| (a) Definitions.
(1) Administering entity--a governmental entity that
administers a student loan, student loan repayment, or scholarship
program.
(2) Corporation--the Texas Guaranteed Student Loan
Corporation (TGSLC).
(3) License--A license, certificate, registration,
permit, or other authorization issued by the Board.
(4) Student loan--A loan made to a person to support
the person while attending a public or private institution of higher
education or other postsecondary educational establishment that is:
(A) owed to this state, an agency of this state, or
the United States; or
(B) guaranteed by this state, an agency of this state,
or the United States.
(b) Discretion to Renew, Approve or Discipline a License.
(1) The Board may deny a person's initial application
for licensure; deny an application for renewal of license issued by
the Board; suspend the license; or take other disciplinary action
against the person upon receipt of information from an administering
entity that a person has defaulted on a student loan or has breached
a student loan repayment contract or scholarship contract by failing
to perform the person's service obligation under the contract as established
by §56.003 of the Texas Occupations Code.
(2) A determination by an administering entity that
a person has defaulted on a student loan or has breached a student
loan repayment contract or scholarship contract by failing to perform
the person's service obligation under the contract creates a rebuttable
presumption that the person has committed the default or breach.
(3) The Board may rescind any action taken under section
(b)(1) on the receipt of information from an administering entity
that the person against whom the action was taken has:
(A) entered into an agreement with the administering
entity to:
(i) repay the student loan;
(ii) perform the service obligation;
(iii) pay any damages required by the student loan
repayment contract or scholarship contract; or
(B) taken other action resulting in the person no longer
being in default on the student loan or in breach of the student loan
repayment contract or scholarship contract.
(4) The Board may reinstate any action taken under
section (b)(1) and may take other disciplinary action on the receipt
of information from an administering entity that the person against
whom the action was taken has:
(A) defaulted on breached an agreement under section
(b)(3)(A); or
(B) otherwise defaulted on the student loan or breached
the student loan repayment or scholarship contract.
(c) Mandatory Non-Renewal of a License.
(1) The Board shall not renew a license due to a default
on a student loan guaranteed by Texas Guaranteed Student Loan Corporation
(TGSLC), a default on a repayment agreement with TGSLC or a failure
to enter a repayment agreement with TGSLC as established under §57.491
of the Texas Education Code, unless the licensee presents to the Board
a certificate issued by the corporation certifying that:
(A) the licensee has entered a repayment agreement
on the defaulted loan; or
(B) the licensee is not in default on a loan guaranteed
by the corporation or on a repayment agreement.
(2) The Board shall provide its applicants and licensees
with written notice of the nonrenewal policies established under §57.491
of the Texas Education Code and an opportunity for a hearing in accordance
with the provisions of the Administrative Procedure Act, Texas Government
Code, §2001.001, et seq.
(3) As required by §57.491(c) of the Texas Education
Code, the Board, on an annual basis, shall prepare a list of the agency's
licensees and submit the list to the corporation in hard copy or electronic
form.
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