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) Grant Amounts.

   1. (1) The amount of a grant 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 cost of attendance. However, no student's grant shall be greater than the amount of the student's financial need.
   2. (2) The Board shall determine and announce the maximum grant amount in a given state fiscal year by January 31 of the prior fiscal year. The calculation of the maximum amount will be based on the average statewide amount of tuition and required fees at eligible institutions that an in-district resident student enrolled full-time in an associate degree or certificate program would be charged for that semester (Texas Education Code, §56.407). In determining the maximum grant amount, the average amount of tuition and required fees is determined by institution type (public junior colleges, public state colleges, and public technical institutes) for an in-district resident student enrolled full-time in an associate degree or certificate program, utilizing the most recent Integrated Fiscal Reporting System reports to project the value.

   3. (3) The value of an individual's grant in a given semester is to be based on the share of a full-time course load in which the student is enrolled as of the census date of the semester, in accordance with the following table:

      1. (A) 12 or more semester credit hours--100% of the semester's maximum grant for a full-time student;
      2. (B) at least 9 but fewer than 12 semester credit hours--75 percent of the semester's maximum grant for a full-time student;
      3. (C) at least 6 but less than 9 semester credit hours--50 percent of the semester's maximum grant for a full-time student; and
      4. (D) less than 6 semester credit hours--zero percent of the semester's maximum grant for a full-time student, unless approved for a grant under hardship conditions in accordance with subsection (c) of this section.
3. (c) If an otherwise eligible student, due to hardship, enrolls for less than a half-time course load, the grant is to be prorated. The amount that can be awarded is equal to the semester's maximum grant for the relevant type of institution, divided by 12 and multiplied by the actual number of semester credit hours for which the student is enrolled.

4. (d) An approved institution may not charge a person receiving a grant through that institution an amount of tuition and required fees in excess of the grant 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 grant. If an institution's tuition and fee charges exceed the grant, it may address the shortfall in one of two ways:

   1. (1) it may use other available sources of financial aid, other than a loan or Pell grant to cover any difference in the amount of the grant and the student's actual amount of tuition and required fees at the institution; or
   2. (2) 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) Adjustments to grants and late disbursements are to be completed in accordance with Subchapter A of this chapter (relating to General Provisions).

6. (f) Prorated Grants in Case of Low Balance of Eligible Semester Credit Hours or Attempted Semester Credit Hours. If the student's balance of eligible semester credit hours or attempted semester credit hours is less than the number of semester credit hours the student is taking in a given semester, the student's grant for that semester should be prorated using the following schedule:

   1. (1) if balance of hours is 12 or more semester credit hours--100% of the semester's maximum grant for a full-time student;
   2. (2) if balance of hours is at least 9 but fewer than 12 semester credit hours--75% the semester's maximum grant for a full-time student;
   3. (3) if balance of hours is at least 6 but fewer than 9 semester credit hours--50% the semester's maximum grant for a full-time student; and
   4. (4) if balance of hours is fewer than 6 semester credit hours--25% the semester's maximum grant for a full-time student.

Source Note:The provisions of this §22.261 adopted to be effective August 3, 2020, 45 TexReg 5342.