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Texas B-On-Time Loan Program

The purpose of the Texas B-On-Time Loan Program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. Only renewal awards are available. If the student meets specified goals, the entire loan amount can be forgiven upon graduation.

Renewal Eligibility Requirements

To maintain eligibility for future disbursements, the student must:

  • Be a Texas resident.
  • Has not earned a bachelor’s degree.
  • Enrolled full-time in an undergraduate degree.
  • Has completed a FAFSA and is eligible to receive federal financial aid.
  • 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.
  • Not receive B-On-Time loans for more than 150 hours.

Forgiveness Requirements: A Texas B-On-Time Loan shall be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:

  • Graduated with a cumulative GPA of at least a 3.0 on a 4.0 scale, within:
    • Four calendar years after the date the student initially enrolled in an eligible institution,
    • Five calendar years after the date the student 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 four years to complete,
    • Two calendar years after the date the student initially enrolled in a public or private two-year institution; or
  • Graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours and hours earned exclusively by examination) that is no more than six hours beyond what is required to complete the degree or certificate.

IRS regulations indicate that these loans must be reported as taxable income when they are forgiven. NOTE: Funds are limited and students will be selected based on priority guidelines determined by the Texas Higher Education Coordinating Board.

* Beginning 2015-2016 year, this program is only available to students that have received it before.