|(a) Criteria. An eligible institution shall be any Texas institution of higher education within the State of Texas which: (1) admits as regular students only those persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such certificate; (2) is legally authorized within the state to provide a program of education beyond secondary level; (3) provides an educational program for which it awards a bachelor's degree; (4) is a public or other nonprofit institution; (5) is an eligible institution under the provisions of the Higher Education Act of 1965, Title IV, Part B, as amended, if the loan is subject to those provisions; (6) is accredited by the Southern Association of Colleges and Schools; and (7) is an institution which has its parent campus within the State of Texas.
(b) Evidence of institution's accreditation status. If the institution is placed on public probation by the appropriate accrediting agency, students applying for loans shall provide evidence of knowledge of the school's accreditation status as a condition to receiving the loan. (c) Students attending other institutions. Any students attending an institution other than an eligible institution as set forth in subsection (a) of this section shall not be eligible for a loan from the future teacher loan fund. (d) Compliance by student. If, at any time, after notice and opportunity for hearing, it is determined that any monies in the fund or to be deposited therein have been disbursed to a student for purposes for which the fund is legally unavailable and such diversions have not been restored, no further disbursements of monies to such students shall be permitted to be made from the fund until there is no longer any failure of
compliance by the student. Monies disbursed to the student for purposes for which the fund is legally unavailable become due and payable to the fund immediately. (e) Designation of institutional representative. Unless otherwise specified by the chief executive officer of the institution, the Hinson-Hazlewood College Student Loan Program officer shall serve as the Future Teacher Loan Program officer and shall be the board's on-campus agent to certify all institutional transactions and activities with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the fund. (f) Discrimination by eligible institution prohibited. The Civil Rights Act of 1964, Title VI, states: "No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity
receiving federal assistance." Therefore, all transactions with respect to the fund shall be made in compliance with the Civil Rights Act of 1964; and all students transferring from any other institution shall be considered for loans the same as students attending the eligible institution. (g) Default rate. Whenever the default rate on loans made through an eligible institution exceeds 10% of all such loans on which repayments are due, the volume of loans to be available to students at that institution may be reduced in accordance with a formula to be established by the board.