TITLE 19. EDUCATION

§ 1.180. Authority and Specific Purposes of the General Education Curriculum Advisory Committee.

(a) Authority. Statutory authority for this subchapter is provided in the Texas Education Code, §61.0522, and Texas Government Code, chapter 2110.

(b) Purposes. The General Education Curriculum Advisory Committee is created to provide the Commissioner and Board with advice on the implementation of Texas Education Code, §61.0522. The committee also performs other duties related to funding that the Board or Commissioner assign to the committee.

§ 1.181. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless otherwise defined in the subchapter:

(1) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.

(2) Commissioner--The Texas Commissioner of Higher Education.

(3) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

§ 1.182. Committee Membership and Officers.

(a) The Commissioner will call for nominations from chancellors, presidents, and chief academic officers of institutions of higher education.

(b) The committee shall consist of fourteen members drawn evenly from two and four year institutions of higher education.

(c) The Commissioner shall recommend members to the Board for appointment.

(d) The Commissioner may replace any committee member who the Commissioner determines is not attending meetings or actively engaging in the work of the committee. In such cases, the Commissioner may appoint an alternate member to fill the vacancy drawn from the original list of nominees who were not selected for the committee. Such appointment is subject to Board ratification or disapproval at the next Board meeting following replacement of the committee member.

(e) The Commissioner shall select the presiding officer, who will be responsible for conducting meetings and conveying committee recommendations to the Board and the Commissioner.

(f) Each member shall serve a term ending on September 1, 2027, unless otherwise provided by the Board.

(g) The committee may appoint subcommittees or workgroups as necessary to complete the work.

§ 1.183. Duration and Meetings.

The committee shall continue until September 1, 2027. The committee shall meet at least monthly and may convene more frequently, including multiple times per month, at the discretion of the presiding officer.

§ 1.184. Tasks Assigned to the Committee.

Tasks assigned to the committee include:

(1) Review the general education curriculum requirements in alignment with Texas Education Code;

(2) Consider methods for determining general education curriculum component area courses;

(3) Explore opportunities for condensing the number of general education courses required by institutions of higher education, which may include the study of a shorter core curriculum requirement;

(4) Submit a written report of findings and recommendations to the Texas Higher Education Coordinating Board no later than September 1, 2026, to inform the Board's December 31, 2026 report to the Legislature; and

(5) Any other charges issued by the Board or Commissioner.

(A) include in that notice the reasons for the proposed denial;

(B) attach the procedures for resolution of transfer disputes as outlined in this section to the notice. The notice and procedure must include:

(i) the name and contact information for the designated official at the receiving institution who is authorized to resolve the credit transfer dispute;

(ii) clear instructions for appealing the decision to the Commissioner.

§ 13.460. Definitions.

In addition to the words and terms defined in §13.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise or the relevant subchapter specifies a different definition:

(1) Cost of Attendance--An institution's estimate of the expenses incurred by a typical financial aid recipient in attending a particular institution of higher education. It includes direct educational costs (tuition and fees) as well as indirect costs (room and board, books and supplies, transportation, personal expenses, and other allowable costs for financial aid purposes).

(2) Discretionary Exemption or Waiver--An exemption or waiver that an eligible institution, as specified in program rules, may choose to offer to an eligible student.

(3) Exemption--A program authorized by state statute that allows an eligible student enrolled in an institution of higher education to pay a reduced amount of tuition and/or fees, except that a waiver, as defined by this section, is not considered an exemption.

(4) Financial Need--The cost of attendance at a particular institution of higher education or private or independent institution of higher education less the Student Aid Index, as those terms are defined in this section.

(5) Full-time--For undergraduate students, the equivalent of at least 12 semester credit hours per semester or as defined by the institution. For graduate students, the equivalent of at least 9 semester credit hours per semester or as defined by the institution.

(6) Laboratory Fees--Fees authorized by Texas Education Code, §54.501, that an institution of higher education collects to cover the general cost of laboratory materials and supplies used by a student.

(7) Mandatory Exemption or Waiver--An exemption or waiver that an eligible institution, as specified in program rules, is obligated to offer to an eligible student.

(8) Student Aid Index--A measure utilized to calculate a student's financial need as regulated and defined by the methodology used for federal student financial aid.

(9) Tuition--Includes statutory tuition, designated tuition, and governing board-authorized tuition.

(10) Waiver--A program authorized by state statute that allows a nonresident student enrolled in an institution of higher education who would otherwise be charged the nonresident tuition rate to pay the tuition rate charged to a similarly situated resident student.

§ 13.461. Adoption by Reference.

The Coordinating Board adopts by reference the Exemptions and Waivers Summary, published by the Coordinating Board on its website.

§ 13.462. Classifications and Reporting.

(a) For the purposes of data reporting, accounting, and any other relevant business operations, a participating institution shall use the Exemptions and Waivers Summary , in determining whether a program authorized by Texas Education Code, chapter 54, subchapter D, is an exemption or waiver program, and whether that program is mandatory or discretionary, as the terms are defined in §13.460 of this subchapter (relating to Definitions).

(b) A participating institution will report data relating to exemptions and waivers as part of its annual Financial Aid Database, Integrated Fiscal Reporting System, and Annual Financial Reports submissions, in accordance with their respective manuals.

§ 13.463. Satisfactory Academic Progress.

(a) Satisfactory Academic Progress. A student who receives an exemption under this subchapter during a semester or term at an institution of higher education may continue to receive the exemption only if the student maintains a grade point average that satisfies the institution's grade point average requirement for making satisfactory academic progress toward a degree or certificate, unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(b) Re-Establishing Eligibility. If on the completion of any semester or term a student fails to meet the grade point average requirement described by subsection (a) of this section, the student may not receive the exemption during the following semester or term. The student may become eligible to receive an exemption in a subsequent semester or term if the student:

(1) completes a semester or term during which the student is not eligible for the exemption;

(2) meets the grade point average requirement described by paragraph (1) of this subsection; and

(3) meets all other eligibility requirements for the exemption.

(c) The institution shall calculate a student's grade point average in accordance with §22.10 of this title (relating to Grade Point Average Calculations for Satisfactory Academic Progress).

(d) Applicability. The provisions of this section do not apply to waivers, as defined in §13.460 of this subchapter (relating to Definitions) or to the exemptions authorized by Texas Education Code, §§54.217; 54.341(a-2)(1)(A), (B), (C), or (D) and (b)(1)(A), (B), (C), or (D); 54.342; 54.366; or 54.367.

§ 13.464. Hardship Provisions.

(a) In the event of a hardship or for other good cause, an institution of higher education may allow an otherwise eligible student to receive an exemption if:

(1) the student fails to maintain a grade point average as required by §13.463(a) of this subchapter (relating to Satisfactory Academic Progress); or

(2) as an undergraduate student, the student has completed an excess number of hours as described in §13.465(b) of this subchapter (relating to Restrictions on Exemptions and Waivers).

(b) Hardship conditions may include, but are not limited to:

(1) documentation of a severe illness or other debilitating condition that may affect the student's academic performance;

(2) documentation that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance;

(3) documentation of the student's active duty or other service in the United States armed forces or active duty in the Texas National Guard; or

(4) documentation of the birth of a child or placement of a child with the student for adoption or foster care, that may affect the student's academic performance.

(c) Documentation of the hardship circumstances approved for a student to receive an exemption must be kept in the student's files.

(d) Each institution of higher education shall adopt a hardship policy under this section.

§ 13.465. Restrictions on Exemptions and Waivers.

(a) Formula-Funded Courses. Notwithstanding any other rule, an exemption or waiver from the payment of tuition or fees offered under this subchapter may be applied only to courses for which an institution of higher education receives formula funding.

(b) Excess Hours. An undergraduate student is ineligible to receive an exemption under this subchapter if, at the start of a semester or term, the student has completed a number of semester credit hours that is considered to be excessive under Texas Education Code, §54.014, excluding semester credit hours earned:

(1) exclusively by examination;

(2) for a course for which the student received credit toward the student's high school academic requirements; and

(3) for developmental courses that the student's institution required the student to take under Texas Education Code, chapter 51, subchapter F-1.

(c) Legal Status. Notwithstanding any other rule, a student must be lawfully present in the United States to be eligible for any exemption or waiver under this subchapter.

§ 13.466. Children of Professional Nursing Program Faculty and Staff Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.355.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Child--A child 25 years or younger, including an adopted child.

(2) Graduate Professional Nursing Program--An educational program of a public institution of higher education that prepares students for a master's or doctoral degree in nursing.

(3) Undergraduate Professional Nursing Program--A public educational program for preparing students for initial licensure as registered nurses.

(c) Participating Institutions. An institution of higher education, as defined by §13.1 of this chapter (relating to Definitions), that offers an undergraduate or graduate professional nursing program, as defined in subsection (b) of this section, shall provide an exemption to eligible students in accordance with this section.

(d) Eligible Students. To be eligible for an exemption under this section, a student must:

(1) be a Resident of Texas, as defined in §22.1 of this title (relating to Definitions);

(2) not have been granted a baccalaureate degree;

(3) be enrolled at an institution of higher education that offers an undergraduate or graduate program of professional nursing;

(4) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(5) be the child of an individual who:

(A) at the beginning of the semester or other academic term for which an exemption is sought:

(i) holds a master's or doctoral degree in nursing, and who is employed by an undergraduate or graduate professional nursing program at a participating institution as a member of the faculty or staff, with duties that include teaching, performing research, serving as an administrator, or performing other professional services; or

(ii) holds a baccalaureate degree in nursing, and who is employed by a professional nursing program at a participating institution as a full-time teaching assistant; or

(B) during all or part of the semester or other academic term for which an exemption is sought:

(i) holds a master's or doctoral degree in nursing, and who has contracted with an undergraduate or graduate professional nursing program in this state to serve as a member of its faculty or staff with duties that include teaching, performing research, serving as an administrator, or performing other professional services; or

(ii) holds a baccalaureate degree in nursing, and who has contracted with a professional nursing program offered by a participating institution to serve as a teaching assistant;

(6) be enrolled at the same institution of higher education at which the student's parent is currently employed or with which the parent has contracted, as described in paragraph (5) of this subsection; and

(7) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(e) Discontinuation of Eligibility. In addition to the limitations on eligibility described by §13.465 of this subchapter (relating to Restrictions on Exemptions and Waivers), a person's eligibility for an exemption under this section ends after the person has received exemptions under this section for 10 semesters or summer sessions. For the purposes of this subsection, a summer session that is less than nine weeks in duration is considered one-half of a summer session.

(f) Proration of Exemption. If the student's parent described by subsection (d)(5) of this section is employed on less than a full-time basis, the institution shall prorate the value of the exemption in accordance with the parent's employment load. Regardless of the employment load, the exemption shall not be for less than 25 percent of the student's tuition.

(g) Application. To apply for an exemption under this section, a student shall submit to his or her institution a completed Professional Nursing Faculty and Staff Exemption Application, which the Coordinating Board shall publish on its website.

§ 13.467. Clinical Preceptors and Children Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.356.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Child--A child 25 years or younger, including an adopted child.

(2) Clinical Preceptor or Preceptor--A registered nurse or other licensed health professional who meets the requirements below and who is not paid as a faculty member by an institution of higher education, but who directly supervises a nursing student's clinical learning experience in a manner prescribed by a signed written agreement between the educational institution, preceptor, and affiliating agency. A clinical preceptor has the following qualifications:

(A) competence in designated areas of practice;

(B) a philosophy of health care congruent with that of the nursing program;

(C) current licensure or privilege as a registered nurse in the State of Texas; and

(D) if not a registered nurse, holds a current license in Texas as a health care professional with a minimum of a bachelor's degree in that field.

(c) Participating Institutions. An institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) shall provide an exemption under this section to all eligible persons enrolled at the institution.

(d) Eligible Students. To be eligible for an exemption under this section, a student must:

(1) be a Resident of Texas, as defined in §22.1 of this title (relating to Definitions);

(2) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(3) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions); and

(4) be one of the following:

(A) a registered nurse who serves, on average, at least one day per week under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program for:

(i) the time period the program conducts clinicals during the semester or other academic term for which the exemption is sought; or

(ii) the time period the program conducted clinicals during a semester or other academic term that ended less than one year prior to the beginning of the semester or term in which the exemption is to be used; or

(B) an undergraduate student who is the child of a clinical preceptor described by subparagraph (A) of this paragraph, regardless of whether the preceptor also is receiving or has received an exemption based on the same period of service.

(e) Discontinuation of Eligibility. In addition to the limitations on eligibility described by §13.465 of this subchapter (relating to Restrictions on Exemptions and Waivers), a person described by subsection (d)(4)(B) of this section is no longer eligible to receive an exemption under this section if the person has:

(1) received a baccalaureate degree; or

(2) previously received exemptions under this section for 10 semesters or summer sessions. For the purpose of this subsection, a summer session that is less than nine weeks in duration is considered one-half of a summer session.

(f) Exemption Amount. The value of an exemption granted under this program is equal to $500 or the student's tuition, whichever is less.

(g) Application. To apply for an exemption under this section, a student shall submit to his or her institution a completed Clinical Preceptor Exemption Application, which the Coordinating Board shall publish on its website.

§ 13.468. Peace Officers Enrolled in Law Enforcement or Criminal Justice Courses Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.3531.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), in this section, the term "undergraduate student" means a person who has not previously been awarded a baccalaureate degree.

(c) Participating Institutions. An institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) shall provide an exemption to an eligible student for tuition and laboratory fees associated with eligible courses in accordance with this section. The exemption does not apply to security deposits for the return or proper care of property loaned to the student.

(d) Eligible Student. To be eligible for an exemption under this section, a student must:

(1) be an undergraduate student enrolled in an eligible criminal justice or law enforcement-related degree or certificate program;

(2) be employed as a peace officer, as defined in Texas Code of Criminal Procedure, §2A.001, by this state or by a political subdivision of this state;

(3) apply for the exemption at least one week before the last day of the institution's regular registration period for that semester;

(4) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration); and

(5) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(e) Eligible Degree or Certificate Programs. Each institution of higher education shall identify criminal justice or law enforcement-related degree or certificate programs offered by the institution and submit a list of the identified programs to the Coordinating Board. The Coordinating Board shall compile and publish a list of all institutions' identified programs on its website.

(f) Eligible Courses.

(1) An exemption provided under this section applies only to courses pertaining to criminal justice or law enforcement-related degree or certificate programs published by the Coordinating Board in accordance with subsection (e) of this section.

(2) An institution shall not apply an exemption to courses that make up the general education core curriculum required for all degrees or to courses that are not criminal justice or law enforcement-related, even if they are included in the criminal justice or law enforcement-related degree or certificate program.

(3) For a given eligible course, not more than 20 percent of the maximum student enrollment designated by the institution may receive an exemption under this section.

(g) Report to Legislature. If the Legislature does not specifically appropriate funds to an institution of higher education in an amount sufficient to pay the institution's costs in complying with this section for a semester, the governing board of the institution shall report to the Senate Finance Committee and the House Appropriations Committee the cost to the institution of complying with this section for that semester.

§ 13.469. Firefighters Enrolled in Fire Science Courses Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.353.

(b) Participating Institutions. An institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) shall provide an exemption to an eligible student for tuition and laboratory fees associated with eligible courses in accordance with this section. The exemption does not apply to security deposits for the return or proper care of property loaned to the student.

(c) Eligible Students. To be eligible for an exemption under this section, a student must:

(1) be enrolled at a participating institution;

(2) be either:

(A) a paid firefighter employed by a political subdivision of the State of Texas; or

(B) a volunteer firefighter who:

(i) is currently, and has been for the past year, an active member of an organized volunteer fire department in this state that participates in the Texas Emergency Services Retirement System or a retirement system established under the Texas Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas Civil Statutes); and

(ii) holds one of the following credentials:

(I) an Accredited Advanced level of certification, or an equivalent successor certification, under the State Firemen's and Fire Marshals' Association of Texas volunteer certification program; or

(II) a Phase V (Firefighter II) certification, or an equivalent successor certification, under the Texas Commission on Fire Protection's voluntary certification program under Texas Government Code, §419.071;

(3) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration); and

(4) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(d) Eligible Degree or Certificate Program. Each institution of higher education shall identify fire science degree or certificate programs offered by the institution and submit a list of the identified programs to the Coordinating Board. The Coordinating Board shall compile and publish a list of all institutions' identified programs on its website.

(e) Eligible Courses.

(1) An exemption provided under this section applies only to courses pertaining to fire science degree or certificate programs published by the Coordinating Board in accordance with subsection (d) of this section.

(2) An institution shall not apply an exemption to courses that make up the general education core curriculum required for all degrees or to courses that are not fire science-related, even if they are included in the fire science degree or certificate program.

(f) Exception. Notwithstanding subsection (c) of this section, an exemption applied under this section does not apply to any amount of tuition the institution:

(1) elects to charge a resident undergraduate student under Texas Education Code, §54.014(a) or (f); or

(2) charges a graduate student in excess of the amount of tuition charged to similarly situated graduate students because the student has a number of semester credit hours of doctoral work in excess of the applicable number provided by Texas Education Code, §61.059(l)(1) or (2).

§ 13.470. Paramedics Enrolled in Emergency Medical Services Courses.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.3532.

(b) Participating Institutions. An institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) shall provide an exemption to an eligible student for tuition and laboratory fees associated with eligible courses in accordance with this section. The exemption does not apply to security deposits for the return or proper care of property loaned to the student.

(c) Eligible Students. To be eligible for an exemption under this section a student must:

(1) be enrolled at a participating institution;

(2) hold an EMT-Paramedic certification or Paramedic license issued by the Texas Department of State Health Services;

(3) be employed as a paramedic by a political subdivision of this state;

(4) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration); and

(5) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(d) Eligible Degree or Certificate Program. Each institution of higher education shall identify emergency medical services degree or certificate programs offered by the institution and submit a list of the identified programs to the Coordinating Board. The Coordinating Board shall compile and publish a list of all institutions' identified programs on its website.

(e) Eligible Courses.

(1) An exemption provided under this section applies only to courses pertaining to emergency medical services degree or certificate programs published by the Coordinating Board in accordance with subsection (d) of this section.

(2) An institution shall not apply an exemption to courses that make up the general education core curriculum required for all degrees or to courses that are not fire science-related, even if they are included in the fire science degree or certificate program.

(f) Exceptions. Notwithstanding subsection (b) of this section, an exemption applied under this section does not apply to any amount of tuition the institution:

(1) elects to charge a resident undergraduate student under Texas Education Code, §54.014(a) or (f); or

(2) charges a graduate student in excess of the amount of tuition charged to similarly situated graduate students because the student has a number of semester credit hours of doctoral work in excess of the applicable number provided by Texas Education Code, §61.059(l)(1) or (2).

(g) Distance Education.

(1) Each semester or term, a participating institution may designate up to three eligible courses offered exclusively via distance education as excluded courses.

(2) Notwithstanding subsection (b) of this section, for excluded courses designated under paragraph (1) of this subsection, a participating institution is not required to offer exemptions to students enrolled in the course in excess of 20 percent of the maximum student enrollment designated by the institution for that course.

§ 13.471. Good Neighbor Program.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.331, Students from Other Nations of the American Hemisphere, more commonly known as the Good Neighbor Program.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Bona Fide Native-born Citizen of an Eligible Country--A person who is a citizen of an eligible country and who was:

(A) Born in that country; or

(B) Born abroad, provided that at least one of the person's parents was a citizen of the eligible country and not permanently residing in a foreign country at the time of birth.

(2) Bona Fide Resident of an Eligible Country--A person who is a citizen of an eligible country, maintains that country as the person's place of home residence, and who intends to return to that country to live immediately after finishing the educational program for which the person is seeking an exemption under this section.

(3) Eligible Country--A politically independent nation, other than Cuba or the United States, located in the Western or American hemisphere.

(c) Eligible Institutions. Institutions of higher education, as defined by §13.1 of this chapter (relating to Definitions) are eligible to participate in the Good Neighbor Program.

(d) Program Officer. Each participating institution shall name the principal international student advisor or another appropriate person to serve as the Good Neighbor Program Officer. The Program Officer shall certify all scholarship applications and activities with respect to the Good Neighbor Program and shall be responsible for all related records and reports.

(e) To be eligible for an exemption under this section, a student must:

(1) be enrolled at a participating institution;

(2) be a bona fide native-born citizen and resident of an eligible country, as the terms are defined in subsection (b) of this section;

(3) have resided in the Western (American) Hemisphere for a period of at least five years;

(4) demonstrate that he or she meets the basic admissions requirements of the nominating institution;

(5) not be a member of the Communist Party;

(6) be recommended for an exemption under this section by the student's institution;

(7) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(8) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(f) Selection Procedures.

(1) Nomination Deadline. Each year, eligible institutions may recommend students to receive exemptions under this program by submitting nominations to the Coordinating Board. Nominations for the upcoming fiscal year must be submitted to the Coordinating Board no later than March 15.

(2) Prioritization. An institution shall assign priority numbers to the students it is nominating for an exemption. The Coordinating Board shall accommodate institutional priorities to the extent allowable under this subsection.

(3) Designated Country. Based on all nominations submitted prior to the deadline, the Coordinating Board will identify a designated country. The designated country will be the Latin American country other than Mexico, as identified by the U.S. Department of State, that received the most nominations for the program for the upcoming fiscal year.

(4) Nomination Review Order. The Coordinating Board will review all nominations assigned as institutions' highest priority students under paragraph (2) of this subsection, then moving to the second highest priority, and so on. Within each priority grouping, the Coordinating Board will review nominations in the order they were submitted to the Coordinating Board.

(5) Allotment Limit. The total number of recipients each year, across all participating institutions, shall not exceed 235. Up to 10 eligible students from each eligible country may be selected, except as provided by paragraphs (7) and (8) of this subsection.

(6) The Coordinating Board will review nominations in the order described by paragraph (4) of this subsection until:

(A) Each eligible country has reached its allotment limit of recipients described by paragraph (5) of this subsection or has no more remaining nominated students; or

(B) 235 total recipients have been selected.

(7) If the review of nominations described by paragraph (6) of this subsection concluded with fewer than 235 total recipients selected, then nominations from the designated country described by paragraph (3) of this subsection will be reviewed in the order in the same review order until:

(A) an additional 35 recipients from the designated country are selected;

(B) the total remaining nominations from the designated country are reviewed; or

(C) 235 total recipients have been selected.

(8) If the review of nominations described by paragraph (7) of this subsection concluded with fewer than 235 total recipients selected, then review of the nominations will continue in the order described by paragraph (4) of this subsection.

(A) In such a case, the first eligible student nominated from each eligible country with remaining nominations will be selected until all eligible countries with remaining nominations have one additional recipient. The process then repeats for an additional student from each eligible country with remaining nominations, and so on.

(B) The process described by subparagraph (A) of this paragraph continues until:

(i) All nominations have been reviewed; or

(ii) 235 total recipients have been selected.

(9) If an institution notifies the Coordinating Board by October 15 of a selected student's failure to use the offered exemption, the Coordinating Board will select the next nomination through the process described in this subsection, prioritizing nominations from the applicable eligible country. Exemptions cancelled after October 15 will not be re-offered.

(10) Under no circumstances shall any special consideration be given to applicants who are related to employees of the Coordinating Board.

(g) Exemption Amount. Subject to §13.465 of this subchapter (relating to Restrictions on Exemptions and Waivers), students selected to receive exemptions through the Good Neighbor Program may be exempted from the payment of tuition for the 12-month period beginning with the fall semester following the students' selection as recipients.

§ 13.472. Educational Aide Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.363.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Educational Aide--A person who has been employed by a public school district in Texas in a teaching capacity working in the classroom directly with the students for at least one year on a full-time basis. It may include substitute teachers who have been employed by a public school district in Texas for 180 or more full days in a teaching capacity working in the classroom directly with students.

(2) Program--The Educational Aide Exemption Program.

(c) Eligible Institutions.

(1) Eligibility. Any institution of higher education, as defined in §13.1 of this chapter (relating to Definitions), is eligible to participate in the Program.

(2) Participation.

(A) Agreement. Each eligible institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner, prior to indicating its intent to participate in the program.

(B) Intent to Participate. Subject to subparagraph (A) of this paragraph, to receive an allocation for the forthcoming fiscal year, an eligible institution must indicate its intent to participate in the program in the applicable year in the manner prescribed and by the deadline established by the Coordinating Board.

(3) A participating institution shall offer an exemption under this section to a student meeting the eligibility requirements established in subsection (e) of this section, except that an institution is not required to offer exemptions beyond those funded through appropriations specifically designated for this purpose. An institution may establish criteria by which applicants are prioritized if appropriated funds are insufficient to offer an exemption to all eligible students for a given term.

(4) A participating institution shall use institutional matching funds to cover at least 10 percent of each recipient's exemption.

(d) Institutional Responsibilities. Institutions participating in the Program shall disburse funds in accordance with §22.2 of this title (relating to Timely Disbursement of Funds), retain records in accordance with §22.4 of this title (relating to Records Retention) and comply with the provisions of §22.9 of this title (relating to Institutional Responsibilities) with respect to the Program.

(e) Eligible Students. To be eligible to receive an exemption under this section, a student must:

(1) Submit a completed application for an exemption to the student's institution;

(2) Be a Resident of Texas, as defined in §22.1 of this title (relating to Definitions);

(3) Have met the definition of Educational Aide established in subsection (b) of this section at some time during the last five years preceding the term or semester for which the student would receive an initial exemption;

(4) Be employed in any capacity by a school district or open-enrollment charter school in Texas during the full term for which the student would receive the exemption;

(5) Show financial need, as defined in §13.460 of this subchapter;

(6) be enrolled at an eligible institution in courses required for teacher certification in one or more subject areas determined by the Commissioner of Education to be experiencing a critical shortage at the public schools of this state;

(7) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions); and

(8) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration).

(f) Notwithstanding subsection (e)(6) of this section, a student who previously received an exemption under this section remain eligible if the student:

(1) is enrolled at an eligible institution in courses required for teacher certification; and

(2) meets the eligibility requirements of subsection (e) of this section other than the requirement in subsection (e)(6) of this section.

(g) Exemption Amount. A student receiving an exemption under this section is exempt from the payment of resident tuition and required fees, other than laboratory and class fees, taken during the relevant term.

(h) Allocations. Allocations are to be determined on an annual basis as follows:

(1) All eligible institutions will be invited annually to participate in the program allocation process, as described by subsection (c)(2)(B) of this section.

(2) The annual appropriation will be divided equally between all participating institutions.

(3) Allocation calculations will be shared with all eligible institutions for comment prior to final posting. Institutions will be given 10 business days, beginning the day of the notice's distribution and excluding state holidays, to confirm their interest in participating in the program.

(i) Exemption from Student Teaching. A person who has not previously received a baccalaureate degree and who receives a baccalaureate degree required for a teaching certificate on the basis of coursework completed while receiving an exemption under this section may not be required to participate in any field experience of internship consisting of student teaching to receive a teaching certificate.

§ 13.473. Dependent Children of Armed Forces Members Deployed on Combat Duty Exemption.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.2031.

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), in this section, the term "dependent child" means a person who is a stepchild, biological child, or adopted child of a person and is claimed as a dependent for federal income tax purposes in the previous tax year or will be claimed as a dependent for federal income tax purposes for the current year.

(c) Participating Institutions. An institution of higher education, as defined by §13.1 of this chapter (relating to Definitions) shall provide an exemption from the payment of tuition to all eligible students enrolled at the institution if sufficient appropriated funds are available to cover the full costs to the institution for the required exemptions. An institution is required to grant an exemption under this section only to the extent appropriated funds are available for that purpose.

(d) Eligible Students. To be eligible for an exemption under this program, a student must:

(1) submit satisfactory evidence to his or her institution that the student is the dependent child of a member of the Armed Forces of the United States who is:

(A) a Resident of Texas, as defined in §22.1 of this title (relating to Definitions) or entitled to pay resident tuition; and

(B) deployed on active duty for the purpose of engaging in a combative military operation outside the United States;

(2) not be in default on a loan made or guaranteed for educational purposes by the State of Texas;

(3) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration); and

(4) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).

(e) Discontinuation of Eligibility. A student may not receive an exemption from the payment of tuition under this section for more than 150 semester credit hours (or equivalent) under any circumstances.

(f) Impact on Admissions. An institution of higher education may not consider the fact that a person is eligible for an exemption under this section in determining whether to admit the person to any degree or certificate program.

(g) Reimbursement of Foregone Tuition.

(1) If notified by the Coordinating Board that appropriated funds are available, a participating institution may apply to the Coordinating Board for reimbursement for the tuition revenues foregone through exemptions offered under this section.

(2) The Coordinating Board will provide reimbursements to institutions that apply, to the extent to which funds are appropriated for this purpose by the Legislature.

(3) If the Coordinating Board determines at any time during a year that the appropriated funds are insufficient to cover the anticipated cost of foregone tuition for exemptions offered during that year, the Coordinating Board may defer the processing of applications for reimbursement received after that date and provide institutions a prorated share of the available funds as of the end of the fiscal year.

§ 13.474. Reciprocal Educational Exchange Program.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.231(d) and (e).

(b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Citizen or Permanent Resident of Another Nation--A citizen or permanent resident of a nation other than the United States who resides in the nation of which he or she is a citizen or permanent resident and who plans to return to that nation to live immediately after finishing his/her program of study in Texas.

(2) Originating Institution--The institution from which a participant is relocating as part of the exchange program.

(3) Participating Nation--A nation other than the United States with institutions which have entered into exchange agreements with one or more institutions of higher education in Texas under the provisions of this subchapter.

(4) Receiving Institution--The institution in which a participant enrolls or studies as part of the program.

(c) Eligible Institutions. To be eligible to participate in the program, an institution must:

(1) designate a Program Officer who will be responsible for all transactions relating to the program; and

(2) be either:

(A) a public or private degree-granting institution of higher education located in a nation other than the United States whose programs have recognition of official validity, or

(B) an institution of higher education, as defined in §13.1 of this chapter (relating to Definitions) in Texas.

(d) Eligible Students. To be eligible to participate in the program, a student must:

(1) have been enrolled for at least one semester at the originating institution;

(2) be either:

(A) a citizen or permanent resident of a participating nation; or

(B) enrolled in an institution of higher education in Texas;

(3) be nominated by his or her originating institution;

(4) meet the admissions requirements and any other restrictive enrollment criteria of the receiving institution;

(5) be enrolled or studying on a full-time basis at the receiving institution; and

(6) have not participated in the program for more than 12 months.

(e) Tuition Rate.

(1) If a reciprocal exchange program requires a tuition payment, the tuition rates paid by participants will be defined by the agreements entered into by the participating institutions and will be either the resident tuition rate at the institution of higher education in Texas or the rate normally charged nationals or residents of other nations by their institutions.

(2) The method of charging and collecting tuition is to be negotiated between the two institutions involved in the exchange. The tuition rate and payment may be any of the following methods:

(A) pay the relevant tuition rate of receiving institution, paid to the receiving institution;

(B) pay the relevant tuition rate of the originating institution, paid to the receiving institution; or

(C) pay the relevant tuition rate of the originating institution, paid to the originating institution.

(3) A former participant no longer participating in the program who continues to be enrolled at the receiving institution shall be expected to pay the tuition rate charged other nonresident students, beginning with the first enrollment period after the participant is no longer participating in the program.

(f) Reciprocity. The number of units of instruction exchanged would ideally be equal in any given year. If balance is not attained in any one year and more students from other nations are participating in the program than are students from Texas, parity is to be established within a five-year period.

(g) Assurances. Each participating institution must maintain records in the appropriate office that include:

(1) proof of each participant's eligibility; and

(2) formally executed exchange agreements with each other exchange partner institution.

(h) Formula Funding. When an exchange takes place under this program, an institution of higher education in Texas may request formula funding for the hours taken by foreign students attending classes in Texas. It may not request formula funding for their students who go abroad under this program.

(i) Reporting.

(1) Each participating institution shall provide an annual prior-year program report to the Coordinating Board on a form provided by, and by a deadline specified by, the Coordinating Board. The report shall include such things as the number of students who have participated in the exchange program and the names and locations of the institutions with which the exchanges have taken place. Each institution is to define, demonstrate, and report the basis on which their student exchanges are reciprocal.

(2) A nonresident student that is charged resident tuition at an institution of higher education in Texas under this section should be reported as having received a waiver.

§ 13.475. Border County Waiver.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.231(b), (c), and (e).

(b) Participating Institutions. An institution shall provide eligible students a waiver under this program if the institution is one of the following:

(1) a general academic teaching institution, as defined in §13.1 of this chapter (relating to Definitions) or a component of the Texas State Technical College system located in a county that borders Mexico;

(2) Texas A&M University - Kingsville;

(3) Texas A&M University - Corpus Christi; or

(4) The University of Texas at San Antonio.

(c) Eligible Students. To be eligible for a waiver under this section, a student must:

(1) be a citizen or permanent resident of Mexico, who resides in, and plans to return to, Mexico immediately after finishing the student's educational program;

(2) meet the admissions requirements and any restrictive enrollment criteria of the participating institution in which the student enrolls; and

(3) show financial need, as defined in §13.460 of this subchapter (relating to Definitions).

(d) Notwithstanding subsections (b) and (c)(2) of this section, a student is eligible to receive a waiver under this section if the student:

(1) is enrolled in either:

(A) lower-division courses at a public junior college, as defined in §13.1 of this chapter, located in a county that borders with a partnership agreement pursuant to Texas Education Code, chapter 51, subchapter N, with a general academic teaching institution in the same county; or

(B) courses that are part of a graduate degree program in public health and are conducted in a county that borders Mexico;

(2) meets the admissions requirements of the institution at which the student is enrolled; and

(3) meets all other eligibility criteria described by subsection (c) of this section.

(e) Tuition Rate. A participating institution shall charge an eligible student enrolled at the institution a tuition rate equal to the resident tuition rate.

(f) There is no limit to the number of eligible students a participating institution may enroll.

§ 13.476. Citizens of Mexico Waiver Pilot Program.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.231(c).

(b) Eligible Institutions. Any general academic teaching institution or public technical institute, as the terms are defined in §13.1 of this chapter (relating to Definitions), except the institutions described by §13.475(d) of this subchapter (relating to Border County Waiver), is eligible to participate in the pilot program.

(c) Eligible Students. To be eligible to participate in the pilot program under this section, a student must:

(1) be a citizen or permanent resident of Mexico, who resides in, and plans to return to, Mexico immediately after finishing the student's educational program;

(2) meet the admission requirements and any restrictive enrollment criteria of the participating institution in which he or she enrolls; and

(3) show financial need, as defined in §13.460 of this subchapter (relating to Definitions).

(d) Limit. Each year, a participating institution may offer waivers to two eligible students per thousand students of the institution's overall enrollment. Institutions with fewer than 5,000 students may offer up to ten waivers per year to eligible students.

(e) Tuition Rate. Subject to the limits described in subsection (d) of this section, a participating institution shall charge an eligible student enrolled at the institution a tuition rate equal to the resident tuition rate.

§ 13.477. Texas National Student Exchange Program Waiver.

(a) Authority. Authority for this section is provided in the Texas Education Code, §51.930.

(b) Eligible Institution. An institution may offer a waiver under this section to an eligible student if the institution is:

(1) a general academic teaching institution, as defined by §13.1 of this chapter (relating to Definitions); and

(2) under contract with the student exchange program administered by the National Student Exchange.

(c) Eligible Students. A student is eligible to receive a wavier under this section if the student:

(1) is not a Resident of Texas, as defined in §13.460 of this subchapter (relating to Definitions);

(2) is enrolled as an undergraduate student at an eligible institution as part of the student exchange program administered by the National Student Exchange; and

(3) meets applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration).

(d) Limitation. A student may only receive a waiver under this section for one year.

(e) Tuition Rate. A student receiving a waiver under this section shall pay the resident tuition rate.

§ 13.478. Competitive Scholarships Waiver.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.213.

(b) Eligible Institutions.

(1) Any institution of higher education, as defined in §13.1 of this chapter (relating to Definitions), may offer a waiver under the provisions of this section.

(2) A waiver received by a student under this section applies only to tuition paid to the institution that awarded the enabling scholarship unless the student is simultaneously enrolled in two or more institutions of higher education under a program offered jointly by the institutions under a partnership agreement, in which case the student may also be offered a waiver at the other institution(s).

(3) The total number of persons at an eligible institution receiving a waiver under this section in a given semester shall not exceed 5 percent of the total number of students enrolled at the institution in the same semester of the prior year.

(c) Eligible Students. A student enrolled at an eligible institution may be offered a waiver under this section if the student:

(1) is not a Resident of Texas, as defined by §13.460 of this subchapter (relating to Definitions);

(2) received an eligible competitive scholarship, as described in subsection (d) of this section; and

(3) meets applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration).

(d) Eligible Competitive Scholarship. An otherwise eligible student may be offered a waiver under this section if the student receives a scholarship:

(1) of at least $1,000 for the 12-month academic year, regardless of how the scholarship funds are disbursed;

(2) awarded by a scholarship committee established and authorized by the institution to grant scholarships using institutional funds that permit the waiver authorized in this section;

(3) awarded according to criteria published and available to the public in advance of any application deadline;

(4) offered to both resident and nonresident students.

(e) An otherwise eligible student may be offered a waiver under this section for any semester or term in an academic year in which the student receives an eligible competitive scholarship.

(f) Tuition Rate. A student receiving a waiver under this section shall pay the resident tuition rate.

(g) A student whose eligible competitive scholarship is terminated prior to the end of a semester or term for which it was awarded such that the student no longer meets the criteria in subsection (c) of this section shall pay nonresident tuition for any semester following the termination of the scholarship.

§ 13.479. Economic Development and Diversification Waiver.

(a) Authority. Authority for this section is provided in the Texas Education Code, §54.222.

(b) Eligible Institutions. An institution of higher education, as defined by §13.1 of this chapter (relating to Definitions) shall offer a waiver to eligible students under the provisions of this section.

(c) Eligible Students. A student is eligible for a waiver under this section if the student:

(1) is not a Resident of Texas, as defined by §13.460 of this subchapter (relating to Definitions);

(2) meets applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(3) has relocated to Texas because of the student's or an eligible family member's employment by a business or organization that became established in this state as part of a state economic development and diversification program authorized by law not earlier than five years prior to the student's enrollment date; and

(4) files a letter of intent with the student's institution declaring the student's intention to establish residency in Texas.

(d) Eligible Family Member. A person is an eligible family member for the purposes of paragraph (3) of this subsection if the person:

(1) is 18 years of age or older;

(2) resides in the student's household; and

(3) is either:

(A) the student's parent or legal guardian; or

(B) the student's spouse.

(e) The Coordinating Board shall publish on its website:

(1) A list of qualifying businesses or organizations, by which employment of the student or an eligible family member of the student may qualify the student for a waiver under this section; and

(2) The date associated with each business listed under paragraph (1) of this subsection by which an otherwise eligible student must be enrolled to receive a waiver under this section.

(f) Tuition Rate. A student receiving a waiver under this section shall pay the resident tuition rate.

(1) $30,000; or

(b) Notwithstanding subsection (a) of this section, a student may not receive a scholarship under this subchapter in an amount that exceeds the cost of attendance at the student's institution.

(b) State senators or state representatives shall make appointments under subsection (a) of this section no later than September 30 of each year.

(c) If the Coordinating Board has not received all such appointments by the September 30 deadline, the Coordinating Board will notify the lieutenant governor and the speaker of the house of representatives and request additional appointments.

(B) Completed an ROTC program or another undergraduate officer commissioning program while the student was enrolled as an undergraduate; or

(C) Has been accepted into the officer commissioning program for the Texas State Guard, as defined by Texas Government Code, §437.001;

(b) In addition to the requirements described by subsection (a) of this section, to receive an initial scholarship, the student must meet the following academic criteria.

(1) For an undergraduate student receiving the scholarship in the student's first year of study at the institution, the student must:

(A) Have a high school grade point average of 3.0 or higher; or

(B) Meet the college readiness standard established by §4.57 of this title (relating to Texas Success Initiative Assessment College Readiness Standards) or meet the standard for exemption under §4.54 of this title (relating to Exemption).

(2) For an undergraduate student receiving the scholarship in a year after the student's first year of study at the institution, the student must:

(A) Have a grade point average of 3.0 or higher on the student's postsecondary coursework;

(B) Have a high school grade point average of 3.0 or higher; or

(C) Meet the college readiness standard established by §4.57 of this title (relating to Texas Success Initiative Assessment College Readiness Standards) or meet the standard for exemption under §4.54 of this title (relating to Exemption).

(C) Submit documentation that the student has been accepted into the officer commissioning program for the Texas State Guard, as defined by Texas Government Code, §437.001.

(b) For the purposes of subsection (a)(3)(B) of this section, a recipient is considered to have fulfilled a contract to serve after four years of service or upon honorable discharge.

(g) Notwithstanding subsection (a) of this section, a scholarship does not convert to a loan if the recipient is unable to meet the obligations of the agreement solely as a result of:

(1) a physical inability, subject to appropriate verification to the satisfaction of the Coordinating Board; or

(2) an exceptional circumstance beyond the recipient's control, as determined by the Commissioner.

(h) Scholarships that convert to loans under this section are subject to the applicable requirements of chapter 24 of this title (relating to Student Loan Servicing).

(8) Public school--A school in a Texas school district or a public charter school authorized to operate under Texas Education Code, chapter 12.

(I) a licensed master social worker, as defined by §505.002, Texas Occupations Code;

(J) a licensed professional counselor associate, as indicated by holding a licensed professional counselor associate license issued by the Texas State Board of Examiners of Professional Counselors;

(K) a licensed marriage and family therapist associate, as defined by §502.002, Texas Occupations Code; or

(L) a school counselor certified under Texas Education Code, chapter 21, subchapter B, who has earned at least a master's degree relating to counseling from any public or accredited private institution of higher education; and

(D) students enrolled in a public school.

(b) Notwithstanding the number of consecutive service periods that qualify an applicant for eligibility described in subsection (a)(4) of this section, an otherwise eligible applicant who receives repayment assistance under this subchapter for three consecutive service periods is eligible to receive repayment assistance for a fourth and fifth consecutive service period in an amount described by §23.100(f) of this subchapter (relating to Amount of Repayment Assistance) and subject to the limitations established in §23.101 of this subchapter (relating to Limitations). An applicant who establishes eligibility under this subsection is not considered a renewal applicant for the purposes of §23.97 of this subchapter (relating to Applicant Ranking Priorities).

(5) applications from providers in public schools;

(d) One-Time Increase for Fluency in Language of Need.

(1) Each biennium, the Coordinating Board shall publish for each profession described by §23.96(a)(3) of this subchapter (relating to Applicant Eligibility) a list of languages other than English for which there is a critical need for fluent providers in Texas.

(2) Subject to the limitations established in §23.101 of this subchapter, a provider whose employer certifies that the provider is fluent in a language listed by the Coordinating Board under paragraph (1) of this subsection shall receive an increase of $5,000 to the amount of repayment assistance described by subsection (a) of this section.

(3) A provider may receive an increased amount of repayment assistance under this subsection only once. The increase will be applied to assistance received for the first service period during which the provider meets the criteria described in paragraph (2) of this subsection.

(4) This subsection applies only to providers who first establish eligibility for the program on or after September 1, 2025.

(e) One-Time Increase for Service in Less Populous Counties.

(1) Subject to the limitations established in §23.101 of this subchapter, a provider who practices in a county with a population of 150,000 or fewer persons shall receive an increase of $10,000 to the amount of repayment assistance described by subsection (a) of this section.

(2) A provider may receive an increased amount of repayment assistance under this subsection only once. The increase will be applied to assistance received for the first service period during which the provider meets the criteria described in paragraph (1) of this subsection.

(3) This subsection applies only to providers who first establish eligibility for the program on or after September 1, 2025.

(f) Subject to the limitations established in §23.101 of this subchapter, a provider who first established eligibility for the program on or after September 1, 2025, and who establishes eligibility under §23.97(b) of this subchapter (relating to Applicant Eligibility) may receive up to $15,000 per service period for a maximum of two consecutive service periods.

(iii) a licensed master social worker;

(iv) a licensed professional counselor associate;

(v) a licensed marriage and family therapist associate; or

(vi) a certified school counselor described by §23.96(a)(3)(L) of this subchapter (relating to Applicant Eligibility); and

(E) $50,000, for a licensed chemical dependency counselor who became licensed within the same 12-month period as receiving the counselor's most recent degree applicable to the profession's licensing requirements; and

(B) the applicable maximum amount for the provider listed in paragraph (3) of this section, plus 10 percent.

§ 23.103. Provisions Specific to Mental Health Professionals Who Initially Established Eligibility for the Program On or After September 1, 2023 and Before September 1, 2025.

(a) Notwithstanding §23.97 of this subchapter (relating to Applicant Eligibility), to be eligible to receive loan repayment assistance, an applicant who first established eligibility for the program on or after September 1, 2023, but before September 1, 2025, must:

(1) submit a completed application to the Coordinating Board by the established deadline, which will be posted on the program web page;

(2) be a U.S. citizen or a Legal Permanent Resident and have no license restrictions;

(3) currently be employed as one of the following eligible practice specialties:

(A) a psychiatrist;

(B) a psychologist, as defined by §501.002, Texas Occupations Code;

(C) a licensed professional counselor, as defined by §503.002, Texas Occupations Code;

(D) an advanced practice registered nurse, as defined by §301.152, Texas Occupations Code, who holds a nationally recognized board certification in psychiatric or mental health nursing;

(E) a licensed clinical social worker, as defined by §505.002, Texas Occupations Code;

(F) a licensed specialist in school psychology, as defined by §501.002, Texas Occupations Code;

(G) a licensed chemical dependency counselor, as defined by §504.001, Texas Occupations Code; or

(H) a licensed marriage and family therapist, as defined by §502.002, Texas Occupations Code; and

(4) have completed one, two, or three consecutive service periods:

(A) in an MHPSA, providing direct patient care to:

(i) Medicaid enrollees;

(ii) CHIP enrollees, if the practice serves children;

(iii) persons in a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or its successor; or

(iv) persons in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice or its successor;

(B) in a state hospital, providing mental health services to patients; or

(C) providing mental health services to individuals receiving community-based mental health services from a local mental health authority, as defined in Texas Health and Safety Code, §531.002.

(b) Notwithstanding §23.97 of this subchapter or subsection (a)(4) of this section, to be eligible to receive loan repayment assistance as a specialist in school psychology as outlined under subsection (a)(3)(F) of this section, an applicant who first established eligibility for the program on or after September 1, 2023, but before September 1, 2025, must:

(1) have completed one, two, or three consecutive service periods of employment in:

(A) a school district which is located partially or completely in a MHPSA;

(B) an open-enrollment charter school located in a MHPSA; or

(C) a Texas public school that receives federal funding under Title I, Elementary and Secondary Education Act of 1965 (20 U.S.C. §6301 et seq.); and

(2) have provided mental health services to students enrolled in that district or school during that time of employment.

(c) Limitations. Notwithstanding §23.101(3) and (4) of this subchapter (relating to Limitations), and in addition to the limitations associated with eligible education loans established in §23.2 of this chapter (relating to Eligible Lender and Eligible Education Loan), the following limitations apply to providers who first established eligibility for the program on or after September 1, 2023, but before September 1, 2025.

(1) The total amount of state appropriated repayment assistance received by a provider under this subchapter may not exceed:

(A) $160,000, for a psychiatrist;

(B) $80,000, for:

(i) a psychologist;

(ii) a licensed clinical social worker, if the social worker has received a doctoral degree related to social work;

(iii) a licensed professional counselor, if the counselor has received a doctoral degree related to counseling; or

(iv) a licensed marriage and family therapist, if the marriage and family therapist had received a doctoral degree related to marriage and family therapy;

(C) $60,000, for an advanced practice registered nurse;

(D) $40,000, for a licensed specialist in school psychology, a licensed clinical social worker, a licensed marriage and family therapist, or a licensed professional counselor who has not received a doctoral degree related to social work or counseling; and

(E) $10,000, for assistance received by a licensed chemical dependency counselor, if the chemical dependency counselor has received an associate degree related to chemical dependency counseling or behavioral science.

(2) A provider's loan repayment assistance amount may not exceed the unpaid principal and interest owed on one or more eligible education loans, as described in §23.2 of this chapter (relating to Eligible Lender and Eligible Education Loan).

§ 24.1. Definitions.

The following words and terms, when used in chapter 24, shall have the following meanings, unless otherwise defined in a particular subchapter:

(1) Alternative Educator Certification Program--An approved educator preparation program, delivered by entities approved by the State Board for Educator Certification under the provisions of part 7, chapter 228 of this title (relating to Requirements for Educator Preparation Programs), specifically designed as an alternative to a traditional undergraduate certification program, for individuals already holding at least a baccalaureate degree.

(2) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.

(3) Borrower--An individual who signs a student loan promissory note and thereby assumes liability for the debt and all fees associated with the note and who uses the proceeds of the loan to finance the individual's postsecondary education.

(4) Commissioner--The Texas Commissioner of Higher Education.

(5) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(6) Cosigner--An individual who signs a student loan promissory note and thereby assumes liability for the debt and all fees and expenses associated with the note but who is not a direct beneficiary of the proceeds of the loan.

(7) Cost of Attendance--An institution's estimate of the expenses incurred by a typical financial aid recipient in attending a particular institution of higher education. It includes direct educational costs (tuition and fees) as well as indirect costs (room and board, books and supplies, transportation, personal expenses, and other allowable costs for financial aid purposes).

(8) Degree or Certificate Program--A program of study leading to a baccalaureate degree, associate degree, or certificate.

(9) Favorable Credit Report Evaluation--A determination made by the Coordinating Board regarding a prospective borrower or cosigner's creditworthiness. For the purposes of this chapter, a borrower or cosigner is considered to have a favorable credit report evaluation if the person:

(A) Has an Experian VantageScore of 650 or higher;

(B) Does not have public records that demonstrate credit concerns such as tax liens or bankruptcy proceedings;

(C) Has a minimum of four credit trade lines, excluding student loans or authorized user accounts; and

(D) Has not defaulted on any federal, state, or private education loans.

(10) Fund--The Texas Opportunity Plan Fund as created by the Constitution of the State of Texas, Article III, 50b; the Student Loan Revenue Bond Fund authorized in the Texas Education Code, chapter 56, subchapter H; and/or the Student Loan Auxiliary Fund, authorized in the Texas Education Code, chapter 52, subchapter F.

(11) Half-Time--For undergraduates, enrollment or expected enrollment for the equivalent of at least six but fewer than nine semester credit hours per regular semester. For graduate students, enrollment or expected enrollment for the equivalent of 50 percent of the normal full-time course load of the student's program of study as defined by the institution.

(12) Institution of Higher Education--As defined in Texas Education Code, §61.003.

(13) Insufficient Resources to Finance Education--A requirement for a student to be eligible for certain loan programs. For the purposes of this chapter, a student is considered to have insufficient resources to finance his or her education if the student's cost of attendance is greater than the total amount of financial aid offered to the student. The amount of federal Direct Loans for which the student is eligible must be included in the calculation of the financial aid offered, regardless of whether the student receives the loans.

(14) Manageable Debt--An undergraduate student's level of aggregated student loan debt from all sources (including federal, state, and private student loans) such that the student's estimated monthly payment (for all loans) five years after graduation is less than 10 percent of the student's projected income, based on the student's course of study. See Figure 1 for more information.

Figure: 19 TAC §24.1(14) (.pdf)

(15) Private or Independent Institution of Higher Education--As defined in Texas Education Code, §61.003.

(16) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Coordinating Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including the determination of student eligibility, selection of recipients, maintenance of all records, and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the institution's chief executive officer, the director of student financial aid shall serve as Program Officer.

(17) Repayment Period--The length of time during which a borrower is expected to fully repay the borrower's loan(s). The repayment period is used to determine the number of payments required to repay the loan(s) and therefore the borrower's minimum monthly payment.

(18) Student Loan--A loan incurred by a student to assist in covering the student's cost of education.

(19) Student Loan Debt--The outstanding balance of principal, interest, and fees associated with an individual's education or student loans.

(20) Semester Credit Hour--A unit of measure of instruction, represented in intended learning outcomes and verified by evidence of student achievement, that reasonably approximates one hour of classroom instruction or direct faculty instruction and a minimum of two hours out of class student work for each week over a 15-week period in a semester system or the equivalent amount of work over a different amount of time. An institution is responsible for determining the appropriate number of semester credit hours awarded for its programs in accordance with Federal definitions, requirements of the institution's accreditor, and commonly accepted practices in higher education.

§ 24.2. Delegation of Powers and Duties.

The Board delegates to the Commissioner the powers, duties, and functions authorized by Texas Education Code, chapter 52, except those relating to the sale of bonds and the letting of contracts for insurance.

§ 24.3. Loan Disbursement to Students.

(a) Except as provided by subsection (c) of this section, disbursements of loans under this subchapter should be made in accordance with §22.2 of this title (relating to Timely Disbursement of Funds).

(b) No disbursement shall be made to any student until the student and cosigner, if applicable, have executed a promissory note payable to the program for the full amount of any loan plus interest and other authorized fees.

(c) Late Disbursements.

(1) An eligible student may receive a loan disbursement under this program after the end of the student's period of enrollment if:

(A) The student applied for a loan, and the institution certified the loan, prior to the end of the student's period of enrollment for which the loan funds are being borrowed; and

(B) The loan would be used only to pay the student's outstanding account balance at the institution certifying the loan for the period of enrollment covered by the certified loan.

(2) A loan may not disbursed more than 180 days after the end of the student's period of enrollment.

(3) Loans that are disbursed after the end of the student's period of enrollment must be used to pay the student's outstanding balance from his or her period of enrollment at the institution.

(4) Documentation must be retained by the institution proving the loan disbursed after the end of the student's period of enrollment was used to make a payment against an outstanding balance at the institution from the relevant period of enrollment.

(5) Under no circumstances are funds from a late disbursed loan to be released to the student. The institution shall return any funds in excess of the outstanding balance described by paragraph (3) of this subsection to the Coordinating Board no later than six business days after the receipt of funds.

(d) Applicability. The provisions of this section do not apply to the Texas Armed Services Scholarship Program, as described in chapter 22, subchapter I, of this title (relating to Texas Armed Services Scholarship Program). The timely disbursement of funds for that program is governed by §22.2 of this title (relating to Timely Disbursement of Funds).

§ 24.4. Appropriation of Funds from Former B-On-Time Student Loan Account.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings:

(1) At-Risk Student--An undergraduate student who has previously received a grant under the federal Pell Grant program, met the Expected Family Contribution (EFC) criterion for a grant under that program, or whose total score on the SAT or the ACT, excluding the optional essay test, is less than the national mean of students' scores on the applicable test.

(2) Eligible Institution--A general academic teaching institution described by Texas Education Code, §56.451(2)(A), or a medical and dental unit described by Texas Education Code §56.451(2)(B), as those paragraphs existed immediately before September 1, 2015.

(3) Total Disbursements--The total amount of tuition set-aside funds disbursed by an eligible institution to students for the B-On-Time Loan Program during Fiscal Years 2007 through 2015.

(4) Total Set-Asides--The total amount of tuition funds set aside by an eligible institution for the B-On-Time Loan Program during Fiscal Years 2007 through 2015.

(5) Unused Set-Asides--The amount of funds remaining after subtracting an eligible institution's total disbursements from its total set-asides. If an eligible institution's total disbursements are greater than its total set-asides, the institution's unused set-asides are considered to be zero.

(b) Allocation. After the abolition of the Texas B-On-Time Student Loan Account, the Coordinating Board may allocate any remaining money in the account to eligible institutions. Each eligible institution's proportion of the allocation shall be its unused set-asides divided by the sum of all eligible institutions' unused set-asides.

(c) Verification of Data. Allocation calculations will be shared with all eligible institutions for comment and verification prior to final posting, and the institutions will be given ten (10) working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the allocation report accurately reflects the B-On-Time disbursements for Fiscal Years 2007 through 2015 or to notify the Coordinating Board in writing of any inaccuracies.

(d) An eligible institution that receives an appropriation of money under this section may use the money only to support efforts to increase the number of at-risk students who graduate from the institution or the rate at which at-risk students graduate from the institution.

(e) Reporting. An eligible institution that receives an appropriation of money under this section shall provide the Coordinating Board with a report documenting the amount of its expenditures from funding received under this section and its adherence to subsection (d) of this section in a manner provided by the Commissioner.

§ 24.10. Authority and Purpose.

(a) Authority. Unless otherwise noted, authority for this subchapter is provided in the Texas Education Code, chapter 52, subchapter C.

(b) Purpose. This subchapter establishes consistent rules relating to the servicing of education loans originated by the Coordinating Board or conditional grants that have been converted to education loans, as authorized by law, including programs for which no new loans are offered.

§ 24.11. Applicability.

(a) Unless otherwise specified, the provisions of this subchapter apply to any non-federal student loan serviced by the Coordinating Board.

(b) To the extent that there may be a conflict between a provision of this subchapter and a provision in an existing agreement with a borrower, the provisions of this subchapter will control with respect to procedural and administrative issues, and the provisions of the existing agreement will control as to any issue that implicates a borrower's substantive legal rights.

(c) The subchapter also applies to state loan programs serviced by the Coordinating Board but for which no new loans are offered, including the Teach for Texas Conditional Grant Program and Alternative Certification Conditional Grant Program.

§ 24.12. Repayment of Loans.

(a) Grace Period. The repayment period for a loan authorized under this chapter shall begin six months after:

(1) the date on which the student ceases to be enrolled at least half-time at an eligible institution, for borrowers enrolled in credential programs measured in semester credit hours;

(2) the anticipated graduation date certified by the institution of higher education for borrowers enrolled in programs that are not measured in semester credit hours; or

(3) for Texas Armed Services Scholarships converted to loans, the date on which a scholarship is converted into a loan, as described in §22.170 of this title (relating to Conversion of the Scholarship to a Loan).

(b) Prepayment. Any loans subject to this subchapter may be prepaid without penalty. Payments made before the repayment period begins do not prematurely activate the repayment period.

(c) Late Charges. The Coordinating Board may assess a late charge, not to exceed the lesser of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), if the past due amount is not received within 20 days of the scheduled due date.

(d) Application of Payments. Subject to 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.

(e) To the extent permitted by law, the Coordinating Board may offer a variety of repayment plans to applicable borrowers.

(f) The repayment period for Teach for Texas Conditional Grant Program and Alternative Certification Conditional Grant Program (programs for which no new loans are offered but are still serviced by the Coordinating Board) may not exceed 10 years.

§ 24.13. Interest Rate Adjustment for Repayment via Auto-Debit or Automated Clearing House (ACH).

The Coordinating Board may adjust the interest rate for a loan to be one-quarter percentage point lower than the interest rate set by the Commissioner for the loan's program if the adjusted interest rate is conditioned upon the borrower enrolling in automated payments via auto-debit, Automated Clearing House (ACH), or similar automated funds transfer processes for scheduled repayment of the loan.

§ 24.14. Forbearance.

(a) In this section, "forbearance" means discretionary permission from the Coordinating Board that allows:

(1) a borrower to postpone payments temporarily;

(2) an extension of time for making payments; or

(3) a temporary reduction in the payment amount from the amount that was previously scheduled.

(b) Upon receiving a written or verbal request stating the circumstances that merit such consideration, the Coordinating Board may grant periods of forbearance on any account held by the Coordinating Board for:

(1) unusual financial hardship;

(2) enrollment at least half-time in a postsecondary institution that is eligible to receive federal student aid; or

(3) full-time, active duty service in the armed services of the United States or state military forces, as defined in Texas Government Code, §431.001.

(c) The Coordinating Board may request supplemental documentation as needed regarding the request for forbearance.

(d) Interest will continue to accrue on a borrower's loans during periods of forbearance. The Coordinating Board will recalculate the borrower's minimum monthly payment upon conclusion of a period of forbearance to reflect the accrued interest.

(e) An authorized forbearance under this section extends the repayment period of the borrower's applicable loan(s), to the extent authorized by law.

§ 24.15. Deceased or Disabled Borrowers or Cosigners.

(a) Verification of Death or Disability. The final verification of death or determination of permanent and total disability of a borrower or cosigner shall be made by the Coordinating Board in a manner consistent with the Federal Direct Loan Program.

(b) Discharge of Borrower Liability. Upon final verification of the death or determination of permanent and total disability of a borrower, all loans originated by the Coordinating Board shall be discharged unless there is a judgement against the borrower.

(c) Discharge of Cosigner Liability.

(1) Upon final verification of the death or determination of permanent and total disability of a borrower, the Coordinating Board shall release the liability of the cosigner and advise the Office of Attorney General of such if there is a judgment against the cosigner.

(2) Upon final verification of the death or determination of permanent and total disability of a cosigner, the Coordinating Board shall release the liability of the cosigner and notify the Office of Attorney General of such if there is a judgment against the cosigner.

(d) A borrower or cosigner who provides documentation of a 100-percent disability rating from the United States Department of Veterans Affairs is considered to have a total and permanent disability for the purposes of this section.

§ 24.16. Enforcement of Collection.

(a) When any borrower or cosigner fails or refuses to make as many as six monthly payments due in accordance with an executed promissory note for a student loan originated by the Coordinating Board, the full amount of remaining principal, accrued interest, and other charges shall become due and payable immediately.

(b) When any borrower or cosigner fails or refuses to make as many as six payments due in accordance with an executed note for a student loan originated by the Coordinating Board, the loan will be considered in default, and the Coordinating Board must report this information to the Office of Attorney General, which then may file suit for the outstanding balance.

(c) Collection Charges. In the case of accounts with multiple payments due, the Coordinating Board may authorize the assessment of charges necessary to collect the loan which may include court costs fees, attorney fees, skip-trace fees, and long-distance telephone charges.

(d) Cosigner Responsibilities. Loan cosigners are guarantors of payment and not of collection; it is not necessary for the Coordinating Board to demonstrate that the borrower is insolvent before it may pursue collection against the cosigner.

(e) For the purposes of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

§ 24.17. Health Education Loan Program.

(a) Definitions. In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) HEAL--Health Education Assistance Loan Program authorized by the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(2) HELP or Program--The Health Education Loan Program.

(b) Repayment Period. All HELP loans shall be repaid in accordance with the statutes and regulations governing the HEAL Program.

(c) Minimum Repayment Amount. The Coordinating Board shall provide a repayment schedule in which all of the HELP notes extended by the Board to a borrower are treated as an account, and the repayment amount shall be calculated to repay the account over the maximum authorized period. The minimum annual repayment shall not be less than the amount that would have been provided by 42 U.S.C.S. §292(d), if the loan had been extended by the HEAL program.

(d) Deferments. The Coordinating Board shall grant deferments of loan repayment for HELP loans in the manner and under the circumstances provided for the HEAL loans in the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y. Authorized deferments for HEAL and HELP loans shall not extend the maximum repayment period.

(e) Deceased or Disabled Borrowers or Cosigners. Notwithstanding §24.15 of this subchapter (relating to Deceased or Disabled Borrowers or Cosigners), the Coordinating Board shall make the final verification of death and determination of permanent and total disability of a borrower in accordance with the governing provisions of the HEAL program.

§ 24.18. Texas B-On-Time Loan Program.

(a) Authority. Authority for this section is provided in the Texas Education Code, §56.0092.

(b) Purpose. The provisions of this section provide for the servicing and forgiveness of loans originated by the Coordinating Board through the Texas B-On-Time Loan Program.

(c) Definitions. In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Degree in Architecture--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 04.0201 of the Texas CIP Codes.

(2) Degree in Engineering--The completion credential awarded to a student who has completed satisfactorily the curriculum that the Board has approved as a baccalaureate degree program identified as belonging to Category 14 of the Texas CIP Codes.

(3) Texas CIP Codes--Classification codes for degree programs, agreed upon by institutions and approved by the Board, based on curricular content belonging to categories within the federal Classification of Instructional Programs (CIP) published by the National Center for Educational Statistics. Texas CIP Codes are available at http://www.txhighereddata.org/Interactive/CIP/.

(d) Forgiveness of Loans. A Texas B-On-Time loan shall be forgiven, upon request of the student, if the student was awarded a baccalaureate degree from an eligible institution, and the student either:

(1) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, and received:

(A) a baccalaureate degree within four calendar years after the date the student initially enrolled in an eligible institution; or

(B) a baccalaureate degree within five calendar years after the date the student initially enrolled in an eligible institution if the institution has reported or will report that the student graduated with a degree in architecture, engineering, or any other program that the institution certifies to the Board is a program that requires more than four years to complete; or

(2) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, with a total number of course credit hours earned, including transfer credit hours and excluding hours earned exclusively by examination, dual credit course hours, and hours earned for developmental coursework that an institution required the student to take under the former provisions of Texas Education Code, §51.3062 (relating to Success Initiative), or under the former provisions of Texas Education Code, §51.306 (relating to Texas Academic Skills Program), that is not more than six hours more than the number of credit hours required to complete a baccalaureate degree.

(e) Loan Interest. There shall be no interest charged for a Texas B-On-Time Loan unless a judgment is obtained against the borrower for default in payment. If a judgment should be taken, the interest rate shall be the amount specified in §304.003 of the Texas Finance Code, (relating to Judgment Interest Rate: Interest Rate or Time Price Differential Not in Contract).

(f) Deferment. An education deferment is available to any borrower whose account is not in default and who provides the Coordinating Board with documentation of enrollment for at least a half-time course load.

(g) Repayment Period. All loans extended under this program to any borrower shall be placed by the Coordinating Board into an "account," with the full amount of principal and any fees and costs that accrue over the life of the loans to be repaid in monthly installments which shall be calculated to repay the account over a period of not more than 15 years from the beginning of the repayment period. In no case will the minimum annual repayment on the account be less than $900.

§ 24.30. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §52.335.

(b) Purpose. The purpose of the annual student loan debt disclosure is to provide students with timely information regarding their student loan debt so they can make informed decisions about financing their education.

§ 24.31. Required Disclosure.

(a) Each institution of higher education, private or independent institution of higher education, or regional education service center described by §24.42(a)(3) of this chapter (relating to Eligible Institutions) participating in a program under this chapter that enrolls one or more students receiving state financial aid administered by the Coordinating Board shall provide estimates to each enrolled student described by subsection (b) of this section regarding his or her student loan obligations. The estimates shall:

(1) be provided at least annually;

(2) be sent electronically in a manner that complies with the Family Educational Rights and Privacy Act (20 U.S.C. §1232g; 34 CFR Part 99) and the participating higher educational institution's privacy standards; and

(3) include the required elements described in §24.32 of this subchapter (relating to Disclosure Elements).

(b) An institution shall make a disclosure to any student enrolled at the institution:

(1) who has a balance on one or more student loans; and

(2) whose debt records are received by the institution.

(c) An institution does not incur liability for any representation made in a disclosure under this subchapter.

§ 24.32. Disclosure Elements.

(a) A disclosure made under this subchapter shall include estimates of:

(1) the unpaid amount of federal and state student loans incurred by the student, with each type of loan identified;

(2) the total payoff amount (or a range of that amount), including principal and interest, of the loans described by paragraph (1) of this subsection, based, at a minimum, on a 10-year repayment plan; and

(3) the monthly repayment amount that a student may incur for the repayment of the loans described by paragraph (1) of this subsection, based, at a minimum, on a 10-year repayment plan.

(b) Disclosures shall include student loan debt information that the participating higher educational institution receives or otherwise obtains from the United States Department of Education's central database for student aid, currently known as the National Student Loan Data System, which is shared with institutions through the Institutional Student Information Record (ISIR), as well as information that the institution may reasonably collect from its own records.

(c) The electronic communication of the disclosure must explain the following:

(1) that the disclosure is not a complete and official record of the student's unpaid student loan debt;

(2) why the disclosure may not be complete or accurate, including an explanation that for a transfer student, the institution's estimates regarding state loans reflect only state loans incurred by the student for attendance at the current institution, and not prior institutions; and

(3) that the institution's estimates are general in nature and are not intended as a guarantee or promise.

§ 24.40. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, chapter 52, subchapter C.

(b) Purpose. This subchapter establishes rules relating to the administration of the College Access Loan Program. The program provides fixed-interest loans to improve access to higher education for eligible students who have insufficient resources to finance their education.

§ 24.41. Definitions.

In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the terms "CAL" or "Program" mean the College Access Loan Program.

§ 24.42. Eligible Institutions.

(a) An institution is eligible to participate in the Program if it is:

(1) an institution of higher education, as defined in §24.1 of this chapter (relating to Definitions);

(2) a private or independent institution of higher education, as defined in §24.1 of this chapter; or

(3) a regional education service center established and operated by the Commissioner of Education under Texas Education Code, chapter 8, or another entity that offers an alternative educator certification program, as defined in §24.1 of this chapter.

(b) Each participating institution shall designate a Program Officer who will act as the Coordinating Board's on-campus agent. This officer shall certify all institutional transactions and activities with regard to the Fund, as defined in §24.1 of this chapter, and shall be responsible for all records and reports reflecting the transactions with respect to the Fund. The Program Officer may authorize other student financial aid officials at the institution to certify College Access Loan Program applications.

(c) Participating institutions shall promptly report borrower changes in enrollment status to the Coordinating Board directly or to the National Student Clearinghouse.

§ 24.43. Eligible Students.

Subject to the requirements in §24.45 of this subchapter (relating to Loan Amount and Interest Rate), the Coordinating Board may authorize, or cause to be authorized, a College Access Loan to a student at any eligible institution which certifies that the student meets program qualifications, if the student:

(1) is a Resident of Texas, as defined in §22.1 of this title (relating to Definitions);

(2) has been accepted for or is currently enrolled at least half-time at a participating institution in:

(A) a degree or certificate program, as defined in §24.1 of this chapter (relating to Definitions); or

(B) an approved alternative educator certification program, as defined in §24.41 of this subchapter (relating to Definitions);

(3) has insufficient resources to finance his or her education, as defined in §24.1 of this chapter;

(4) meets applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(5) has provided the name and contact information for two references who live at separate addresses and are expected to know the student's current address at all times throughout the life of the loan;

(6) is making satisfactory academic progress, as determined by the institution, toward the student's educational goals; and

(7) has received a favorable credit report evaluation, as defined in §24.1 of this chapter, or has obtained the signature of a qualified cosigner who has received a favorable credit report evaluation.

§ 24.44. Cosigner Requirements.

(a) To be eligible to be cosigner for an otherwise eligible student, a person must:

(1) be at least 21 years of age;

(2) be a United States citizen, or a permanent U.S. resident;

(3) reside in the United States or a U.S. territory;

(4) have a regular source of income; and

(5) receive a favorable credit report evaluation, as defined in §24.1 of this chapter (relating to Definitions).

(b) A spouse may not act as the cosigner for the student.

§ 24.45. Loan Amount and Interest Rate.

(a) Minimum Loan Amount. No College Access Loan may be authorized for less than $100.

(b) Annual Loan Limit. In no case shall the annual loan amount exceed the difference between the cost of attendance and the financial resources available to the applicant, including the applicant's scholarships, gifts, grants, and other financial aid. The student's maximum eligibility for Federal Direct Loans, except for Federal PLUS loans, must be considered by the institution as other financial aid, whether or not the student actually receives such assistance.

(c) Aggregate Loan Limit.

(1) For undergraduate students, the maximum aggregate loan amount for any eligible student shall not exceed the student's manageable debt level, as defined in §24.1 of this chapter (relating to Definitions).

(2) For graduate and professional students, the maximum aggregate loan amount for an eligible student is the sum of the student's annual limits.

(d) Interest Rate. The interest rate charged for new loans shall be set from time to time by the Commissioner, shall be simple interest, and shall begin to accrue on the outstanding principal from the date of disbursement, including during periods of forbearance.

§ 24.46. Repayment of Loans.

(a) Repayment Period. The repayment period for a College Access Loan shall be:

(1) Ten (10) years, if the amount of principal owed by the borrower on loans authorized under this chapter is less than $30,000; or

(2) Twenty (20) years, if the amount of principal owed by the borrower on loans authorized under this chapter exceeds $30,000.

(b) Minimum Monthly Payment. Unless a lower monthly payment is authorized under §24.14 of this chapter (relating to Forbearance), a borrower's minimum monthly payment for a College Access Loan shall be the greater of:

(1) the amount required to amortize the loan over the course of the repayment period; or

(2) fifty dollars ($50.00).

§ 24.50. Authority and Purpose.

(a) Authority. Unless otherwise noted in a section, the authority for these provisions is provided by Texas Education Code, §§52.32 - 52.39 and §52.54.

(b) Purpose. This subchapter establishes rules relating to the administration of the Future Occupations & Reskilling Workforce Advancement to Reach Demand (FORWARD) Loan Program. The program provides access to low interest loans to cover educational expenses, with the goal of accelerating the ability of employers throughout the State of Texas to fill high-demand jobs while providing students with high-value credentials.

§ 24.51. Definitions.

In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) FORWARD or Program--The Future Occupations & Reskilling Workforce Advancement to Reach Demand Loan Program.

(2) High-Demand Credential--Undergraduate degrees, certificates, or short-term credentials identified by the Coordinating Board in consultation with the Texas Workforce Commission, Texas Workforce Investment Council, and the Governor's Office of Economic Development and Tourism as filling critical workforce needs in the state while providing a high-value credential to students upon completion.

§ 24.52. Eligible Institutions.

(a) An institution is eligible to participate in the Program if it is:

(1) an institution of higher education, as defined in §24.1 of this chapter (relating to Definitions);

(2) a private or independent institution of higher education, as defined in §24.1 of this chapter; or

(3) a regional education service center established and operated by the Commissioner of Education under Texas Education Code, chapter 8, or another entity that offers an alternative educator certification program, as defined in §24.1 of this chapter.

(b) Each participating institution shall designate a Program Officer who will act as the Coordinating Board's on-campus agent. This officer shall certify all institutional transactions and activities with regard to the Program and shall be responsible for all records and reports reflecting the transactions with respect to the Fund. The Program Officer may authorize other student financial aid officials at the institution to certify FORWARD Loan Program applications.

(c) Each participating institution shall promptly report student borrower changes in enrollment status to the Coordinating Board directly or to the National Student Clearinghouse.

§ 24.53. Eligible Students.

(a) The Coordinating Board may authorize, or cause to be authorized, loans through the Program to students at any eligible institution that certifies that the student meets program qualifications, if the student:

(1) is a Resident of Texas, as defined in §22.1 of this title (relating to Definitions);

(2) is enrolled in an eligible high-demand credential program, as defined in §24.51 of this subchapter (relating to Definitions), and is determined by the student's institution to be able to complete the credential program within two years after receiving a loan under this Program;

(3) has insufficient resources to finance the student's education, as defined in §24.1 of this chapter (relating to Definitions);

(4) meets applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration);

(5) has provided the name and contact information for two references who live at separate addresses and are expected to know the student's current address at all times throughout the life of the loan;

(6) is making satisfactory academic progress toward the eligible high-demand credential as determined by the institution; and

(7) has received a favorable credit report evaluation, as defined in §24.1 of this chapter, or has obtained the signature of a qualified cosigner who has received a favorable credit report evaluation.

(b) For students enrolled in degree programs, the student must have completed at least 50 percent of the required coursework prior to receiving a loan through the Program.

(c) For students enrolled in non-degree programs, the program's duration must be less than two years.

(d) Students enrolled in master's degree coursework are eligible for this Program if the master's degree is part of a combined baccalaureate-master's program approved by the institution of higher education. The student's combined baccalaureate-master's program is considered a single high-demand credential program for the purposes of paragraph (a)(2) and subsection (b) of this section.

§ 24.54. Discontinuation of Eligibility.

(a) A student's eligibility for the program ends two years from the start of the semester in which the student received the first loan through the Program unless the student is granted a hardship extension in accordance with §22.55 of this subchapter (relating to Hardship Provisions).

(b) In circumstances when a prior recipient of a loan through this Program is no longer eligible solely due to not meeting the requirement of being enrolled in an eligible high-demand credential program per §22.53(a)(2) of this subchapter (relating to Eligible Students), the student may continue to receive loans through the Program if:

(1) The student continues to be enrolled in the credential program that was used to demonstrate initial eligibility for the Program; and

(2) The student continues to meet all other eligibility criteria outlined in §22.53 of this subchapter.

§ 24.55. Hardship Provisions.

(a) In the event of a hardship or for other good cause, the Program Officer at a participating institution may allow an otherwise eligible student to receive a loan through this Program:

(1) while not meeting the satisfactory academic progress requirements, as defined in §22.53(a)(3) of this subchapter (relating to Eligible Students); or

(2) while enrolled beyond the time limit restrictions defined in §22.54(a) of this subchapter (relating to Discontinuation of Eligibility).

(b) Hardship conditions may include, but are not limited to:

(1) documentation of a severe illness or other debilitating condition that may affect the student's academic performance; or

(2) documentation that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance; or

(3) documentation of the birth of a child or placement of a child with the student for adoption or foster care that may affect the student's academic performance.

(c) Documentation of the hardship circumstances approved for a student to receive a loan must be kept in the student's files, and the institution must identify students approved for a loan based on a hardship to the Coordinating Board upon request.

(d) Each institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.

§ 24.56. Eligible High-Demand Credentials.

(a) The Coordinating Board shall determine which high-demand credentials shall be eligible for loans under the Program, in consultation with the Texas Workforce Commission, Texas Workforce Investment Council, and the Governor's Office of Economic Development and Tourism or their delegates. Eligible credentials will be reassessed and published annually on the Coordinating Board's website.

(b) Eligible credentials shall be selected based on current and projected workforce demands and the ability of students to graduate from identified programs with manageable debt, as described by §24.58(c) of this subchapter (relating to Loan Amount and Interest Rate).

(c) Selected credentials must meet measures for credentials of value to students and employers, as defined by the Coordinating Board.

§ 24.57. Cosigner Requirements.

(a) To be eligible to be consigner for an otherwise eligible student, a person must:

(1) be at least 21 years of age;

(2) be a United States citizen, or a permanent U.S. resident;

(3) reside in the United States or a U.S. territory;

(4) have a regular source of income; and

(5) receive a favorable credit report evaluation as defined in §24.1 of this chapter (relating to Definitions).

(b) A spouse may not act as the cosigner for the student.

§ 24.58. Loan Amount and Interest Rate.

(a) Minimum Loan Amount. No FORWARD loan may be authorized for less than $100.

(b) Annual Loan Limit. In no case shall the annual loan amount exceed the difference between the cost of attendance and the financial resources available to the applicant, including the applicant's scholarships, gifts, grants, and other financial aid. The student's maximum eligibility for Federal Direct Loans, except for Federal PLUS loans, must be considered by the institution as other financial aid, whether or not the student actually receives such assistance.

(c) Aggregate Loan Limit. The maximum aggregate loan amount for any eligible student shall not exceed the student's manageable debt level, as defined in §24.1 of this chapter (relating to Definitions).

(d) Interest Rate. The interest rate charged for new loans through this program shall be set from time to time by the Commissioner, shall be simple interest, and shall begin to accrue on the outstanding principal from the date of disbursement, including during periods of forbearance.

§ 24.59. Repayment of Loans.

(a) Repayment Period. The repayment period for a FORWARD loan shall be 10 years.

(b) Monthly Repayment Amount. The method for calculating the monthly repayment amount for loans through this Program shall be determined each biennium by the Commissioner, and shall be calculated annually based on:

(1) the borrower's income, as demonstrated through federal income tax returns or other documentation determined to be acceptable by the Coordinating Board;

(2) the borrower's monthly accrued interest on loans through the Program; and

(3) the borrower's cumulative outstanding student loan balance.

(c) Income threshold. The Coordinating Board may automatically place a borrower in forbearance when the borrower's demonstrated income is below a threshold established by the Coordinating Board in consultation with the Texas Workforce Commission.

§ 24.70. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, chapter 61, subchapter FF, Texas Armed Services Scholarship Program and specifically §61.9774. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.9771 - 61.9776.

(b) Purpose. This subchapter establishes rules relating to the administration of the Texas Armed Services Scholarships that convert to loans. Rules relating to the administration of the Texas Armed Services Scholarship Program generally are located in chapter 22, subchapter I, of this title (relating to Texas Armed Services Scholarship Program).

§ 24.71. Definitions.

In addition to the words and terms defined in §24.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Loan--A Texas Armed Services Scholarship that has become a loan as outlined in §22.170 of this title (relating to Conversion of the Scholarship to a Loan).

(2) Scholarship--A conditional scholarship through the Texas Armed Services Scholarship Program.

(3) TASSP or Program--The Texas Armed Services Scholarship Program.

§ 24.72. Loan Amounts and Interest Rates.

(a) A Scholarship is considered a Loan on the date the recipient has failed to meet the conditions of the Scholarship described in §22.170 of this title (relating to Conversion of the Scholarship to a Loan). Each year of the Scholarship that is disbursed to the student is considered a separate Loan.

(b) Loan Amounts. The principal owed for each Loan is the amount of the Scholarship disbursed. The full amount must be repaid, plus interest accrued.

(c) Interest Rates. The interest rate for each Loan shall be the same interest rate charged for a College Access Loan at the time the Scholarship funds were disbursed.

(d) Interest Accrual. Interest shall begin to accrue on the date the Scholarship is converted to a Loan.

§ 24.73. Repayment of Loan.

(a) Repayment Period. The repayment period for a Loan under this subchapter shall be 15 years.

(b) Minimum Monthly Payment. Unless a lower monthly payment is authorized under §24.14 of this chapter (relating to Forbearance), a borrower's minimum monthly payment for a Loan shall be the greater of:

(1) the amount required to amortize the Loan over the course of the repayment period; or

(2) one hundred dollars ($100.00).

§ 24.74. Exemption and Cancellation.

In addition to the conditions for discharge of a Loan listed in §24.16 of this chapter (relating to Deceased or Disabled Borrowers or Cosigners), a recipient shall be exempt from the requirement to repay the Loan if the person is unable to meet the obligations described by §22.168(b)(2) of this title (relating to Promissory Note) solely as a result of:

(1) physical inability, verified by a physician's certification and/or other appropriate documentation to the satisfaction of the Coordinating Board; or

(2) an exceptional circumstance beyond the recipient's control, as determined by the Commissioner.

§ 24.80. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §52.54.

(b) Purpose. The provisions of this subchapter address the servicing, through the Hinson-Hazlewood College Student Loan Program, of student loans originated by the federal government, which the Coordinating Board is authorized to engage in by Texas Education Code, §52.41.

§ 24.81. Applicability.

Unless otherwise stated, the provisions of subchapter B of this chapter (relating to Student Loan Servicing) do not apply to the servicing of loans under this subchapter.

§ 24.82. Common Provisions.

(a) Applicability. The provisions of this section apply to the programs described in §§24.83 - 24.85 of this subchapter (relating to Federal Stafford Loan (FSL) Program, Federal Supplemental Loan for Students (FSLS) Program, and Health Education Assistance Loan (HEAL) Program, respectively). This section does not apply to loans described by §24.86 of this subchapter (relating to Hinson-Hazlewood College Student Loans Made Before Fall Semester, 1971, and Not Subject to the Federally Insured Student Loan Program).

(b) Prepayment. Loans made under this subchapter may be prepaid without penalty.

(c) Late Charges. The Coordinating Board may assess a late charge, not to exceed the lesser of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), if the past due amount is not received within 20 days of the scheduled due date.

(d) The provisions of §24.13 of this chapter (relating to Interest Rate Adjustment for Repayment via Auto-Debit or Automated Clearing House (ACH)) apply to loans authorized under this subchapter.

(e) Deferments. The Coordinating Board shall grant deferments of loan repayment for FSL loans as required by law, to any borrower whose account is not in default and who makes an adequate showing of entitlement. Authorized deferments shall extend the repayment period. Interest does not accrue during periods of deferment.

(f) Forbearance. The Coordinating Board may grant periods of forbearance in accordance with the applicable statutes and rules of the applicable program.

(1) Authorized forbearances shall extend the repayment period.

(2) Interest will continue to accrue on a borrower's loans during periods of forbearance. The Coordinating Board will recalculate the borrower's minimum monthly payment after a period of forbearance to reflect the accrued interest.

(g) 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.

(h) Deceased or Disabled Borrowers or Cosigners. Verification of death and determination of permanent and total disability of a borrower or cosigner through each program shall be made by the U.S. Secretary of Education in accordance with the governing provisions of the applicable program. Disposition of borrower and/or cosigner liability upon final verification of death and determination of permanent and total disability of a borrower or cosigner shall be made consistent with §24.15 of this chapter (relating to Deceased or Disabled Borrowers or Cosigners).

§ 24.83. Federal Stafford Loan (FSL) Program.

(a) Repayment Period. All loans shall be repaid in accordance with the statutes and regulations governing the Federal Family Education Loan Program.

(b) Minimum Repayment Amount. The Coordinating Board shall provide a repayment schedule in which all of a borrower's FSL loans are treated as one account, and the repayment amount shall be calculated to repay the full amount over the maximum authorized period. In no case will the minimum annual repayment on the account be less than $600.

(c) Enforcement of Collection. When a borrower defaults on a FSL account, the Coordinating Board may file a default claim with the appropriate guarantor.

§ 24.84. Federal Supplemental Loans for Students (FSLS) Program.

(a) Repayment Period. All loans shall be repaid in accordance with the statutes and regulations governing the Federal Family Education Loan Program.

(b) Minimum Repayment Amount. The Coordinating Board shall provide a repayment schedule in which all a borrower's FSLS loans are treated as one account, and the repayment amount shall be calculated to repay the full amount over the maximum authorized period. In no case will the minimum annual repayment on the account be less than $600.

(c) Enforcement of Collection. When a borrower defaults on a FSLS account, the Coordinating Board may file a default claim with the appropriate guarantor.

§ 24.85. Health Education Assistance Loan (HEAL) Program.

(a) Repayment Period. All loans shall be repaid in accordance with the statutes and regulations governing the Health Education Assistance Loan Program, authorized by the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(b) Minimum Repayment Amount. The Coordinating Board shall provide a repayment schedule in which all of a borrower's HEAL loans are treated as one account, and the repayment amount shall be calculated to repay the full amount over the maximum authorized period. The minimum annual repayment shall not be less than the amount provided by 42 USCS 292(d).

(c) Enforcement of Collection. When a borrower defaults on a HEAL account, the Board may file suit in order to perfect a default claim with the appropriate guarantor.

§ 24.86. Hinson-Hazlewood College Student Loans Made Before Fall Semester, 1971, and Not Subject to the Federally Insured Student Loan Program.

(a) Loan Terms. Principal amounts of all authorized loans shall be repaid in installments over a period of not less than five years (unless sooner repaid) nor more than 10 years, except that the period of the loan may not exceed 15 years from the execution of the note or written agreement evidencing it.

(b) Loan Interest. The interest rate to be charged for any student loan shall be 6.0% per annum on all loans made under the Hinson-Hazlewood College Student Loan Act on or before August 31, 1969, and the interest rate to be charged for any student loan made on or after September 1, 1969, shall be seven percent (7%) per annum, and such interest shall accrue from the date of the note evidencing the loan is executed. Except for loans subject to the interest subsidy provisions of the Higher Education Act of 1965, Title IV, Part B, §428(a), as amended, and 45 Code of Federal Regulations Part 177, payment of interest by an undergraduate student shall be postponed so long as such student is enrolled in an institution of higher education for at least one-half of the normal course load, as determined by the institution, and payment of interest by a graduate or professional student shall be postponed so long as such student is enrolled in an institution of higher education and is making satisfactory progress toward the completion of his program, provided that such interest shall accrue from the date of the note evidencing the loan is executed.

(c) Interest Subsidy. Loans made pursuant to this subchapter are eligible for interest subsidy to be paid in accordance with Public Law 89-329, the Higher Education Act of 1965, and 45 Code of Federal Regulations Part 177.

(d) Repayment of Loans. 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 Coordinating Board.

(e) Forbearance. The Coordinating Board may authorize a period of forbearance for a borrower under this section in accordance with §24.14 of this chapter (relating to Forbearance).

(f) Enforcement of Collection. The provisions of §24.16 of this chapter (relating to Enforcement of Collection) apply to loans described by this section.