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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas B-On-time student loan program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivisions (2) and (3), Section 56.451, |
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Education Code, are amended to read as follows: |
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(2) "Eligible institution" means: |
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(A) a general academic teaching institution, |
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other than a public state college [an institution of higher
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education]; [or] |
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(B) a medical and dental unit that offers |
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baccalaureate degrees; or |
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(C) a private or independent institution of |
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higher education that offers baccalaureate degree programs. |
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(3) "General academic teaching institution," "medical |
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and dental unit," "private or independent institution of higher |
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education," and "public state [junior] college," [and "public
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technical institute"] have the meanings assigned by Section 61.003. |
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SECTION 2. Subsection (b), Section 56.452, Education Code, |
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is amended to read as follows: |
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(b) The purpose of this subchapter is to provide no-interest |
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loans to eligible students to enable those students to earn |
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baccalaureate degrees at [attend all] public and private or |
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independent institutions of higher education in this state. |
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SECTION 3. Section 56.455, Education Code, is amended to |
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read as follows: |
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Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible |
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initially for a Texas B-On-time loan, a person must: |
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(1) be a resident of this state under Section 54.052 or |
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be entitled, as a child of a member of the armed forces of the United |
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States, to pay tuition at the rate provided for residents of this |
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state under Section 54.241; |
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(2) meet one of the following academic requirements: |
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(A) be a graduate of a public or private high |
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school in this state who graduated not earlier than the 2002-2003 |
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school year under the recommended or advanced high school program |
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established under Section 28.025(a) or its equivalent; |
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(B) be a graduate of a high school operated by the |
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United States Department of Defense who: |
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(i) graduated from that school not earlier |
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than the 2002-2003 school year; and |
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(ii) at the time of graduation from that |
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school was a dependent child of a member of the armed forces of the |
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United States; or |
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(C) have received an associate degree from an |
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[eligible] institution of higher education or private or |
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independent institution of higher education not earlier than May 1, |
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2005; |
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(3) be enrolled for a full course load for an |
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undergraduate student, as determined by the coordinating board, in |
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a baccalaureate [an undergraduate] degree [or certificate] program |
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at an eligible institution; |
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(4) be eligible for federal financial aid, except that |
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a person is not required to meet any financial need requirement |
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applicable to a particular federal financial aid program; and |
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(5) comply with any additional nonacademic |
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requirement adopted by the coordinating board under this |
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subchapter. |
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SECTION 4. Subsection (a), Section 56.456, Education Code, |
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is amended to read as follows: |
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(a) After initially qualifying for a Texas B-On-time loan, a |
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person may continue to receive a Texas B-On-time loan for each |
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semester or term in which the person is enrolled at an eligible |
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institution only if the person: |
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(1) is enrolled for a full course load for an |
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undergraduate student, as determined by the coordinating board, in |
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a baccalaureate [an undergraduate] degree [or certificate] program |
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at an eligible institution; |
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(2) is eligible for federal financial aid, except that |
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a person is not required to meet any financial need requirement |
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applicable to a particular federal financial aid program; |
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(3) makes satisfactory academic progress toward a |
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degree [or certificate] as determined by the institution at which |
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the person is enrolled, if the person is enrolled in the person's |
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first academic year at the institution; |
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(4) completed at least 75 percent of the semester |
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credit hours attempted by the person in the most recent academic |
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year and has a cumulative grade point average of at least 2.5 on a |
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four-point scale or the equivalent on all coursework previously |
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attempted at institutions of higher education or private or |
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independent institutions of higher education, if the person is |
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enrolled in any academic year after the person's first academic |
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year; and |
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(5) complies with any additional nonacademic |
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requirement adopted by the coordinating board. |
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SECTION 5. Subsections (a), (b), and (f), Section 56.459, |
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Education Code, are amended to read as follows: |
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(a) The amount of a Texas B-On-time loan for a semester or |
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term for a student enrolled full-time at an eligible institution |
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other than an institution covered by Subsection (b) may not exceed |
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the[, (c), or (d) is an] amount determined by the coordinating board |
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to be [as] the average statewide amount of tuition and required fees |
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that a resident student enrolled full-time in a baccalaureate [an
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undergraduate] degree program would be charged for that semester or |
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term at general academic teaching institutions. |
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(b) The amount of a Texas B-On-time loan for a student |
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enrolled full-time at a private or independent institution of |
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higher education may not exceed the [is an] amount determined by the |
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coordinating board to be [as] the average statewide amount of |
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tuition and required fees that a resident student enrolled |
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full-time in a baccalaureate [an undergraduate] degree program |
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would be charged for that semester or term at general academic |
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teaching institutions. |
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(f) If in any academic year the amount of money in the Texas |
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B-On-time student loan account, other than money appropriated to |
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the account exclusively for loans at eligible institutions that are |
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private or independent institutions of higher education, is |
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insufficient to provide the loans in the maximum amount specified |
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by this section to all eligible persons at eligible institutions |
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that are institutions of higher education [in amounts specified by
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this section], the coordinating board shall determine the amount of |
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that available money and shall allocate that amount to those |
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eligible institutions in proportion to the amount of tuition set |
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aside by [number of full-time equivalent undergraduate students
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enrolled at] each of those institutions under Section 56.465 for |
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the preceding academic year [institution]. In the manner |
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prescribed by the coordinating board for purposes of this |
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subsection, each eligible institution that is a private or |
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independent institution of higher education is entitled to receive |
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an allocation only from the general revenue appropriations made for |
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that academic year to eligible private or independent institutions |
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of higher education for the purposes of this subchapter. Each |
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institution shall use the money allocated to award Texas B-On-time |
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loans to eligible students enrolled at the institution selected |
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according to financial need. |
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SECTION 6. Sections 56.461 and 56.462, Education Code, are |
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amended to read as follows: |
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Sec. 56.461. LOAN PAYMENT DEFERRED. The repayment of a |
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Texas B-On-time loan received by a student under this subchapter is |
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deferred as long as the student remains continuously enrolled in a |
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baccalaureate [an undergraduate] degree [or certificate] program |
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at an eligible institution. |
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Sec. 56.462. LOAN FORGIVENESS. A student who receives a |
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Texas B-On-time loan shall be forgiven the amount of the student's |
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loan if the student is awarded a baccalaureate [an undergraduate
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certificate or] degree at an eligible institution with a cumulative |
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grade point average of at least 3.0 on a four-point scale or the |
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equivalent: |
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(1) within: |
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(A) four calendar years after the date the |
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student initially enrolled in an [the] institution of higher |
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education or private or independent institution of higher education |
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[or another eligible institution] if[:
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[(i)
the institution is a four-year
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institution; and
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[(ii)] the student is awarded a degree |
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other than a degree in engineering, architecture, or any other |
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program determined by the coordinating board to require more than |
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four years to complete; or |
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(B) five calendar years after the date the |
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student initially enrolled in an [the] institution of higher |
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education or private or independent institution of higher education |
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[or another eligible institution] if[:
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[(i)
the institution is a four-year
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institution; and
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[(ii)] the student is awarded a degree in |
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engineering, architecture, or any other program determined by the |
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coordinating board to require more than four years to complete; [or
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[(C)
two years after the date the student
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initially enrolled in the institution or another eligible
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institution if the institution is a public junior college or public
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technical institute;] or |
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(2) with a total number of semester credit hours, |
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including transfer credit hours and excluding hours earned |
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exclusively by examination, hours earned for a course for which the |
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student received credit toward the student's high school academic |
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requirements, and hours earned for developmental coursework that an |
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institution of higher education required the student to take under |
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Section 51.3062 or under the former provisions of Section 51.306, |
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that is not more than six hours more than the minimum number of |
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semester credit hours required to complete the [certificate or] |
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degree. |
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SECTION 7. Subsection (d), Section 56.456, and Subsections |
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(c) and (d), Section 56.459, Education Code, are repealed. |
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SECTION 8. (a) The change in law made by this Act in |
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amending Subchapter Q, Chapter 56, Education Code, applies |
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beginning with Texas B-On-time loans awarded for the 2014-2015 |
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academic year. |
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(b) Notwithstanding Subsection (a) of this section, a |
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student who first receives a Texas B-On-time loan for a semester or |
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other academic term before the 2014 fall semester may continue to |
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receive Texas B-On-time loans under Subchapter Q, Chapter 56, |
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Education Code, as that subchapter existed immediately before the |
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effective date of this Act, as long as the student remains eligible |
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for a Texas B-On-time loan under the former law, and is entitled to |
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obtain forgiveness of the loans as permitted by Section 56.462, |
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Education Code, as that section existed immediately before the |
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effective date of this Act. The Texas Higher Education |
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Coordinating Board shall adopt rules to administer this subsection |
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and shall notify each student who receives a Texas B-On-time loan in |
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the 2013-2014 academic year of the provisions of this subsection. |
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SECTION 9. This Act takes effect September 1, 2013. |