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EDUCATION CODE
CHAPTER 56. STUDENT FINANCIAL ASSISTANCE
SUBCHAPTER A. GENERAL PROVISIONS
§ 56.001. SHORT TITLE. This Chapter may be cited as the Student Financial Assistance Act of 1975. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.002. DECLARATION OF POLICY. The legislature, giving due consideration to the historical and continuing interest of the people of the State of Texas in encouraging deserving and qualified persons to realize their aspirations for education beyond high school finds and declares that postsecondary education for those who desire such an education and are properly qualified therefor is important to the welfare and security of this state and the nation and, consequently, is an important public purpose. The legislature finds and declares that the state can achieve its full economic and social potential only if every individual has the opportunity to contribute to the full extent of his capabilities and only when financial barriers to his economic, social, and educational goals are removed. It is, therefore, the policy of the legislature and the purpose of this Chapter to establish financial assistance programs to enable qualified students to receive a postsecondary education. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.003. DEFINITIONS. In this Chapter: (1) "Institution of higher education" has the same meaning as is assigned to it by Section 61.003 of this code. (2) "Governing board" has the same meaning as is assigned to it by Section 61.003 of this code. (3) "Postsecondary educational institution" means any institution, public or private, which provides courses of instruction beyond that offered in secondary schools. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.004. FILING FEES IN SUITS TO COLLECT DELINQUENT STUDENT LOANS. Notwithstanding any other law, if an institution of higher education brings suit to collect or enforce the repayment of a delinquent student loan, the institution is required to pay in advance one-half of the applicable filing fee and other costs payable in advance to the clerk of the court. If the defaulting borrower prevails in the suit, the institution shall pay the remaining one-half of the filing fee and costs on the date of the final disposition of the suit. If the institution prevails in the suit: (1) the judgment shall include a finding that the defaulting borrower is liable to the institution for the full amount of the filing fee and costs; and (2) the institution shall pay the remaining one-half of the filing fee and costs not later than the seventh day after the date on which the defaulting borrower pays to the institution the full amount, including the amount of the filing fee and costs, for which the borrower is liable to the institution. Added by Acts 2003, 78th Leg., ch. 1266, § 1.17, eff. June 20, 2003.
SUBCHAPTER B. FINANCIAL ASSISTANCE FUNDED FROM DESIGNATED TUITION
§ 56.011. RESIDENT UNDERGRADUATE STUDENT ASSISTANCE. (a) The governing board of each institution of higher education shall cause to be set aside not less than 20 percent of any amount of tuition charged to a resident undergraduate student under Section 54.0513 in excess of $46 per semester credit hour. The funds set aside under this section by an institution shall be used to provide financial assistance for resident undergraduate students enrolled in the institution. (b) To be eligible for assistance under this section, a student must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board. Priority shall be given to students who meet the coordinating board definition of financial need and whose cost for tuition and required fees is not met through other non-loan financial assistance programs. (c) The financial assistance provided under this section may include grants, scholarships, work-study programs, student loans, and student loan repayment assistance. Added by Acts 2003, 78th Leg., ch. 1321, § 5, eff. Sept. 1, 2003. § 56.012. RESIDENT GRADUATE STUDENT ASSISTANCE. (a) The governing board of each institution of higher education shall cause to be set aside not less than 15 percent of any amount of tuition charged to a resident student enrolled in a graduate or professional degree program under Section 54.0513 in excess of $46 per semester credit hour. The funds set aside under this section by an institution shall be used to provide financial assistance for resident students enrolled in graduate and professional degree programs at the institution. (b) To be eligible for assistance under this section, a student must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board. Priority shall be given to students who meet the coordinating board definition of financial need and whose cost for tuition and required fees is not met through other non-loan financial assistance programs. (c) The financial assistance provided under this section may include grants, scholarships, work-study programs, student loans, and student loan repayment assistance. Added by Acts 2003, 78th Leg., ch. 1321, § 5, eff. Sept. 1, 2003. § 56.013. INFORMATION REGARDING FINANCIAL ASSISTANCE FUNDED FROM DESIGNATED TUITION. The Texas Higher Education Coordinating Board shall disseminate to each public or accredited private high school in this state information regard the financial assistance available under this subchapter and shall include information designed to educate high school students and the parents of those students on available opportunities and required preparation with respect to institutions of higher education. The coordinating board shall recommend a method of delivery of the information to parents and students under this section. Added by Acts 2003, 78th Leg., ch. 1321, § 5, eff. Sept. 1, 2003.
SUBCHAPTER C. TEXAS PUBLIC EDUCATIONAL GRANTS
§ 56.031. SHORT TITLE. The grant program authorized by this subsection shall be cited as the Texas Public Educational Grants Program and individual grants awarded pursuant to this program shall be cited as Texas Public Educational Grants. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.032. PURPOSE. The purpose of this subchapter is to provide a program to supply grants of money to students attending institutions of higher education in Texas whose educational costs are not met in whole or in part from other sources and to provide institutions of higher education with funds to supplement and add flexibility to existing financial aid programs. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.033. SOURCE OF PROGRAM FUNDING. (a) The governing board of each institution of higher education, including the Texas State Technical College System, shall cause to be set aside: (1) not less than 15 percent nor more than 20 percent out of each resident student's tuition charge under Section 54.051 as provided by the General Appropriations Act for the applicable academic year; (2) three percent out of each nonresident student's tuition charge under Section 54.051; (3) not less than six percent nor more than 20 percent out of each resident student's hourly tuition charge exclusive of out-of-district charges, and $1.50 out of each nonresident student's hourly tuition charge, for academic courses at a public community or junior college; and (4) not less than six percent nor more than 20 percent of hourly tuition charges exclusive of out-of-district charges for vocational-technical courses at a public community or junior college. (b) Of the funds set aside under this section by an institution, not less than 90 percent shall be used for Texas Public Educational Grants and not more than 10 percent shall be used for emergency loans under Subchapter D of this chapter. (c) Except as otherwise provided by this subsection, funds set aside for Texas Public Educational Grants under this section from tuition paid by resident students may be used only for grants awarded to resident students, and funds set aside for those grants under this section from tuition paid by nonresident students may be used only for grants awarded to nonresident students and students who are citizens of countries other than the United States. After the end of the sixth class week of each semester, an institution may transfer any excess funds set aside from tuition paid by resident or nonresident students to the funds set aside for grants awarded to the other class of students. Priority for awarding grants from any excess funds set aside from tuition paid by resident students shall be given to resident students. (d) Interest earned from the funds set aside for Texas Public Educational Grants may be spent only for grants to students as provided by this subchapter. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. Amended by Acts 1985, 69th Leg., ch. 708, § 12, eff. Aug. 26, 1985; Acts 1989, 71st Leg., ch. 805, § 3, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1084, § 2.09, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 287, § 27, eff. Sept. 1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 6.04, eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 336, § 1, eff. May 26, 2001; Acts 2003, 78th Leg., ch. 1070, § 3, eff. June 20, 2003. § 56.034. GUIDELINES FOR DETERMINING ELIGIBILITY AND AWARDING GRANTS. (a) The governing boards of institutions of higher education shall establish guidelines to determine eligibility for awarding Texas Public Educational Grants subject to the limitations of this section. (b) Financial need shall be the only consideration in establishing guidelines to determine a student's eligibility for a grant except that returning students who are on scholastic probation or all students on disciplinary probation may be deemed ineligible at the governing board's discretion. (c) Guidelines adopted shall be submitted to the coordinating board, which is authorized to review and reject guidelines it determines to be contrary to the purposes of this section. (1) In reviewing guidelines, the coordinating board shall give consideration to differing needs of each institution and desirability of this program being used to aid students who may have demonstrable financial need but be ineligible for other aid programs. (2) If the coordinating board rejects guidelines adopted by a governing board, it shall provide a written explanation of such rejection and promulgate regulations allowing governing boards to appeal such rejection. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.035. TYPE OF GRANTS TO BE AWARDED. Texas Public Educational Grants shall not be awarded for any specific purpose other than meeting all or part of a student's demonstrated financial need. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. Amended by Acts 1985, 69th Leg., ch. 708, § 14, eff. Aug. 26, 1986. § 56.036. TRANSFER OF GRANT FUNDS FOR USE AS MATCHING FUNDS. Each institution of higher education is authorized to transfer any or all of the funds set aside for the Texas Public Educational Grant Program to the coordinating board to be used for matching federal or other grant funds for awarding to students attending that institution. Said scholarship fund transferred to the coordinating board and all matching funds may be expended by the coordinating board for awarding scholarships as provided herein and in the general appropriation acts of the legislature. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.037. PRIORITIES IN AWARDING MATCHING FUNDS. In awarding matching funds to be used in conjunction with Texas Public Educational Grants, the coordinating board shall give first priority to those institutions and students showing the highest amount of financial need. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.038. RESTRICTIONS AND RETURN OF TRANSFERRED FUNDS. The coordinating board may not use funds transferred to it pursuant to this subchapter from one institution to award grants to students of a different institution. Should matching funds be unavailable for an institution, all funds transferred from that institution to the coordinating board shall be returned to that institution. Added by Acts 1975, 64th Leg., p. 2323, ch. 720, § 1, eff. Sept. 1, 1975. § 56.039. FULL USE OF FUNDS. At the end of a fiscal year, if the total amount of unencumbered funds that have been set aside under this subchapter by an institution of higher education, together with the total amount of unencumbered funds transferred by that institution to the Coordinating Board, Texas College and University System, exceeds 150 percent of the amount of funds set aside by that institution in that fiscal year, the institution shall transfer the excess amount to the coordinating board. The coordinating board shall use funds transferred under this section to award grants under Subchapter M. Added by Acts 1985, 69th Leg., ch. 708, § 13, eff. Aug. 26, 1985. Amended by Acts 1999, 76th Leg., ch. 1590, § 3, eff. June 19, 1999.
SUBCHAPTER D. EMERGENCY TUITION AND FEES LOANS
§ 56.051. EMERGENCY LOANS. Each institution of higher education may establish an emergency loan program under which students are loaned money to pay tuition and fees. Added by Acts 1985, 69th Leg., ch. 708, § 15(a), eff. Aug. 26, 1985. Amended by Acts 1989, 71st Leg., ch. 805, § 4, eff. Aug. 28, 1989. § 56.052. ELIGIBILITY. The governing board of each institution shall adopt rules establishing eligibility criteria. The rules must allow eligible students to obtain loans on the basis of the order of receipt of applications. Added by Acts 1985, 69th Leg., ch. 708, § 15(a), eff. Aug. 26, 1985. § 56.053. TERMS. (a) The governing board of each institution shall adopt rules providing for the terms of the loan, subject to the following: (1) the loan must be repaid over a period not to exceed 90 days for a loan made for a regular semester or long summer session or over a proportionately shorter period for loans made for a six-week summer session; (2) the loan must be evidenced by a promissory note that bears interest at a rate of not more than five percent per year; and
Text of subsec. (a)(3) as amended by Acts 2001, 77th Leg., ch. 80, § 3
(3) the maximum loan amount per student may not be greater than an amount equal to the tuition and required fees for the courses in which the student is actually enrolling.
Text of subsec. (a)(3) as amended by Acts 2001, 77th Leg., ch. 655, § 6
(3) the maximum loan amount per student may not be less than an amount equal to the tuition and required fees for the courses in which the student is actually enrolling, unless the institution determines that a lower amount would be in the best interest of the student. (b) The loan program must provide for making loans to students whose tuition is paid on a basis other than semester credit hours, and must provide loan terms analogous to the terms for students paying tuition on the basis of semester credit hours. Added by Acts 1985, 69th Leg., ch. 708, § 15(a), eff. Aug. 26, 1985. Amended by Acts 2001, 77th Leg., ch. 80, § 3, eff. May 14, 2001; Acts 2001, 77th Leg., ch. 655, § 6, eff. Sept. 1, 2001. § 56.054. SOURCE OF PROGRAM FUNDING. The loans shall be made from the funds set aside for that purpose under Section 56.033 of this code. Added by Acts 1985, 69th Leg., ch. 708, § 15(a), eff. Aug. 26, 1985. § 56.055. DEFERRED REPAYMENT. (a) It is the goal of this state that no resident be denied the opportunity to receive an education in a public institution of higher education due to a lack of financial ability. Accordingly, on a finding that a resident would be deprived of an education due to a lack of financial ability, an institution shall defer repayment of emergency loans under this section. The deferral provided for by this section is not a property right of the borrower. (b) The deferred repayment must begin on the earlier of the following dates: (1) the first day of the ninth month after the last month in which the borrower was enrolled in a public institution of higher education; or (2) the fifth anniversary of the date on which the loan was executed. (c) Under rules adopted by the coordinating board, an institution may extend the time for repayment of undergraduate loans made to students who later enroll in a graduate or professional program at an institution of higher education. The coordinating board shall adopt guidelines for determinations of extreme financial hardship and other instances in which the public interest is served if a loan is forgiven. Each institution shall forgive loans in accordance with those guidelines. Added by Acts 1985, 69th Leg., ch. 708, § 15(a), eff. Aug. 26, 1985.
SUBCHAPTER E. TEXAS COLLEGE WORK-STUDY PROGRAM
§ 56.071. PROGRAM NAME. The student financial assistance program authorized by this subchapter shall be known as the Texas college work-study program. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.072. PURPOSE. The purpose of this subchapter is to provide eligible, financially needy students with jobs, funded in part by the State of Texas, to enable those students to attend eligible institutions of higher education, public or private, in Texas. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.073. ADMINISTRATIVE AUTHORITY. (a) The Texas Higher Education Coordinating Board shall administer the Texas college work-study program. The coordinating board shall work with eligible institutions and employers to provide eligible students with part-time jobs funded in part by the state. (b) State support for this program may not exceed the amount specified by appropriation. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.074. ELIGIBLE INSTITUTION. An eligible institution is: (1) an institution of higher education; or (2) a private or independent college, university, association, agency, institution, or facility that is located in this state which meets program standards and accreditation comparable to public institutions as determined by the board. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.075. ELIGIBLE STUDENT. (a) To be eligible for employment in the work-study program a person must: (1) be a Texas resident as defined by coordinating board rules; (2) be enrolled for at least one-half of a full course load and conform to an individual course of study in an eligible institution; (3) establish financial need in accordance with coordinating board procedures and rules; and (4) comply with other requirements adopted by the coordinating board under this subchapter. (b) A person is not eligible to participate in the work-study program if the person: (1) receives an athletic scholarship; or (2) is enrolled in a seminary or other program leading to ordination or licensure to preach for a religious sect or to be a member of a religious order. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.076. ELIGIBLE EMPLOYER. An eligible institution may enter into agreements with employers that participate in the work-study program. To be eligible to participate in the work-study program, an employer must: (1) provide part-time employment to an eligible student in nonpartisan and nonsectarian activities; (2) provide, insofar as is practicable, employment to an eligible student that is related to the student's academic interests; (3) use Texas college work-study program positions only to supplement and not to supplant positions normally filled by persons not eligible to participate in the work-study program; (4) provide not less than 30 percent of an employed student's wages and 100 percent of other employee benefits for the employed student from sources other than federal college work-study program funds, if the employer is a nonprofit entity; and (5) provide not less than 50 percent of an employed student's wages and 100 percent of other employee benefits for the employed student, if the employer is a profit-making entity. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.077. ADOPTION AND DISTRIBUTION OF RULES. (a) The coordinating board may adopt reasonable rules, consistent with the purposes and policies of this subchapter, to enforce the requirements, conditions, and limitations expressed by this subchapter. (b) The coordinating board shall adopt rules necessary to ensure compliance with the Civil Rights Act of 1964, Title VI (Pub. L. No. 88-352), concerning nondiscrimination in admissions or employment. (c) The coordinating board shall distribute to each eligible institution copies of all rules adopted under this subchapter. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989. § 56.078. FUNDING. Funding to cover the state's contribution toward the funding of the work-study program under this subchapter is payable from funds appropriated for that purpose. Added by Acts 1989, 71st Leg., ch. 1151, § 1, eff. Aug. 28, 1989.
SUBCHAPTER F. DOCTORAL INCENTIVE LOAN REPAYMENT PROGRAM
§ 56.091. ESTABLISHMENT; ADMINISTRATION. (a) The Texas Higher Education Coordinating Board shall establish and administer the doctoral incentive loan repayment program as provided by this subchapter and shall adopt rules as necessary to administer the program. (b) The purpose of the doctoral incentive loan repayment program is to provide education loan repayment assistance to individuals from groups that are underrepresented among the faculty and administration of public and independent institutions of higher education in this state to increase the number of individuals from those underrepresented groups among the faculty and administration of public and independent institutions of higher education in this state. (c) For purposes of this subchapter, an individual is from a group that is underrepresented among the faculty and administration of public and independent institutions of higher education in this state if: (1) the individual was from a low socioeconomic background while pursuing the individual's undergraduate education; or (2) when the individual graduated from high school the individual resided in an area from which a disproportionately low number of high school graduates enrolled in postsecondary educational institutions. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003. § 56.092. ELIGIBILITY. To be eligible for loan repayment assistance under the doctoral incentive loan repayment program, an individual must: (1) be employed as a full-time faculty or administration member in a public or independent institution of higher education in this state for at least one year; (2) be a Texas resident; (3) be from a group that is underrepresented among the faculty and administration of public and independent institutions of higher education in this state; (4) have qualified for student financial aid based on financial need while enrolled in a graduate-level degree program; and (5) comply with any other requirements adopted by the coordinating board for the effective administration of the program. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003. § 56.093. ELIGIBLE LOANS. The coordinating board may provide repayment assistance under the doctoral incentive loan repayment program for the repayment of any education loan received by an eligible individual through any lender. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003. § 56.094. LOAN REPAYMENT ASSISTANCE. (a) The coordinating board may provide assistance in the repayment of an eligible loan to an eligible individual in the amounts and under the terms the coordinating board considers appropriate to further the purposes of the doctoral incentive loan repayment program and the best interests of this state. (b) An individual may receive loan repayment assistance under the doctoral incentive loan repayment program in a total amount not to exceed $100,000. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003. § 56.095. FUNDING; LIMITATION ON FUNDING. (a) The doctoral incentive loan repayment program may be funded only from a source provided by this section. The total amount of loan repayment assistance paid under the program may not exceed the amount of money available for the program under this section. (b) Each institution of higher education shall set aside a portion of the tuition collected from each student enrolled in a doctoral degree program, other than a law or health professional degree program, equal to $2 for each semester credit hour for which the student is enrolled. The amount set aside shall be transferred to the comptroller to be maintained in the state treasury for the sole purpose of repayment of student loans of individuals employed as faculty and administrators at institutions of higher education in this state as provided by this subchapter. The money may be used only to provide loan repayment under this subchapter and to cover the costs of administering this subchapter. (c) The coordinating board may solicit and accept gifts and grants from any public or private source for the purposes of the doctoral incentive loan repayment program. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003. § 56.096. INITIAL IMPLEMENTATION.
Text of section effective until January 1, 2006
(a) The coordinating board shall provide loan repayments under this subchapter beginning with the 2004-2005 academic year. (b) The coordinating board shall adopt the initial rules for awarding loan repayments under this subchapter as soon as practicable after this subchapter becomes law. The coordinating board may adopt those initial rules in the manner provided by law for emergency rules. (c) This section expires January 1, 2006. Added by Acts 2003, 78th Leg., ch. 820, § 47, eff. Sept. 1, 2003.
SUBCHAPTER H. STUDENT LOAN REVENUE BOND PROGRAM
§ 56.121. PURPOSE. The purpose of this subchapter is to provide loans to qualified students to enable those students to attend institutions of higher education. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.122. DEFINITIONS. In this subchapter: (1) "Board" means the Texas Higher Education Coordinating Board. (2) "Fund" means the student loan revenue bond fund. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.123. CREATION. (a) A special fund to be known as the student loan revenue bond fund is created in the state treasury. (b) The fund consists of proceeds from the sale of revenue bonds and gifts or grants made to the board for purposes of the fund. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.124. ADMINISTRATION. (a) The board shall administer this subchapter. (b) The board shall adopt and distribute to each institution of higher education rules to administer this subchapter. (c) The board may accept a gift or grant from a public or private source for the purpose of this subchapter. (d) The board shall create accounts in the fund that will facilitate the administration of the fund and the program of making loans from the fund under this subchapter. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.125. LOANS FROM FUND. (a) The board shall make a loan from the fund to a student who qualifies for a loan under Subchapter C, Chapter 52, of this code. (b) Loans from the fund are governed by Subchapter C, Chapter 52, of this code as if made under that subchapter, except to the extent of conflict with this subchapter. (c) The board may charge and collect a loan origination fee from a student who receives a loan from the fund. The board may use the fee to pay operating expenses for making loans under this section. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.126. REVENUE BONDS. (a) The board may by resolution authorize the issuance of revenue bonds to operate the program of making loans from the fund under this subchapter. The board may issue the bonds in the form, with the characteristics, and bearing the designations provided in the resolution. (b) The board may pledge all or part of the revenue derived from the operation of the program of making loans from the fund to secure the bonds. (c) The board must issue the bonds in the manner provided by Chapter 1201, Government Code. (d) The bonds are special obligations of the board payable only from designated income and receipts of the board, including principal and interest payments on loans from the fund, income from the accounts created in the fund, and receipts and other revenues pledged to the retirement of the bonds. (e) The bonds do not constitute indebtedness of the state. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.221, eff. Sept. 1, 2001. § 56.127. REFUNDING BONDS. The board may by resolution authorize the issuance of refunding bonds. The board may issue refunding bonds in the manner and for the purposes provided by law. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.128. AMOUNT OF BONDS. The total amount of revenue and refunding bonds issued by the board in a state fiscal year may not exceed $75 million. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.129. INTEREST RATE. The revenue bonds or refunding bonds must bear interest at a rate not to exceed the rate provided by Chapter 1204, Government Code. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.222, eff. Sept. 1, 2001. § 56.130. MATURITY. Bonds issued under this subchapter may mature serially or otherwise not later than the 40th year after the date of their issuance. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.131. EXECUTION OF BONDS. The commissioner of higher education shall execute bonds issued under this subchapter in the name of the board. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.132. APPROVAL AND REGISTRATION OF BONDS. (a) The attorney general shall examine bonds issued under this subchapter and the records relating to the bonds' issuance. (b) If the attorney general finds that the bonds have been issued in accordance with law, the attorney general shall approve the bonds, and the comptroller of public accounts shall register the bonds. (c) Following approval and registration, the bonds are incontestable and are binding obligations according to their terms. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.133. REPLACEMENT OF BOND. The board may provide for the replacement of a bond issued under this subchapter that is mutilated, lost, or destroyed. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.134. PROCEEDS. (a) The board shall deposit the proceeds from the sale of the bonds issued under this subchapter in the fund. (b) The board may use the proceeds from the sale of the bonds to pay the costs of issuing, marketing, or distributing the bonds. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991. § 56.135. LIMITATION OF AUTHORITY. The board may not further issue bonds under this subchapter after the date on which a constitutional amendment relating to the issuance of general obligation bonds by the board for the purposes of student loans is approved by the voters. Added by Acts 1991, 72nd Leg., ch. 330, § 1, eff. June 5, 1991.
SUBCHAPTER I. TEXAS DEPARTMENT OF TRANSPORTATION CONDITIONAL GRANT PROGRAM
§ 56.141. DEFINITIONS. In this subchapter: (1) "Department" means the Texas Department of Transportation. (2) "Institution" means an institution of higher education, as defined by Section 61.003 of this code, but does not include a medical or dental unit or other agency of higher education. (3) "Eligible degree" means a baccalaureate degree from an institution in a field of study that satisfies the department's minimum education requirement for an eligible profession. (4) "Eligible profession" means the profession of engineering or another profession as defined by department rule for which the department determines there is a need in the department's workforce. (5) "Profession" means a state classified position for which the minimum requirements include a baccalaureate degree. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.121 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 165, § 22(26), eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 985, § 1, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1325, § 14.01, eff. Sept. 1, 2003. § 56.142. ESTABLISHMENT; ADMINISTRATION. (a) The department shall establish and administer a conditional grant program under this subchapter to provide financial assistance to eligible students who agree to work for the department in an eligible profession for the two academic years immediately following the date of the student's receipt of an eligible degree. (b) The department shall adopt and distribute to the governing board of each institution copies of all rules adopted under this subchapter. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.122 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 2, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 985, § 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1325, § 14.02, eff. Sept. 1, 2003. § 56.143. ELIGIBLE STUDENT. (a) To be eligible for a conditional grant under this subchapter, a student must: (1) complete and file with the department, on forms prescribed by the department, a conditional grant application and a declaration of intent to become a member of an eligible profession and work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree; (2) enroll in an institution; (3) be a Texas resident, as defined by Texas Higher Education Coordinating Board rule; (4) be economically disadvantaged, as defined by department rule; and (5) have complied with any other requirements adopted by the department under this subchapter. (b) In determining who should receive a grant under this program, the department: (1) shall give highest priority to students who demonstrate the greatest financial need; and (2) may consider whether the applicant would be the first generation of the applicant's family to attend or graduate from an undergraduate program or from a graduate or professional program. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.123 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 3, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 985, § 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1325, § 14.03, eff. Sept. 1, 2003. § 56.144. AMOUNT AND PAYMENT OF CONDITIONAL GRANTS. (a) The department by rule shall prescribe criteria for the selection of applicants for grants under this subchapter. The criteria must include consideration of a student's secondary school scholastic record. (b) Each semester the department shall distribute a conditional grant to each student selected under the criteria adopted under Subsection (a) on receipt of an enrollment report from the institution enrolling the student and certification from the institution of the amount of tuition and fees for the student. (c) The amount of a conditional grant is the sum of: (1) the certified amount of tuition and fees for the student; and (2) a stipend for each whole calendar month in the semester in an amount determined by the department based on financial need. (d) The total amount of all conditional grants distributed by the department may not exceed the amount appropriated for the grant program under this subchapter. (e) The department shall proportionately reduce the amount of each unpaid conditional grant if the amount appropriated for the conditional grants is less than the estimated amount of all unpaid conditional grants. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.124 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 4, eff. Sept. 1, 1995. § 56.145. REPAYMENT OF CONDITIONAL GRANT. (a) The department by rule may establish conditions under which a student who has received a conditional grant may be required to repay all or part of the grant because the student has withdrawn from or dropped out of the student's institution or has otherwise failed to maintain eligibility for the grant. (b) A student who does not become a member of an eligible profession and work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree must repay all conditional grants received by the student. (c) The department shall establish a schedule for installment repayment under this section. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.125 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 5, eff. Sept. 1, 1995. § 56.147. FUNDING. (a) The department may accept gifts and grants from any public or private source for the conditional grant program under this subchapter and may also use for that purpose available money credited to the state highway fund. (b) The department shall issue not less than $400,000 annually in conditional grants under this subchapter from money available to fund the conditional grant program. (c) The department may provide outreach programs to recruit students into the conditional grant program. Added by Acts 1991, 72nd Leg., ch. 551, § 29, eff. Sept. 1, 1991. Renumbered from V.T.C.A., Education Code § 56.127 by Acts 1991, 72nd Leg., 1st C.S., ch. 14, § 8.01(9), eff. Nov. 12, 1991. Amended by Acts 1995, 74th Leg., ch. 151, § 6, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 165, § 22(28), eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 985, § 4, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1325, § 14.04, eff. Sept. 1, 2003.
SUBCHAPTER J. MINORITY DOCTORAL INCENTIVE PROGRAM
§ 56.161. DEFINITIONS. In this subchapter: (1) "Academic administrator" means a person employed by an institution as a supervisor in an educational department of the institution in a position that is not classified under the state position classification plan. (2) "Board" means the Texas Higher Education Coordinating Board. (3) "Faculty member" has the meaning assigned by Section 51.101 of this code. (4) "Institution" means an institution of higher education, as defined by Section 61.003 of this code, or a private college or university that is located in this state and is accredited by a recognized accrediting agency, as defined by Section 61.003 of this code. (5) "Minority" means a group that is significantly underrepresented in an academic discipline, as determined by board rule. (6) "Program" means the minority doctoral incentive program established under this subchapter. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.162. ESTABLISHMENT; ADMINISTRATION. (a) The board shall establish and administer the minority doctoral incentive program to: (1) provide loans to minority students who pursue doctorates or pursue master's degrees and commit to pursue a doctorate; and (2) increase minority representation among the faculty and administration of institutions. (b) The board shall adopt and distribute to the governing board of each institution copies of all rules adopted under this subchapter. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.163. ELIGIBILITY. (a) To be eligible for a loan under this subchapter, a person must: (1) be accepted for admission to an institution as a full-time graduate student in a doctoral program approved by the board or be accepted for admission to an institution as a full-time graduate student in a master's program approved by the board and demonstrate a commitment to pursue a doctoral program approved by the board; (2) be sponsored by a faculty member of the program in which the person is enrolled; (3) be nominated by the institution in which the person is enrolled based on academic achievement, career interest, and other factors the institution considers relevant; (4) not have defaulted on another student loan; and (5) have complied with any other requirements adopted by the board under this subchapter. (b) The board shall adopt eligibility requirements under Subsection (a)(5) of this section to ensure that Texas residents, as defined by board rule, are first given the opportunity to receive loans under this subchapter. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.164. TUITION CHARGED CERTAIN NONRESIDENT LOAN RECIPIENTS. If a loan recipient is a resident of another state that has a program that is similar to the program under this subchapter and the loan recipient enrolls at an institution of higher education, as defined by Section 61.003 of this code, the institution may charge the loan recipient only the tuition required for resident students under Subchapter B, Chapter 54, of this code. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.165. LOAN DISBURSEMENT. (a) If an eligible student applies for a loan from a lending institution, the board shall provide the institution a conditional guaranty of the loan, in accordance with Section 56.170 of this code, on the board's receipt of: (1) the student's application to the board for a conditional guaranty; (2) a verification of the student's enrollment from the institution enrolling the student; (3) a certification from the institution enrolling the student of the amount of tuition and fees for the student; and (4) a certification from the lending institution that the terms of the loan conform with the requirements of Section 56.166 of this code, including requirements adopted by the board under that section, and that the lending institution agrees to suspend interest on the student's loan as provided by Sections 56.168 and 56.169 of this code. (b) If an eligible student applies for a loan from the board, the board shall provide a loan in an amount determined by the board to the student on the board's receipt of: (1) the student's application to the board for a loan; (2) a verification of the student's enrollment from the institution enrolling the student; and (3) a certification from the institution enrolling the student of the amount of tuition and fees for the student. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.166. TERMS OF LOAN. (a) A loan must be evidenced by a promissory note that provides for the repayment of the loan with interest and for the charging of necessary collection costs. (b) Except as provided by Sections 56.168 and 56.169 of this code, a loan must be repayable, at the option of the board, in equal monthly installments over a period beginning with the first day of the seventh month after the date on which the recipient ceases to be enrolled in a graduate program at an institution. (c) A loan must bear simple interest at a rate determined by the board. (d) A loan provided under this subchapter may not exceed $14,000 each year for a maximum of four years. (e) The board shall determine the other terms of a loan. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.167. MENTORS. The institution at which a student who receives a loan is enrolled shall provide the student with a mentor who is a faculty member at the institution to assist the student in pursuing a master's or doctoral degree. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.168. POSTDOCTORAL FELLOWSHIP. (a) A loan recipient is eligible for suspension of the recipient's loan if the recipient enters a postdoctoral fellowship not later than the first day of the seventh month after the date on which the recipient ceases to be enrolled in a doctoral program at an institution. (b) The board shall suspend the accrual of interest and the repayment of principal and interest on an eligible recipient's loan until a date determined by board rule. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.169. LOAN SUSPENSION AND FORGIVENESS. (a) A loan recipient is eligible for suspension and forgiveness of the recipient's loan if, after the recipient obtains a doctorate, the recipient is employed as a full-time faculty member or academic administrator at an institution. (b) In accordance with Subsections (c), (d), and (e) of this section, the board shall suspend the accrual of interest and forgive the repayment of a loan made to an eligible recipient. (c) The board shall suspend the accrual of interest and the repayment of principal and interest on an eligible recipient's loan until the recipient is not employed as a full-time faculty member or academic administrator at an institution. (d) The board shall forgive the repayment of 20 percent of the unpaid principal balance and all accrued interest of an eligible recipient's loan for each academic year of service by the recipient as a full-time faculty member or academic administrator at an institution. (e) A loan to an eligible recipient is repayable under the terms of Section 56.166 of this code beginning with the first day of the seventh month after the date on which the recipient discontinues full-time study and is not employed as a full-time faculty member or academic administrator at an institution and must be repaid in full not later than the 10th anniversary of the date on which the loan becomes repayable. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.170. CONDITIONAL GUARANTY. A conditional guaranty of a loan under Section 56.165(a) of this code must provide that the board shall repay the lending institution to which the guaranty is executed the amount of the loan that the board would be required to forgive under Section 56.169 of this code if the loan had been made by the board. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993. § 56.171. FUNDING. (a) The board may accept gifts and grants from a public or private source for the program. (b) Gifts, grants, and other funds appropriated by the legislature may be used for the program. Added by Acts 1993, 73rd Leg., ch. 75, § 1, eff. May 4, 1993.
SUBCHAPTER K. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM
§ 56.201. PROGRAM NAME. The student financial assistance program authorized by this subchapter is known as the Early High School Graduation Scholarship program. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. § 56.202. PURPOSE. (a) The Early High School Graduation Scholarship program is created to increase efficiency in the Foundation School Program and to provide assistance for tuition and mandatory fees to an eligible person to enable that person to attend a Texas public or private institution of higher education. (b) A portion of the savings to the Foundation School Program that occur as a result of the program is dedicated to state credits for tuition and mandatory fees provided to an eligible person under the program. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 1317, § 1, eff. Sept. 1, 2003. § 56.203. ELIGIBLE PERSON.
Text of section as amended by Acts 2003, 78th Leg., ch. 365, § 1
(a) To be eligible for the Early High School Graduation Scholarship program, a person must: (1) have the written approval of at least one of the person's parents or a person standing in parental relation to the person; (2) have successfully completed the recommended or advanced high school program established under Section 28.025 in not more than 36 consecutive months and graduated or be eligible for graduation from a Texas public high school; (3) have attended high school in this state only; and (4) be a Texas resident as defined by Texas Higher Education Coordinating Board rule. (b) A person who does not satisfy the curriculum requirements of Subsection (a)(2) is considered to have satisfied those requirements if the high school from which the person graduated indicates on the person's transcript that the person was unable to complete the appropriate curriculum within the time prescribed by that subsection solely because necessary courses were unavailable to the person at the appropriate times in the person's high school career as a result of course scheduling, lack of enrollment capacity, or another cause not within the person's control. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995; Amended by Acts 2003, 78th Leg., ch. 365, § 1, eff. Sept. 1, 2003. For text of section as amended by Acts 2003, 78th Leg., ch. 1317, § 2, see § 56.203, post. § 56.203. ELIGIBLE PERSON.
Text of section as amended by Acts 2003, 78th Leg., ch. 1317, § 2
(a) To be eligible for the Early High School Graduation Scholarship program, a person must: (1) have the written approval of at least one of the person's parents or a person standing in parental relation to the person, if the person graduated from high school in not more than 41 consecutive months; (2) have successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from a Texas public high school in not more than 41 consecutive months or, if the person graduated with at least 30 hours of college credit, in not more than 45 consecutive months; (3) have attended high school in this state only; and (4) be a Texas resident as defined by Texas Higher Education Coordinating Board rule. (b) A person's eligibility for the Early High School Graduation Scholarship program ends on the sixth anniversary of the date that the person first becomes eligible to participate in the program, unless the person is provided additional time to participate in the program under Subsection (c). (c) The coordinating board shall adopt rules to provide a person who is otherwise eligible to participate in the Early High School Graduation Scholarship program additional time to use a state credit for tuition and mandatory fees under the program. The rules must require a person seeking an extension under this subsection to show hardship or other good cause that prevents the person from enrolling in or continuing enrollment in an eligible institution during the period provided by Subsection (b). For purposes of this subsection, hardship or other good cause includes a severe illness or other debilitating condition or responsibility for the care of a sick, injured, or needy person. (d) A person who does not satisfy the curriculum requirements of Subsection (a)(2) is considered to have satisfied those requirements if the high school from which the person graduated indicates on the person's transcript that the person was unable to complete the appropriate curriculum within the time prescribed by that subsection solely because necessary courses were unavailable to the person at the appropriate times in the person's high school career as a result of course scheduling, lack of enrollment capacity, or another cause not within the person's control. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 1317, § 2, eff. Sept. 1, 2003. For text of section as amended by Acts 2003, 78th Leg., ch. 365, § 1, see § 56.203, ante. § 56.204. ENTITLEMENT; MATCHING CREDIT. (a) An eligible person under the Early High School Graduation Scholarship program is entitled to a state credit to pay tuition and mandatory fees at a public or private institution of higher education in this state in the following amounts: (1) $2,000 if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school in 36 consecutive months or less and an additional $1,000 if the person graduated with at least 15 hours of college credit; (2) $500 if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school in more than 36 consecutive months but not more than 41 consecutive months and an additional $1,000 if the person graduated with at least 30 hours of college credit; or (3) $1,000 if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school in more than 41 consecutive months but not more than 45 consecutive months with at least 30 hours of college credit. (b) The use of a credit at a private institution is contingent on a private institution's agreement to match the state credit. (c) A person eligible for a tuition credit under the tuition credit program authorized by Rider 23, page III-9, Chapter 19, Acts of the 72nd Legislature, 1st Called Session, 1991 (the General Appropriations Act), who did not receive a credit under that program is eligible for and entitled to $ 1,000 in state tuition credits under this subchapter. This subsection expires September 1, 2005. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 1317, § 3, eff. Sept. 1, 2003. § 56.205. ISSUANCE OF CERTIFICATE. The coordinating board shall provide a certificate for state credits for tuition and mandatory fees to an eligible person. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 1317, § 4, eff. Sept. 1, 2003. § 56.206. USE OF STATE CREDIT. (a) On enrollment of an eligible person in an eligible institution of higher education, the institution shall apply to the person's charges for tuition and mandatory fees for the enrollment period an amount equal to the lesser of: (1) the amount of the state credit available to the person; or (2) the person's actual tuition and mandatory fees. (b) A private institution of higher education shall apply the state credit and the matching credit required by Section 56.204(b) in equal amounts. (c) For each student using a state credit for tuition and mandatory fees under this subchapter, the institution of higher education shall report to the coordinating board: (1) the student's name; (2) the school district from which the student graduated from high school; and (3) the amount of the state credit applied. (d) Subject to Section 56.203(b), an eligible person may use the state credit for enrollment in an eligible institution of higher education during any semester or summer session, except the person's initial use of the credit may not be for enrollment during any term of a summer session immediately following the person's graduation from high school. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 1317, § 5, eff. Sept. 1, 2003. § 56.207. PAYMENT OF STATE CREDIT. (a) At least once each year the coordinating board shall submit a report to the commissioner of education that includes: (1) the name of each student who used the state credit under this subchapter during the period covered by the report; (2) the school district from which each student graduated from high school; and (3) the amount of the state credit used by each student during the period covered by the report. (b) On receipt of a report from the coordinating board under Subsection (a), the commissioner shall transfer to the coordinating board, from funds appropriated for the Foundation School Program, an amount sufficient to pay each eligible institution of higher education the amount of state credit for tuition and mandatory fees that is applied by the institution during the period covered by the report. (c) The coordinating board shall distribute the appropriate amount of funds to each eligible institution when the board receives the funds under Subsection (b). Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28th, 1995. Amended by Acts 1997, 75th Leg., ch. 205, § 1, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1317, § 6, 7, eff. Sept. 1, 2003. § 56.2075. PAYMENT OF SCHOOL DISTRICT CREDIT. (a) A school district is entitled to a one-time credit of: (1) $1,000 for each eligible person graduating from high school in the district who uses any part of a state credit of $2,000 or more under Section 56.204(a)(1); and (2) $250 for each eligible person graduating from high school in the district who uses any part of a state credit of $500 or more under Section 56.204(a)(2). (b) The commissioner shall distribute money from the foundation school fund in an amount sufficient to pay each school district under Subsection (a). Added by Acts 2003, 78th Leg., ch. 1317, § 8, eff. Sept. 1, 2003. § 56.208. FUNDING. (a) The Early High School Graduation Scholarship program is financed under the Foundation School Program. Funding for the state tuition credits is not subject to the provisions of Sections 42.253(e) through (k). (b) The commissioner of education shall reduce the total annual amount of foundation school fund payments made to a school district by an amount equal to F x A, where: (1) "F" is the lesser of one or the quotient of the district's local share for the preceding school year under Section 42.252 divided by the amount of money to which the district was entitled under Subchapters B and C, Chapter 42, for the preceding school year; and (2) "A" is the amount of state tuition credits under this subchapter applied by institutions of higher education on behalf of eligible persons who graduated from the district that has not been used to compute a previous reduction under this subsection. (c) A school district that does not receive foundation school fund payments during a year in which the commissioner would otherwise withhold money from the district under Subsection (b) shall remit an amount equal to the amount that would be withheld under Subsection (b) to the comptroller for deposit to the credit of the foundation school fund. (d) Repealed by Acts 1997, 75th Leg., ch. 1071, § 30, eff. Sept. 1, 1997. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995. Amended by Acts 1997, 75th Leg., ch. 1071, § 30, eff. Sept. 1, 1997. § 56.209. ADOPTION AND DISTRIBUTION OF RULES. (a) The coordinating board shall adopt rules to administer this subchapter. (b) The coordinating board shall distribute copies of all rules adopted under this subchapter to each eligible institution of higher education and to each school district. Added by Acts 1995, 74th Leg., ch. 260, § 19, eff. May 30, 1995; Acts 1995, 74th Leg., ch. 620, § 2, eff. Aug. 28, 1995.
SUBCHAPTER L. STUDENT ENDOWMENT SCHOLARSHIP AND INTERNSHIP PROGRAM
§ 56.241. DEFINITION. In this subchapter, "general academic teaching institution" has the meaning assigned by Section 61.003. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.242. STUDENT ENDOWMENT SCHOLARSHIP AND INTERNSHIP PROGRAM. The Student Endowment Scholarship and Internship Program is an optional state grant program for all general academic teaching institutions. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.243. ELECTION TO PARTICIPATE. Not later than September 1, 2004, a general academic teaching institution may elect to participate in the Student Endowment Scholarship and Internship Program. For the institution to make the election, the student government of the institution must determine by official action that the program would benefit the institution. If the student government determines that the program would benefit the institution, in a general election called for that purpose a majority of the students of the institution voting in the election must approve an additional fee and the potential matching grant from the state. If the majority approves the additional fee and potential matching grant from the state, the governing board of the institution shall impose and decide the structure of the additional fee. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.244. TYPES OF SCHOLARSHIPS; INTERNSHIP. A general academic teaching institution shall provide financial assistance under this subchapter through scholarships based on leadership, financial need, and academic achievement and through an internship program. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.245. ELIGIBILITY. (a) With the assistance of an advisory committee established by the governing board, the governing board of the general academic teaching institution shall: (1) determine the eligibility requirements for scholarships or internship funding; and (2) select students to receive the scholarships or internship funding. (b) A student is not eligible for a student endowment scholarship or student endowment internship funding if the student is on disciplinary or academic probation or if the student is not enrolled at the institution. (c) The institution may provide financial assistance under this subchapter to students in any field or major designated by the institution. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.246. AMOUNT OF SCHOLARSHIP OR INTERNSHIP FUNDING. (a) During the five-year period during which the institution may receive state matching funds, the amount of student endowment scholarship funding for an internship may not exceed $500 per semester or summer session. (b) The amount of a student endowment scholarship may not exceed the amount of tuition and required fees that a student would be charged by the institution. (c) The amount of student endowment internship funding may not exceed the amount of tuition and required fees that a student would be charged by the institution during the student's period of internship. (d) On receipt of a scholarship or internship funding under this subchapter, a student must comply with any applicable conditions of the scholarship or internship funding. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999. § 56.247. STUDENT ENDOWMENT FUND. (a) Each institution shall establish a student endowment fund consisting of the revenue from the additional student fee, the state matching funds appropriated for the purpose, and the interest and other income from investment of the fund. The fund shall be invested by the governing board in accordance with the policies governing investment of other funds held and invested by the board on behalf of the institution. (b) Scholarships and internships shall be paid from the fund, subject to the requirements of this section and Section 56.246. (c) Scholarships and internships may be paid from both the income and the principal of the fund, except that after the five-year period during which state matching funds are payable, for any year not more than five percent of the principal of the fund may be expended for scholarships and internships. (d) For purposes of this section, five percent of the capital gains for any year from investment of the fund is considered income. Added by Acts 1999, 76th Leg., ch. 1473, § 1, eff. Sept. 1, 1999.
SUBCHAPTER M. TOWARD EXCELLENCE, ACCESS, & SUCCESS (TEXAS) GRANT PROGRAM
§ 56.301. DEFINITIONS. In this subchapter: (1) "Coordinating board" means the Texas Higher Education Coordinating Board. (2) "Eligible institution" means: (A) an institution of higher education; or (B) a private or independent institution of higher education. (3) "Private or independent institution of higher education," "public junior college," and "public technical institute" have the meanings assigned by Section 61.003. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. § 56.302. PROGRAM NAME; PURPOSE. (a) The student financial assistance program authorized by this subchapter is known as the Toward EXcellence, Access, & Success (TEXAS) grant program, and an individual grant awarded under this subchapter is known as a TEXAS grant. (b) The purpose of this subchapter is to provide a grant of money to enable eligible students to attend public and private institutions of higher education in this state. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. § 56.303. ADMINISTRATION OF PROGRAM. (a) The coordinating board shall administer the TEXAS grant program and shall adopt any rules necessary to implement the TEXAS grant program or this subchapter. The coordinating board shall consult with the student financial aid officers of eligible institutions in developing the rules. (b) The coordinating board shall adopt rules to provide a TEXAS grant to an eligible student enrolled in an eligible institution in the most efficient manner possible. (c) The total amount of TEXAS grants awarded may not exceed the amount available for the program from appropriations, gifts, grants, or other funds. (d) In determining who should receive a TEXAS grant, the coordinating board and the eligible institutions shall give highest priority to awarding TEXAS grants to students who demonstrate the greatest financial need. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. § 56.304. INITIAL ELIGIBILITY FOR GRANT. (a) To be eligible initially for a TEXAS grant, a person must: (1) be a resident of this state as determined by coordinating board rules; (2) meet either of the following academic requirements: (A) be a graduate of a public or accredited private high school in this state who graduated not earlier than the 1998-1999 school year and who completed the recommended or advanced high school curriculum established under Section 28.002 or 28.025 or its equivalent; or (B) have received an associate degree from an eligible institution not earlier than May 1, 2001; (3) meet financial need requirements as defined by the coordinating board; (4) be enrolled in an undergraduate degree or certificate program at an eligible institution; (5) be enrolled as: (A) an entering undergraduate student for at least three-fourths of a full course load for an entering undergraduate student, as determined by the coordinating board, not later than the 16th month after the date of the person's graduation from high school; or (B) an entering student for at least three-fourths of a full course load for an undergraduate student as determined by the coordinating board, not later than the 12th month after the month the person receives an associate degree from an eligible institution; (6) have applied for any available financial aid or assistance; and (7) comply with any additional nonacademic requirement adopted by the coordinating board under this subchapter. (b) A person is not eligible to receive a TEXAS grant if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has: (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter. (c) A person is not eligible to receive a TEXAS grant if the person has been granted a baccalaureate degree. (d) A person may not receive a TEXAS grant for more than 150 semester credit hours or the equivalent. (e) A person's eligibility for a TEXAS grant ends on the sixth anniversary of the initial award of a TEXAS grant to the person and the person's enrollment in an eligible institution, unless the person is provided additional time during which the person may receive a TEXAS grant under this subsection. The coordinating board shall adopt rules to provide a person who is otherwise eligible to receive a TEXAS grant additional time during which the person may receive a TEXAS grant in the event of a hardship or other good cause shown that prevents the person from continuing the person's enrollment during the period the person would otherwise have been eligible to receive a TEXAS grant, including a showing of a severe illness or other debilitating condition or that the person is or was responsible for the care of a sick, injured, or needy person. (f) The requirement in Subsection (a)(2) that a person must have completed the recommended or advanced high school curriculum does not apply to a person who: (1) attended a public high school in a school district if that district certifies to the commissioner of education that the high school did not offer all the necessary courses for a person to complete all parts of the recommended or advanced high school curriculum; and (2) completed all courses at the high school offered toward the completion of the recommended or advanced high school curriculum. (g) Not later than March 1 of each year, the commissioner of education shall provide to the coordinating board a list of all the public high schools that do not offer all the courses necessary to complete all parts of the recommended or advanced high school curriculum as described by Subsection (f)(1). (h) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(5). The coordinating board may not allow a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. Amended by Acts 2001, 77th Leg., ch. 1261, § 1, eff. June 15, 2001. § 56.3041. INITIAL ELIGIBILITY OF PERSON ON TRACK TO COMPLETE RECOMMENDED OR ADVANCED CURRICULUM. (a) If at the time an eligible institution awards TEXAS grants to initial recipients for an academic year an applicant has not completed high school or the applicant's final high school transcript is not yet available to the institution, the student is considered to have satisfied the requirements of Section 56.304(a)(2)(A) if the student's available high school transcript indicates that at the time the transcript was prepared the student was on schedule to graduate from high school and to complete the recommended or advanced high school curriculum or its equivalent, as applicable to the student, in time to be eligible for a TEXAS grant for the academic year. (b) The coordinating board or the eligible institution may require the student to forgo or repay the amount of an initial TEXAS grant awarded to the student as described by Subsection (a) if the student fails to complete the recommended or advanced high school curriculum or its equivalent after the issuance of the available high school transcript. (c) A person who is required to forgo or repay the amount of an initial TEXAS grant under Subsection (b) may become eligible to receive an initial TEXAS grant under Section 56.304 by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) and the other applicable requirements of that section at the time the person reapplies for the grant. (d) A person who receives an initial TEXAS grant under Subsection (a) and is not required to forgo or repay the amount of the grant under Subsection (b) may become eligible to receive a subsequent TEXAS grant under Section 56.305 only by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) in addition to the requirements of Section 56.305 at the time the person applies for the subsequent grant. Added by Acts 2003, 78th Leg., ch. 919, § 1, eff. June 20, 2003. § 56.305. CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a TEXAS grant, a person may continue to receive a TEXAS grant during each semester or term in which the person is enrolled at an eligible institution only if the person: (1) meets financial need requirements as defined by the coordinating board; (2) is enrolled in an undergraduate degree or certificate program at an eligible institution; (3) is enrolled for at least three-fourths of a full course load for an undergraduate student, as determined by the coordinating board; (4) makes satisfactory academic progress toward an undergraduate degree or certificate; and (5) complies with any additional nonacademic requirement adopted by the coordinating board. (b) A person is not eligible to continue to receive a TEXAS grant under this section if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has: (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter. (c) If a person fails to meet any of the requirements of Subsection (a) after the completion of any semester or term, the person may not receive a TEXAS grant during the next semester or term in which the person enrolls. A person may become eligible to receive a TEXAS grant in a subsequent semester or term if the person: (1) completes a semester or term during which the student is not eligible for a scholarship; and (2) meets all the requirements of Subsection (a). (d) A person who qualifies for and subsequently receives a TEXAS grant, who receives an undergraduate certificate or associate degree, and who, not later than the 12th month after the month the person receives the certificate or degree, enrolls in a program leading to a higher-level undergraduate degree continues to be eligible for a TEXAS grant to the extent other eligibility requirements are met. (e) For the purpose of this section, a person makes satisfactory academic progress toward an undergraduate degree or certificate only if: (1) in the person's first academic year the person meets the satisfactory academic progress requirements of the institution at which the person is enrolled; and (2) in a subsequent academic year, the person: (A) completes at least 75 percent of the semester credit hours attempted in the student's most recent academic year; and (B) earns an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at institutions of higher education. (f) A person who is eligible to receive a TEXAS grant continues to remain eligible to receive the TEXAS grant if the person enrolls in or transfers to another eligible institution. (g) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant: (1) while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(3); or (2) if the student's grade point average or completion rate falls below the satisfactory academic progress requirements of Subsection (e). Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. Amended by Acts 2003, 78th Leg., ch. 919, § 2, eff. June 20, 2003. § 56.306. GRANT USE. A person receiving a TEXAS grant may use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student. The institution may disburse all or part of the proceeds of a TEXAS grant to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. § 56.307. GRANT AMOUNT. (a) The amount of a TEXAS grant for a semester or term for a person enrolled full-time at an eligible institution other than an institution covered by Subsection (b), (c), or (d) is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in a baccalaureate degree program would be charged for that semester or term at general academic teaching institutions. (b) The amount of a TEXAS grant for a student enrolled full-time at a private or independent institution of higher education is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in a baccalaureate degree program would be charged for that semester or term at general academic teaching institutions. (c) The amount of a TEXAS grant for a student enrolled full-time at a public technical institute is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in an associate degree or certificate program would be charged for that semester or term at public technical institutes. (d) The amount of a TEXAS grant for a student enrolled full-time at a public junior college is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a student who is a resident of the junior college district and is enrolled full-time in an associate degree or certificate program would be charged for that semester or term at public junior colleges. (e) The coordinating board may adopt rules that allow the coordinating board to increase or decrease, in proportion to the number of semester credit hours in which a student is enrolled, the amount of a TEXAS grant award under this section to a student who is enrolled in a number of semester credit hours in excess of or below the number of semester credit hours described in Section 56.304(a)(5) or 56.305(a)(3). (f) The amount of a TEXAS grant may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the student's financial need. (g) Not later than January 31 of each year, the coordinating board shall publish the amounts of each grant established by the board for each type of institution for the academic year beginning the next fall semester. (h) The total amount of grants that a student may receive in an academic year under this subchapter and under Section 61.221 may not exceed the total amount of tuition and required fees charged to the student for the academic periods for which one or more of the grants were awarded. (i) A public institution of higher education may not: (1) charge a person attending the institution who also receives a TEXAS grant an amount of tuition and required fees in excess of the amount of the TEXAS grant received by the person; or (2) deny admission to or enrollment in the institution based on a person's eligibility to receive a TEXAS grant or a person's receipt of a TEXAS grant. (j) An institution may use other available sources of financial aid, other than a loan, to cover any difference in the amount of a TEXAS grant and the actual amount of tuition and required fees at the institution. (k) The legislature in an appropriations act shall account for tuition and required fees received under this section in a way that does not increase the general revenue appropriations to that institution. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. Amended by Acts 2003, 78th Leg., ch. 919, § 3, eff. June 20, 2003. § 56.3075. HEALTH CARE PROFESSION STUDENT GRANT. (a) The coordinating board may award a grant in an amount not more than three times the amount that may be awarded under Section 56.307 to a student who: (1) is enrolled in a program that fulfills the educational requirements for licensure or certification by the state in a health care profession that the coordinating board, in consultation with the Texas Workforce Commission and the statewide health coordinating council, has identified as having a critical shortage in the number of license holders needed in this state; (2) has completed at least one-half of the work toward a degree or certificate that fulfills the educational requirement for licensure or certification; and (3) meets all the requirements to receive a grant award under Section 56.307. (b) In awarding a grant under Subsection (a), the coordinating board may: (1) give priority to students from a group underrepresented in the programs preparing students for licensure or certification by the state; and (2) award different amounts based on the amount of course work a student has completed toward earning the degree required for licensure or certification. Added by Acts 2003, 78th Leg., ch. 728, § 3, eff. June 20, 2003. § 56.308. NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF SCHOOL DISTRICTS. (a) The coordinating board shall distribute to each eligible institution and to each school district a copy of the rules adopted under this subchapter. (b) Each school district shall: (1) notify its middle school students, junior high school students, and high school students, those students' teachers and counselors, and those students' parents of the TEXAS grant and Teach for Texas grant programs, the eligibility requirements of each program, the need for students to make informed curriculum choices to be prepared for success beyond high school, and sources of information on higher education admissions and financial aid in a manner that assists the district in implementing a strategy adopted by the district under Section 11. 252(a)(4); and (2) ensure that each student's official transcript or diploma indicates whether the student has completed or is on schedule to complete: (A) the recommended or advanced high school curriculum required for grant eligibility under Section 28.002 or 28.025; or (B) for a school district covered by Section 56.304(f)(1), the required portion of the recommended or advanced high school curriculum in the manner described by Section 56.304(f)(2). (c) The information required by Subsection (b)(2) must be included on a student's transcript not later than the end of the student's junior year. (d) In addition to the eligibility requirements of Section 56.304, a person who graduated from an accredited private high school is eligible to receive a grant under this subchapter only if the student's official transcript or diploma includes the information required as provided by Subsections (b)(2)(A) and (c). Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. Amended by Acts 2001, 77th Leg., ch. 1261, § 5, eff. June 15, 2001. § 56.310. FUNDING. (a) The coordinating board may solicit and accept gifts and grants from any public or private source for the purposes of this subchapter. (b) The legislature may appropriate money for the purposes of this subchapter. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. § 56.311. LEGISLATIVE OVERSIGHT COMMITTEE. (a) The Legislative Oversight Committee on the TEXAS grant program and Teach for Texas grant program is composed of six members as follows: (1) three members of the senate appointed by the lieutenant governor; and (2) three members of the house of representatives appointed by the speaker of the house of representatives. (b) The committee shall: (1) meet at least twice a year with the coordinating board; and (2) receive information regarding rules relating to the TEXAS grant program and Teach for Texas grant program that have been adopted by the coordinating board or proposed for adoption by the coordinating board. (c) The committee may request reports and other information from the coordinating board relating to the operation of the TEXAS grant program and Teach for Texas grant program by the coordinating board. (d) The committee shall review the specific recommendations for legislation related to this subchapter that are proposed by the coordinating board. (e) The committee shall monitor the operation of the TEXAS grant program and Teach for Texas grant program, with emphasis on the manner of the award of grants, the number of grants awarded, and the educational progress made by persons who have received grants under those programs. (f) The committee shall file a report with the governor, lieutenant governor, and speaker of the house of representatives not later than December 31 of each even-numbered year. (g) The report shall include identification of any problems in the TEXAS grant program and Teach for Texas grant program with recommended solutions for the coordinating board and for legislative action. Added by Acts 1999, 76th Leg., ch. 1590, § 1, eff. June 19, 1999. Amended by Acts 2001, 77th Leg., ch. 1261, § 6, eff. June 15, 2001.
SUBCHAPTER O. TEACH FOR TEXAS LOAN REPAYMENT ASSISTANCE PROGRAM
§ 56.351. DEFINITION. In this subchapter, "coordinating board" means the Texas Higher Education Coordinating Board. Added by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001. Amended by Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.352. PURPOSE OF PROGRAM; LOAN REPAYMENT AUTHORIZED. (a) The purpose of this subchapter is to attract to the teaching profession persons who have expressed interest in teaching and to support the employment of those persons as classroom teachers by providing student loan repayment assistance for service as a classroom teacher in the public schools of this state. (b) The coordinating board shall provide, in accordance with this subchapter and board rules, assistance in the repayment of eligible student loans for persons who apply and qualify for the assistance. Redesignated from § 56.309(a) and amended by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.353. ELIGIBILITY. (a) Teach for Texas repayment assistance is available only to a person who applies for the assistance and who: (1) is certified in a teaching field identified by the commissioner of education as experiencing a critical shortage of teachers in this state in the year in which the person receives the assistance and has for at least one year taught full-time at, and is currently teaching full-time at, the preschool, primary, or secondary level in a public school in this state in that teaching field; or (2) is a certified educator who has for at least one year taught full-time at, and is currently teaching full-time at, the preschool, primary, or secondary level in a public school in this state in a community identified by the commissioner of education as experiencing a critical shortage of teachers in the year in which the person receives the assistance. (b) The coordinating board in awarding repayment assistance shall give priority to applicants who demonstrate financial need. (c) If the money available for loan repayment assistance in a period for which assistance is awarded is insufficient to provide assistance to all eligible applicants described by Subsection (b), the coordinating board shall establish priorities for awarding repayment assistance to address the most critical teacher shortages described by Subsection (a). (d) A person may not receive loan repayment assistance for more than five years. Redesignated from § 56.309(b) and amended by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.354. ELIGIBLE LOANS. (a) A person may receive Teach for Texas loan repayment assistance under this subchapter for the repayment of any student loan for education at any public or private institution of higher education through any lender. If the loan is not a state or federal guaranteed student loan, the note or other writing governing the terms of the loan must require the loan proceeds to be used for expenses incurred by a person to attend a public or private institution of higher education. (b) The coordinating board may not provide loan repayment assistance for a student loan that is in default at the time of the person's application. Redesignated from § 56.309(d) and amended by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.355. PAYMENT OF ASSISTANCE. (a) The coordinating board may determine the manner in which Teach for Texas loan repayment assistance is to be paid. The coordinating board may provide for the payment of a portion of the repayment assistance in one or more installments before the person completes a full year of service as a teacher and for the payment of the remainder of the repayment assistance for that year after the completion of the full year of service. (b) Loan repayment assistance received under this subchapter may be applied to the principal amount of the loan and to interest that accrues. Amended by Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.357. TEACH FOR TEXAS ALTERNATIVE CERTIFICATION ASSISTANCE PROGRAM. (a) The coordinating board shall establish a program under which the coordinating board awards grants to assist persons seeking educator certification through alternative educator certification programs as provided by this section. (b) To be eligible for a grant under the program, a person must apply for a grant and: (1) have received a baccalaureate degree from an eligible institution of higher education or an accredited out-of-state institution of higher education; and (2) enroll in an alternative educator certification program described by Section 21.049 and satisfy either of the following conditions: (A) be seeking educator certification in a teaching field certified by the commissioner of education as experiencing a critical shortage of teachers in this state in the year in which the person receives the grant and agree to teach for five years in a public school in this state in that teaching field; or (B) agree to teach for five years in a public school in this state in a community, which is not required to be specifically designated at the time the person receives the grant, certified by the commissioner of education as experiencing a critical shortage of teachers in any year in which the person receives a grant under this section or in any subsequent year in which the person fulfills the teaching obligation. (c) A person is not eligible to receive a grant under the program if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance, as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this section and has: (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under the program. (d) In selecting applicants to receive grants under the program, the coordinating board shall consider: (1) the financial resources of an applicant; (2) the efficient use of the money available for grants; (3) the opportunity of applicants from all regions of this state to receive grants; and (4) any other factor the coordinating board considers appropriate to further the purposes of this subchapter. (e) The amount of a grant under the program is equal to two times the current amount of a TEXAS grant under Subchapter M for a student enrolled in a general academic teaching institution. The coordinating board may pay the amount of the grant in installments during the period in which the person is enrolled in the person's alternative educator certification program. (f) The person must begin fulfilling the person's teaching obligation not later than the 18th month after the person completes the alternative educator certification program, unless the coordinating board for good cause grants the person additional time to begin fulfilling the teaching obligation. The person must complete the teaching obligation not later than the sixth year after the date the person begins to fulfill the teaching obligation. The coordinating board shall grant a person additional time to complete the teaching obligation for good cause. (g) The coordinating board shall cancel a person's teaching obligation if the coordinating board determines that the person: (1) has become permanently disabled so that the person is not able to teach; or (2) has died. (h) The coordinating board shall require a person who receives a grant to sign a promissory note acknowledging the conditional nature of the grant and promising to repay the amount of the grant plus applicable interest and reasonable collection costs if the person does not satisfy the applicable conditions of the grant. The coordinating board shall determine the terms of the promissory note. (i) The amount required to be repaid by a person who fails to complete the teaching obligation of the person's grant shall be determined in proportion to the portion of the teaching obligation that the person has not satisfied. (j) A person receiving a grant is considered to have failed to satisfy the conditions of the grant, and the grant automatically becomes a loan, if the person, without good cause as determined by the coordinating board, fails to: (1) remain enrolled in or to make steady progress in the alternative educator certification program for which the grant was made or, with the approval of the coordinating board, in another alternative educator certification program; or (2) become certified as a classroom teacher not later than the 18th month after the date the person completes the alternative educator certification program. Added by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001. § 56.3575. ADMINISTRATION; RULES. (a) The coordinating board shall adopt rules necessary for the administration of this subchapter. (b) The coordinating board shall distribute a copy of the rules adopted under this section and pertinent information relating to this subchapter to each public or private institution of higher education in this state that offers an educator certification program, including an alternative educator certification program or another equivalent program. Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003. § 56.358. FUNDING; ALLOCATION OF FUNDING. (a) The coordinating board may solicit and accept gifts and grants from any public or private source for the purposes of this subchapter. (b) The legislature may appropriate money for the purposes of this subchapter. Added by Acts 2001, 77th Leg., ch. 1261, § 3, eff. June 15, 2001. § 56.359. GRANTS AND SERVICE AGREEMENTS ENTERED INTO UNDER FORMER LAW; SAVING PROVISION. (a) This section applies only to a person who was awarded a Teach for Texas grant and entered into a written agreement to perform service as a public school teacher in this state in order to receive the grant under this subchapter before September 1, 2003. (b) A person to whom this section applies may receive any unpaid installments of the grant as provided by the agreement and in accordance with this subchapter as it existed when the grant was awarded. The agreement continues in effect and this subchapter, as it existed when the person entered into the agreement, is continued in effect for purposes of that agreement until the person satisfies all the conditions of the agreement or repays all amounts due under the agreement if the person does not satisfy the conditions of the agreement. Added by Acts 2003, 78th Leg., ch. 820, § 49, eff. Sept. 1, 2003.
SUBCHAPTER P. TOWARD EXCELLENCE, ACCESS, & SUCCESS (TEXAS) GRANT II PROGRAM
§ 56.401. DEFINITIONS. In this subchapter: (1) "Coordinating board" means the Texas Higher Education Coordinating Board. (2) "Eligible institution" means: (A) a public junior college; (B) a public technical institute; or (C) a public state college. (3) "Public junior college," "public technical institute," and "public state college" have the meanings assigned by Section 61.003. Added by Acts 2001, 77th Leg., ch. 624, § 1, eff. June 11, 2001. Renumbered from V.T.C.A., Education Code § 56.351 by Acts 2003, 78th Leg., ch. 1275, § 2(35), eff. Sept. 1, 2003. § 56.402. PROGRAM NAME; PURPOSE. (a) The student financial assistance program authorized by this subchapter is known as the Toward EXcellence, Access, & Success (TEXAS) grant II program, and an individual grant awarded under this subchapter is known as a TEXAS grant II. (b) The purpose of this subchapter is to provide a grant of money to enable eligible students to attend two-year public institutions of higher education in this state. Added by Acts 2001, 77th Leg., ch. 624, § 1, eff. June 11, 2001. Renumbered from V.T.C.A., Education Code § 56.352 by Acts 2003, 78th Leg., ch. 1275, § 2(35), eff. Sept. 1, 2003. § 56.403. ADMINISTRATION OF PROGRAM. (a) The coordinating board shall administer the TEXAS grant II program and shall adopt any rules necessary to implement the TEXAS grant II program or this subchapter. The coordinating board shall consult with the student financial aid officers of eligible institutions in developing the rules. (b) The coordinating board shall adopt rules to provide a TEXAS grant II to an eligible student enrolled in an eligible institution in a manner cons