1. (a) On or before the respective census date for the semester or term, as defined in §13.1 of this chapter (relating to Definitions), each institution of higher education, as defined by §13.1 of this chapter, shall collect in full from each student the amounts set as tuition and mandatory fees established by state law or the respective governing boards, unless:

   1. (1) the student's payment due date has been postponed due to pending disbursements of financial aid as described and provided by in Texas Education Code, §54.0071;
   2. (2) the student's payment due date has been postponed based on the student's election to pay tuition and mandatory fees by installment as provided in Texas Education Code, §54.007; or
   3. (3) the institution has determined that the student meets the eligibility requirements that allow the student to earn credit at no cost to the student, such as occurs in chapter 13, subchapter Q of this title (relating to Financial Aid for Swift Transfer (FAST) Program).

2. (b) An institution of higher education may collect on a due date subsequent to the census date unpaid tuition and mandatory fee balances resulting from:

   1. (1) an adjustment to a student's enrollment status or an administrative action; or
   2. (2) unpaid residual balances of tuition and mandatory fees constituting less than five percent of the total amount of tuition and mandatory fees charged to the student by the institution for that semester or term.

3. (c) An institution of higher education shall collect from each student who is to be counted for state formula funding appropriations, the tuition and mandatory fees established by state law or by its governing board on or before the end of the 20th class day for each regular semester and the 15th class day for each summer session.

   1. (1) An institution of higher education may fulfill its obligation under this section by complying with subsection (a) of this section.
   2. (2) An institution may consider a valid contract with the United States Government for instruction of eligible military personnel or a valid contract with private business or public service-type organization or institution, such as a hospital, as a collection for the purpose of this section after final payment and adjustment of the amount paid under the contract.
4. (d) Each institution shall adopt a policy regarding the postponement of a student's payment due date due to pending disbursement of financial aid as described in Texas Education Code, §54.0071 and §54.007(f). The institution shall reference its tuition payment policy in any billing statement provided to students regarding the collection of tuition and mandatory fees.
5. (e) The institution must require that a returned check 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 semester credit hours, or their equivalent, to be submitted for state funding.
6. (f) The institution may not reimburse an auxiliary enterprise or other non-state fund source with state-provided funds.
7. (g) Each institution shall retain a record of individual student tuition or tuition and fee payment and returned checks for verification by the State Auditor.

Source Note:The provisions of this §13.123 adopted to be effective August 14, 2025, 50 TexReg 5214.