(1) Initial Year Funds. Available program funds for
initial year awards will be allocated to each participating institution
in proportion to each institution's share of the state's undergraduate
financial aid population with significant amounts of financial need.
(2) Renewal Year Funds. Available program funds for
continuation or renewal awards will be allocated in proportion to
the number of prior year recipients reported for each institution,
adjusted for the institution's student retention rate.
(b) Reallocations. Institutions will have until a date
specified by the Board via a policy memo addressed to the Program
Officer at the institution to encumber the program funds that have
been allocated to them. On that date, institutions lose claim to any
unencumbered funds, and the unencumbered funds are available to the
Board for reallocation to other institutions. If necessary for ensuring
the full use of funds, subsequent reallocations may be scheduled until
all funds are awarded and disbursed.
(c) Disbursement of Funds to Institutions. As requested
by institutions throughout the fall and spring terms, the Board shall
forward to each participating institution a portion of its initial
and renewal year allocations of funds for immediate release to students
or immediate application to student accounts at the institution.
(d) Release of Funds to Students. The institution may
release all or part of the proceeds of a Texas Educational Opportunity
Grant award to an eligible person only if the tuition and required
fees incurred by the person at the institution have been paid.
(e) Authority to Transfer Funds. Institutions participating
in a combination of the Texas Educational Opportunity Grant, Toward
EXcellence, Access, and Success Grant, and Texas College Work-Study
Programs, in accordance with instructions from the Board, may transfer
in a given fiscal year up to the lesser of 10 percent or $20,000 between