The Texas B-On-Time Student Loan Program provides no-interest loans to eligible students with the possibility of loan forgiveness when the student completes his/her degree on time and graduates with at least a B average. Only Texas residents who graduated from a public or accredited private high school not earlier than the 2002-03 academic year under the recommended or advanced high school curriculum are eligible (note: additional requirements apply).

Funds available for B-On-Time loans will not be sufficient to provide loans to every student who meets the eligibility requirements. In this circumstance, the statute states that priority must be given to students who have financial need. First priority must be given to students who are eligible for, but are not receiving TEXAS Grants due to a lack of funding.

The application process will be entirely electronic. First, the financial aid office at each institution will identify the students who are eligible and will notify selected students that the loans are part of the financial aid package. These students will be instructed to access a Web site where the online application process begins. The financial aid office will send an electronic loan certification to The Texas Higher Education Coordinating Board (THECB). After providing all requested application information online, the student must print the Master Promissory Note (MPN), sign it, and mail it to THECB. The funds will be transmitted electronically to the school for deposit into the student’s school account.

The Coordinating Board began offering loans in spring 2004 (retroactive to fall 2003). Additional information on program eligibility requirements is available on the Texas B-On-Time Web site. NOTE: According to the Texas Higher Education Coordinating Board, the Texas Legislature has made changes to funding for the Texas B-On Time loan program for 2008 and 2009. Unfortunately, the amount given is sufficient to fund only loans to most, but perhaps not all, renewal students for the 2007-08 academic year.