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

Texas B-On-Time Loan Program Fact Sheet

The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If the student meets specified goals, the entire loan amount can be forgiven upon graduation.

Your institution's financial aid office will determine if you are eligible. In many cases the amount of federal aid for which the student is eligible must be deducted from the cost of attendance in determining the BOT loan amount. If this loan is offered to you, the financial aid office will instruct you to complete an application/promissory note on-line.

B-On-Time Loans (BOT) are being approved for previous recipients of BOT loans, but there is not sufficient funding to provide these loans to students who have not received a BOT loan in the past.

ELIGIBILITY REQUIREMENTS

-- Applicants must:
Have completed a FAFSA and be eligible to receive federal financial aid
Be enrolled full time in an undergraduate degree or certificate program at an eligible institution and
Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed force and
Have graduated in the 2002-2003 academic year or later from a high school operated by the U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in Texas
or
Have earned an associate’s degree from an eligible institution no earlier than May 1, 2005
Persons who have earned a bachelor’s degree are not eligible for B-On-Time loans.

ANNUAL LOAN AMOUNTS FOR 2008-2009

4-year public and private institutions: $2,640/semester ($5,280/year)
2-year public and private junior colleges: $865/semester ($1,730/year)
Public technical colleges: $1,325/semester ($2,650/year)
A 3% origination fee will be deducted from the loan proceeds.

RENEWAL ELIGIBILITY

To maintain eligibility for future disbursements, the student must:
In the 1st Academic Year - make satisfactory academic progress toward a degree or certificate as determined by the institution.
In the 2nd and Subsequent Academic Years - complete at least 75 % of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education.
A student may not receive B-On-Time loans for more than 150 hours.
FORGIVENESS REQUIREMENTS

A Texas B-On-Time Loan shall be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:

graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:

4 calendar years after the date the student initially enrolled in an eligible institution,
5 calendar years after the date the student initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete; or
2 calendar years after the date the student initially enrolled in a public or private 2-year institution;

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.
Forgiven BOT loans must be reported to the IRS as taxable income.