FINANCIAL AID: State Loans

State Loans

The Texas B-On-Time Loan program is a small state loan program. Under this program, if a student meets certain conditions, the entire loan amount can be forgiven upon graduation.

Important! Receipt of B-On-Time Loan awards is contingent upon funding from the State of Texas. If funding is insufficient, awards may be rescinded.

UT Austin uses FAFSA information to award this loan. Eligibility requirements for renewal include:

Working on a first bachelor’s degree.*
Not exceeding 150 hours.
Maintaining enrollment in at least 12 hours.
Maintaining at least a 2.5 cumulative GPA.
Completing at least 75% of the hours attempted.

*Under rules set by the Texas Higher Education Coordinating Board, a student progressing to the PharmD program is not eligible for the forgiveness provisions of the B-On-Time loan program.

Repayment	Begins 6 months after you cease to be enrolled.
Interest Rate	0% (Zero percent).
Fees	Origination Fee: 3%
Completion Requirements	B-On-Time loan borrowers at UT Austin must: Accept the loan on the FAN. Complete an Application and Promissory Note.
Forgiveness Provisions	If you meet certain conditions, the entire loan amount can be forgiven after graduation. For example, you must: Graduate with a cumulative GPA of at least a 3.0 Graduate within 4 years (5 years for Architecture and Engineering) of the date you initially enrolled at UT Austin or graduate with a total number of credit hours (including transfer hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree or certificate. Complete and submit the B-On-Time Loan Forgiveness Eligibility Confirmation Form to the Texas Higher Education Coordinating Board (THECB). For more specific information, visit the THECB web site.
Credit Worthiness	No collateral, credit check, cosigner, or endorser required.
Annual Loan Limit	2011-2012 academic year: $7,100 2010-2011 academic year: $6,780

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College Access Loans (CAL)

The College Access Loan (CAL) is a non-need based state loan program administered by the Texas Higher Education Coordinating Board (THECB). You must be eligible to pay in-state tuition to borrow a CAL.

Funds are limited and are awarded on a first-come, first-served basis.

Repayment	Begins 6 months after you: Graduate, Leave the University, or Drop below half-time enrollment.
Interest Rate	2011-2012 academic year: 5.25% fixed 2010-2011 academic year: 6% fixed
Interest Subsidy	You are responsible for interest that accrues from the date of disbursement. You may defer payment of this interest until you begin repayment.
Fees	Origination Fee: 3% if both the borrower and cosigner have a good credit standing, or 5% if either the borrower or the cosigner, but not both, has a good credit standing.
Completion Requirements	College Access Loan borrowers at UT Austin must: Request the loan. Complete the online CAL Application and Promissory Note. It often takes 4-6 weeks for the THECB to process this loan.
Credit Worthiness	You and/or your cosigner must have a favorable credit record as determined by the Texas Higher Education Coordinating Board (THECB), the lender.
Annual Loan Limit	Up to $10,000, minus other financial aid and resources.

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