Section 23.2 - Eligible Lender and Eligible Education LoanThe following requirements regarding eligible lenders and eligible education loans shall apply to all education loan repayment programs administered in this chapter, unless the subchapter clearly indicates otherwise.
(1) The Coordinating Board shall retain the right to determine the eligibility of lenders and holders of education loans to which payments may be made.(2) An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, graduate, and professional education and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, or private foundation. Credit cards, equity loans and other similar personal loan products are not considered educational loans eligible for repayment.(3) To be eligible for repayment, an education loan must:(A) be evidenced by a promissory note for loans to pay for the cost of attendance for the undergraduate, graduate, or professional education of the individual applying for repayment assistance;(B) not have been made during residency or to cover costs incurred after completion of graduate or professional education;(C) not be in default at the time of the applicant's application;(D) not have an existing obligation to provide service for loan forgiveness through another program, unless the program is a loan repayment assistance program funded by the federal government on the condition of matching state funds and that, by rule or exception, does not prohibit concurrent obligations for the same employment or service;(E) not be subject to repayment through another student loan repayment or loan forgiveness program;(F) not be subject to repayment as a condition of employment or through other repayment assistance provided by the applicant's employer while the applicant is participating in the program;(G) if the loan was consolidated with other loans, the applicant must provide documentation of the portion of the consolidated debt that was originated to pay for the cost of attendance for the applicant's undergraduate, graduate, or medical education; and(H) not be an education loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative.19 Tex. Admin. Code § 23.2
Adopted by Texas Register, Volume 49, Number 32, August 9, 2024, TexReg 5988, eff. 8/15/2024