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TITLE 19EDUCATION
PART 1TEXAS HIGHER EDUCATION COORDINATING BOARD
CHAPTER 21STUDENT SERVICES
SUBCHAPTER LPAUL DOUGLAS TEACHER SCHOLARSHIP PROGRAM
RULE §21.320Loan Interest

(a) Capitalized Interest. Interest accrues from the date of each initial scholarship payment if the board has determined that the scholar is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, or the day after that portion of the scholarship period for which the teaching obligation has been fulfilled. From the time capitalized interest begins to accrue to the time the repayment period begins (as described in §21.321 of this title (relating to Repayment of Loans)), the interest charge is adjusted annually and is set by the United States Secretary of Education by regulation at the rate that in no event is higher than the greater of the rate applicable to loans under Part B of Title IV, HEA, or §428(A) and §428(B) of the HEA during the same 12-month period. The board shall capitalize any accrued unpaid interest the time it establishes the scholar's repayment schedule.

(b) Interest Rate. The interest rate is adjusted annually and is set by the United States Secretary of Education by regulation at the rate that in no event is higher than the greater of the rate applicable to loans under Part B of Title IV, HEA, or §428(A) and §428(B) of the HEA during the same 12-month period.

(c) Interest Rate Applicable During the Repayment Period. The interest rate applicable during the repayment period is the interest rate prescribed by the United States Secretary of Education by regulation that is in effect as of the beginning date of the repayment period.


Source Note: The provisions of this §21.320 adopted to be effective January 5, 1994, 18 TexReg 9851; amended to be effective March 16, 1995, 20 TexReg 1532.

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