Description

This is a no-interest loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. for eligible Texas students.   If the borrowerThe person who receives a loan. meets certain requirements, then the entire loan amount can be forgiven upon graduation.  The State of Texas funds the loan.  

You'll have to repay this loan if you do not meet all of the ongoing eligibility criteria before graduation.

Visit the Texas Higher Education Coordinating Board site for more information.

Amount

Annual loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. amounts for 2011-2012.  Funding is limited - Priority is given to continuing B-On-Time loan recipients.

• $3,550/semester ($7,100/year)
• 3% origination feeThe origination fee is paid to the bank to compensate them for the cost of administering the loan. The origination fees are charged as the loan is disbursed, and typically run to 3% of the amount disbursed. A portion of this fee is paid to federal government to offset the administrative costs of the loan.

 

Eligibility

• Keep a current FAFSA application on file at UNT
• Be enrolled full time in an undergraduate degree or certificate program at an eligible institution
• Be a Texas resident or be entitled to pay resident tuition rates as a dependentSee Dependency Status. child of a member of the U.S armed forces
• Have graduated in the 2002-2003 academic yearThe period during which school is in session, consisting of at least 30 weeks of instructional time. The school year typically runs from the beginning of September through the end of May at most colleges and universities. or later from a high school program from a public or accredited private high school in Texas OR have earned an associate's degree from an eligible institution no earlier than May, 1, 2005

Renewal Eligibility

To maintain eligibility, you must

• In the 1st Academic Year - make satisfactory academic progressA student must maintain Satisfactory Academic Progress to continue to receive financial aid. Students must maintain a certain qualitative standard (i.e. cumulative GPA) in addition to maintaining a quantitative standard (i.e. successfully completing a required number of credit hours). Students must also complete their degree or certificate program within a maximum timeframe, which may vary according to the student’s status and program. If a student does not maintain the required standards, the student may lose their financial aid eligibility. toward a degree or certificate as determined by the institution.
• In the 2nd and Subsequent Academic Years - complete at least 75 % of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education.

A student may not receive B-On-Time for more than 150 hours.

Students that meet criteria and have been offered Texas Be-On-Time, but are not interested should decline the award offered.

Payment

A note will be placed on your myUNT “To Do List” notifying you as to when you can complete your file with the Texas Higher Education Coordinating Board (THECB).

Loan funds will not disburse (pay) until all requested documentation has been submitted to the Texas Higher Education Coordinating Board, and your application is considered to be complete by them.

If your file is complete, fund can be sent from THECB to UNT as early as ten days prior to the first day of a fall or spring fee payment (August/January) period. However, disbursements can occur throughout an enrollment term upon completion of a file.

Questions as to when B-On-Time funds will be sent to UNT should be referred to the Texas Higher Education Coordinating Board. Their contact number is 800-242-3062.

Interest Rate

No interest will be charged unless a judgement is obtained against the borrower for default in payment. The interest rate shall be the amount specified in the 304.003 of the Texas Finance Code.

Repayment

Any repayment will be made to the Texas Higher Education Coordinating Board. 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.

Questions regarding repayment should be referred to the Texas Higher Education Coordinating Board. Their contact number is 800-242-3062.

Repayment Length

The principal and any fees and costs that accrue over the life the loan to be repaid in monthly installments shall be calculated to repay the account over a period of not more than 15 years from the beginning of the payment period.

Questions regarding repayment should be referred to the Texas Higher Education Coordinating Board. Their contact number is 800-242-3062.

Additional Information

Forgiveness Requirements

The loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. shall be forgiven if you receive an undergraduate degree or certificate from an eligible institution and you either:

- Graduated with a cumulative GPA of at least a 3.0, within:

• 4 calendar years after the date you initially enrolled in an eligible institution,
• 5 calendar years after the date you initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete; or
• 2 calendar years after the date the student initially enrolled in a public or private 2-year institution;

OR

- Graduated with a cumulative GPA of at least 3.0, with a total number of credit hours that is no more than 6 hours beyond what is required to complete the degree or certificate

Important Forgiveness Information from the Texas Higher Education Coordinating Board

Forgiven BOT Loans must be reported to the IRSThe Internal Revenue Service (IRS) is the federal agency responsible for enforcing US tax laws and collecting taxes. as taxable incomeIncome is the amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (welfare, disability, child support, taxable Social Security, and pensions)..

Students can download the BOT Loan Forgiveness Eligibility Confirmation Form.