Texas Administrative Code
|PART 1||TEXAS HIGHER EDUCATION COORDINATING BOARD|
|CHAPTER 21||STUDENT SERVICES|
|SUBCHAPTER D||HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM: ALL LOANS MADE BEFORE FALL SEMESTER, 1971, NOT SUBJECT TO THE FEDERALLY INSURED STUDENT LOAN PROGRAM|
|RULE §21.88||Payments to Student|
No payment shall be made to any student until he and a cosigner as prescribed in §21.83 of this title (relating to Definitions) shall have executed an interim note payable to the Texas opportunity plan fund for the full amount of any authorized loan plus interest. A copy of such executed interim note shall be forwarded to the commissioner immediately and the original interim note shall be retained by the participating institution in a place safe from fire and theft. For the purposes of any contract executed by him; and the defense that he was a minor at the time he executed a note shall not be available to him in any action arising on said note. Payments by the participating institution to students executing such notes may be made monthly or for each semester depending upon the demonstrated capacity of the student to manage his financial affairs as determined by the participating institution. Disbursements are to be made by the participating institution pursuant to the contract between the board and the institution executed in conformity with the Act. No funds shall be distributed to a participating institution except to make payments to a student under a loan authorized by the Act. In cases of extreme hardship in which it is impossible or extremely difficult to obtain a cosigner, participating institutions shall create an institutional loan committee or utilize such an existing committee to determine whether such hardship justified the granting of the loan to the student without a cosigner. Such a committee shall be composed of at least three persons, one of whom shall be an executive officer of a local bank, savings and loan association, or credit union. The duty of the institutional loan committee is to conduct a personal interview with each student who cannot obtain a cosigner and to recommend to the institutional loan officer, after such interview, whether or not the student should be granted a loan under the program.
|Source Note: The provisions of this §21.88 adopted to be effective January 1, 1976.|
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