Texas B-On-Time Loan
The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If a student meets specific goals, the entire loan amount can be forgiven upon graduation.
The loan is available to assist students with educational costs for up to 150 semester credit hours. The Texas Higher Education Coordinating Board (THECB) is responsible for setting the loan limits for the Texas B-on-Time loan and loan amounts vary from year to year. A 3% origination fee will be deducted from the loan proceeds. Students who receive the Texas B-on-Time loan in one academic year are not guaranteed to receive it again in the following year or in subsequent years.
- Requirements can be viewed on-line at http://www.hhloans.com/borrowers/BOTFactSheet.cfm.
- Ten to Fourteen days after accepting a B-on-Time award a student can access their Promissory Note on-line at http://www.hhloans.com. Students should complete the Promissory Note, sign and return it to the Texas Higher Education Coordinating Board.
Eligibility Requirements
- Texas Resident
- Graduated 2002-2003 academic year or later under the recommended high school program from a public or accredited private high school in Texas or received an associate’s degree from an eligible institution no earlier than May 1, 2005.
- Has not earned a bachelor’s degree
- Enrolled full-time in an undergraduate degree or certificate program at an eligible institution, and
- Has completed a FAFSA and is eligible to receive federal financial aid
Renewal Eligibility
To maintain eligibility for future disbursements, the student must meet:
In the 1 st Academic Year- Students need to be making Satisfactory Academic Progress (SAP) toward a degree or certificate as determined by the institution.
In the 2 nd and Subsequent Academic Years- Students need to complete at least 75% of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale on all coursework previously attempted at institutions of higher education. A student may not receive B-On-Time loans for more than 150 credit hours.
Loan Forgiveness
A Texas B-On-Time loan shall be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:
Graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:
- 4 calendar years after the date the student initially enrolls in an eligible 4-year institution,
- 5 calendar years, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete; or
- 2 calendar years after the date the student initially enrolled in a public or private 2-year institution
OR
Graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree or certificate.
IRS regulations indicate that these loans must be reported as taxable income when they are forgiven.