| (a) A scholarship is considered a loan on the date
the recipient fails to meet the conditions of the scholarship as described
in §22.170 of this subchapter (relating to Conversion of the
Scholarship to a Loan); the loan amount must be repaid, plus interest
accrued.
(b) Loan interest. The interest rate charged on the
loans shall be the same rate charged for a College Access Loan at
the time the funds were disbursed. Interest shall begin to accrue
on the date the scholarship is converted to a loan.
(c) Period of loan repayment. The total amount of principal,
interest, late charges, and any costs of collection that accrue over
the life of the loans are to be repaid in installments over a period
of not more than 15 years after the date the scholarship becomes a
loan.
(d) Grace period. A recipient shall begin making payments
six months after the date the scholarship becomes a loan.
(e) Minimum repayment amount. The minimum monthly payment
amount required by any repayment plan is $100, or an amount required
to repay the loan within 15 years, whichever is greater.
(f) Late charges. A charge of 5 percent of the scheduled
monthly payment amount or five dollars ($5), whichever is less, shall
be assessed if the past due amount is not received within 20 days
of the scheduled due date. These charges shall be collected for late
payment of all sums due and payable and shall be taken out of the
next payment received by the Coordinating Board.
(g) Collection charges. In the case of delinquent accounts,
the Commissioner may authorize the assessment of charges to cover
costs necessary to collect the loan.
(h) Deferments. An education deferment is available
to any recipient whose loan is not in a default status and who provides
the Coordinating Board documentation of enrollment as at least a half-time
student.
(i) Forbearance. The Coordinating Board may grant periods
of forbearance in the form of postponed or reduced payments for unusual
financial hardship if the Coordinating Board receives a written or
verbal request stating the circumstances that merit such consideration.
(j) Prepayment. Any loans made through the program
may be prepaid without penalty.
(k) Application of payments. In accordance with the
terms of the promissory note, the Coordinating Board shall determine
the priority order in which payments shall be applied to interest,
late charges, principal, collections costs and any other charges.
|
| Source Note: The provisions of this §22.171 adopted to be effective November 30, 2009, 34 TexReg 8530; transferred effective June 1, 2017, as published in the Texas Register May 19, 2017, 42 TexReg 2739; amended to be effective May 29, 2018, 43 TexReg 3353; amended to be effective August 3, 2020, 45 TexReg 5341; amended to be effective May 16, 2024, 49 TexReg 3276 |
