The Texas B-On-Time (BOT) Loan Program is a zero-interest loan available for Texas residents. There’s a positive and a negative to this loan, though. The benefit of this loan is that, if you meet specific goals, then your entire loan amount can be forgiven upon graduation. The problem is that only students who received a disbursement in 2014-15 or a year prior to that can receive the loan and apply for renewals. You can complete the renewal award application and promissory note at Loans Online. We also list out other options below if you didn’t apply years earlier for the Texas B-On-Time Loan.
IMPORTANT: In 2015, a bill was passed limiting Texas B-On-Time loans to renewal applicants only starting in the 2015-16 award year. In order to receive a B-On-Time loan in 2015-16 and future years, a student must’ve received a disbursement in 2014-15 or a year prior to that.
Texas B-On-Time Loan Amounts for 2017-2018
- 4-year public and private institutions can receive $9,050 per year; $4,525 per semester (renewal recipients only)
- Public Technical Colleges: $5,496 per year: $2,748 per semester (renewal recipients only)
- 2 year Public or Private Community Colleges: $3,010 per year; $1,505 per semester (renewal recipients only)
- A 3% origination fee will be deducted from the loan proceeds
Renewal Eligibility Requirements for the Texas B-On-Time Loan
In order to maintain eligibility for future disbursements of the Texas B-On-Time Loan, the student needs to:
- Be a resident of Texas or pay resident tuition rates as a dependent child or member of the U.S. armed forces; and
- Not have earned a bachelor’s degree;
- Be enrolled full time in an undergraduate program at an eligible school;
- Have completed a Free Application for Federal Student Aid (FAFSA) and be eligible to get financial aid;
- Complete at least ¾ of the semester credit hours in the most recent academic year with a cumulative GPA of 2.5 on a 4.0 scale (or the equivalent) on all course work at institutions of higher education;
- Complete B-On-Time Entrance Counseling each year before your funds can be disbursed; and
- Not receive B-On-Time loans for more than 150 hours.
Forgiveness Requirements for the Texas B-On-Time Loan
If you received a Texas-B-On-Time Loan, then you may be eligible for forgiveness if you received your degree or certificate from an eligible school in Texas and meet the following requirements:
- Graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within
- 4 calendar years after the date you enrolled in an eligible institution;
- 5 calendar years after the date you 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 you enrolled in a public or private 2-year institution.
- Graduated with an average of a B or a cumulative GPA of at least 3.0 on a four-point scale with a total number of course credit hours earned, including:
- Transfer credit hours and excluding hours earned exclusively by examination, dual credit course hours, and hours earned for developmental coursework that an institution required the student to take under the Success Initiative, or under the former provisions of the Texas Academic Skills Program, that is not more than 6 hours more than the number of credit hours required to complete a bachelor’s degree
The Texas B-On-Time loan must be reported to the IRS as taxable income.
Repayment Information for Texas B-On-Time Loans
If you received a Texas B-On-Time Loan, you had a 6-month grace period from the date you stopped being enrolled at least half-time at your school. Repayment would’ve begun after that 6-month grace period. The B-On-Time Loan has a 15-year repayment period with a minimum monthly payment of $75.00. They also have a 0% interest rate.
Enrolling in school can qualify you for deferment and you may also apply for forbearance if you’re undergoing financial hardship. If your account is in default and you are ruled at fault, then interest will start to accrue at the rate determined during the date of judgment until the debt is paid.
Low-interest Options for Texas Student Loans
The Texas Higher Education Coordinating Board (THECB) also offers the College Access Loan (CAL) Program to Texas students who can’t afford the cost of attendance at their school. You can take out however much you need minus the federal aid you’re receiving. The minimum you can borrow is $100 and the loans come with a fixed rate of 6.6%.
To qualify for a College Access Loan, you must be:
- A Texas resident;
- Enrolled at least half-time in a program that offers a certificate, associate, bachelor’s or graduate degree;
- Making satisfactory academic progress, as defined by your school; and
- Meeting credit requirements or apply with a co-signer who has a VantageScore of 650 or higher and a steady income.
Repayment for the CAL Program starts 6 months after you leave the school. If your loans at $30,000 or less, then they have a maximum repayment of 10 years. If you borrow more than $30,000, then you can pay for up to 20 years.
Private Texas Student Loans Available
The Higher Education Servicing Corporation (HESC) is a nonprofit that can connect students with private student loans in Texas. It helps students by partnering with different lenders in order to offer new loans or to offer options for refinancing existing loans.
HESC categorizes the loans into three different types, including student loans, sponsor loans, and consolidation loans. For student loans, you can apply with the cosigner to meet the credit requirements. The sponsor loans are given to parents or sponsors and, as the student, you have to cosign on that type of loan. Consolidation loans help you to pay off existing private loans.
The HESC offers 3 main types of loans:
Texas Extra Credit Education Loans
- You can borrow anywhere from $1,000 to $65,000
- No origination fee
- Variable or fixed interest rates
- 10- or 15-year repayment term
- Options of immediate, interest-only, or deferred repayment
- Cosigner release after 24 months of on-time repayment
Greater Texas Federal Credit Union loans
- Borrow from $1,000 to $50,000
- No origination fee
- Variable or fixed interest rates
- 10-year repayment term
- Immediate, interest-only, or deferred repayment
Aggieland Credit Union is another lender you can borrow from who offers similar terms.
Baptist Credit Union Loans
- Borrow from $1,000 to $25,000
- Immediate or interest-only repayment
- No origination fee
- 10-year repayment term
Federal Options for Texas Student Loans
If you’re enrolled at least half-time in school, then you’re eligible for federal student loans. You need to be working toward a degree or a certificate in order to qualify. Your school also needs to currently participate in the Direct Loan Program.
You don’t need to get a credit check or a cosigner for federal loans unless you’re getting a PLUS Loan. They have low-interest rates and provide you with borrower protection such as income-driven repayment. You need to be a U.S. citizen or qualifying resident enrolled in a school approved by the Department of Education. You also need to submit a Free Application for Federal Student Aid (FAFSA). The FAFSA is your first step to applying for one of the three loans as follows:
- Direct Subsidized Loans or Direct Unsubsidized Loans
Undergraduate students can get subsidized and unsubsidized loans, which have a fixed interest rate of 4.45%. Graduate students will get unsubsidized loans with a 6% interest rate. They have a 1.066% origination fee as of October 1, 2017.
Students who have financial need will get subsidized loans, which don’t accrue any interest while you’re still enrolled in school. Subsidized loans have lower borrowing limits and might not cover all of your tuition while in school. This is where unsubsidized loans come in — to fill the gap that subsidized loans might not cover.
Your payments are deferred for up to 6 months post-graduation and then automatically put on a 10-year repayment plan unless you apply for an income-driven repayment plan to extend the terms of your repayment and lower your payments. Direct Loans may also qualify for the Public Service Loan Forgiveness Program — check out our complete guide to student loan forgiveness to see what options are available.
- Parent PLUS Loans
Your parent or guardian can apply for a Parent PLUS Loan, which usually comes with a 7% interest rate and a 4.264% origination fee as of October 1, 2017, to get additional funding to pay for school. You don’t need very strong credit to qualify for a PLUS loan, but the credit history generally needs to be good. Repayment options are limited for PLUS Loans in comparison to Direct Loans.
- Direct Consolidation Loan
If you have multiple federal loans and want to combine them into one, simple payment, then a Direct Consolidation Loan may be right for you. They might give you a higher interest rate, though, so be careful when applying.
Understanding Your Options for Texas Student Loans
Although the Texas B-On-Time Loan is no longer an option for new borrowers, there are still several options available to you if you’re residing in Texas and going to school. Make sure you do your research and learn as much as you can about your loans before applying. That way, you’re an educated consumer who won’t be surprised by the repayment terms after you graduate.
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Student Debt Relief Loan Refinancing Advertiser Disclosure
College Ave: College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
College Ave Refi Education loans are not currently available to residents of Maine.
1 – The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2 – $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 04/26/2019. Variable interest rates may increase after consummation.
3 – This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
ELFI: Subject to credit approval. Terms and conditions apply. To qualify for refinancing or student loans consolidation through ELFI, you must have at least $15,000 in student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary institution.
LendKey: Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
CommonBond: Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate.
Splash Financial: Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval.com
Earnest: To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest’s fixed-rate loan rates range from 3.89% APR (with autopay) to 7.89% APR (with autopay). Variable rate loan rates range from 2.50% APR (with autopay) to 7.27% APR (with autopay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms of 10 years or less. For loan terms of 10 to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 0.26% and 5.03% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 23, 2019 and are subject to change based on market conditions and borrower eligibility.
Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 04/23/19. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, e-mail us at firstname.lastname@example.org, or call 888-601-2801 for more information on our student loan refinance product.