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Texas B-On-Time-Loan

NOTE:  The Texas Legislature has voted to end the B-On-Time Loan program.  Beginning with the Fall 2015 semester, funding will be available for renewals only.

The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students zero-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.

  • Texas B-On-Time (BOT) Loan Program Fact Sheet
  • UTSA receives an allocation from the THECB and funds are limited.
  • A student can access his or her promissory note online at about 6-10 business days after accepting the loan. You may sign the application and promissory note using the audit number from your Texas Driver's License. This number is located on the bottom of your driver's license or next to the photo. If you do not have a Texas driver's license, you should print and sign the Promissory Note, and return it to the Texas Higher Education Coordinating Board at the follow address:
      Texas Higher Education Coordinating Board
      P.O. Box 12788
      Austin, Texas 78711
  • Funds for this loan are provided annually by the State of Texas.
  • Funds will be available for disbursement after September 1.

Renewal Eligibility

To maintain eligibility for future disbursements, the student must:

  • Complete at least 75% of the semester credit hours attempted in the most recent academic year
  • 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
  • Be enrolled full time in an undergraduate degree or certificate program at an eligible institution
  • Not have been granted a baccalaureate degree
  • Have completed a FAFSA and be eligible to receive federal financial aid
  • Not have exceeded the 150 credit hour limit

Loan Forgiveness

A Texas B-On-Time loan will 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


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) that is no more than 6 hours beyond what is required to complete the degree or certificate. Hours earned exclusively by examination and dual credit hours should not be included in the total credit hours.

IRS regulations indicate that B-On-Time loans must be reported as taxable income when they are forgiven.

More information on this program is available on the Texas Higher Education Coordinating Board web site