Texas Higher Education Coordinating Board
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Texas B-On-Time (BOT) Loan Program Fact Sheet

The Texas B-On-Time Loan program is a zero-interest loan. Beginning with the 2015-2016 academic year, only renewal awards will be available. Your institution's financial aid office will determine your renewal eligibility. If this loan is offered to you, the financial aid office will instruct you to complete an application and promissory note online at Loans Online.

Renewal Eligibility Requirements

To maintain eligibility for future disbursements, the student must

  • be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces; and
  • meet one of the following academic requirements:
    • have graduated in the 2002-2003 academic year or later from a high school operated by the U.S. Department of Defense or from a public or private high school in Texas under the recommended high school program, or its equivalent; or
    • have earned an associate degree from an eligible institution no earlier than May 1, 2005.
  • not have been granted a baccalaureate degree;
  • be enrolled full time in an undergraduate degree program at an eligible institution;
  • have completed a Free Application for Federal Student Aid (FAFSA) and be eligible to receive federal financial aid;
  • as of the end of the first academic year, meet satisfactory academic progress requirements toward a degree or certificate as determined by the institution;
  • as of the end of the second and subsequent academic years, complete at least 75% of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education;
  • not receive B-On-Time loans for more than 150 hours.

Annual Loan Amounts for 2016-2017 Renewal Recipients Only

  • 4-year public and private institutions (renewal recipients only)
    • $8,722 per year
    • $4,361 per semester
  • Public Technical Colleges (renewal recipients only)
    • $4,572 per year
    • $2,286 per semester
  • 2 year Public/Private Community Colleges (renewal recipients only)
    • $2,832 per year
    • $1,416 per semester

A 3% origination fee will be deducted from the loan proceeds.


Texas B-On-Time (BOT) Loan has a six-month grace period from the date the student ceases to be enrolled at least half-time at an eligible institution. Repayment begins after the expiration of the six-month grace period. The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00. BOT loans have a 0 percent interest rate.

Deferments for education enrollment or forbearance (financial hardship) are available. If the account defaults and a judgment is entered against the borrower, interest will begin to accrue at the legal rate described in the Terms and Notices from the date of judgment until the entire debt is paid in full.

Forgiveness Requirements

Forgiveness may be granted if the student receives an undergraduate degree or certificate from an eligible institution and the student meets certain requirements:

  • Graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:
    • 4 calendar years after the date the student initially enrolled in an eligible institution;
    • 5 calendar years after the date the student initially enrolled in an eligible institution, if the degree is in architecture (Texas CIP Codes Category 04.0201), engineering (Texas CIP Codes Category 14); or
    • 2 calendar years after the date the student initially enrolled in a public or private two-year institution.
  • Graduated with a cumulative GPA of at least 3.0 on a four-point scale, with a total number of credit hours earned (including transfer hours) that is no more than six hours beyond what is required to complete the degree or certificate
    • Hours earned exclusively by examination and dual credit hours should not be included in the total credit hours

Forgiven B-On-Time loans must be reported to the IRS as taxable income.

How do I apply?

Where can I get more information?

For more information, review the Coordinating Board Rules, Chapter 21, Subchapter E, Texas Education Code, Chapter 56, Subchapter Q or contact us.

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A person submitting misleading or fraudulent information to the Texas Higher Education Coordinating Board in an attempt to obtain financial aid is subject to criminal prosecution. Please contact the State Auditor's Fraud Hotline to report suspected fraud.

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