The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Accepted for enrollment--The student has completed all steps in the admissions procedure necessary for enrollment in a participating institution. (2) Act--Chapter 101, 59th Legislature, 1965, designated as the Hinson-Hazlewood College Student Loan Act, compiled as Texas Education Code, Chapter 52. (3) Board--The Coordinating Board, Texas College and University System. (4) Commissioner--The commissioner of higher education, the chief executive officer of the board. (5) Cosigner--A cosigner of a note executed under authority of the Hinson-Hazlewood College Student Loan Act shall be any person signing such a note, other than the student borrower, who is over 21 years of age and who is gainfully employed full time. Such person may be a
relative and may be self-employed or in the employ of another person. A cosigner is jointly and severally responsible for all interim notes signed by the maker and himself. (6) Delinquency rate--The delinquency rate of an institution of record is the total dollar amount of loans made to student borrowers who have failed to make six or more monthly payments divided by the total dollar amount of loans made to student borrowers in repayment at the institution of record expressed as a percent. (7) First-time borrower--A student who has never received a loan from the Hinson-Hazlewood College Student Loan Program. (8) Fund--The Texas opportunity plan fund as created by Texas Constitution, Article III, §50b. (9) Graduate or professional student--Any student who has been accepted for enrollment as a graduate or professional student by the graduate dean or other authorized agent of the participating
institution. (10) Institution of record--The last participating institution of which a student borrower was granted a loan as reflected by records of the board. (11) Insufficient resources to finance his college education--The reasonable expenses as a student at the participating institution during the period in which the applicant is applying for a loan are greater than the financial resources available to him during such period. (12) Loan commitment--The assurance given by the commissioner to the institution that a loan will be made when the borrower is otherwise eligible to receive a loan. A loan commitment may be given by the commissioner regardless of the then current delinquency rate of the institution. (13) Recommended for a loan by two reputable persons in his home community--The student must be recommended for a loan by two persons from his home community who can testify to the student's
financial responsibility. Such recommendations must contain favorable statements concerning the student's ability to apply himself to the tasks at hand, his ability to manage his financial affairs, and his moral character. In addition, persons making such recommendation must commit themselves to bring moral suasion to bear on the student to repay the loan in full and such persons shall also commit themselves to furnish information concerning the current location of the student to officials of the board. One recommendation may be submitted by a relative provided that a complete explanation of the relationship to the student is included. (14) Resident of Texas--Any person who meets the requirements of the Texas Education Code, Chapter 54, and rules and regulations for determining residence status pursuant to the Texas Education Code, Chapter 54, adopted by the board.