TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 4. RULES APPLYING TO ALL PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

Subchapter C. TESTING AND DEVELOPMENTAL EDUCATION

19 TAC §§4.51 - 4.59

(Editor's note: The text of the following emergency adopted repeals will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board repeals §§4.51 - 4.59 on an emergency basis regarding implementation of the Texas Success Initiative. The repeal of the sections are simultaneously being proposed for permanent adoption in this issue of the Texas Register .

Specifically, the repeal of the sections is being adopted on an emergency basis under the provisions of Senate Bill 286 of the 78th Texas Legislature, authorizing the Board to implement changes to its rules by Fall semester 2003. Senate Bill 286 repealed Texas Education Code, §§52.306 and 51.3061, concerning the Texas Academic Skills Program (TASP), and enacted new §52.3062, establishing the Success Initiative. These new sections set out the purpose, authority, and applicable definitions for the Texas Success Initiative. New §4.54 provides proposed exemptions and/or exceptions to the requirements of these rules and §§4.55, 4.56, and 4.57 establish the requirements of assessment by approved assessment instruments with minimum passing standards. Institutions are required to advise and determine a plan for academic success for each student under new §4.58 and determine a student's readiness to perform freshman-level academic coursework under §4.59. The evaluation and reporting requirements are set out in §4.60.

The repeal of the sections are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§4.51.Purpose.

§4.52.Authority.

§4.53.Definitions.

§4.54.Institutional Developmental Education Plans.

§4.55.Eligibility and Exemptions/Exceptions.

§4.56.Criteria for Meeting TASP Requirements.

§4.57.Developmental Education and Advisement.

§4.58.Administration.

§4.59.Reporting and Funding.

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304593

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 29, 2003

Expiration Date: November 26, 2003

For further information, please call: (512) 427-6114


Subchapter C. TEXAS SUCCESS INITIATIVE

19 TAC §§4.51 - 4.60

The Texas Higher Education Coordinating Board adopts, on an emergency basis, new §§4.51 - 4.60, regarding implementation of the Texas Success Initiative. The new sections are simultaneously being proposed for permanent adoption in this issue of the Texas Register .

Specifically, these new sections are being adopted on an emergency basis under the provisions of Senate Bill 286 of the 78th Texas Legislature, authorizing the Board to implement changes to its rules by Fall semester 2003. Senate Bill 286 repealed Texas Education Code, §§52.306 and 51.3061, concerning the Texas Academic Skills Program (TASP), and enacted new §52.3062, establishing the Success Initiative. These new sections set out the purpose, authority, and applicable definitions for the Texas Success Initiative. New §4.54 provides proposed exemptions and/or exceptions to the requirements of these rules and §§4.55, 4.56, and 4.57 establish the requirements of assessment by approved assessment instruments with minimum passing standards. Institutions are required to advise and determine a plan for academic success for each student under new §4.58 and determine a student's readiness to perform freshman-level academic coursework under §4.59. The evaluation and reporting requirements are set out in §4.60.

The new sections are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§4.51.Purpose.

The purpose of this subchapter is to implement the Texas Success Initiative for Texas public institutions of higher education. It is the intent of the Texas Higher Education Coordinating Board that Texas public institutions of higher education use the flexibility and responsibility granted under these rules to improve individualized programs to ensure the success of students in higher education.

§4.52.Authority.

Under Texas Education Code, §51.307, the Board is authorized to adopt rules to implement the provisions of Texas Education Code, §51.3062. Texas Education Code, §51.403(e), authorizes the Board to establish guidelines and reporting requirements.

§4.53.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Assessment--the use of a Board-approved instrument to determine the academic skills of each entering undergraduate student and the student's readiness to enroll in freshman-level academic coursework.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Developmental Coursework--non-degree-credit coursework designed to address a student's deficiencies.

(4) Developmental Education--developmental courses, tutorials, laboratories, and other means of assistance that are included in a plan to ensure the success of a student in performing freshman-level academic coursework.

(5) Institution of higher education or institution--any public technical institute, public junior college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003(8).

(6) Minimum Passing Standards--The minimum scores which must be attained by a student in reading, writing, and mathematics that indicates the student's readiness to enroll in freshman-level academic coursework.

(7) Non-Degree Credit Course--A course which may not be counted toward a degree or certificate. The term includes developmental, pre-collegiate and continuing education courses.

§4.54.Exemptions/Exceptions.

(a) The following students shall be exempt from the requirements of this title:

(1) For a period of five (5) years from the date of testing, a student who is tested and performs at or above the following standards:

(A) ACT: composite score of 23 with a minimum of 19 on both the English and the mathematics tests;

(B) Scholastic Assessment Test (SAT): a combined verbal and mathematics score of 1070 with a minimum of 500 on both the verbal and the mathematics tests; or

(2) For a period of three (3) years from the date of testing, a student who is tested and performs on the Texas Assessment of Academic Skills (TAAS) with a minimum scale score of 1770 on the writing test, a Texas Learning Index (TLI) of 86 on the mathematics test and 89 on the reading test.

(3) A student who has graduated with an associate or baccalaureate degree from an institution of higher education.

(4) A student who transfers to an institution from a private or independent institution of higher education or an accredited out-of-state institution of higher education and who has satisfactorily completed college-level coursework as determined by the receiving institution.

(5) A student who has previously attended any institution and has been determined to have met readiness standards by that institution.

(6) A student who is enrolled in a certificate program of one year or less (Level-One certificates, 42 or fewer semester credit hours or the equivalent) at a public junior college, a public technical institute, or a public state college.

(7) A student who is serving on active duty as a member of the armed forces of the United States, the Texas National Guard, or as a member of a reserve component of the armed forces of the United States and has been serving for at least three years preceding enrollment.

(8) A student who on or after August 1, 1990, was honorably discharged, retired, or released from active duty as a member of the armed forces of the United States or the Texas National Guard or service as a member of a reserve component of the armed forces of the United States.

(b) An institution may exempt a non-degree-seeking or non-certificate-seeking student.

§4.55.Assessment.

(a) An institution shall assess, by an instrument approved in §4.56 of this title (relating to Assessment Instruments), the academic skills of each entering undergraduate student prior to enrollment of the student. Under exceptional circumstances, an institution may permit a student to enroll in freshman-level academic coursework without assessment but shall require the student to be assessed not later than the end of the first semester of enrollment in freshman-level academic coursework.

(b) An institution offering collegiate-level credit to students via a Multi-Institution Teaching Center (MITC) or a university system center, or to in-state students by distance learning delivery systems shall ensure that students are assessed as required by this section.

(c) An institution may not use the assessment or the results of the assessment as a condition of admission to the institution.

§4.56.Assessment Instruments.

The following assessment instruments are approved by the Board:

(1) ASSET and COMPASS offered by ACT;

(2) ACCUPLACER offered by The College Board

(3) Texas Higher Education Assessment (THEA) (formerly TASP Test) offered by National Evaluation Systems, Inc.

§4.57.Minimum Passing Standards.

(a) The following minimum passing standards shall be used by an institution to determine a student's readiness to enroll in freshman-level academic coursework:

(1) ASSET: Reading Skills - 41; Elementary Algebra - 38; Writing Skills (objective) - 40; and Written Essay - 6.

(2) COMPASS: Reading Skills - 81; Algebra - 39; Writing Skills (objective) - 59; and Written Essay - 6.

(3) ACCUPLACER: Reading Comprehension - 78; Elementary Algebra - 63; Sentence Skills - 80; and Written Essay - 6.

(4) THEA: Reading - 230; Mathematics - 230; Writing - 220.

(b) The minimum passing standard for the written essay portion of all tests is a score of 6. However, an essay with a score of 5 will meet this standard if the student meets the objective writing test standard.

(c) An institution may require higher passing standards.

§4.58.Advisement and Plan for Academic Success.

(a) For each student who fails to meet the minimum passing standards described in §4.57 of this title (relating to Minimum Passing Standards), an institution shall:

(1) Establish a program to advise the student regarding developmental education necessary to ensure the readiness of that student in performing freshman-level academic coursework.

(2) Determine a plan, working with the student, for academic success, which shall include developmental education and may include provisions for enrollment in appropriate non-developmental coursework.

(b) Each plan for academic success shall:

(1) Be designed on an individual basis to provide the best opportunity for each student to succeed in performing freshman-level academic coursework.

(2) Provide to the student a description of the appropriate developmental education considered necessary to ensure the readiness of that student to perform freshman-level academic coursework.

(3) Provide to the student an appropriate measure for determining readiness to perform freshman-level academic coursework, as described in §4.59 of this title (relating to Determination of Readiness to Perform Freshman-level Academic Coursework).

(c) Institutions shall consider all federal laws pertaining to individuals with disabilities when assessing and advising such students.

§4.59.Determination of Readiness to Perform Freshman-level Academic Coursework.

(a) An institution shall determine when a student is ready to perform freshman-level academic coursework on an individual basis according to the needs of the student.

(b) As indicators of readiness, institutions shall consider, as appropriate:

(1) Performance in developmental education.

(2) Performance in appropriate non-developmental coursework.

(3) Performance on an assessment instrument described in §4.56 of this title (relating to Assessment Instruments) or performance on an institutionally selected assessment.

(4) Other indicators of readiness, as determined by the institution.

(c) The determination shall include the requirement that a student shall retake an assessment instrument described in §4.56 of this title (relating to Assessment Instruments) if the student did not initially perform at or above the following scores:

(1) ASSET: Reading Skills - 35; Elementary Algebra - 30; and Writing Skills (objective) - 35.

(2) COMPASS: Reading Skills - 64; Algebra - 23; Writing Skills (objective) - 44.

(3) ACCUPLACER: Reading Comprehension - 61; Elementary Algebra - 42; Sentence Skills - 62.

(4) THEA: Reading - 201; Mathematics - 206; Writing - 205.

(5) An essay with a score of 5 will meet these criteria if the student meets the objective writing test standard.

(d) A student may retake an assessment instrument at any time, subject to availability, to determine the student's readiness to perform freshman-level academic coursework.

(e) An institution shall, as soon as practicable and feasible, indicate a student's readiness in reading, mathematics, and writing on the transcript of each student.

§4.60.Evaluation and Reporting.

(a) The Board shall evaluate the effectiveness of Texas Success Initiative on a statewide basis and with respect to each institution.

(b) At the end of each semester, institutions shall report to the Board the following information for undergraduate students: Social Security Number (SSN), semester credit hours (SCH), grade points earned, ethnicity, gender, date of birth, Texas Success Initiative status, initial assessment instrument, score on initial assessment, type of developmental education received for each area (reading, mathematics, writing), grade in first related non-developmental course, and the results of any subsequent assessment.

(c) On or before January 1, 2004, each institution shall submit to the Board a revised developmental education plan to reflect the Texas Success Initiative.

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304591

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 29, 2003

Expiration Date: November 26, 2003

For further information, please call: (512) 427-6114


Subchapter D. DUAL CREDIT PARTNERSHIPS BETWEEN SECONDARY SCHOOLS AND TEXAS PUBLIC COLLEGES

19 TAC §4.85

The Texas Higher Education Coordinating Board adopts on an emergency basis amendments to §4.85(b) concerning the Success Initiative requirements for dual credit students. The amendments are simultaneously being proposed for permanent adoption in this issue of the Texas Register .

Specifically, the emergency amendments to the rule will allow the Coordinating Board to implement changes made under Senate Bill 280 of the 78th Texas Legislature. Under this legislation, the Texas Academic Skills Program (TASP) has been repealed with assessment of college-readiness provided under the new Success Initiative. Board rules have required students enrolling in dual credit courses to satisfy the requirements under TASP. With repeal of TASP and the enactment of the Success Initiative, students will be required to satisfy similar requirements prior to enrolling in dual credit courses.

The amendments are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§4.85.Dual Credit Requirements.

(a) (No change.)

(b) Student Eligibility.

(1) To be eligible for enrollment in freshman-level academic coursework for dual credit, [ in a dual credit course for TASP-eligible programs (associate or baccalaureate degree or level-two certificate) ], the high school student must present a passing score on an [ the Texas Academic Skills Program (TASP) test or a Board-approved alternative ] assessment instrument approved by the Board in §4.56 of this title (relating to Assessment Instruments) in at least one area (mathematics, reading, writing) as deemed relevant by the college for the intended dual credit course in which the student shall enroll. Eligibility for students in the high school graduating class of 2005 to take dual credit courses during the 2003-2004 and 2004-2005 academic years may also be established by achieving at least the passing standard on the English/Language Arts and/or Mathematics sections (as applicable) of the tenth grade Texas Assessment of Knowledge and Skills (TAKS) test established by the State Board of Education.

(2) To be eligible for enrollment in a dual credit course included in a [ for TASP-waived ] college certificate program of one year or less [ programs ], the high school student must have passed all sections of the exit-level TAAS test. Eligibility for students in the high school graduating class of 2005 to take dual credit courses included in a [ in TASP-waived ] certificate program of one year or less [ programs ] during the 2003-2004 and 2004-2005 academic years may be established by achieving at least the passing standard on the English/Language Arts and/or Mathematics sections (as applicable) of the tenth grade Texas Assessment of Knowledge and Skills (TAKS) test established by the State Board of Education. A student who as received an exemption from taking the TAKS or TAAS test may qualify to enroll in a dual credit course by presenting a passing score on an [ the Texas Academic Skills Program (TASP) test or a Board-approved alternative ] assessment instrument approved by the Board in §4.56 of this title (relating to Assessment Instruments) in at least one area (mathematics, reading, writing) as deemed relevant by the college for the intended dual credit course in which the student shall enroll.

(3)-(6) (No change.)

(c)-(i) (No change.)

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304594

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 29, 2003

Expiration Date: November 26, 2003

For further information, please call: (512) 427-6114


Chapter 12. CAREER SCHOOLS AND COLLEGES

Subchapter A. PURPOSE, AUTHORITY, AND DEFINITIONS

19 TAC §12.3

The Texas Higher Education Coordinating Board adopts on an emergency basis an amendment to §12.3, concerning the Success Initiative and career schools or colleges. The amendment is simultaneously being proposed for permanent adoption in this issue of the Texas Register .

Specifically, §12.3 is being amended to delete provisions regarding the Texas Academic Skills Program (TASP) and replace those provisions with the requirements of the Success Initiative. Senate Bill 286 of the 78th Texas Legislature repealed Texas Education Code, §51.306 and §51.3061 regarding TASP, and added new Texas Education Code, §51.3062, regarding the Success Initiative. The amendment requires the career schools or colleges to assess, advise, and develop a plan for each student to assure college-readiness.

This amendment is adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§12.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (20) (No change.)

(21) Texas Success Initiative--A program for each career school or college to:

(A) Assess the academic skills of each entering student to determine the student's readiness to enroll in freshman-level academic coursework using test instruments approved by the Coordinating Board:

(B) Advise students regarding coursework and other means by which to develop academic skills required for successful completion of college-level work; and

(C) Provide a written plan to work with the student to become ready to perform freshman-level coursework.

(22) [ (21) ] Target market area--The local, regional, statewide, and/or national area from which the proprietary institution's students are drawn and in which employment opportunities have been identified for graduates of that institution's associate degree programs.

(23) [ (22) ] Teach-out agreement--A formal arrangement between a closed proprietary institution and another institution authorized by the Board to grant the associate degree, which provides for student transfer, completion of degree requirements, and awarding degrees to students transferred from the closed proprietary institution.

(24) [ (23) ] Teach-out institution--An institution authorized by the Board to grant the associate degree and has formally accepted the transfer of students from a closed proprietary institution.

[(24) Texas Academic Skills Program (TASP) Test--The test required under the Texas Education Code, Section 51.306, that is uniformly administered statewide on days prescribed by the Board and is scored by the testing contractor. The test measures college readiness in reading, writing, and mathematics and includes a written essay and is administered under secure conditions and for which each student is provided diagnostic information regarding test performance.]

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304571

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 28, 2003

Expiration Date: November 25, 2003

For further information, please call: (512) 427-6114


Subchapter B. GENERAL PROVISIONS

19 TAC §§12.24, 12.28, 12.30

The Texas Higher Education Coordinating Board adopts on an emergency basis amendments to §§12.24, 12.28, and 12.30, concerning the Success Initiative and career schools or colleges. The amendments are simultaneously being proposed for permanent adoption in this issue of the Texas Register .

Specifically, §§12.24, 12.28, and 12.30 are being amended to delete provisions regarding the Texas Academic Skills Program (TASP) and replace those provisions with the requirements of the Success Initiative. Senate Bill 286 of the 78th Texas Legislature repealed Texas Education Code, §51.306 and §51.3061 regarding TASP, and added new Texas Education Code, §51.3062, regarding the Success Initiative. The amendments require the career schools or colleges to assess, advise, and develop a plan for each student to assure college-readiness.

The amendments are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§12.24.Standards for Associate Degree-Granting Proprietary Institutions.

The decision to grant a Certificate of Authority to a proprietary institution shall be based upon its compliance with the following 16 standards.

(1) - (9) (No change.)

(10) Catalog. The information described by subparagraphs (A) through (Q) of this paragraph shall be provided to prospective students prior to enrollment. The institution shall provide students and other interested persons with a catalog or brochure. If any of the information is provided to students in the form of a supplement or addendum to a printed and bound catalog, the institution shall retain documentation on file to verify that every enrolled student received a copy of the addendum or supplement along with the catalog. The institution shall, on an annual basis, furnish the Board with a copy of its most current catalog and a current roster of all faculty members including names, addresses, teaching assignments, and highest degree earned. The institution shall provide students and other interested persons with a catalog or brochure containing, at minimum, the following information:

(A) - (O) (No change.)

(P) a statement of Texas Success Initiative [ TASP ] requirements; and

(Q) (No change.)

(11) - (16) (No change.)

§12.28.Institutional Evaluation.

(a) (No change.)

(b) The evaluation criteria shall include the following: mission, labor market need, curriculum, enrollment, graduates, student placement, follow-up results, ability to finance each program of study, facilities and equipment, instructional practices, student services, public and private linkages, [ and ] qualifications of faculty and administrative personnel , and success of its students and the effectiveness of the Texas Success Initiative .

§12.30. Texas Success Initiative [ Texas Academic Skills Program (TASP) ].

Each degree-granting career school or college authorized by the Board to grant associate of applied science or associate of applied arts degrees shall assess, by instrument approved in §4.56 of this title (relating to Assessment Instruments), the academic skills of each entering student and otherwise comply with §§4.51 - 4.60 of this title (relating to the Texas Success Initiative). Career schools and colleges authorized to award an [ Any individual who enrolls in an associate degree program at a proprietary institution on or after September 1, 1997, shall pass all sections of a test taken for Texas Academic Skills Program (TASP) Test purposes, or otherwise meet TASP requirements as outlined under Chapter 5, Subchapter P, §5.314(a)(3) - (12), §5.34(b)(1) - (11), and §5.315 of this title (relating to Testing and Developmental Education) before the degree may be awarded. Individuals enrolled in an authorized ] Associate of Occupational Studies degree [ program ] are exempt from this requirement.

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304572

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 28, 2003

Expiration Date: November 25, 2003

For further information, please call: (512) 427-6114


Chapter 21. STUDENT SERVICES

Subchapter E. TEXAS B-ON-TIME LOAN PROGRAM

19 TAC §§21.121 - 21.133

The Texas Higher Education Coordinating Board adopts on an emergency basis new §§21.121 through 21.133 concerning the Texas B-On-Time Student Loan Program. The new sections are simultaneously being proposed for permanent adoption in this issue of the Texas Register . Specifically S.B. 4, passed by the 78th Texas Legislature, Regular Session, requires the Coordinating Board to adopt the initial rules for the B-on-Time Student Loan Program as soon as practicable after the effective date of the Act. The Act was effective immediately on June 20, 2003. The new sections implement new §§56.451- 56.464 of the Texas Education Code, passed in S.B. 4 by the 78th Texas Legislature, Regular Session. They define eligible institutions and provide eligibility requirements for student s receiving initial loans as well as conditions whereby a student may remain eligible to receive a loan. The new sections provide for conditions whereby students who lose eligibility may later restore their eligibility, and provide conditions for making disbursements to students and for waiving the course load requirement. The new sections make provisions for loan amounts, the forgiveness of loans, loan interest, the repayment of loans, for discharging loans in the event of death or total disability of the borrower, and for methods of enforcing the collection of payments.

The new sections are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

§21.121.Authority and Purpose.

(a) Authority. Unless otherwise noted in a section, the authority for these provisions is provided by the Texas Education Code, §§56.451 - 56.464.

(b) Purpose. This subchapter establishes rules relating to the administration of the Texas B-On-Time student loan program that has been authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.

§21.122.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board- the Texas Higher Education Coordinating Board

(2) Commissioner- the Commissioner of Higher Education

(3) Default- the failure of a borrower to make loan installment payments for a total of 180 days

(4) Recommended or Advanced High School Program- the high school curriculum recommended under §28.025 (a) of the Texas Education Code

(5) Resident of Texas- A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B, of this title (relating to Determining Residence Status). Nonresident students eligible to pay resident tuition rates are not included.

§21.123.Institutions.

(a) Institutions that are eligible for Texas B-On-Time loans are institutions of higher education as defined in Texas Education Code, §61.003(8), and private or independent institutions of higher education as defined in Texas Education Code, §61.003(15).

(b) The Board shall provide a roster of its borrowers to each eligible institution prior to the end of each enrollment period. Within a reasonable period after the institution receives the roster, the Office of the Registrar shall identify all records of each student, and the institution shall supply information on each student borrower to the Board in a form prescribed by the Commissioner.

(c) In any academic year, if there are insufficient funds available to provide Texas B-On-Time loans to all eligible students, the Board will allocate funds to the institutions in proportion to the size of their full-time undergraduate populations. The institutions shall award the loans to the students according to financial need.

§21.124.Initial Eligibility for Loans.

(a) The Commissioner may authorize Texas B-On-Time Loans to students at any eligible institution which certifies that the student:

(1) is a resident of Texas as defined in these rules;

(2) graduated not earlier than the 2002-2003 school year under the Recommended or Advanced High School Program from a public or accredited private high school in Texas or received an associate degree from an eligible institution not earlier than May 1, 2005;

(3) has not been granted a baccalaureate degree;

(4) is enrolled for a full-time course load, as determined by the institution, in an undergraduate degree or certificate program at an eligible institution;

(5) is eligible for federal financial aid, except that the student is not required to meet any financial need requirements applicable to other financial aid programs;

(b) A student is not required to be 18 years of age at the time that he or she establishes eligibility for participation in the program; for the purpose of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

§21.125.Continued Eligibility for Loans.

(a) After initially qualifying for a Texas B-On-Time loan, a student may continue to receive a Texas B-On-Time loan for each semester or term at an eligible institution if he or she continues to meet all initial eligibility requirements in §21.124 of this title (relating to Initial Eligibility for Loans) and additionally:

(1) if the student is enrolled in his/her first academic year at the institution, the student must make satisfactory academic progress toward a degree or certificate as determined and reported to the Board by the institution;

(2) if the student is enrolled at a qualifying institution in any academic year after his/her first academic year, the student:

(A) must have completed at least 75 percent of the hours attempted in the most recent academic year; and

(B) must have a cumulative grade point average of at least 2.5 on a four-point scale, or the equivalent;

(b) A student may not receive a Texas B-On-Time loan for more than 150 semester credit hours or the equivalent. If, in any given academic period, a student drops courses so that he or she is no longer taking a full-time course load as determined by the institution, and the Board does not receive a refund of the Texas B-On-Time loan for that period, the dropped courses will be counted toward the calculation of the 150-hour limit.

(c) If a person fails to meet any of the requirements for receiving a continuation award as outlined in Subsection (a) of this section after completion of any year, the person may not receive a Texas B-On-Time Loan until he or she completes courses while not receiving a Texas B-On-Time Loan and meets all the requirements of Subsection (a) (2) of this section as of the end of that period of enrollment.

§21.126.Disbursement to Students.

(a) No disbursement shall be made to any student until:

(1) the student has submitted an application containing the names of two personal references who live at different addresses, who are gainfully employed, and who are expected to know the student’s whereabouts at all times throughout the life of the loan;

(2) the student certifies that he or she has read and understands the rights and responsibilities of a borrower of a Texas B -On-Time Loan;

(3) the student has executed a promissory note payable to the program for the full amount of any loan plus other authorized fees; and

(4) the Board has received the original of such executed promissory note.

(b) A loan warrant must be negotiated or returned to the Board on or before the 120th day after the loan warrant issue date, or the warrant will be cancelled and the student will no longer be considered to be in the program.

(c) A person receiving a Texas B-On-Time loan may use the money to pay for any usual and customary costs of attendance incurred by the student at an eligible institution, including tuition, fees, books, and room and board.

(d) Each student borrowing a Texas B-On-Time loan shall pay an origination fee in an amount that is determined from time to time by the Commissioner. The fee is deducted from the loan proceeds at the time of disbursement. The rate of the loan origination fee shall be posted on the Board’s web site.

§21.127.Waiver of Course Load Requirement.

(a) The Board may waive the full-time course load requirement based on hardship and other good cause for a student that is enrolled less than full time, but who is enrolled for at least six semester hours and who is otherwise eligible for a Texas B-On-Time loan.

(b) Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at the student’s institution in determining whether or not these circumstances warrant exception to the full-time course load requirement.

(c) If the onset of a condition that constitutes a hardship should occur after a student has enrolled for a full-time course load, and the Commissioner determines that the student is justified by his or her circumstances in dropping to no fewer than six semester hours, the Commissioner may also, at his discretion, make a determination that the dropped courses will not count against the 75 percent requirement described in §21.125 (a)(2)(A) of this title (relating to Continued Eligibility for Loans), or toward the 150 hour maximum described in §21.125 (b) of this title (relating to Continued Eligibility for Loans). Among the circumstances that the Commissioner may take into consideration in making this determination is whether the student has dropped below full-time in other academic periods while receiving loans under this program.

§21.128.Loan Amount.

(a) For students at public and private or independent four-year institutions, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident undergraduate students at general academic teaching institutions.

(b) For students at public technical institutes, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident students in an associate degree or certificate programs at public technical institutes.

(c) For students at public community/junior colleges and private or independent junior colleges, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load at a public junior college for students who are residents of junior college districts.

(d) In January of each year, the program’s annual loan limits for the following academic year shall be posted on the Board’s web site.

§21.129.Forgiveness of Loans.

A Texas B-On-Time loan shall be forgiven if the student is awarded an undergraduate degree or certificate from an eligible institution, and the student either:

(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, within:  

(A) four calendar years after the date the student initially enrolled in an eligible four year institution;  

(B) five calendar years, if the degree is in architecture, engineering, or any other program determined by the Board to require more than four years to complete; or  

(C) two calendar years after the date the student initially enrolled in an eligible public technical institute or public junior college; or  

(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, including transfer credit hours and hours earned exclusively by examination, that is not more than six hours more than the number of credit hours required to complete the degree or certificate.

§21.130.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).

§21.131.Repayment of Loans.

(a) All loans extended under this program to any borrower shall be placed by the 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.

(b) The repayment period shall begin no earlier than six months after the date on which the student ceases to be enrolled continuously in an eligible institution, as determined by the institution.

(c) An education deferment is available to any borrower whose account is not in a default status and who provides the Board with documentation of enrollment for at least a half-time course load.

(d) The Commissioner may grant periods of forbearance in the form of postponed or reduced payments for unusual financial hardship if the Board receives a written request stating the circumstances that merit such consideration.

(e) A charge of 5 percent of the scheduled monthly payment or five dollars ($5.00), 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.

(f) In the case of delinquent accounts, the Commissioner may authorize the assessment of charges necessary to collect the loan, which may include returned check fees, court costs fees, attorney fees, skip-trace fees, and long-distance telephone charges.

(g) Each payment that is received from the borrower to be credited to his or her account will be applied in the following manner:

(1) first, to any outstanding late charges and collection costs that may have accrued to the account; and

(2) next, to principal of the earliest dated note in the account.

§21.132.Deceased or Disabled Borrowers.

(a) All loans through the Texas B-On-Time Loan Program are discharged in the event of the borrower’s death or permanent and total disability.  

(b) Verification of death, and determination of permanent and total disability of a borrower through the Texas B-On-Time Loan Program, shall be made in accordance with student loan industry standards.

(c) The final determination of permanent and total disability of a borrower shall be made by the Commissioner. 

§21.133.Enforcement of Collection.

(a) When any Texas B-On-Time borrower fails to make as many as five monthly payments due in accordance with his or her repayment schedule, the full amount of remaining principal and other charges shall become due and payable immediately. 

(b) When as many as six payments have been missed, the loans will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the unpaid balance plus court costs, attorney fees, and judgment interest, as described in §21.130 of this title (relating to Loan Interest). 

(c) All records of each student who is a borrower under this Subchapter shall be so identified in the Office of the Registrar at each eligible institution. The institution may not release an official certified copy of such records, nor may any student in this program re-register for classes in the institution, until the Texas B-On-Time program officer at the institution certifies to the registrar that the borrower’s B-On-Time account is in good condition. The Commissioner must approve exceptions to this section in advance of the institution’s release of an official certified copy of the records or of the borrower’s re-registration.

(d) In accordance with state law, the Board will notify the Comptroller of Public Accounts when a borrower’s account has become 90 days or more past due. Until the delinquency is cured, no state warrant other than a wage warrant will be released to the borrower. This prevents the delinquent borrower from receiving further warrants for state student financial aid.

This agency hereby certifies that the emergency adoption has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304580

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective Date: July 29, 2003

Expiration Date: November 26, 2003

For further information, please call: (512) 427-6114