(a) Repayment of any loan and interest authorized under
the Act shall be made directly to the fund and shall be made monthly
in an amount of not less than $15 or an amount to be approved by the
commissioner and shall begin not later than nine months after the
date the student ceases to carry at any higher educational institution
at least one-half the full-time academic workload as determined by
the institution and in no event later than five years from the date
the first note evidencing a loan under the Act is executed. The commissioner
may authorize a period longer than five years from the date the first
note evidencing a loan under the Act is executed before beginning
repayment of loans to medical, dental, and other students seeking
professional or graduate degrees. The commissioner may extend the
time for beginning repayment of a loan to any student due to unusual
financial hardships, subject to approval by the attorney general.
Student borrowers must file with the commissioner a written request
for postponement of a loan due to unusual financial hardships. Such
requests shall contain the student borrower's permanent address, his
income during the postponement period, the length of time for which
the postponement is requested, and a statement of the circumstances
creating such financial hardship. Students will be notified as to
the disposition of their request for postponement.
(b) Payout note. At such time as a student is no longer
qualified to borrow from the fund or no longer expects to borrow from
the fund, the participating institution shall cause the student borrower
to execute a payout note. The principal amount of the payout note
shall be the aggregate amount of the interim notes plus accrued interest
and cost of insurance on the life of the student borrower. The repayment
schedule of the principal amount of the payout note plus interest
and cost of insurance, in monthly installments, shall be set forth
on the instrument. The original executed payout note shall be forwarded
by registered mail to the commissioner immediately.
(c) Failure to execute payout note. Failure to execute
a payout note makes all interim notes due and payable immediately.
All records, including transcripts or diplomas, will be withheld from
a student until a payout note is executed.
(d) Postponement of the repayment of loans. The postponement
of the repayment of a Texas opportunity plan loan may be made under
the following conditions.
(1) Continuing education. A student borrower may petition
the commissioner for a postponement on the repayment of a loan from
the fund provided that he has filed with the commissioner a request
for postponement of repayment of loan (Form 019) and a verification
of his enrollment in an institution of higher education by the appropriate
administrative official of the institution in which he is enrolled.
Such verification shall be made by the appropriate administrative
official of the institution at the beginning of each semester while
the student borrower is enrolled in the institution of higher education.
It is the responsibility of the student borrower to see that such
verification is on file with the commissioner.
(2) Financial hardship. The repayment of a loan from
the fund may be postponed for a reasonable period of time provided
that the student borrower can provide the commissioner with evidence
of financial hardship. All income and expense information submitted
by the student borrower must be supported by a certified federal income
tax return. The student borrower will be notified by the commissioner
of the disposition of the student's request after the commissioner
has caused the petition to be evaluated on its individual merits.
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