1. (a) Authority. Authority for this section is provided in the Texas Education Code, §56.0092.
2. (b) Purpose. The provisions of this section provide for the servicing and forgiveness of loans originated by the Coordinating Board through the Texas B-On-Time Loan Program.

3. (c) Definitions. In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

   1. (1) Degree in Architecture--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 04.0201 of the Texas CIP Codes.
   2. (2) Degree in Engineering--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 14 of the Texas CIP Codes.
   3. (3) Texas CIP Codes--Classification codes for degree programs, agreed upon by institutions and approved by the Board, based on curricular content belonging to categories within the federal Classification of Instructional Programs (CIP) published by the National Center for Educational Statistics. Texas CIP Codes are available at http://www.txhighereddata.org/Interactive/CIP/.

4. (d) Forgiveness of Loans. A Texas B-On-Time loan shall be forgiven, upon request of the student, if the student was awarded a baccalaureate degree from an eligible institution, and the student either:

   1. (1) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, and received:

      1. (A) a baccalaureate degree within four calendar years after the date the student initially enrolled in an eligible institution; or
      2. (B) a baccalaureate degree within five calendar years after the date the student initially enrolled in an eligible institution if the institution has reported or will report that the student graduated with a degree in architecture, engineering, or any other program that the institution certifies to the Board is a program that requires more than four years to complete; or
   2. (2) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, with a total number of course credit hours earned, including transfer credit hours and excluding hours earned exclusively by examination, dual credit course hours, and hours earned for developmental coursework that an institution required the student to take under the former provisions of Texas Education Code, §51.3062 (relating to Success Initiative), or under the former provisions of Texas Education Code, §51.306 (relating to Texas Academic Skills Program), that is not more than six hours more than the number of credit hours required to complete a baccalaureate degree.
5. (e) Loan Interest. There shall be no interest charged for a Texas B-On-Time Loan unless a judgment is obtained against the borrower for default in payment. If a judgment should be taken, the interest rate shall be the amount specified in §304.003 of the Texas Finance Code, (relating to Judgment Interest Rate: Interest Rate or Time Price Differential Not in Contract).
6. (f) Deferment. An education deferment is available to any borrower whose account is not in default and who provides the Coordinating Board with documentation of enrollment for at least a half-time course load.
7. (g) Repayment Period. All loans extended under this program to any borrower shall be placed by the Coordinating Board into an "account," with the full amount of principal and any fees and costs that accrue over the life of the loans to be repaid in monthly installments which shall be calculated to repay the account over a period of not more than 15 years from the beginning of the repayment period. In no case will the minimum annual repayment on the account be less than $900.

Source Note:The provisions of this §24.18 adopted to be effective November 13, 2025, 50 TexReg 7276.