<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 19EDUCATION
PART 1TEXAS HIGHER EDUCATION COORDINATING BOARD
CHAPTER 21STUDENT SERVICES
SUBCHAPTER DHINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM: ALL LOANS MADE BEFORE FALL SEMESTER, 1971, NOT SUBJECT TO THE FEDERALLY INSURED STUDENT LOAN PROGRAM
RULE §21.85Participating Institutions

(a) Criteria. A participating institution of higher education shall be any 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 a certificate;

  (2) is legally authorized within the state to provide a program of education beyond secondary education;

  (3) provides an educational program for which it awards a bachelor's degree or associate degree, or provides not less than two years of course work acceptable for credit toward such degrees;

  (4) is a public or other nonprofit institution; and

  (5) is accredited by a nationally recognized accrediting agency or association listed by the National Commission on Accrediting. An institution not so accredited must be one whose credits are fully and freely accepted on transfer by at least three institutions which are so accredited. Each nonaccredited institution shall submit annually not later than July 1 three letters from accredited institutions attesting to the fact that said institutions will accept credits from the nonaccredited institution. Annual approval of nonaccredited institutions will be effective for the state fiscal year beginning September 1 and ending August 31. Each institution must enter into an agreement with the board, the terms of which shall be specified by the board.

(b) Students attending other institutions. Any student attending an institution other than a participating institution shall not be eligible for a loan from the Texas opportunity plan fund.

(c) Records and reporting. Each participating institution shall keep adequate records reflecting all transactions with respect to the fund. None of the responsibilities of the participating institution can be delegated. Participating institutions shall submit such reports and information as the commissioner may require in connection with the administration of the Act and shall comply with such provisions as he or the state auditor may find necessary to insure the correctness and verification of such reports. An annual report as prescribed shall be forwarded to the commissioner by each participating institution within 60 days of the close of each fiscal year. All records pertaining to each applicant shall be retained by the participating institution for a period of two years in the case of an applicant who was not awarded a loan and, in the case of an applicant who is awarded a loan, such records shall be retained until requisitioned by the commissioner.

(d) Compliance by participating institutions. If, at any time, after notice and opportunity for hearing, the commissioner determines that the requirements for an institution's participation in the Act are no longer met or that any monies in the fund or to be deposited therein have been disbursed by the participating institution for purposes for which the fund is legally unavailable and such diversions have not been restored, no further disbursements of monies to the participating institution shall be permitted to be made from the fund and no further disbursements of any monies held in trust by the participating institution for loans to students shall be permitted until there is no longer any failure of such compliance by the participating institution.

(e) 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 student shall be permitted to be made from the fund and no further disbursements of any monies held in trust by the participating institution for loans to such student shall be permitted until there is no longer any failure of such compliance by the student and such monies disbursed to the student for purposes for which the fund is legally unavailable become due and payable to the fund immediately.

(f) Designation of institutional representative. Each participating institution shall designate a fulltime administrative official of the institution as the Hinson-Hazlewood College Student Loan Program officer who shall be the person to certify all institutional transactions and activities with respect to the fund and responsible for all records and reports reflecting the transactions with respect to the fund.

(g) Discrimination by participating institution prohibited. Title VI of the Civil Rights Act of 1964 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 further provided that students transferring from any other institution shall be considered for loans the same as students attending the participating institution.

(h) Student conviction of criminal activities. Participating institutions shall determine, after notice and opportunity for hearing, whether a student applicant for a loan has been convicted by any court of record of any crime which was committed after the date of adoption of this section under the provisions of either House Bill 141, 61st Legislature, 1969, and subsequent amendments thereto, or the Federal Higher Education Amendments of 1968 (Public Law 90-575), §504, and subsequent amendments thereto. The participating institution which such convicted student attends shall not recommend for a period of two years such student for a loan under the authority of this section, then any participating institution which such student subsequently attends shall not recommend such student for the remainder of the two-year period for a loan under the Hinson-Hazlewood College Student Loan Act.

(i) Termination of agreement. A participating institution which desires to terminate its participation in the fund must notify the board at least 60 days prior to such termination. All transactions with respect to the fund must be completed prior to the effective date of the termination and required forms for all transactions must be filed in the office of the board prior to termination. All records of each student borrower in the institution who is under the fund are to be forwarded to the board. Original interim notes must be forwarded to the board by registered mail and insured for the face amount of all such notes forwarded by mail. All students enrolled in the institution who have a loan from the fund shall be notified by the institution of their termination of the agreement between the institution and the board.

(j) Delinquency rates and institutional participation. A participating institution shall be notified by the commissioner when said institution's delinquency rate reaches 5.0% as defined in §21.83 of this title (relating to Definitions). At such time as the delinquency rate of the institution reaches 10%, said institution may be suspended from participation in the program by the commissioner. If within the succeeding 30-day period the institution can show that the delinquency rate has been lowered below 10%, as reflected in the records of the board, the commissioner may reinstitute participation without further action. After 30 days the institution may request a public hearing with the board to show cause why the suspension of participation should not be continued. The formal request for a public hearing shall be made to the commissioner by the chief administrative officer of the institution. Hearings shall be scheduled by the chairman of the board at such time as a quorum of the board can be assembled.


Source Note: The provisions of this §21.85 adopted to be effective January 1, 1976.

Next Page Previous Page



Home TxReg TAC OM NewTac Public Footer Bar