1. (a) Allocations and Reallocations. Unless otherwise indicated, institutions will have until an established deadline each year to encumber all funds allocated to their students. As of that date, unencumbered funds are available for reallocation to students at other institutions on a first come/first served basis.
2. (b) Disbursement of Funds to Institutions. At the beginning of each fall term, the Board shall forward to each participating institution a portion of its preliminary allocation of funds for that year. Further disbursements to institutions will be made as appropriate for the balance of the institution's preliminary allocation and any reallocated funds.
3. (c) Use of Grant Funds. A person receiving a TEXAS Grant II award may use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student. The institution may disburse all or part of the proceeds of a TEXAS Grant II award to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid.

4. (d) Amount of Grant.

   1. (1) The maximum amount that may be received in a given semester or term by a student through the TEXAS Grant II Program is an amount equal to the average tuition and required fees charged students enrolled in similar institutions for 12 semester credit hours or their equivalent. The maximum award for students enrolled in public community colleges is based on the average in-district tuition and fee charges for such institutions.
   2. (2) The Board shall determine and announce award maximum amounts for the following year prior to the preceding January 31.

   3. (3) An eligible public institution may not charge a person receiving a TEXAS Grant II award through that institution an amount of tuition and required fees in excess of the amount of the TEXAS Grant II award received by the person. Nor may it deny admission to or enrollment in the institution based on a person's eligibility to receive or actual receipt of a TEXAS Grant II award. If an institution's tuition and fee charges exceed the TEXAS Grant II amount, it may address the shortfall in one of two ways:

      1. (A) It may use other available sources of financial aid, other than the Pell grant or loans, to cover any difference in the amount of a TEXAS Grant II award and the student's actual amount of tuition and required fees at the institution; or
      2. (B) it may waive the excess charges for the student. However, if a waiver is used, the institution may not report the recipient's tuition and fees in a way that would increase the general revenue appropriations to the institution.

5. (e) Late Disbursements. For a student to receive a disbursement after the end of his/her period of enrollment, the program officer must document in the student's file that

   1. (1) the student has completed the award period with satisfactory academic progress;
   2. (2) the student has an outstanding balance at the school, or on a student loan or other education-related debt for the qualifying award period; and
   3. (3) the institution will apply the award toward that outstanding balance or debt.
6. (f) Packaging with Other Awards. The amount of a TEXAS Grant II award may not be reduced by any gift aid for which the person is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the total cost of attendance at an eligible institution.

Source Note:The provisions of this §22.259 adopted to be effective November 26, 2001, 26 TexReg 9617.