B-On-Time Loan

About the Loan
Interest Rate and Fees
Loan Amount
Application for Loans
Offer of Loans
Disbursement of Loans
Maintenance of Loans
Forgiveness of Loans
Repayment of Loans

About the Loan

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. If a student meets specified goals, the entire loan amount can be forgiven upon graduation. 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 www.HHLoans.com.

Interest Rate and Fees

There is no interest rate. A 3% origination fee will be applied.

Loan Amount

Annual Loan Amounts for 2016-2016

  • 4-year public and private institutions:
                     $8,480/year; $4,240/semester (renewal recipients only).
  • A 3-percent origination fee will be deducted from the loan proceeds.

Annual Loan Amounts for 2014-2015

  • 4-year public and private institutions:
                     $4,000/semester ($8,000/year).
  • 2-year public and private junior colleges:
                     $1,350/semester ($2,700/year).
  • Public technical colleges: 
                     $2,350/semester ($4,700/year).
  • A 3-percent origination fee will be deducted from the loan proceeds.

Annual Loan Amounts for 2013-2014

  • 4-year public and private institutions:
                     $3,850/semester ($7,700/year).
  • 2-year public and private junior colleges:
                     $1,320/semester ($2,640/year).
  • Public technical colleges: 
                     $2,220/semester ($4,440/year).
  • A 3-percent origination fee will be deducted from the loan proceeds.

 Annual Loan Amounts for 2012-2013

  • 4-year public and private institutions:
                     $3,700/semester ($7,400/year).
  • 2-year public and private junior colleges: 
                     $1,200/semester ($2,400/year).
  • Public technical colleges:
                     $2,200/semester ($4,400/year).
  • A 3-percent origination fee will be deducted from the loan proceeds.

Annual Loan Amounts for 2011-2012

  • 4-year public and private institutions:
                     $3,550/semester ($7,100/year).
  • 2-year public and private junior colleges:
                     $945/semester ($1,890/year).
  • Public technical colleges: 
                     $1,770/semester ($3,540/year).
  • A 3-percent origination fee will be deducted from the loan proceeds.

Application for Loans

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 FAFSA and be eligible to receive federal financial aid;
  • As of the end of the 1st Academic Year: meet satisfactory academic progress requirements toward a degree or certificate as determined by the institution;
  • As of the end of the 2nd and Subsequent Academic Years: complete at least 75 percent 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.

Offer of Loans

If a student is offered this loan, the student will need to accept the loan and complete a Master Promissory Note (MPN) with the Texas Higher Education Coordinating Board (THECB).  This process will be completed 4–6 weeks after the award has been accepted.  To complete these requirements, please click here.

Once funds are accepted, application will be certified by the institution.

Disbursement of Loans

Disbursement dates are set by the Texas Higher Education Coordinating Board. Once the student has completed their MPN and has accepted the terms and conditions of the loan, the student may check back with the Texas Higher Education Coordinating Board regarding disbursement.

Once the loan has been disbursed, the funds will be applied to the student's account to cover charges. If a credit balance is created, funds will be refunded to the student's Higher One account preference. Entrance Counseling is REQUIRED before your loan can disburse. Please click here to complete entrance counseling.

Maintenance of Loans

A student may not receive B-On-Time loans for more than 150 hours. To maintain eligibility for future disbursements, the student must:

  • As of the end of the 1st Academic Year- meet Satisfactory Academic Progress requirements toward of a degree or certificate as determined by the institution.
  • As of the end of the 2nd 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.

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 2-year institution;

OR

  • Graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours earned (including transfer hours) that is no more than 6 hours beyond what is required to complete the degree or certification. 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 a taxable income.

Upon graduation, don't forget to complete the BOT Clearance form.

Repayment of Loans

Texas B-On-Time (BOT) Loan has a 6-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 6-month grace period. The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00.

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. 

Please visit hhloans.com for repayment details.