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RULE §22.334Disbursement to Students

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

  (1) for loans made from the proceeds of tax-exempt bonds, the institution has certified that the amount of the loan does not exceed the difference between the cost of attendance and other forms of student assistance for which the student is eligible, with the exception of Federal Plus loans, whether or not the student actually receives such assistance;

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

  (3) 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;

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

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

(b) Electronically transferred funds must be disbursed to the student or returned to the Board on or before the 120th day after the electronic funds transfer date.

(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.

Source Note: The provisions of this §22.334 adopted to be effective December 7, 2003, 28 TexReg 10757; amended to be effective August 16, 2004, 29 TexReg 7975; amended to be effective August 15, 2006, 31 TexReg 6332; amended to be effective November 19, 2006, 31 TexReg 9290; amended to be effective August 26, 2009, 34 TexReg 5683; transferred effective June 1, 2017, as published in the Texas Register May 19, 2017, 42 TexReg 2739

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