Pursuant to Education Code, Chapter 56, the following guidelines submitted to the Coordinating Board shall be utilized for awarding Texas Public Educational Grants, Emergency Tuition and Fees Loans, and Toward Excellence, Access, & Success (TEXAS) Grants by the Components in The Texas State University System.
4.1 Assessments for Grant and Loan Programs.
Each Texas State University System Component shall set aside, each academic year, not less than 15 percent nor more than 20 percent out of each resident and 3 percent out of each nonresident student's tuition charge under Education Code, Section 54.051 as provided by the General Appropriations Act for the applicable academic year. Of the funds set aside pursuant to this Paragraph, not more than 90 percent shall be used for Texas Public Educational Grants and not more than 10 percent shall be used for emergency loans to students.
4.2 Approval of Guidelines.
The guidelines for the award of grants shall be submitted to the Coordinating Board before any grants are made through this program.
4.3 Criteria for Awarding Grants.
4.31 Enrollment. Grants are to be made only to students who actually enroll in the term or terms for which the grant is awarded.
4.32 Need. Grants shall be based upon financial need of the applicant and may be used to aid students who may have demonstrable financial need.
4.33 Needs Analysis Procedures. Financial needs of students are to be determined by use of accepted needs analysis procedures, generally in use in other "needs based" financial assistance programs.
4.34 Separation of Funds. Funds set aside from resident student tuition charges may be used only for grants to resident students. Funds set aside from nonresident student tuition charges may be used only for grants to nonresident students. After the end of the sixth class week of each semester, a Component may transfer any excess funds set aside from tuition paid by resident or nonresident students to the fund set aside for grants awarded to the other class of students. Priority for awarding grants from any excess funds set aside from tuition paid by resident students shall be given to resident students.
4.35 Transfer of Funds. Any or all of the funds set aside for making Texas Public Educational Grants may be transferred to the Coordinating Board, to be used for matching federal or other grant funds for awarding to students at each Component, provided such amounts can be equally matched by funds held by the Coordinating Board and further provided unencumbered funds transferred are returned upon request of the Component President.
4.36 Full Use of Funds. At the end of a Fiscal Year, if the total amount of unencumbered funds that have been set aside under this program by a Component, together with the total amount of unencumbered funds transferred by the Component to the Texas Higher Education Coordinating Board exceeds 150 percent of the amount of funds set aside by the Component in the fiscal year, and the Component shall transfer the excess amount to the Coordinating Board for the purpose of awarding scholarships as provided by law to students at other universities.
4.37 Scholastic or Disciplinary Probation. Returning students who are not maintaining satisfactory academic progress and all students on disciplinary probation may be ineligible for grants.
4.4 Criteria for Awarding Loans.
4.41 Eligibility. Loans are to be made only to students accepted for enrollment as regularly admitted students and/or enrolled in good standing and maintaining satisfactory progress in a program leading toward a degree. Students paying tuition on a basis other than semester credit hours have the same eligibility criteria and loan terms as students paying tuition on the basis of semester credit hour loans. Students in default on other student loans and other financial obligations are ineligible, and students on disciplinary probation may be ineligible.
4.42 Need. Borrowers must evidence a need for the loan by submitting a loan application stating the purpose and amount of the loan requested and the method of repayment.
4.43 Emergency Loans. Eligible student borrowers shall be assisted in obtaining emergency loans based on the order in which their applications are received.
4.44 Maximum Loan Amount. The maximum loan amount per student for each semester shall not exceed the tuition, fees, and room and board charges assessed for the semester in which the student is enrolling. The Component may deduct the student's unpaid indebtedness, penalties, and late charges from the loan proceeds and apply them to this indebtedness. Loans may be made in amounts needed to make payments on an installment plan for tuition and fees, as authorized under Section 54.007 of the Education Code.
4.45 Promissory Note. Each loan must be evidenced by a promissory note which must be executed prior to the disbursement of funds. A Component may require a borrower to secure a cosigner, who evidences’ ability and willingness to repay in the event the borrower defaults.
4.46 Interest. A Component may charge interest on these loans at an annual rate not to exceed 5 percent during the initial term of the loan. Additional charges may be assessed under Section 54.504 of the Education Code for late penalties and collection costs associated with collecting delinquent loans. All interest-bearing promissory notes must be executed by all students receiving loans through or from the Component. Appropriate truth-in-lending statements shall be included in the promissory note.
4.47 Repayment. Except as provided in Subparagraphs 4.48 and 4.49 below, borrowers will have a maximum repayment period of 90 days from the date of execution of the promissory note. The repayment schedule should allow for three equal installments within the 90-day period or a term note payable 90 days from the date the promissory note was executed. Repayment of loans for summer sessions will be determined proportionately by the length of the borrower's enrollment.
4.48 Deferred Repayment. A resident of Texas for tuition purposes, upon a finding that such individual would be deprived of an education due to a lack of financial ability, may defer repayment of the loan as allowed by law and in accordance with guidelines adopted by the Texas Higher Education Coordinating Board. Request for deferred repayment must be made in writing.
4.49 Forgiveness of Loans. A Component will forgive loans in accordance with guidelines adopted by the Texas Higher Education Coordinating Board for the determination of extreme financial hardship and other instances in which the public interest is served if a loan is forgiven.