditional guarantee of repayment from the fund does not release an eligible doctoral student at any time from the responsibilities and liabilities as a borrower under terms of the promissory notes of any eligible education loans received.

(b) If at any time and for any reason an otherwise eligible doctoral student ceases to be enrolled full time in a master's degree program leading to the doctorate or in a doctoral program at an eligible institution of higher education before earning the doctorate, a conditional guarantee of repayment from the fund becomes null and void.

(c) The borrower is responsible for any late fees assessed at any time on any eligible loans.

(d) The borrower is responsible for reporting to the Board any status change affecting eligibility for participation in this program.

Comments

Source Note: The provisions of this §21.977 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.978: Guarantee of Payment of Education Loans

(a) If a borrower earns a doctoral degree and serves as a full-time academic administrator or a faculty member at an institution of higher education in Texas, the program will repay from the fund eligible education loans through eligible lenders or holders of those loans at the rate of one-fifth of the outstanding principal balance and interest for each year of service, not to exceed five years.

(b) The guarantee of payment may not be issued to a participant in the Minority Doctoral Incentive Program of Texas to cover education loans made before the doctoral student is admitted to the program.

(c) If the borrower enters a postdoctoral fellowship no later than the first day of the seventh month after the borrower ceases to be enrolled full-time, the lender or holder, as agreed upon, shall provide an in-school deferment of payments or forbearance until the borrower completes the postdoctoral fellowship and begins serving as a full-time academic administrator or faculty member at an institution of higher education in Texas. The period of deferment or forbearance may not exceed two years.

(d) A conditional guarantee of repayment of an eligible education loan shall be provided to an eligible doctoral student and to any eligible lender stating that

(1) the Board will repay from the fund any eligible education loan incurred by the eligible doctoral student at the rate of one-fifth of the outstanding principal and interest for each full year of service as an academic administrator or faculty member at an institution of higher education in Texas and

(2) an eligible education loan becomes due and payable by the borrower to the eligible lender on the first day of the seventh month after the borrower ceases to be enrolled full time at an institution of higher education and is not serving as an academic administrator or faculty member at an institution of higher education in Texas or on the day after the borrower ceases to serve as an academic administrator or faculty member at an institution of higher education in Texas and has outstanding principal and interest on eligible education loans.

Comments

Source Note: The provisions of this §21.978 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.979: Repayment of Education Loans

(a) If a borrower has not earned a doctoral degree and is not serving as a full-time academic administrator or a faculty member at an institution of higher education in Texas before the first day of the seventh month after dropping below full-time study, the borrower must begin repaying eligible education loans to the holders of the loan notes unless the loan notes provide for longer grace periods.

(b) With the exception that any outstanding principal and interest remaining on eligible loans becomes due and payable by the borrower to the eligible lender on the day after the borrower ceases to serve as an academic administrator or faculty member at an institution of higher education in Texas, the beginning of repayment, the minimum repayment amount, and the period of the eligible education loans are determined by the notes signed by the borrower.

(c) Authorized deferments and periods of forbearance depend upon the provisions of the education loan notes and the discretion of the lenders or holders of the loan notes.

Comments

Source Note: The provisions of this §21.979 adopted to be effective November 28, 2004, 29 TexReg 10777

§21.980: Appeals for Exceptions

In order to fulfill the intent of Chapter 56, Subchapter J, of the Texas Education Code, the Assistant Commissioner of Student Services and the General Counsel and Director of Access and Equity may grant appeals for exceptions if they are in unanimous agreement.

Comments

Source Note: The provisions of this §21.980 adopted to be effective November 28, 2004, 29 TexReg 10777

Subchapter EE

§21.990: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §51.930, the National Student Exchange Program. These rules establish procedures to administer the Exchange Program.

(b) Purpose. The purpose of the National Student Exchange Program is to provide reciprocal educational opportunities for undergraduate students of colleges and universities in the United States.

Comments

Source Note: The provisions of this §21.990 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.991: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) National Student Exchange--The student exchange program administered by National Student Exchange.

(3) Undergraduate--A student who has not received a baccalaureate degree.

Comments

Source Note: The provisions of this §21.991 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.992: Eligible Students

To participate in the National Student Exchange Program:

(1) a student from a Texas institution must be an undergraduate attending a Texas general academic teaching institution as defined in the Education Code, §61.003(3), that is under contract with the National Student Exchange to participate in the program.

(2) a student from an institution outside the State of Texas must be an undergraduate enrolled in an institution under contract with the National Student Exchange to participate in the program.

(3) a student may not participate in the program for more than one year.

Comments

Source Note: The provisions of this §21.992 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.993: Tuition Charges

Out-of-state students attending Texas institutions under the provisions of the National Student Exchange are eligible to pay the resident tuition rate while attending the Texas institution as an exchange participant.

Comments

Source Note: The provisions of this §21.993 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.994: Testing Waiver

A student participating in the program from another state shall be exempt from the provisions of Texas Education Code §51.3062 (Success Initiative) unless that student becomes a degree-seeking undergraduate student at a Texas public institution of higher education.

Comments

Source Note: The provisions of this §21.994 adopted to be effective August 16, 2004, 29 TexReg 7980

Subchapter FF

§21.1010: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter X, Repayment of Certain Law School Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.951 through 61.958.

(b) Scope. The rules set forth in this subchapter are applicable to attorneys employed by nonprofit organizations that provide either criminal defense or civil legal services for indigent individuals.

(c) Purpose. The purpose of the Law Education Loan Repayment Program is to recruit and retain attorneys in nonprofit organizations providing services to indigent persons in Texas.

Comments

Source Note: The provisions of this §21.1010 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1011: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Texas Commissioner of Higher Education.

(3) Program--The Law Education Loan Repayment Program.

(4) Service Period--A twelve-month period of service that qualifies an eligible attorney for an annual education loan repayment.

Comments

Source Note: The provisions of this §21.1011 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1012: Priorities of Application Acceptance

Approval of applications will depend upon the availability of appropriated funds and will be made either on a first-come, first-served basis or an annual application deadline and criteria for ranking applications will also be established. Renewal applicants will be given priority over first-time applicants.

Comments

Source Note: The provisions of this §21.1012 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1013: Eligible Organization

An eligible organization is one that:

(1) qualifies for an exemption from federal income taxes under § 501 (c)(3), Internal Revenue Code of 1986, as amended;

(2) is prohibited from providing representation in a class-action lawsuit; and,

(3) receives funds for services to indigent individuals from:

(A) the Interest on Lawyer's Trust Accounts program administered by the Texas Equal Access to Justice Foundation; or

(B) the basic civil legal services account assistance grants under the Texas Government Code, §51.943.

Comments

Source Note: The provisions of this §21.1013 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1014: Eligible Attorney

To be eligible for loan repayment, an applicant must:

(1) be licensed by the State Bar of Texas,

(2) submit a completed application to the Board agreeing to meet the conditions of loan repayment through the program, and

(3) provide at least twelve consecutive months of service in an eligible organization.

Comments

Source Note: The provisions of this §21.1014 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1015: Eligible Education Loan

An eligible education loan is one that:

(1) was obtained through a lender for purposes of attending a law school that is accredited by the American Bar Association,

(2) does not entail a service obligation and is not being repaid through another loan repayment program,

(3) is not an education loan made to oneself from one's own insurance policy or pension plan or from the pension plan or insurance policy of a relative, and

(4) is not in default at the beginning of the service period.

Comments

Source Note: The provisions of this §21.1015 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1016: Repayment of Education Loans

Eligible education loans shall be repaid under the following conditions:

(1) The annual repayment(s) shall be made co-payable to the attorney and the holder(s) of the loan(s).

(2) The annual repayment amount and the number of service periods shall be determined by the Commissioner.

(3) The number of service periods shall not exceed ten years.

(4) The total amount of loan repayment received through this program shall not exceed 50 percent of the total amount of the attorney's outstanding law school loans, including scheduled interest payments at the beginning of the first service period.

(5) If education loans obtained during law school have been consolidated with undergraduate education loans or other professional education loans, and neither the attorney nor the consolidation lender can provide documentation of the indebtedness relating to the original loans for law school, the total amount of loan repayment received through this program shall not exceed 50 percent of the current average cost of education at eligible schools of law.

(6) All payments are contingent upon availability of funds and the applicant having met all program requirements at the end of the service period.

(7) Prior conditional approval shall be communicated to eligible attorneys.

Comments

Source Note: The provisions of this §21.1016 adopted to be effective November 26, 2001, 26 TexReg 9615

§21.1017: Advisory Committee

The Commissioner may appoint an advisory committee to provide assistance in matters relating to the program.

Comments

Source Note: The provisions of this §21.1017 adopted to be effective November 26, 2001, 26 TexReg 9615

Subchapter HH

§21.1052: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 54, Subchapter D, Exemptions from Tuition. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §54.215.

(b) The purpose of the program is to provide the state additional well-trained commissioned officers for the Texas Air and Army National Guard.

Comments

Source Note: The provisions of this §21.1052 adopted to be effective March 20, 1996, 21 TexReg 1873; amended to be effective November 28, 2004, 29 TexReg 10778

§21.1053: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Adjutant General--The Adjutant General's Office to which the Texas Air and Army National Guard report.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Chief Executive Officer--the President of a participating ROTC institution.

(4) Commissioner--The commissioner of higher education, the chief executive officer of the Board.

(5) Financial need--The cost of attendance at an eligible institution less the expected family contribution and any gift aid for which the student is eligible. The cost of attendance and family contribution are to be determined in accordance with Board guidelines. The cost of attendance includes tuition, fees, books and supplies and living expenses.

(6) Full-time Student--An individual enrolled for the equivalent of at least 12 semester credit hours each semester term, including military science courses and aerospace studies.

(7) Order of Merit List--A list of exemption program applicants, submitted on a form designed by the Board and signed by the program officer of an ROTC institution, ranking the applicants under consideration for awards through the program.

(8) Program Officer--The Texas Air and Army National Guard/ROTC Exemption Program Officer designated by an eligible institution to represent the Board for the program on that campus.

(9) Recruiter--An individual employed as a National Guard recruiter by the Adjutant General's Office.

(10) Resident--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B of Board rules. Nonresident students are excluded from this program.

(11) Room and Board Exemption--An exemption from the payment of an eligible institution's fees and charges for lodging and Board as described in §21.1062 of these rules.

(12) ROTC--the Reserve Officers Training Corps for the Texas Air National Guard and the Texas Army National Guard.

(13) ROTC Institution--An institution of higher education, as defined by §61.003 of the Texas Education Code, that maintains a Reserve Officers' Training Corps (ROTC).

(14) Texas National Guard ROTC Scholarship Volunteer Program (TXNG/RSVP)--A second name for the Exemption Program for Texas Air and Army National Guard/ROTC Students, the program described in this subchapter.

(15) Tuition and Fee Exemption--An exemption from the payment of all of an eligible institution's dues, fees, and enrollment charges, including correspondence courses, general property deposit fees, and student services fees. This does not include fees or charges for clothing, books or supplies.

Comments

Source Note: The provisions of this §21.1053 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1054: Activities of the Adjutant General's Office

The Adjutant General's Office shall be responsible for:

(1) the appointment of Texas Air or Army National Guardsmen to the institutions' selection committees;

(2) dissemination of accurate and up-to-date program information through the use of National Guard recruiting offices;

(3) projections of staffing requirements for the Texas Air and Army National Guard; and, on that basis, the number of new awards and the share of each year's new awards to go to the Army ROTC and to the Air Force ROTC;

(4) tracking of students/participating Air and Army National Guardsmen through the period of their exemption program contract;

(5) application of rules and procedures governing leaves of absence, probations or waivers of repayment requirements under special circumstances when cases are forwarded by institution selection committees or National Guard Units; and

(6) determine which college graduates will be allowed to go into active military duty prior to serving in the Texas National Guard. (No more than 10 percent of each year's graduates may be offered this option, beginning with the Fall 1998 semester.)

Comments

Source Note: The provisions of this §21.1054 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1055: Selection Committee

(a) Membership. Each eligible institution shall create a three-member selection committee. Two members of the committee are to be nominated by the institution's Chief Executive Officer and shall include a military or aerospace science faculty member. A commissioned officer of the Texas Air or Army National Guard shall be appointed to each committee by the Adjutant General. Final membership of the committees shall be designated by the commissioner.

(b) Duties. The selection committee shall:

(1) review applications and conduct interviews of students who have applied for the exemption and determine which students qualify to receive the exemption, taking the following criteria into consideration:

(A) individual qualifications, with emphasis on the leadership, communication, and organizational abilities and skills required of commissioned officers;

(B) the financial need of the applicant;

(C) projected staffing requirements for the Texas Air and Army National Guard; and

(D) the academic performance of the applicant.

(2) determine whether an extension of the two-year lodging and Board exemption or four-year tuition and fee exemption should be granted for periods of active military duty required of the student,

(3) determine whether probation will be granted in accordance with ROTC guidelines to a student who has failed to meet program performance standards, and

(4) determine whether an exemption recipient who loses his/her exempt status may serve the remainder of his/her contractual obligation as an enlisted member of the Texas Air or Army National Guard, subject to being accepted into and maintaining active drilling membership in the Texas Air or Army National Guard in the same manner as any other person.

(5) refer special cases involving leaves of absence or a waiver of repayment to the Adjutant General's Office for resolution.

Comments

Source Note: The provisions of this §21.1055 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1056: Eligible Institution

(a) An eligible institution is a public institution of higher education as defined in §61.003 of the Texas Education Code, which maintains a Reserve Officers' Training Corps (ROTC).

(b) The chief executive officer of an eligible institution which chooses to participate in the exemption program shall designate a Texas Air or Army National Guard/ROTC Exemption Program Officer. Unless otherwise specified by the chief executive officer of the institution, the Director of Student Financial Aid of the institution shall be the Board's on-campus agent to certify all institutional activities with respect to this program.

Comments

Source Note: The provisions of this §21.1056 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1057: Eligible Student

An eligible student is an undergraduate student who meets the following requirements:

(1) is admitted to the institution's Reserve Officers' Training Corps program or is a participant in such a program;

(2) becomes a member of the Texas Army National Guard or the Texas Air National Guard and maintains satisfactory performance as prescribed by the Adjutant General's department as a member in good standing during the terms of enrollment and service of the student's contractual obligation;

(3) possesses and maintains from the date of enrollment through completion of the degree program the academic and personal conduct standards established by each ROTC institution;

(4) maintains full-time enrollment status;

(5) enters into a contract with the ROTC institution acting on behalf of the State of Texas to accept a commission in the Texas Air or Army National Guard as an officer on graduation from the ROTC institution or, for a limited number of participants, completes of active duty with the United States Armed Forces and serves no less than four years as a commissioned officer;

(6) if in the Army National Guard and able to gain a contract into the advanced course of ROTC as a junior in college, no later than the beginning of the third year of ROTC, requests an acquires a Guaranteed Reserve Forces Duty commission (as opposed to an active-duty commission) during the accessions process upon graduation;

(7) if in the Army National Guard and unable to gain a contract into the advanced course of ROTC as a junior in college, enrolls in the Texas National Guard Officer Candidate School (OCS) in the summer following his/her junior year and continues in OCS until he/she graduates from OCS. Upon graduation from OCS accepts a commission in the Texas National Guard;

(8) passes the physical examination and police records background check required for becoming a commissioned officer in the Texas Air or Army National Guard;

(9) has been accepted for admission to the participating ROTC institution; and

(10) if a member of the Reserve Forces of the United States Armed Forces at the time of application for an exemption, acquires a transfer to the Texas National Guard by the deadline set by the Board.

Comments

Source Note: The provisions of this §21.1057 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1058: Dissemination of Information

The Adjutant General's Office and the Board shall provide for the distribution of information about the program to eligible institutions and to high school students.

Comments

Source Note: The provisions of this §21.1058 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1059: Sources of Funding

Expenditures in the program shall not exceed the amount appropriated by the State of Texas for that purpose.

Comments

Source Note: The provisions of this §21.1059 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1060: Award Amounts

(a) Tuition and fee exemption amounts. Selected recipients may receive an exemption for the amount of their actual tuition and fee charges at their institution for up to four full academic years (including summer terms when funds are available) while enrolled as undergraduates. If the student's program of study extends to more than four years, the exemption will not be extended to that additional time period.

(b) Room and Board exemption amounts. Selected recipients may receive an exemption for an amount equal to their actual dormitory room and Board expenses but not to exceed the average on-campus room and Board figure reflected in the college's typical student budget on file at the Board for up to two years. If the student is not living in campus housing, but the institution does have such housing, the amount to be awarded as a room and Board exemption is the average charged for a student in that institution's campus housing. If the institution does not have campus housing, the exemption may equal the average room and Board allowance reported to the Board by public universities for that year for students who are receiving some type of financial assistance.

(c) Exemptions and reimbursements to students. If student selection is completed prior to the payment of tuition and fees or room and Board for a particular term, the institution is to exempt the selected students from the payment of the appropriate charges. If selection is completed after the payment of such charges, the Board shall reimburse students for the appropriate amounts as indicated in subsections (a) and (b) of this section.

(d) Reimbursements for institutions. Each term, after selected students have enrolled at their institutions, the institutions may send the Board, on a form provided by the Board, a request for reimbursement for the exempted charges. The Board, as soon as possible, will issue checks to the institutions for the indicated amounts.

Comments

Source Note: The provisions of this §21.1060 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1061: Allocation of Exemptions among Institutions

(a) The maximum number of new exemptions that can be awarded statewide each year is 150. The actual number of new awards to be made in any year shall be determined by the Adjutant General's Office based on demand and available funding. If demand and funding permit it, each participating ROTC institution shall be allocated exemptions for at least two new students each academic year. The maximum number of exempt students for each ROTC institution will be determined by the percentage of the institution's Army and Air Force Reserve Officers' Training Corps enrollment in relation to statewide Army and Air Force Reserve Officers' Training Corps enrollment.

(b) Percentages shall be calculated during the fall semester of every odd-numbered year.

(c) Institutions will have until May 15 of each year to inform the Board of their ranking of exemption applicants for the following year. If they fail to have enough screened and ranked applicants to use their full allotment as of that date, the Board will reallocate the unused slots to other eligible institutions which have used their full allotments.

Comments

Source Note: The provisions of this §21.1061 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1062: Partial Awards

(a) Partial awards. An institution's selection committee may re-award the unused portion of an exemption left when an exemption recipient drops out of the program. However, the student selected to fill the unfinished exemption must meet the eligible student requirements as outlined in §21.1059 of these rules;

(b) Contractual obligations. Upon graduation from college, a participant receiving fewer than four years' tuition and fee exemption and/or less than two years' room and Board exemption will have to meet the same contractual obligations as students receiving the exemptions as entering freshmen (i.e., four years' service as a commissioned officer in the Texas Air or Army National Guard, or full repayment of the value of the exemptions extended, plus interest, if he/she fails to complete the requirements of the contract.)

Comments

Source Note: The provisions of this §21.1062 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1063: The Application Process

(a) To apply for an exemption, the student must complete the full application packet for the Texas Air or Army National Guard/ROTC Exemption Program and submit it to a recruiter or to a full, assistant or associate professor of military or aerospace science at a participating ROTC institution by the deadline designated by the institution for which he/she wishes to receive an exemption award. The packet includes an exemption program application, an essay form, a listing of extracurricular activities and an official transcript (including all but the current term's grades) from the most recent school attended.

(b) If the packet is given to a professor, the professor will review it for completeness and forward it to a recruiter.

(c) The recruiter will check the application packets for completeness, pre-screen applicants for their acceptability for the National Guard and forward paperwork for applicants passing the pre-screening process to the relevant institutions as soon as possible, but no later than May 1.

(d) The selection committee at the institution will review applications and rank applicants according to a set of criteria developed by the Board and the Adjutant General's Office.

(e) Top candidates will be asked to sit for at least one interview, to be conducted using a set of questions provided by the Board and Adjutant General's Office.

(f) By May 15, the selection committee will finalize its decisions and send the Board an Order of Merit List certified by the institution's program officer.

(g) Selected students will be notified by the program officer of their awards pending successful induction into the Texas National Guard.

(h) Once selected students are inducted into the Texas National Guard, the program officer and the students are to sign the exemption program contracts, finalizing the award process.

(i) No school may add students to its Order of Merit List after May 15, but if a top-ranked student fails to use an offered award, the school may offer his/her award to an alternate from its May 15 listing. If no additional alternates are on the list, the award will be reallocated to another institution.

Comments

Source Note: The provisions of this §21.1063 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1064: The Texas Air and Army National Guard/ROTC Exemption Contract

Each participating student must enter into a contract with the ROTC institution acting on behalf of the State of Texas. In the contract,

(1) the student must agree to:

(A) be admitted to his/her institution's Reserve Officers' Training Corps program or be a participant in such a program;

(B) become a member of the Texas Army National Guard or the Texas Air National Guard and maintain satisfactory performance as prescribed by the Adjutant General's department as a member in good standing during the enrollment and service terms of his/her contractual obligation;

(C) maintain from the date of first exemption under this program through completion of his/her degree, the academic and personal conduct standards established by the institution;

(D) maintain full-time enrollment (12 credit hours per term, including military and aerospace science courses) or to immediately notify the commanding officer of his/her ROTC unit should he or she drop below the required level of enrollment;

(E) immediately upon graduation from the ROTC institution or upon completion of active duty with the United States Armed Forces, accept a commission in the Texas Air or Army National Guard as a second lieutenant and serve no less than four years as a commissioned officer;

(F) repay to the state the amount of tuition, fees and other charges for which he/she received an exemption, plus interest as determined by the Board, should the student fail to meet the obligations of the contract;

(G) agree to graduate and be commissioned as an officer in the Texas National Guard or enter into active duty with the United States Armed Forces within 6 years of the original exemption received, unless the period is extended with permission of the Adjutant General's Office; and

(H) understand that under circumstances requiring repayment, the full amount of his/her obligation is to be repaid by no later than the fifth anniversary of the date of the circumstances which required him/her to begin repayment.

(2) the institution must agree to:

(A) provide the students selected for exemptions through this program a statement of the Adjutant General's criteria for maintaining satisfactory performance as a member in good standing during the term of the student's contractual obligation;

(B) provide the students selected for exemptions through this program a statement of the institution's required academic and personal conduct standards;

(C) if reimbursement funding is provided by the state, award exemptions for the actual tuition and fees paid by the selected student at this institution for up to four years while the student meets the program's requirements. Should the student be called into active military service during his/her enrollment at this institution, the four year time frame may be extended at the institution's selection committee's discretion; and

(D) if reimbursement funding is provided by the state, award exemptions for room and Board as indicated in §21.1062(b) of these rules to eligible students enrolled in their first two years of the ROTC exemption program.

Comments

Source Note: The provisions of this §21.1064 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1065: Noncompliance

(a) If the student/participating Air or Army National Guardsman fails to fulfill any obligation outlined in the exemption program contract, he or she shall be in noncompliance with the contract and will be required to repay his/her contractual obligation to the state unless the student has been granted probationary status by his/her institution's selection committee or the participating Air or Army National Guardsman is granted probationary status by the Adjutant General's Office. Such repayment requirements will be outlined in the promissory note signed by the student upon receipt of an exemption under this program.

(b) If an exemption recipient, after graduation and commission as a Texas Air or Army National Guard officer, is called into active duty, the time served in active duty may be counted against his/her four-year contractual service obligation to the State of Texas.

(c) If an exemption recipient, after graduation, leaves the Texas National Guard to serve in another component of the United States Military, the exemption recipient will be obligated to serve for four years in the Texas Army or Air National Guard prior to separation from the military or repay the State of Texas for the funds awarded him/her through the Exemption Program for Texas Air and Army National Guard/ROTC Students.

(d) If an exemption recipient fails to qualify for a commission as a participant in this program, fulfillment of his/her obligation to Texas may be accomplished through service for an equivalent number of years as an enlisted member of the Texas National Guard.

(e) If, after graduation, an exemption recipient joins a National Guard unit of a state other than Texas, he or she will be obligated to repay the State of Texas for the funds awarded through this program.

Comments

Source Note: The provisions of this §21.1065 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1066: Probation for Participating Students

(a) If an exemption recipient fails to meet the performance standards of the program, he/she will be placed on probationary status by the Professor of Military Sciences or Professor of Aerospace Studies serving on the selection committee. Such status shall not last for more than two terms.

(b) While in a probationary status, the student may continue to receive program funds.

(c) If the student raises his/her performance during the probationary period to meet program standards, full eligibility for the exemption program may be reestablished.

(d) If the student fails to meet program standards by the end of the probationary period, the student will be considered to be in noncompliance and the repayment provisions outlined in §21.1067 of these rules will apply.

(e) No exemption recipient may be granted probation more than twice during his/her enrollment period.

Comments

Source Note: The provisions of this §21.1066 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1067: Reporting Requirements

(a) In the fall of each odd-numbered year, each participating ROTC institution will be required to send census date (12th class day) enrollment statistics for its ROTC program to the Board.

(b) By May 15 of each year, the institution is to notify the Board of the ranking of its applicants. If it fails to have enough screened and ranked applicants to use its full allotment by this date, the unused exemptions will be reallocated by the Board to other eligible institutions.

Comments

Source Note: The provisions of this §21.1067 adopted to be effective November 28, 2004, 29 TexReg 10778

§21.1068: Program Reviews

Any institution whose students receive exemptions through this program will be subject to an annual program review.

Comments

Source Note: The provisions of this §21.1068 adopted to be effective November 28, 2004, 29 TexReg 10778

Subchapter II

§21.1080: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 54, Subchapter B, Tuition Rates. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §54.214, relating to an exemption for educational aides.

(b) Purpose. The purpose of the Educational Aide Exemption Program is to encourage certain educational aides to complete full teacher certification by providing need-based exemptions from the payment of tuition and certain mandatory fees at Texas public institutions of higher education.

Comments

Source Note: The provisions of this §21.1080 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.1081: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Educational Aide--A person who has been employed by a public school district in Texas in a teaching capacity working in the classroom directly with the students for at least one year on a full-time basis. It may include substitute teachers who have been employed by a public school district in Texas for 180 or more full days in a teaching capacity working in the classroom directly with students.

(5) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his/her family, as determined following the federal methodology.

(6) Financial need--An indication of a student's inability to meet the full cost of attending a college or university, measured by one of the following methods:

(A) The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines; or

(B) An income methodology, which considers a student to have financial need if his or her adjusted gross annual income is less than income levels set annually by the Commissioner. If the student is a dependent, the family's adjusted gross family income is considered; if the student is independent, only the student's income (and the income of the student's spouse, if he or she is married) is considered.

(7) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including the determination of student eligibility, maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(8) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B of this title (relating to Determination of Residence Status and Waiver Programs for Certain Nonresident Persons). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

Comments

Source Note: The provisions of this §21.1081 adopted to be effective August 16, 2004, 29 TexReg 7980; amended to be effective August 16, 2007, 32 TexReg 4979; amended to be effective May 21, 2008, 33 TexReg 3943; amended to be effective August 26, 2009, 34 TexReg 5683

§21.1082: Institutions

(a) Eligibility.

(1) Any public institution of higher education as defined by Texas Education Code, §61.003, is eligible to participate in the Educational Aide Exemption Program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and Financial Aid Director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting. Each participating institution must meet Board reporting requirements, in particular the submission of the Financial Aid Database Report, in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Educational Aide Exemption Program.

Comments

Source Note: The provisions of this §21.1082 adopted to be effective August 16, 2004, 29 TexReg 7980

§21.1083: Eligible Students

To receive an award through the Educational Aide Exemption Program, a student must:

(1) be a resident of Texas;

(2) have met the definition of an Educational Aide at some time during the five years preceding the term or semester for which the student is awarded his or her initial exemption;

(3) be employed in some capacity by a school district in Texas during the full term for which the student receives the award unless granted a hardship waiver as described in §21.1089 of this title (relating to Hardship Provisions);

(4) show financial need;

(5) be enrolled in courses required for teacher certification at the institution granting an exemption under this subchapter or (if enrolled in lower-level course-work), sign a statement indicating an intention to become certified as a teacher and teach in Texas;

(6) meet the academic progress standards of the institution;

(7) follow application procedures and schedules as indicated by the Board;

(8) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from Selective Service registration under federal law; and

(9) apply for an exemption by the end of the term for which the exemption is to apply.

Comments

Source Note: The provisions of this §21.1083 adopted to be effective August 16, 2004, 29 TexReg 7980; amended to be effective November 28, 2005, 30 TexReg 7866; amended to be effective November 19, 2006, 31 TexReg 9291; amended to be effective August 16, 2007, 32 TexReg 4979; amended to be effective May 21, 2008, 33 TexReg 3943; amended to be effective August 26, 2009, 34 TexReg 5683

§21.1084: The Application and Awarding Process

(a) Application forms and instructions developed by the Board will be distributed primarily through school district offices throughout the state. The Board will also provide forms to financial aid offices of approved institutions and students may request the forms directly from the Board.

(b) The application has three parts that must be completed prior to the form's submission to the Board for processing.

(1) Part I is to be completed by the student applicant, who shall then forward the application to an authorized officer of the school or school district in which the applicant is employed.

(2) Part II is to be completed and signed by the school or school district authorized officer, who shall then forward the application to the financial aid office of the institution the applicant is attending.

(3) Part III is to be completed by the Program Officer at the institution, who shall then determine student eligibility and advise the student of his or her status.

(c) Applications will be processed by the institutions.

(d) If the student's financial need is based on the income methodology and prior year adjusted gross income is not available at the time of application, eligibility can be temporarily based on a prior prior-year tax return, but the student must provide the institution a copy of the prior-year tax return by the deadline set by the institution and reported to the student in his or her award announcement. If the updated return indicates an income that exceeds the cut-off amount for eligibility, the student will be required to refund to the program any awards received based on prior prior-year data.

(e) As soon as possible after processing applications, the institution will notify the relevant students and school districts of their awards.

Comments

Source Note: The provisions of this §21.1084 adopted to be effective August 16, 2004, 29 TexReg 7980; amended to be effective November 19, 2006, 31 TexReg 9291; amended to be effective May 21, 2008, 33 TexReg 3943; amended to be effective August 26, 2009, 34 TexReg 5683

§21.1085: Award Amounts and Processing Cycle

(a) Amounts. Students receiving awards through the Educational Aide Exemption Program shall be exempted from the payment of (or reimbursed for) resident tuition and required fees, other than laboratory and class fees, for courses taken during the relevant term.

(b) Form of Award--Exemption or Reimbursement.

(1) If applications are processed and announced in time, institutions should exempt recipients from the payment of such charges and then request reimbursement from the Board.

(2) If applications are processed and/or announced too late for the student to be exempted from such payments at registration, the student may be required to pay these charges first, and then be reimbursed by the institution once reimbursement funds are received from the Board.

(c) Unique Requirements for Each Term.

(1) Fall awards are made on the basis of the original fall/spring application.

(2) Spring awards are based on the original fall/spring application. If the student was not a recipient during the fall term, the original application functions as a stand-alone spring application. If the applicant also received a fall award, the spring award shall not be requested by the institution until the school or school district confirms to the institution that it will still be employing the applicant in the spring term.

(3) Summer awards are to be based on a summer application that will be distributed only upon confirmation that there is funding available for summer awards. Institutions and school districts will be advised by the Board of the availability of funds by March 1 of each year. At that time, the Board will distribute copies of the summer application and instructions to institutions and school districts.

Comments

Source Note: The provisions of this §21.1085 adopted to be effective August 26, 2009, 34 TexReg 5684

§21.1086: Reimbursements

(a) Source of Funding. The funds used to reimburse institutions or students for awards made through the Educational Aide Exemption program will come from the state's Foundation School Fund and any gifts, grants and donations made to the Texas Education Agency for that purpose.

(b) Requesting Reimbursements. To request reimbursement for student awards, institutions must complete and submit a Request for Reimbursement Form designed and distributed by the Board. Such forms must be submitted to the Board with sufficient documentation (student billing information) to confirm that the requests are being made for authorized charges.

(c) Disbursements by the Board. The Board will process institutional Requests for Reimbursement at least once a month and will subsequently have appropriate amounts transferred to institutions by the State Comptroller's office. Such funds are to be used by the institutions either to reimburse itself (if it exempted the students from the payment of the relevant charges) or to reimburse students for the relevant charges they paid to the institution.

(d) Transfers from the Foundation Program. At least once a year the Board will request a transfer of funds from the foundation school fund for use in reimbursing institutions or students for their Educational Aide Exemption program awards.

Comments

Source Note: The provisions of this §21.1086 adopted to be effective August 26, 2009, 34 TexReg 5684

§21.1087: Exemption from Student Teaching

(a) An individual who receives a bachelor's degree required for a teaching certificate on the basis of higher education coursework completed while receiving an award through this subchapter shall not be required by his or her institution to participate in any field experience or internship consisting of student teaching as a requirement to receive a teaching certificate.

(b) An individual who receives a bachelor's degree prior to receiving his or her first award under this subchapter is not eligible for a student teaching exemption under subsection (a) of this section.

Comments

Source Note: The provisions of this §21.1087 adopted to be effective August 26, 2009, 34 TexReg 5684

§21.1088: Hardship Provisions

An individual is considered to meet the employment requirements listed in §21.1083(3) of this chapter (relating to Eligible Students) if he or she was employed at the beginning of the relevant term but was unable to remain employed throughout the term for reasons beyond his or her control. Such situations include, but are not limited to, the following:

(1) a severe illness or other debilitating condition that may affect the individual's ability to continue employment;

(2) responsibility for the care of a temporarily disabled dependent that may affect the recipient's ability to continue employment; or

(3) performance of active duty military service.

Comments

Source Note: The provisions of this §21.1088 adopted to be effective August 26, 2009, 34 TexReg 5684

§21.1089: Dissemination of Information and Rules

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

Comments

Source Note: The provisions of this §21.1089 adopted to be effective August 26, 2009, 34 TexReg 5684

Subchapter JJ

§21.2001: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, §61.068, which allows the Board to accept gifts and donations from individuals and groups in order to offer programs that encourage students to attend college.

(b) Purpose. The Kenneth H. Ashworth Fellowship Program is to provide financial assistance to students with financial need enrolled in graduate programs in public affairs, public service or public administration.

Comments

Source Note: The provisions of this §21.2001 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981

§21.2002: Eligible Institutions

To be eligible to participate in the program, an institution must be a general academic teaching institution as defined in Texas Education Code, Chapter 61.003 or an independent college or university which is a member of Independent Colleges and Universities of Texas, Inc.

Comments

Source Note: The provisions of this §21.2002 adopted to be effective June 2, 1998, 23 TexReg 5675.

§21.2003: Selection Committee

(a) A committee is established to accept and evaluate applications from institutions and to select fellowship award recipients.

(b) The committee consists of three members of the Coordinating Board staff appointed by the Commissioner, representing at least two divisions of the agency.

Comments

Source Note: The provisions of this §21.2003 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981; amended to be effective May 21, 2008, 33 TexReg 3943

§21.2004: Eligible Students

To qualify for an award, a student must be a Texas resident identified by the dean of his/her program of study as needing financial assistance. The student must be enrolled as a graduate student in public affairs, public service or public administration and intend to work in Texas after completing his/her graduate studies.

Comments

Source Note: The provisions of this §21.2004 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981

§21.2005: Award Amounts

No annual award received through this program may exceed an amount set by the selection committee.

Comments

Source Note: The provisions of this §21.2005 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective May 21, 2008, 33 TexReg 3943

§21.2006: Funding

Funding for the program will be generated through donations and gifts. Awards will be made from the earnings of the funds.

Comments

Source Note: The provisions of this §21.2006 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981

§21.2007: Submission of Applications and Selection of Recipients

(a) Deans of colleges of public affairs, public service and public administration at eligible institutions will each be invited to submit applications and supportive documentation for up to two applicants per year. Applications for the awards must be submitted to the committee each year by February 20 or if February 20 does not fall on a work date, the first working date thereafter.

(b) The committee will rank applicants and select the recipients of awards for the following academic year. In determining student eligibility the committee shall consider at a minimum the following factors relating to each applicant:

(1) academic ability and promise;

(2) career plans; and

(3) individual qualifications, with emphasis on leadership and communication skills.

(c) The Commissioner will then announce award recipients to all participating institutions.

Comments

Source Note: The provisions of this §21.2007 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981

§21.2008: Disbursement of Funds

As soon as possible after the recipients register for the following fall semester and provide the board proof of enrollment, the board will send funds representing the full annual award amount to the business offices of the relevant institutions for disbursement to the recipients.

Comments

Source Note: The provisions of this §21.2008 adopted to be effective June 2, 1998, 23 TexReg 5675; amended to be effective August 16, 2004, 29 TexReg 7981

Subchapter KK

§21.2020: Authority, Scope, and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter M, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §61.702.

(b) Scope. The rules set forth in this subchapter are applicable to full-time classroom teachers at the preschool, primary, or secondary level in a public school in this state in an area or field of acute teacher shortage as designated by the Commissioner of Education.

(c) Purpose. The purpose of the Classroom Teacher Repayment Assistance Program is to recruit and retain classroom teachers in communities and subjects for which there is an acute shortage of teachers in Texas.

Comments

Source Note: The provisions of this §21.2020 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2021: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Classroom Teacher--A person who is employed by a school district and teaches in an academic instructional setting or a career and technology instructional setting at least four hours each day. The term does not include a teacher's aide or a full-time administrator.

(3) Commissioner--The Texas Commissioner of Education.

(4) Program--Classroom Teacher Repayment Assistance Program.

(5) Service Period--A one-year period of service that qualifies an eligible teacher for an annual education loan repayment.

Comments

Source Note: The provisions of this §21.2021 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2022: Priorities of Application Acceptance

Approval of applications will depend upon the availability of appropriated funds and will be made either on a first-come, first-served basis, or on an annual application deadline. Criteria for ranking applications will be established. Renewal applicants will be given priority over first-time applicants.

Comments

Source Note: The provisions of this §21.2022 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2023: Eligible Teacher

To be eligible for loan repayment a teacher must:

(1) have been employed as a classroom teacher for at least one year as a full-time classroom teacher in a public school in Texas at the preschool, primary, or secondary level:

(A) in a school that has been designated by the Commissioner as having an acute shortage of teachers; or

(B) teaching a subject that has been designated a field of acute teacher shortage by the Commissioner;

(2) be employed as a full-time classroom teacher in a public school in Texas at the preschool, primary, or secondary level:

(A) in a school that has been designated by the Commissioner as having an acute shortage of teachers; or

(B) teaching a subject that has been designated a field of acute teacher shortage by the Commissioner;

(3) not have received a Teach for Texas Grant; and

(4) submit a completed application to the Board.

Comments

Source Note: The provisions of this §21.2023 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2024: Eligible Education Loan

An eligible education loan is one that:

(1) was obtained for the purpose of attending an institution of higher education,

(2) does not entail a service obligation and is not being repaid through another loan repayment program,

(3) is not an education loan made to oneself from one's own insurance policy or pension plan or from the pension plan or insurance policy of a relative, and

(4) is not in default at the beginning of the service period.

Comments

Source Note: The provisions of this §21.2024 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2025: Repayment of Education Loans

Eligible education loans shall be repaid under the following conditions:

(1) the annual repayment(s) shall be made co-payable to the teacher and the holder(s) of the loan(s);

(2) the annual repayment amount is the lesser of $1,000.00 or the amount of principal and interest that is scheduled to be paid during the service period;

(3) the total amount of loan repayment shall not exceed $5,000.00;

(4) the number of service periods shall not exceed five years;

(5) all payments are contingent upon availability of funds and the applicant's having met all program requirements at the end of the service period; and

(6) prior conditional approval shall be communicated to eligible teachers.

Comments

Source Note: The provisions of this §21.2025 adopted to be effective November 26, 2001, 26 TexReg 9616

§21.2026: Advisory Committee

The Commissioner may appoint an advisory committee to provide assistance in matters relating to the program.

Comments

Source Note: The provisions of this §21.2026 adopted to be effective November 26, 2001, 26 TexReg 9616

Subchapter LL

§21.2050: Authority and Purpose

(a) Authority. The authority for this subchapter is provided in the Texas Education Code, Subchapter T, Early Childhood Child-Care Worker Student Loan Repayment Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.871 through 61.878, as amended effective September 1, 2003. For participants who were awarded loan repayment assistance under the law that was in effect before September 1, 2003 the agreement entered into with the Board continues in effect until the participant satisfies all the conditions of the agreement.

(b) Purpose. The purpose of the Early Childhood Care Provider Student Loan Repayment Program is to recruit and retain qualified child-care providers who work in licensed Texas child-care facilities and whose duties consist primarily of providing child care or education to children less than four years old.

Comments

Source Note: The provisions of this §21.2050 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2051: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Child-care facility--A child-care facility licensed through the Division of Child Care Licensing of the Texas Department of Protective and Regulatory Services.

(2) Default--for purposes of this subchapter a loan is considered in default if it is reduced to judgment.

(3) Early childhood care provider--A person who works 31 hours or more a week in a child-care facility, whether as an employee, owner, or volunteer, and whose duties consist primarily of providing child care or education to children less than four years of age.

(4) Early childhood degree--An associate, baccalaureate, or graduate degree in early childhood development or a degree that is equivalent to a degree in early childhood development.

(5) Education loan--A loan made to an individual for the purpose of attending a qualifying institution.

(6) General academic teaching institution--As defined in the Texas Education Code, §61.003.

(7) Qualifying Institution--a general academic teaching institution, as defined in Texas Education Code §61.003(8), or a private or independent institution of higher education, as defined in Texas Education Code §61.003(15), or an out of state institution that is accredited by a recognized accrediting agency, as defined within.

(8) Recognized accrediting agency--The Southern Association of Colleges and Schools and any other association or organization so designated by the Board, which are listed in the Board's rules at 19 TAC §7.3.

(9) Repayment(s)--Financial assistance for repaying education loans.

Comments

Source Note: The provisions of this §21.2051 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2052: Priorities of Application Acceptance and Selection Criteria

(a) Acceptance of applications shall depend on the availability of funds. If funds are available an application deadline will be established each year and will be published on the Board's web site at www.collegefortexans.com. Selection of applicants to participate in the program shall be based upon an assessment of an applicant's financial need.

(b) Renewal applicants shall be given priority over first-time applicants.

Comments

Source Note: The provisions of this §21.2052 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2053: Eligible Education Loan

An education loan eligible for repayment is one that:

(1) was obtained for purposes of attending any qualifying institution;

(2) is evidenced by a promissory note:

(A) promising repayment of funds received through any student loan program,

(B) with language that clearly indicates that loan proceeds must be used for direct and indirect expenses at an eligible institution, or

(C) for consolidating education loans;

(3) is not in default at the time of the early childhood care provider's application.

Comments

Source Note: The provisions of this §21.2053 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2054: Qualifications for Participation

To be eligible for loan repayment a participant must:

(1) hold an early childhood degree from a qualifying institution; and

(2) be currently employed as an early childhood care provider in a Texas child-care facility; and

(3) have completed at least one year of employment as an early childhood care provider in a Texas child-care facility by the application deadline.

Comments

Source Note: The provisions of this §21.2054 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2055: Amount of Repayments and Limitations

(a) Participation in the program may not exceed a total of five years.

(b) The total annual loan repayments may not exceed the lesser of the following:

(1) 15 percent of the total of all remaining scheduled payments of all education loans based upon a leveled payment schedule on the date of the annual application deadline;

(2) the actual annual amount of the loan payments required by the note and holder of the education loans; or

(3) an amount published on the Board's web site, at www.collegefortexans.com, as the average amount of resident tuition and required fees paid by a person enrolled full time at a qualifying institution for the most recent academic year, excluding summer school.

(c) Repayments shall be made copayable to the child-care provider and the holder of the education loan notes.

Comments

Source Note: The provisions of this §21.2055 adopted to be effective December 7, 2003, 28 TexReg 10759

§21.2056: Dissemination of Information

If funds are available the Board shall distribute rules and pertinent information about the Early Childhood Care Provider Student Loan Repayment Program to qualifying institutions offering an early childhood degree and to appropriate associations, facilities, and other entities.

Comments

Source Note: The provisions of this §21.2056 adopted to be effective December 7, 2003, 28 TexReg 10759

Subchapter MM

§21.2080: Authority, Scope and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter F, Doctoral Incentive Loan Repayment Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.091 - 56.096.

(b) Scope. The rules set forth in this subchapter are applicable to Texas residents employed full-time as doctoral faculty or administrators in Texas.

(c) Purpose. The purpose of the Doctoral Incentive Loan Repayment Program is to provide student loan repayment assistance as an incentive to attract members of underrepresented groups to full-time service on the faculties or administrations of public and private or independent institutions of higher education in Texas.

Comments

Source Note: The provisions of this §21.2080 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2081: Administration

The Texas Higher Education Coordinating Board, or its successor or successors, shall administer the Doctoral Incentive Loan Repayment Program.

Comments

Source Note: The provisions of this §21.2081 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2082: Dissemination of Information

The Board shall disseminate information about the Doctoral Incentive Loan Repayment Program to eligible institutions and shall publish this information on the Board's web site.

Comments

Source Note: The provisions of this §21.2082 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2083: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Administrator--a person employed in an institution of higher education in a supervisory position.

(2) Board--the Texas Higher Education Coordinating Board.

(3) Commissioner--the Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Doctoral Degree--a research doctoral degree (not a law or health professional degree) from a college, university, or health science center that is accredited by a recognized accrediting agency.

(5) Eligible Institution--an institution of higher education, as defined in the Texas Education Code, §61.003(8), or a private or independent institution of higher education, as defined in §61.003(15) of this code.

(6) Encumbered funds--program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(7) Low Income School--a high school in which the percentage of economically disadvantaged students is greater than or equal to the statewide average for the same year, according to data published by the Texas Education Agency.

(8) Program--the Doctoral Incentive Loan Repayment Program.

(9) Recognized Accrediting Agency--the Southern Association of Colleges and Schools and any other association or organization so designated by the Board, the standards for which are listed in §7.3(15) of this title (relating to Private and Out-of-State Public Postsecondary Educational Institutions Operating in Texas).

(10) Service period--employment as a full-time faculty member or administrator for at least nine months of a 12-month academic year.

Comments

Source Note: The provisions of this §21.2083 adopted to be effective August 16, 2004, 29 TexReg 7981; amended to be effective August 15, 2006, 31 TexReg 6337

§21.2084: Eligibility for Encumbered Funds

(a) To become initially eligible to participate in this program, so that the Board encumbers available funds for the applicant, pending completion of his or her service requirements, an applicant:

(1) must have received a doctoral degree from a college or university that is accredited by a recognized accrediting agency;

(2) must demonstrate:

(A) that he or she graduated from a Texas high school that at the time of his or her graduation was:

(i) one from which only 50 percent or less of the graduating class enrolled in an institution of higher education following graduation; or

(ii) a low-income school; or

(B) that at the time of graduation from high school, he or she resided in an area of Texas where the high school closest to his or her residence was:

(i) one from which only 50 percent or less of the graduating class enrolled in an institution of higher education following graduation; or

(ii) a low-income school;

(3) must have qualified for need-based financial assistance while enrolled in a graduate-level degree program;

(4) for applicants to the program for the 2005 state fiscal year, shall not be currently employed full-time as a faculty member or administrator in an eligible institution; and for subsequent program years, must not have been employed in an eligible institution for more than twelve months; and

(5) must have a full-time job offer as a faculty member or administrator from, or be negotiating a contract with, an eligible institution.

(b) To become eligible for a renewal grant in this program, so that the Board encumbers available funds for the applicant, pending completion of his or her service requirements, an applicant:

(1) must have a contract for another service period as a full-time faculty member or administrator at the same institution by which he or she was employed in the prior year, or his or her application will be ranked with the initial applications under the priorities set forth in §21.2086 of this title (related to Priorities of Application Acceptance);

(2) must be a Texas resident; and

(3) must submit a timely renewal application.

Comments

Source Note: The provisions of this §21.2084 adopted to be effective August 16, 2004, 29 TexReg 7981; amended to be effective August 15, 2006, 31 TexReg 6337; amended to be effective November 19, 2006, 31 TexReg 9292

§21.2085: Eligibility for Loan Repayment

To be eligible to receive student loan repayment, an applicant must:

(1) have satisfied a service period beginning on or after September 1, 2003 as a full-time faculty member or administrator in an eligible institution; and

(2) be a Texas resident.

Comments

Source Note: The provisions of this §21.2085 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2086: Priorities of Application Acceptance

(a) Acceptance of applications will depend on the availability of funds. The Board, in consultation with the eligible institutions, will establish an application deadline each year, at which time the qualified applicants will be grouped according to whether they are renewal or initial applicants. Renewal applicants will receive priority over first-time applicants.

(b) If there are not sufficient funds to provide loan repayment to all qualified initial applicants, the applications will be scored according to their rank in relation to the following criteria, with the highest scoring applications receiving the awards:

(1) those applicants whose presence on the faculty or administration of the institution increases the racial/ethnic diversity of the faculty or administration;

(2) the length of time an applicant has held a doctoral degree, with priority given to new conferees; and

(3) the degree of racial/ethnic diversity among the faculty and administration at the applicant's institution, as compared to the other institutions that have applicants in the pool, with priority given to the schools with less ethnic diversity.

(4) If there are not sufficient funds for all applicants with identical scores, the awards will be granted on the basis of the degree to which the applicants' presence on the faculty or administration of the institution increases the racial/ethnic diversity of the faculty or administration.

(c) If there are not sufficient funds to provide loan repayment to all renewal applicants, available funds will be divided equally among all renewal applicants.

Comments

Source Note: The provisions of this §21.2086 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2087: Eligible Education Loan

A loan that is eligible for repayment is one that:

(1) was obtained through an eligible lender as determined in accordance with §21.2088 of this title (relating to Eligible Lender or Holder) for the purpose of attending an institution that is accredited by a recognized accrediting agency; and

(2) is evidenced by a promissory note that either:

(A) promises repayment of funds obtained through any loan program for higher education, with language that clearly indicates that loan proceeds must be used for direct and indirect expenses of education at an eligible institution; or

(B) consolidates the applicant's education loans.

Comments

Source Note: The provisions of this §21.2087 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2088: Eligible Lender or Holder

The Board shall retain the right to determine eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate and graduate education and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, pension fund, private foundation, or insurance company.

Comments

Source Note: The provisions of this §21.2088 adopted to be effective August 16, 2004, 29 TexReg 7981

§21.2089: Repayment of Education Loans

(a) The maximum annual loan repayment amount to any applicant shall be $20,000, or the amount of student loan indebtedness, whichever is less.

(b) The total amount of loan repayment assistance available to any applicant shall not exceed $100,000.

(c) Annual repayment(s) shall be made co-payable to the applicant and any eligible lender(s) or holder(s), and must be applied to the total unpaid balance of the education loan.

Comments

Source Note: The provisions of this §21.2089 adopted to be effective August 16, 2004, 29 TexReg 7981

Subchapter NN

§21.2099: Authority and Purpose

(a) Authority. The authority for these rules is provided in Texas Education Code, §54.203, relating to an exemption for Texas veterans and dependents.

(b) Purpose. The purpose of these rules is to provide procedures and criteria for the administration of an exemption program for Texas veterans and dependents at Texas public institutions of higher education.

Comments

Source Note: The provisions of this §21.2099 adopted to be effective August 11, 2005, 30 TexReg 4478

§21.2100: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Attempted credit hours--Hours for which the veteran is registered as of the first day of classes of a term or semester.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Census date--The date in an academic term or semester for which an institution is required to certify a person's enrollment in the institution to the board for the purposes of determining formula funding for the institution.

(4) Children--

(A) Persons who are the veteran's biological or adopted children and who are younger than 25 years of age on the date of the death or disabling injury of the veteran; or

(B) Persons who are not the biological or adopted children of the veteran, but who were claimed as dependents on the federal income tax return of the veteran for the year preceding the year of the veteran's death or disabling injury and who are younger than 25 years of age on the date of the death or disabling injury of the veteran.

(5) Contact hours--A unit of measure that represents an hour of scheduled instruction given to students of which 50 minutes must be of direct instruction. Also referred to as clock hours.

(6) Dependent--An individual who was claimed as a dependent for federal income tax purposes by the individual's parent or court-appointed legal guardian in a particular year and in the previous tax year. A veteran was a dependent if he or she was claimed as such by a parent or legal guardian during the veteran's year of entry into the service and in the previous tax year.

(7) Deployed--A person is deployed if he or she is assigned to active military duty performed in a combat zone outside the United States.

(8) Extraordinary costs--(for public junior colleges, public technical institutes, or public state colleges only) tuition and fee costs that exceed the average tuition and fee charges at the institution.

(9) Hazlewood Act Exemption--The tuition and partial fee exemption authorized under Texas Education Code, §54.203.

(10) Hazelwood Legacy Act--The tuition and partial fee exemption authorized under Texas Education Code, §54.203, as amended by Senate Bill 93, 81st Texas Legislature, June 1, 2009, which removes certain residency restrictions, extends eligibility to spouses, and permits eligible veterans to assign their unused hours to their child.

(11) Honorably discharged--Released from active duty military service with an Honorable Discharge, General Discharge under Honorable Conditions, or Honorable Separation or Release from Active Duty, as documented by the Certificate of Release or Discharge from Active Duty (DD214) issued by the Department of Defense.

(12) Identification number--An individual's social security number or school-assigned identification number.

(13) Institution--A Texas public institution of higher education as defined in Texas Education Code, §61.003(8).

(14) Deposit fees--Fees that an institution may collect under Texas Education Code, §54.502.

(15) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B, of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons).

(16) Student service fees--Fees that an institution may, under Texas Education Code, §§54.503, 54.5061 and 54.513, elect to charge to students to cover the cost of student services.

(17) Training--Time spent as a member of the armed forces that is not included in the "Net Active Service" or the sum of "Net Active Service" indicated on the Certificate of Release or Discharge from Active Duty (DD214).

(18) Tuition--All types of tuition that an institution may, under Texas Education Code, Chapter 54, collect from students attending the institution, including statutory tuition, discretionary tuition, designated tuition, and board-authorized tuition.

Comments

Source Note: The provisions of this §21.2100 adopted to be effective August 11, 2005, 30 TexReg 4478; amended to be effective February 21, 2006, 31 TexReg 1031; amended to be effective August 16, 2007, 32 TexReg 4979; amended to be effective November 27, 2007, 32 TexReg 8496; amended to be effective May 21, 2008, 33 TexReg 3943; amended to be effective August 25, 2008, 33 TexReg 6815; amended to be effective March 2, 2009, 34 TexReg 1430; amended to be effective August 26, 2009, 34 TexReg 5684; amended to be effective May 26, 2010, 35 TexReg 4155

§21.2101: Hazlewood Act Exemption

(a) Subject to the following provisions, an institution shall exempt an eligible veteran, spouse, or child from the payment of tuition, fees, dues, and other required charges, other than deposit and student service fees. The exemption shall not apply to the payment of fees for services or items that are not required for enrollment in general or for items that are not required for the specific courses taken by the student.

(b) If the eligible veteran, spouse, or child is entitled to federal veterans' education benefits during the term or semester for which he or she applies for the Hazlewood Act Exemption, he or she is entitled to receive both federal and state veterans benefits during the same time only if the value of the federal veteran's benefits that may be used only for the payment for tuition and fees for the term or semester is less than the value of the student's tuition, fees, dues, and other required charges, less deposit and student service fees. The total amount a person may receive simultaneously through federal education benefits that may be used only for tuition and fees and the Hazlewood exemption is an amount equal to the total tuition and fees.

(c) An eligible veteran, spouse, or child is not entitled to the Hazlewood Act Exemption for more than 150 attempted credit hours.

(d) An eligible veteran, spouse, or child is entitled to the Hazlewood Act Exemption for an unlimited number of contact hours.

(e) If the Hazlewood Act Exemption is used to pay for only a portion of the hours taken during a given term or semester, an institution shall deduct the number of hours taken in the semester or term from the 150 hours of eligibility in a manner that is proportionate to the share of the applicable tuition and fees that were subject to the exemption. For hours dropped prior to the census date, the hours attributed to the Hazlewood Act shall be proportionate to the share of tuition and fee charges paid for through the Hazlewood exemption during that term.

(f) Except for correspondence courses, an institution is not permitted to provide the Hazlewood Act Exemption for tuition and fees related to continuing education courses for which the institution does not receive state formula funding, unless the governing board of the institution specifically chooses to provide the exemption for such courses.

(g) The governing board of a public junior college, public technical institute, or public state college as those terms are defined by §61.003, may establish a fee for extraordinary costs associated with a specific course or program and may determine that the exemption does not apply to this fee.

(h) In determining whether to admit a person to any certificate program or to any baccalaureate, graduate, postgraduate, or professional degree program, an institution may not consider the fact that the person is eligible for an exemption through this chapter.

Comments

Source Note: The provisions of this §21.2101 adopted to be effective August 11, 2005, 30 TexReg 4478; amended to be effective February 21, 2006, 31 TexReg 1031; amended to be effective August 16, 2007, 32 TexReg 4979; amended to be effective November 27, 2007, 32 TexReg 8497; amended to be effective August 25, 2008, 33 TexReg 6815; amended to be effective March 2, 2009, 34 TexReg 1430; amended to be effective August 26, 2009, 34 TexReg 5684; amended to be effective November 30, 2009, 34 TexReg 8528

§21.2102: Eligible Veterans

In order to be eligible to receive a Hazlewood Act Exemption, a veteran shall demonstrate that he or she:

(1) at the time he or she entered the service, was a resident of Texas, entered the service in the State of Texas, or declared Texas as his or her home of record in the manner provided by the military or other service;

(2) was honorably discharged from service;

(3) has no federal veteran's education benefits, or, if he or she has such benefits, that the value of the benefits that may be used only for the payment of tuition and fees for the semester, including such benefits as those issued under Title 38, United States Code, Chapter 33, is less than the value of the student's tuition, fees, and other required charges, less deposit and student service fees for the relevant term;

(4) is not in default on an education loan made or guaranteed by the State of Texas;

(5) has attempted fewer than 150 credit hours using the Hazlewood Act Exemption beginning with fall of 1995;

(6) has followed the application procedures and schedules required by these provisions; and

(7) belongs to one of the following groups of individuals:

(A) nurses and honorably discharged members of the armed forces of the United States who served during the Spanish-American War or during World War I;

(B) nurses, members of the Women's Army Auxiliary Corps, members of the Women's Auxiliary Volunteer Emergency Service, and honorably discharged members of the armed forces of the United States who served during World War II except those who were discharged from service because they were over the age of 38 or because of a personal request on the part of the person that he be discharged from service;

(C) honorably discharged men and women of the armed forces of the United States who served during the Korean War which began on June 27, 1950, and ended on July 27, 1953; and

(D) all persons who:

(i) were honorably discharged from the armed forces of the United States after serving on active military duty for at least 181 days, excluding training; and

(ii) who served a portion of their active duty during:

(I) the Cold War which began on June 27, 1950;

(II) the Vietnam era which began on December 21, 1961, and ended on May 7, 1975;

(III) the Grenada and Lebanon era which began on August 24, 1982, and ended on July 31, 1984;

(IV) the Panama era which began on December 20, 1989, and ended on January 21, 1990;

(V) the Persian Gulf War which began on August 2, 1990, and ended on March 3, 1991;

(VI) the National Emergency by Reason of Certain Terrorist Attacks, which began on September 11, 2001; and

(VII) any future national emergency declared in accordance with federal law.

Comments

Source Note: The provisions of this §21.2102 adopted to be effective August 11, 2005, 30 TexReg 4478; amended to be effective February 21, 2006, 31 TexReg 1031; amended to be effective August 16, 2007, 32 TexReg 4979; amended to be effective November 27, 2007, 32 TexReg 8496; amended to be effective May 21, 2008, 33 TexReg 3943; amended to be effective August 25, 2008, 33 TexReg 6815; amended to be effective August 26, 2009, 34 TexReg 5684; amended to be effective November 30, 2009, 34 TexReg 8528

§21.2103: Eligible Spouses

In order to be eligible to receive a Hazlewood Act Exemption, veterans' spouses shall demonstrate that they:

(1) are spouses of:

(A) members of the U.S. Armed Forces who entered the service in the State of Texas, declared Texas as their home of record in the manner provided by the military or other service; or were residents of Texas when they entered the service and who:

(i) were killed in action;

(ii) died while in service;

(iii) are missing in action;

(iv) whose deaths are documented to be directly caused by illness or injury connected with service in the armed forces of the United States; or

(v) became totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs as a result of a service-related injury; or

(B) members of the Texas National Guard or Texas Air National Guard who:

(i) were killed since January 1, 1946 while on active duty either in the service of Texas or the United States; or

(ii) are totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs, regardless of whether the members are eligible to receive disability benefits from the department, as a result of a service-related injury suffered since January 1, 1946, while on active duty either in the service of this state or the United States.

(2) have no federal veteran's education benefits, based on the death or disability of a veteran spouse, or, if eligible for federal benefits, that the value of the benefits that may be used only for the payment of tuition and fees is less than the value of the spouse's tuition, fees, and other required charges, less deposit and student service fees for the term in which the exemption is to be used; and

(3) are classified by their institutions as residents of Texas for the term or semester for which they apply for the Hazlewood Act Exemption.

Comments

Source Note: The provisions of this §21.2103 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2104: Eligible Children

In order to be eligible to receive a Hazlewood Act Exemption, children shall demonstrate that they:

(1) are children of:

(A) members of the U.S. Armed Forces who entered the service in the State of Texas, declared Texas as their home of record in the manner provided by the military or other service; or were residents of Texas when they entered the service and who:

(i) died while in service;

(ii) are missing in action;

(iii) whose deaths are documented to be directly caused by illness or injury connected with service in the armed forces of the United States; or

(iv) became totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs as a result of a service-related injury; or

(B) members of the Texas National Guard or Texas Air National Guard who:

(i) were killed since January 1, 1946 while on active duty either in the service of Texas or the United States; or

(ii) are totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs, regardless of whether the members are eligible to receive disability benefits from the department, as a result of a service-related injury suffered since January 1, 1946, while on active duty either in the service of this state or the United States.

(2) have no federal veteran's education benefits, based on the death or disability of a veteran parent, or, if eligible for federal benefits, that the value of the benefits that may be used only for the payment of tuition and fees is less than the value of the children's tuition, fees, and other required charges, less deposit and student service fees for the term in which the exemption is to be used; and

(3) are classified by their institutions as residents of Texas for the term or semester for which they apply for the Hazlewood Act Exemption.

Comments

Source Note: The provisions of this §21.2104 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2105: The Application

(a) Board staff shall produce and distribute a state-wide Hazlewood Act Exemption Application, requiring institutions to obtain the following information from applicants for the exemption:

(1) general information about the veteran, spouse, and/or child;

(2) point of entry, home of record, or residency information for the time that the veteran entered the service;

(3) residency information for the time that the spouse or child wishes to use the exemption;

(4) a certification of the validity of the information provided by the veteran, spouse, or child; and

(5) a statement granting permission to the institution to release current term or semester and historic credit hour information to the Board and granting permission for the Board to share such data with any institution that the veteran, spouse, or child might attend.

(b) For an otherwise eligible veteran, spouse, or child to be entitled to a Hazlewood Act exemption in a given term or semester, he or she must provide a completed Hazlewood Act Exemption Application and provide the supporting documentation to the institution no later than the census date of that term or semester. If the application or supporting documents are provided after the census date, the institution may make the award but is not required to do so.

(c) All institutions shall require the completed Hazlewood Act Exemption Application Form with supporting documentation for each exemption that is granted.

Comments

Source Note: The provisions of this §21.2105 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2106: Supporting Documentation for the Hazlewood Act Exemption Application

(a) When applying for the first time for the Hazlewood Act Exemption, a veteran shall provide to the institution, along with the Hazlewood Act Exemption Application, the following supporting documentation:

(1) a copy of the veteran's Certificate of Release or Discharge from Active Duty (DD214);

(2) proof of the veteran's current status regarding eligibility for federal veterans' education benefits; and

(3) documentation of point of entry, home of record, or Texas residency at the time the veteran entered the service.

(b) When applying for the first time for the Hazlewood Act Exemption, a spouse or child shall provide to the institution, along with the Hazlewood Act Exemption Application, the following supporting documentation:

(1) proof that the spouse's or parent veteran's death or disability was a result of injury or illness directly associated with service in the U.S. Armed Forces, or that the National Guard spouse or parent was killed or disabled while he or she was on active duty either in the service of Texas or the United States;

(2) proof of the spouse's or child's current status regarding eligibility for federal benefits awarded on the basis of the spouse's or parent's service-related death or disability;

(3) if a child, proof that the child was a dependent of the veteran at the time the veteran died, sustained his or her disabling injury, or was classified as missing in action;

(4) if a spouse, proof that the spouse was the legal spouse of the veteran at the time the veteran died, sustained his or her disabling injury, or was classified as missing in action;

(5) documentation that the veteran spouse or parent, at the time he or she entered the service, was a resident of Texas, entered the service in the State of Texas, or declared Texas as his or her home of record in the manner provided by the military or other service; and

(6) for the spouse or child of a disabled veteran or guardsman documentation that the veteran has been rated by the Veterans' Administration as unemployable due to his or her service-related injuries.

Comments

Source Note: The provisions of this §21.2106 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2107: Subsequent Hazlewood Exemption Awards

(a) For each term or semester of an academic year in which the veteran, spouse, or child receives a Hazlewood Act Exemption, the institution shall confirm that the veteran, spouse, or child:

(1) has not exhausted his or her 150 credit hours of eligibility through the program since Fall 1995;

(2) is still classified as a resident student (applies only to a spouse or child);

(3) has no federal veteran's benefits, or if he or she has federal veterans education benefits that may be used only to pay tuition and fees, that the value of the benefits is less than the student's tuition and required fees less deposit and student service fees for the term; and

(4) is not in default on an education loan made or guaranteed by the State of Texas and is not in default on a federal loan if that default is the reason the student cannot use his or her federal veterans' benefits.

(b) For each term or semester of an academic year in which the veteran, spouse, or child receives a Hazlewood Act Exemption, he or she shall submit the appropriate program application.

Comments

Source Note: The provisions of this §21.2107 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2108: Assigning Unused Hours to a Child

(a) An eligible veteran may elect to waive his or her right to any unused hours for which he or she is eligible (up to the maximum 150 semester credit hours). By completing the relevant forms provided through the Board website and submitting them to the institution, the veteran may:

(1) assign the unused hours to one of his or her children; and

(2) if the child to which the hours have been assigned fails to use all available credit hours, assign the remaining hours to another of his or her children.

(b) For purposes of this section, a child designee must be:

(1) the stepchild, biological, or adopted child of the parent veteran; or

(2) claimed as a dependent on a federal income tax return filed for the preceding year or for the current year.

(c) For an otherwise eligible child to be entitled to a Hazlewood Act exemption in a given term or semester, he or she must:

(1) be a resident of Texas;

(2) make satisfactory academic progress in a degree, certificate, or continuing education program as determined by the institution; except, the child is not required to enroll in a minimum course load;

(3) be 25 years of age or younger on the first day of the semester or other academic term for which the exemption is claimed, unless the child is granted an extension in keeping with subsection (d) of this section;

(4) provide his or her institution a completed Hazlewood Act Exemption Application and the supporting documentation to the institution no later than the census date of that term or semester. If the application or supporting documents are provided after the census date, the institution may make the award but is not required to do so.

(d) An otherwise eligible child assigned hours through this section may use the exemption in a given term at age 25 years or older if the child provides his or her institution documentation from a physician, indicating he or she suffered from a severe illness or other debilitating condition which prevented the child from using the exemption in the required timeframe. In this case, the student's eligibility shall be extended for a period of time equal to the time during which he or she experienced the illness or debilitating condition.

Comments

Source Note: The provisions of this §21.2108 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2109: Release of Data to the Board and Institutions

Prior to the census date of the first term or semester of an academic year in which the veteran, spouse, or child receives a Hazlewood Act Exemption, he or she shall execute a statement, consenting to the release of the number of hours taken in the current academic year and in all previous academic years to the Board and to any institution that the veteran may attend.

Comments

Source Note: The provisions of this §21.2109 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2110: Reporting

(a) All institutions shall report by means of the Texas Higher Education Coordinating Board's CBM 001 report, for each eligible veteran, spouse, and child who is exempted from the payment of tuition and mandatory and discretionary fees, other than deposit and student service fees, the following information to the Board:

(1) the person's name;

(2) the person's identification number;

(3) the person's date of birth; and

(4) the number of credit hours for which the person received an exemption in the given semester.

(b) All institutions shall submit the report required under this provision to the Board no later than December 31, for the fall term, no later than May 31, for the spring term, and no later than September 30, for the summer term or semester.

(c) If the individual concurrently received federal and state benefits in a given semester, institutions must adjust the data for the Board's report of all students enrolled in credit courses as of the official census date (CBM001 report) to reflect only hours paid through the Hazlewood Act Exemption.

Comments

Source Note: The provisions of this §21.2110 adopted to be effective August 26, 2009, 34 TexReg 5685

§21.2111: Tuition Exemption for Children of Military Service Members Who Are Deployed

Institutions shall exempt an eligible child from the payment of resident tuition for every semester or academic term during which a child demonstrates that he or she:

(1) is a dependent child, including a stepchild, of a member of the Armed Forces of the United States who is a Texas resident or entitled to pay resident tuition, and

(2) the member is deployed on active duty for the purpose of engaging in a combative military operation outside of the United States.

Comments

Source Note: The provisions of this §21.2111 adopted to be effective August 26, 2009, 34 TexReg 5685

Subchapter OO

§21.2200: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in House Bill 15, §19 and §20, 80th Legislature, Regular Session, 2007.

(b) Purpose. The purpose of the Children's Medicaid Loan Repayment Program is to increase access to health care for Medicaid-enrolled beneficiaries under the age of 21 by encouraging qualified primary care, specialty, and subspecialty physicians and dentists to participate in the Medicaid program.

Comments

Source Note: The provisions of this §21.2200 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2201: Administration

The Texas Higher Education Coordinating Board, or its successor or successors, shall enter into an agreement with the Texas Health and Human Services Commission (HHSC) and/or the Texas Department of State Health Services (DSHS) to administer the disbursement processes of the Children's Medicaid Loan Repayment Program. The agreement shall describe the respective roles and responsibilities of the Coordinating Board, the Texas Health and Human Services Commission and the Texas Department of State Health Services, including application review and selection, compliance monitoring, dissemination of information, and funds disbursement.

Comments

Source Note: The provisions of this §21.2201 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2202: Dissemination of Information

The Board shall provide a web link, on the appropriate Board web page(s), to the DSHS Internet site providing information about the program.

Comments

Source Note: The provisions of this §21.2202 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2203: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) DSHS--The Texas Department of State Health Services.

(4) HHSC--The Texas Health and Human Services Commission.

(5) Medicaid--The State and Federal cooperative venture that provides medical coverage to eligible needy persons.

(6) Program--The Children's Medicaid Loan Repayment Program.

(7) Service period--A twelve-month period during which a physician or dentist qualifies for repayment of education loans.

Comments

Source Note: The provisions of this §21.2203 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2204: Provider Eligibility Requirements

Applicants must:

(1) have an outstanding eligible education loan;

(2) ensure that an application has been received by DSHS by the established deadline;

(3) hold an unrestricted license from the Texas Medical Board or the Texas State Board of Dental Examiners;

(4) if practicing in a specialty or subspecialty, be certified by or be eligible to sit for the applicable specialty or subspecialty board;

(5) have a Medicaid provider number;

(6) not, at the time of application or at any time during which the recipient is fulfilling his or her obligation under the Program, be fulfilling another service obligation to provide medical or dental services in the same eligible area or facility;

(7) fulfill the four-year service obligation in the Children's Medicaid Loan Repayment Program before qualifying for loan repayment through any other state loan repayment program; and

(8) provide eligible services for four consecutive years and meet the target number of Medicaid visits by children under the age of 21 for each 12-month period as indicated on the following table:

Attached Graphic

Comments

Source Note: The provisions of this §21.2204 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2205: Eligible Education Loan

To be eligible for repayment, an education loan must:

(1) have been made for undergraduate, graduate, medical or dental education at an accredited institution in the United States;

(2) not have been made during residency;

(3) not be from a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;

(4) not have an existing service obligation;

(5) not be subject to repayment through another student loan repayment or loan forgiveness program; and

(6) not be consolidated with non-education loans or with loans obtained by someone other than the provider applying for loan repayment.

Comments

Source Note: The provisions of this §21.2205 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2206: Eligible Lender or Holder

The Board shall retain the right of determining eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, graduate, medical or dental education.

(1) An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, pension fund, private foundation, or insurance company.

(2) An eligible lender or holder shall not be any private individual.

Comments

Source Note: The provisions of this §21.2206 adopted to be effective May 24, 2009, 34 TexReg 2979

§21.2207: Repayment of Education Loans

The total annual repayment to one or more eligible lenders or holders shall not exceed the applicant's unpaid loan balance.

Comments

Source Note: The provisions of this §21.2207 adopted to be effective May 24, 2009, 34 TexReg 2979

Subchapter PP

§21.2220: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter C, §61.0777, Uniform Standards for Publication of Cost of Attendance Information.

(b) Purpose. The purpose is to prescribe uniform standards intended to ensure that information regarding the cost of attendance at institutions of higher education is available to the public in a manner that is consumer-friendly and readily understandable to prospective students and their families. Each institution of higher education shall make available to the public on the institution's Internet website estimates of the cost of attendance for full-time students.

Comments

Source Note: The provisions of this §21.2220 adopted to be effective November 30, 2009, 34 TexReg 8528

§21.2221: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Board Staff--The staff of the Texas Higher Education Coordinating Board.

(3) Commissioner--The Commissioner of Higher Education; as used in this subchapter, "Commissioner" means the agency acting through its executive, and his or her designees, staff, or agents.

(4) First-Time Entering Full-Time Student--A student who has no prior postsecondary experience (except as noted below) attending any institution for the first time at the undergraduate level and who enrolls for 15 credit hours per semester for two consecutive semesters. This includes students enrolled in academic or occupational programs. It also includes students enrolled in the fall term who attended college for the first time in the prior summer term, and students who entered with advanced standing (college credits earned before graduation from high school).

(5) Institution of Higher Education--Any public technical institute, public junior college, public senior college or university, medical or dental unit or other agency of higher education as defined in Texas Education Code, §61.003(8) that enrolls entering freshmen.

(6) Net Cost of Attendance--The total cost of attendance less the student's estimated merit- and need-based grant aid. The net cost may be a range.

(7) Net Price of Attendance--The total cost of attendance less the student's estimated merit and need based grant aid. The net cost may be a range.

(8) Total Cost of Attendance--Expenses incurred by a typical student in attending a particular college. It includes tuition, fees, books, and supplies, room and board, transportation, and other personal expenses.

Comments

Source Note: The provisions of this §21.2221 adopted to be effective November 30, 2009, 34 TexReg 8528

§21.2222: Internet Access to Cost Information

(a) Each institution of higher education that offers an undergraduate degree or certificate program shall prominently display on the institution's Internet website the cost of attendance for a first-time entering full-time student in accordance with the uniform standards prescribed by the Commissioner. These standards may be updated on an annual basis. In addition, each institution must provide a link to the Free Application for Federal Student Aid (FAFSA) website.

(b) The institution shall conform to the uniform standards prescribed by the Commissioner in any electronic or printed materials intended to provide information regarding the cost of attendance to prospective undergraduate students.

(c) The uniform standards prescribed by the Commissioner shall also be considered by institutions when providing information regarding the cost of attendance for nonresident students, graduate students, or students enrolled in professional programs.

(d) Institutions shall provide the Board, upon request (at least annually), any information necessary for the Board Staff to calculate the net cost of attendance for a first-time entering full-time student.

(e) Institutions of higher education shall comply with the standards and requirements not later than April 1, 2010.

Comments

Source Note: The provisions of this §21.2222 adopted to be effective November 30, 2009, 34 TexReg 8528

Subchapter QQ

§21.2230: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter B, Chapter 56, §56.014, Notice to Students Regarding Tuition Set Aside for Financial Assistance.

(b) Purpose. The purpose is to prescribe minimum standards for institutions of higher education to use in providing notices to students regarding the specific amount of each student's designated tuition required to be set aside for financial assistance.

Comments

Source Note: The provisions of this §21.2230 adopted to be effective November 30, 2009, 34 TexReg 8529

§21.2231: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Board Staff--The staff of the Texas Higher Education Coordinating Board.

(3) Commissioner--The Commissioner of Higher Education. As used in this subchapter, "Commissioner" means the agency acting through its executive and his or her designees, staff, or agents.

(4) Institution of Higher Education--Any public technical institute, public junior college, public senior college or university, medical or dental unit, public state college, or other agency of higher education as defined in Texas Education Code, §61.003.

Comments

Source Note: The provisions of this §21.2231 adopted to be effective November 30, 2009, 34 TexReg 8529

§21.2232: Notice to Students

(a) Each institution of higher education that is required to set aside a portion of a student's designated tuition to provide financial assistance shall provide to each student who pays designated tuition a notice regarding the specific amount that is required to be set aside in accordance with the uniform standards prescribed by the Commissioner.

(b) The institution shall conform to the uniform standards prescribed by the Commissioner and must include the notice with one of the following:

(1) the student's tuition bill or billing statement, if the institution provides the student with a printed bill or statement for the payment of tuition;

(2) the student's tuition receipt, if the institution provides the student with a printed receipt for the payment of tuition; or

(3) a statement prominently displayed in an e-mail, if the institution does not provide the student with a printed tuition bill, statement, or receipt.

(c) Institutions of higher education shall comply with the standards and requirements not later than the 2010 spring semester.

Comments

Source Note: The provisions of this §21.2232 adopted to be effective November 30, 2009, 34 TexReg 8529

Subchapter RR

§21.2240: Authority and Purpose

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter FF, Texas Armed Services Scholarship Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.9771 - 61.9776.

(b) Purpose. The purpose of the Texas Armed Services Scholarship Program is to encourage students to become members of the Texas Army National Guard, members of the Texas Air Force National Guard, and commissioned officers in any branch of the armed services of the United States.

Comments

Source Note: The provisions of this §21.2240 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2241: Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Institution of Higher Education--As defined in Texas Education Code, §61.003(8), and private or independent institutions of higher education as defined in Texas Education Code, §61.003(15).

(3) Commissioner--The Commissioner of Higher Education.

(4) Loan--A Texas Armed Services Scholarship that has become a loan because the conditions of the scholarship agreement have not been met.

(5) Recipient--A person who has received a Texas Armed Services Scholarship.

(6) Freshman--A student who has not completed an academic year in a public or private institution of higher education after receiving a high school diploma or a General Educational Diploma or its equivalent.

Comments

Source Note: The provisions of this §21.2241 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2242: Award Amount

(a) The amount of a conditional Texas Armed Services Scholarship in an academic year will be the lesser of:

(1) $15,000;

(2) The amount available for each scholarship from appropriations that may be used for scholarships for this program for that academic year; or

(3) $15,000 less any amount paid to a student by the branch of the armed services of the United States during an academic year for which the student receives a Texas Armed Services Scholarship.

(b) A student may receive a scholarship for four of the five years allowed for graduation.

Comments

Source Note: The provisions of this §21.2242 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2243: Requirements for Appointment by Elected Officials

(a) Each year the governor and the lieutenant governor may each appoint two students, and each state senator and each state representative may appoint one student to receive an initial conditional Texas Armed Services Scholarship.

(b) Appointments must be reported to the Board by the deadline established by the Commissioner.

(c) A selected student must meet two of the following four academic criteria at the time of application:

(1) Is on track to graduate high school with the Distinguished Achievement Program (DAP) or the International Baccalaureate Program (IB);

(2) Has a current high school GPA of 3.0 or higher;

(3) Achieved a college readiness score on the SAT (1590) or ACT (23);

(4) Is currently ranked in the top one-third of the prospective high school graduating class.

Comments

Source Note: The provisions of this §21.2243 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2244: Initial Award Eligibility and Agreement Requirements

To receive an initial conditional scholarship award through the Texas Armed Services Scholarship Program, a selected student must:

(1) Be enrolled as a freshman in a Texas public or private institution of higher education, as certified by the institution;

(2) Enroll in and be a member in good standing of a Reserve Officers' Training Corps (ROTC) program while enrolled in the institution, as certified by the institution; and

(3) Enter into a written agreement with the Board agreeing to:

(A) Complete four years of ROTC training;

(B) Graduate no later than five years after the date the student first enrolls in a Texas public or private institution of higher education after having received a high school diploma or a General Educational Diploma or its equivalent;

(C) No later than six months after graduation, enter into and provide the Board with verification of:

(i) A four-year commitment to be a member of the Texas Army or Air Force National Guard; or

(ii) A contract to serve as a commissioned officer in any branch of the armed services of the United States;

(D) Meet the physical examination requirements and all other prescreening requirements of the Texas Army or Air Force National Guard or the branch of the armed services with which the student enters into a contract; and

(E) Repay the scholarship according to the terms of the promissory note if the student fails to meet the requirements described in §21.2247 of this title (relating to Conversion of the Scholarship to a Loan).

Comments

Source Note: The provisions of this §21.2244 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2245: Promissory Note

The Board shall require a person who receives a scholarship to sign a promissory note acknowledging the conditional nature of the scholarship and promising to repay the amount of the scholarship plus applicable interest, late charges, and any collection costs, including attorneys' fees, if the person fails to meet the conditions of the scholarship.

Comments

Source Note: The provisions of this §21.2245 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2246: Eligibility for Continued Awards

To continue to receive an annual conditional Texas Armed Services Program Scholarship, the student must:

(1) Maintain satisfactory academic progress as determined by the institution of higher education in which the student is enrolled;

(2) Continue to be a member of a Reserve Officers' Training Corps (ROTC) program; and

(3) Not have earned a baccalaureate degree or a cumulative total of 150 credit hours, including transferred hours, as verified by the recipients' institution of higher education.

Comments

Source Note: The provisions of this §21.2246 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2247: Conversion of the Scholarship to a Loan

(a) A scholarship will become a loan if the recipient:

(1) Fails to maintain satisfactory academic progress as required by the institution's ROTC program for continued participation in that program;

(2) Fails to fulfill any of the terms of the Texas Armed Services Scholarship agreement; or

(3) Fails to fulfill one of the following:

(A) a four-year commitment to be a member of the Texas Army National Guard;

(B) a four-year commitment to be a member of the Texas Air Force National Guard; or

(C) a contract to serve as a commissioned officer in any branch of the armed services of the United States.

(b) If a scholarship recipient requires a temporary leave of absence from the institution and/or the ROTC program for personal reasons or to provide service for the Texas Army or Air Force National Guard for fewer than twelve months, the Board may agree to not convert the scholarship to a loan during that time.

(c) If a recipient is required to provide more than twelve months of service in the Texas Army or Air Force National Guard as a result of a national emergency, the Board shall grant that recipient additional time to meet the graduation and service requirements specified in the Texas Armed Services Scholarship agreement.

Comments

Source Note: The provisions of this §21.2247 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2248: Repayment of Loans

(a) A Texas Armed Services Scholarship is considered a loan on the date the recipient fails to meet the conditions of the scholarship; the loan amount must be repaid, plus interest accrued.

(b) The interest rate charged on the Texas Armed Services Loans shall be the same rate charged for a College Access Loan at the time the funds were disbursed. Interest shall begin to accrue on the date the scholarship is converted to a loan.

(c) The total amount of principal, interest, late charges, and any costs of collection that accrue over the life of the loans are to be repaid in installments over a period of not more than 15 years after the date the scholarship becomes a loan.

(d) A recipient shall begin making payments six months after the date the scholarship becomes a loan.

(e) The minimum monthly payment amount required by any repayment plan is $100, or an amount required to repay the loan within 15 years, whichever is greater.

(f) A charge of 5 percent of the scheduled monthly payment amount or five dollars ($5), whichever is less, shall be assessed if the past due amount is not received within 20 days of the scheduled due date. These charges shall be collected for late payment of all sums due and payable and shall be taken out of the next payment received by the Board.

(g) In the case of delinquent accounts, the Commissioner may authorize the assessment of charges to cover costs necessary to collect the loan.

(h) An education deferment is available to any recipient whose loan is not in a default status and who provides the Board documentation of enrollment as at least a half-time student.

(i) The Commissioner may grant periods of forbearance in the form of postponed or reduced payments for unusual financial hardship if the Board receives a written request stating the circumstances that merit such consideration.

Comments

Source Note: The provisions of this §21.2248 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2249: Enforcement of Collection

(a) When a scholarship recipient fails to make as many as five monthly payments due in accordance with the established repayment schedule for a scholarship which has become a loan, the entire unpaid balance shall become due and payable immediately.

(b) When as many as six payments have been missed, the loan(s) will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the unpaid balance plus court costs and attorneys' fees.

(c) The institution of higher education may not release an official certified copy of the official records of a scholarship recipient, nor may any recipient re-register for classes at the institution if Board reports made available to the institution state that the loan is in a delinquent status. The Commissioner must approve exceptions to this requirement in advance of the institution's release of an official certified copy of the records or of the recipient's re-registration.

(d) The Board shall notify the Comptroller of Public Accounts when a recipient's loan has become 90 days or more past due, resulting in the non-issuance of certain state warrants.

Comments

Source Note: The provisions of this §21.2249 adopted to be effective November 30, 2009, 34 TexReg 8530

§21.2250: Exemption and Cancellation

(a) The recipient shall be exempt from the requirement to repay the Texas Armed Services loan if the person is unable to meet the obligations of the agreement solely as a result of physical inability and provides a physician's certification and/or other appropriate documentation to the satisfaction of the Board.

(b) The Board shall cancel a recipient's loan upon the death of the recipient unless the debt was reduced to judgment before the death occurred.

(c) The Board may cancel a recipient's service and/or repayment obligation if funding for the Texas Armed Services Scholarship program is discontinued while the recipient continues to meet eligibility requirements.

Comments

Source Note: The provisions of this §21.2250 adopted to be effective November 30, 2009, 34 TexReg 8530