1. (a) Except as provided by subsection (c) of this section, disbursements of loans under this subchapter should be made in accordance with §22.2 of this title (relating to Timely Disbursement of Funds).
2. (b) No disbursement shall be made to any student until the student and cosigner, if applicable, have executed a promissory note payable to the program for the full amount of any loan plus interest and other authorized fees.

3. (c) Late Disbursements.

   1. (1) An eligible student may receive a loan disbursement under this program after the end of the student's period of enrollment if:

      1. (A) The student applied for a loan, and the institution certified the loan, prior to the end of the student's period of enrollment for which the loan funds are being borrowed; and
      2. (B) The loan would be used only to pay the student's outstanding account balance at the institution certifying the loan for the period of enrollment covered by the certified loan.
   2. (2) A loan may not disbursed more than 180 days after the end of the student's period of enrollment.
   3. (3) Loans that are disbursed after the end of the student's period of enrollment must be used to pay the student's outstanding balance from his or her period of enrollment at the institution.
   4. (4) Documentation must be retained by the institution proving the loan disbursed after the end of the student's period of enrollment was used to make a payment against an outstanding balance at the institution from the relevant period of enrollment.
   5. (5) Under no circumstances are funds from a late disbursed loan to be released to the student. The institution shall return any funds in excess of the outstanding balance described by paragraph (3) of this subsection to the Coordinating Board no later than six business days after the receipt of funds.
4. (d) Applicability. The provisions of this section do not apply to the Texas Armed Services Scholarship Program, as described in chapter 22, subchapter I, of this title (relating to Texas Armed Services Scholarship Program). The timely disbursement of funds for that program is governed by §22.2 of this title (relating to Timely Disbursement of Funds).

Source Note:The provisions of this §24.3 adopted to be effective November 13, 2025, 50 TexReg 7275.