- (a) Loan Terms. Principal amounts of all authorized loans shall be repaid in installments over a period of not less than five years (unless sooner repaid) nor more than 10 years, except that the period of the loan may not exceed 15 years from the execution of the note or written agreement evidencing it.
- (b) Loan Interest. The interest rate to be charged for any student loan shall be 6.0% per annum on all loans made under the Hinson-Hazlewood College Student Loan Act on or before August 31, 1969, and the interest rate to be charged for any student loan made on or after September 1, 1969, shall be seven percent (7%) per annum, and such interest shall accrue from the date of the note evidencing the loan is executed. Except for loans subject to the interest subsidy provisions of the Higher Education Act of 1965, Title IV, Part B, §428(a), as amended, and 45 Code of Federal Regulations Part 177, payment of interest by an undergraduate student shall be postponed so long as such student is enrolled in an institution of higher education for at least one-half of the normal course load, as determined by the institution, and payment of interest by a graduate or professional student shall be postponed so long as such student is enrolled in an institution of higher education and is making satisfactory progress toward the completion of his program, provided that such interest shall accrue from the date of the note evidencing the loan is executed.
- (c) Interest Subsidy. Loans made pursuant to this subchapter are eligible for interest subsidy to be paid in accordance with Public Law 89-329, the Higher Education Act of 1965, and 45 Code of Federal Regulations Part 177.
- (d) Repayment of Loans. Repayment of any loan and interest authorized under the Act shall be made directly to the Fund and shall be made monthly in an amount of not less than $15 or an amount to be approved by the Coordinating Board.
- (e) Forbearance. The Coordinating Board may authorize a period of forbearance for a borrower under this section in accordance with §24.14 of this chapter (relating to Forbearance).
- (f) Enforcement of Collection. The provisions of §24.16 of this chapter (relating to Enforcement of Collection) apply to loans described by this section.
Source Note:The provisions of this §24.86 adopted to be effective November 13, 2025, 50 TexReg 7280.