19 Tex. Admin. Code § 22.171 - Repayment of Loans
(a) A scholarship
is considered a loan on the date the recipient fails to meet the conditions of
the scholarship as described in §
22.170 of this subchapter
(relating to Conversion of the Scholarship to a Loan); the loan amount must be
repaid, plus interest accrued.
(b)
Loan interest. The interest rate charged on the loans shall be the same rate
charged for a College Access Loan at the time the funds were disbursed.
Interest shall begin to accrue on the date the scholarship is converted to a
loan.
(c) Period of loan repayment.
The total amount of principal, interest, late charges, and any costs of
collection that accrue over the life of the loans are to be repaid in
installments over a period of not more than 15 years after the date the
scholarship becomes a loan.
(d)
Grace period. A recipient shall begin making payments six months after the date
the scholarship becomes a loan.
(e)
Minimum repayment amount. The minimum monthly payment amount required by any
repayment plan is $100, or an amount required to repay the loan within 15
years, whichever is greater.
(f)
Late charges. A charge of 5 percent of the scheduled monthly payment amount or
five dollars ($5), whichever is less, shall be assessed if the past due amount
is not received within 20 days of the scheduled due date. These charges shall
be collected for late payment of all sums due and payable and shall be taken
out of the next payment received by the Board.
(g) Collection charges. In the case of
delinquent accounts, the Commissioner may authorize the assessment of charges
to cover costs necessary to collect the loan.
(h) Deferments. An education deferment is
available to any recipient whose loan is not in a default status and who
provides the Board documentation of enrollment as at least a half-time
student.
(i) Forbearance. Board
staff may grant periods of forbearance in the form of postponed or reduced
payments for unusual financial hardship if the Board receives a written or
verbal request stating the circumstances that merit such
consideration.
(j) Prepayment. Any
loans made through the program may be prepaid without penalty.
(k) Application of payments. In accordance
with the terms of the promissory note, Board staff shall determine the priority
order in which payments shall be applied to interest, late charges, principal,
collections costs and any other charges.
Notes
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