1. (a) Funding. Funds awarded through this program may not exceed the amount of appropriations, grants and other funds that are available for this use.

2. (b) Award Amounts.

   1. (1) The amount of a TEXAS Grant II award may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the student's financial need.
   2. (2) The Board shall determine and announce the maximum amount of a TEXAS Grant II award prior to the start of each fiscal year. The calculation of the maximum amount will be based on the mandates contained in Texas Education Code, §56.407. However, no student's award shall be greater than the amount of the student's financial need.

   3. (3) An approved institution may not charge a person receiving a TEXAS Grant 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 award amount, it may address the shortfall in one of two ways:

      1. (A) It may use other available sources of financial aid, other than a loan or work-study funds 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.
3. (c) Uses. A person receiving a TEXAS Grant II award may only use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student.
4. (d) Over Awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

Source Note:The provisions of this §22.259 adopted to be effective August 16, 2004, 29 TexReg 7988.