19 Tex. Admin. Code § 23.2 - Eligible Lender and Eligible Education Loan
The following requirements regarding eligible lenders and eligible education loans shall apply to all education loan repayment programs administered in this chapter, unless the subchapter clearly indicates otherwise.
(1) The Coordinating Board
shall retain the right to determine the eligibility of lenders and holders of
education loans to which payments may be made.
(2) An eligible lender or holder shall, in
general, make or hold education loans made to individuals for purposes of
undergraduate, graduate, and professional education and shall not be any
private individual. An eligible lender or holder may be, but is not limited to,
a bank, savings and loan association, credit union, institution of higher
education, secondary market, governmental agency, or private foundation. Credit
cards, equity loans and other similar personal loan products are not considered
educational loans eligible for repayment.
(3) To be eligible for repayment, an
education loan must:
(A) be evidenced by a
promissory note for loans to pay for the cost of attendance for the
undergraduate, graduate, or professional education of the individual applying
for repayment assistance;
(B) not
have been made during residency or to cover costs incurred after completion of
graduate or professional education;
(C) not be in default at the time of the
applicant's application;
(D) not
have an existing obligation to provide service for loan forgiveness through
another program, unless the program is a loan repayment assistance program
funded by the federal government on the condition of matching state funds and
that, by rule or exception, does not prohibit concurrent obligations for the
same employment or service;
(E) not
be subject to repayment through another student loan repayment or loan
forgiveness program;
(F) not be
subject to repayment as a condition of employment or through other repayment
assistance provided by the applicant's employer while the applicant is
participating in the program;
(G)
if the loan was consolidated with other loans, the applicant must provide
documentation of the portion of the consolidated debt that was originated to
pay for the cost of attendance for the applicant's undergraduate, graduate, or
medical education; and
(H) not be
an education loan made to oneself from one's own insurance policy or pension
plan or from the insurance policy or pension plan of a spouse or other
relative.
Notes
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