1. As a college student, you have a lot to keep track of — class schedules, homework, tests, papers — and that’s just on the academic side. You also have to think about car payments, insurance, food, and rent, not to mention social obligations and volunteer commitments.
All of that, of course, after figuring out how to pay for college, including tuition, fees, books, and more. With all that in your head, the details of how your B-On-Time loan works can feel like a lot to track.
This presentation is designed to help address this situation. If you’re in the process of obtaining a B-On-Time loan, this module will help answer your questions about the terms of the loan, its availability, how repayment works, and how to qualify for loan forgiveness once you graduate.
In short, this presentation will give you the help you need to manage your B-On-Time loan successfully.
© 2013 Texas Guaranteed Student Loan Corporation

2. Before we dive into this module, let’s take a speedy quiz to get a sense of what you may already know about the Texas B-On-Time Loan Program. We’re going to ask you five questions that will help you determine your level of familiarity and get your brain warmed up to learn more.
To keep track of your answers, you’re going to use the evaluation form we gave you. First up, on the evaluation form, please put this module’s identification code, which is BOT. Next, we’ll take the “Pre-Test.” Please wait until the end of the session to complete the other fields on this form.
Let’s begin!
[Click]
[Module ID: BOT]
© 2012 Texas Guaranteed Student Loan Corporation

3. The Texas B-On-Time Loan Program requires that I pay back the loan if I don’t qualify for forgiveness. I will be charged an interest rate of _____% and an origination fee of ______%.
4.5 and 1
0 and 3
6.5 and 4
3 and 5
[Read Q1 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

4. a. U.S. Department of Education b. Financial aid office
2. Once I start making payments on my student loan, I will send payments to the _____________.
a. U.S. Department of Education
b. Financial aid office
c. Texas Higher Education Coordinating Board
d. State Comptroller’s Office
[Read Q2 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

5. 3. If I don’t qualify for loan forgiveness, I will have up to ____ years to pay back my loan and my monthly payment will be at least $____ , depending on my balance.
a. 5 and 125
b. 10 and 100
c. 15 and 75
d. 20 and 50
[Read Q3 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

6. c. Request a forbearance d. a and c only
4. My loan will go into default should I miss six consecutive payments. However, I can avoid defaulting on my loan by doing the following:
a. Make a spending plan
b. Borrow more money
c. Request a forbearance
d. a and c only
[Read Q4 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

7. 5. I am eligible for a grace period before I am required to make payments. My grace period will start the day I drop below half-time enrollment. My first payment will be due in ________ from the start of my grace period.
a. 20 days
b. 90 days
c. 6 months
d. 9 months
[Read Q5 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

8. THE BOT LOAN PROGRAM
Provides loan forgiveness if borrowers meet certain requirements
Encourages student borrowers to graduate on time with at least a B average
Provides zero-interest student loans
Let’s begin with some background information. Simply put, the Texas B-On-Time Loan Program provides zero-interest loans (known as B-On-Time loans) to Texas undergraduate students. Because the loan is designed to encourage students to finish school on time while meeting high standards, you may qualify to have your loan forgiven if you meet certain requirements.
This makes the B-On-Time loan a great deal: when you leave school and it comes time to repay the loan, no interest will be charged on the amount you borrowed. You literally can’t get a better interest rate than that! If you qualify for forgiveness, even better — you won’t be required to repay the B-On-Time loan.
Remember that forgiveness does not come automatically. The B-On-Time loan is just that — a loan. You will be required to repay the loan unless you qualify for forgiveness.
© 2012 Texas Guaranteed Student Loan Corporation

9. Complete a promissory note Contact school, ask for the loan
Go to:
Complete a promissory note
Contact school, ask for the loan
You can apply for the B-On-Time loan through the Texas Higher Education Coordinating Board, also known as simply the Coordinating Board. This is the state agency that administers the B-On-Time loan. The Coordinating Board will send you information on your loan, and is also the agency you will send payments to once your loan goes into repayment, if your loan is not forgiven.
First, contact your school and request a B-On-Time loan. Your school’s financial aid office will determine loan eligibility. Once the school has determined you are eligible, you can begin the application process.
To apply for a B-On-Time loan, go to click on “Apply for a Loan,” and then click on “B-On-Time Loan Program.” You’ll need to use Internet Explorer (version 6.0 or newer) as your Web browser, since other browsers may cause errors and prevent the submission of applications.
You’ll also need to complete a promissory note online in order to receive the B-On-Time loan. A promissory note is a written promise to repay your loan. Be sure to keep the promissory note in a secure location for your records (whether online or in print).
Finally, you should know that under federal regulations, a borrower of a private education loan, including the B-On-Time loan, has the right to cancel his or her loan after the borrower has accepted the loan terms. The time period you have for canceling the loan, should you choose to do so, is approximately 10 days after you accept the loan terms.
© 2012 Texas Guaranteed Student Loan Corporation

10. Contact school, ask for the loan Go to: www.hhloans.com
Complete a promissory note
You can apply for the B-On-Time loan through the Texas Higher Education Coordinating Board, also known as simply the Coordinating Board. This is the state agency that administers the B-On-Time loan. The Coordinating Board will send you information on your loan, and is also the agency you will send payments to once your loan goes into repayment, if your loan is not forgiven.
First, contact your school and request a B-On-Time loan. Your school’s financial aid office will determine loan eligibility. Once the school has determined you are eligible, you can begin the application process.
To apply for a B-On-Time loan, go to click on “Apply for a Loan,” and then click on “B-On-Time Loan Program.” You’ll need to use Internet Explorer (version 6.0 or newer) as your Web browser, since other browsers may cause errors and prevent the submission of applications.
You’ll also need to complete a promissory note online in order to receive the B-On-Time loan. A promissory note is a written promise to repay your loan. Be sure to keep the promissory note in a secure location for your records (whether online or in print).
Finally, you should know that under federal regulations, a borrower of a private education loan, including the B-On-Time loan, has the right to cancel his or her loan after the borrower has accepted the loan terms. The time period you have for canceling the loan, should you choose to do so, is approximately 10 days after you accept the loan terms.
Be aware that you can cancel the BOT loan up to 10 days after you accept the loan terms
© 2012 Texas Guaranteed Student Loan Corporation

11. If your school awards you a $3,000 BOT loan for the fall semester, you will receive a BOT loan disbursement of $2,910. You will be responsible for repaying the full $3,000 loan.
The maximum B-On-Time loan amount varies each year. The financial aid office at your school can tell you the maximum loan amount for the year you’re applying.
Note that the B-On-Time loan includes a three percent origination fee, which will be deducted from your loan disbursement each semester. In other words, if your school awards you a $3,000 B-On-Time loan for the fall semester, you will receive a B-On-Time loan disbursement of $2,910, and you will be responsible for repaying the full $3,000 loan. The Coordinating Board uses the fee to pay the cost of administering the loan.
© 2012 Texas Guaranteed Student Loan Corporation

12. The B-On-Time loan disbursement date varies from semester to semester
The B-On-Time loan disbursement date varies from semester to semester. You should plan for the B-On-Time loan disbursement to arrive after other sources of financial aid.
© 2012 Texas Guaranteed Student Loan Corporation

13. Make satisfactory academic progress
Enroll full time
Complete the FAFSA
Make satisfactory academic progress
Complete 75 percent of credit hours attempted
Maintain at least a 2.5 GPA
Remain below 150 total attempted hours
Once you receive the loan, does that mean you automatically qualify for a new loan every year after that?
No — you’ll need to ask your school for the B-On-Time loan each year, and apply each year. You must meet several requirements to remain eligible. These include:
Enrolling full time in subsequent semesters.
Completing the FAFSA each year.
In the first academic year, ensuring that you are making satisfactory academic progress toward a degree or certificate as determined by your school.
In the second and subsequent academic years, completing at least 75 percent of the semester credit hours attempted in the most recent academic year and maintaining a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all coursework previously attempted at institutions of higher education.
Remaining below 150 total attempted hours during your undergraduate college career.
© 2012 Texas Guaranteed Student Loan Corporation

14. YOUR BOT LOAN CAN GO ONE OF TWO WAYS
Once you leave school or graduate, your BOT loan will either qualify for forgiveness, or need to be repaid.
Remember that the requirements for maintaining eligibility to renew your loan (2.5 GPA) are lower than the requirements to achieve loan forgiveness (3.0 GPA).
© 2012 Texas Guaranteed Student Loan Corporation

15. GRADUATE WITH A GPA OF AT LEAST A 3.0 ON A 4.0 SCALE
Graduate with a bachelor’s degree within four years (5 years for lengthier programs),
So, how can you qualify to have your loan forgiven? As we mentioned earlier, the B-On-Time loan is designed to encourage student borrowers to complete their degrees on time while meeting high academic standards. What does this mean exactly? Here are the specifics:
Your B-On-Time loan can be forgiven if you receive your undergraduate degree or certificate from an eligible institution and you:
Graduate with a cumulative GPA of at least a 3.0 on a 4.0 scale, and
You do so within:
Four calendar years after the date you initially enrolled in an eligible institution,
Five calendar years, if the degree is in architecture, engineering, or any other program determined by the Coordinating Board to require more than four years to complete;
© 2012 Texas Guaranteed Student Loan Corporation

16. GRADUATE WITH A GPA OF AT LEAST A 3.0 ON A 4.0 SCALE
Graduate with a total number of credit hours (excluding dual credit, developmental hours, and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree Or
You graduate with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of earned credit hours excluding dual credit, developmental hours, and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree.
© 2012 Texas Guaranteed Student Loan Corporation

17. Provide transcript from high school and all schools attended.
DON’T FORGET TO:
Submit B-On-Time Loan Forgiveness Eligibility Confirmation Form to your school’s registrar’s office.
Provide transcript from high school and all schools attended.
To find the BOT Loan Forgiveness Eligibility Confirmation Form, go to click on “Forms,” and then click on “Texas B-On-Time.”
If you meet the requirements for forgiveness, congratulations! Here’s what you need to do to have your loans forgiven:
Submit the B-On-Time Loan Forgiveness Eligibility Confirmation Form to the Coordinating Board. The form is located at click on “Forms” and then “Texas B-On-Time.” Complete your portion of the form.
Submit the form to your school’s registrar’s office for completion.
Include official copies of your high school transcript and a transcript for all institutions you attended.
Although there’s no deadline to submit the form, the Coordinating Board recommends that both the forgiveness form and verification from your institution be submitted no later than 90 days after graduation.
If the Coordinating Board does not receive your loan forgiveness form, your loan will be scheduled for repayment beginning six months after you are no longer enrolled at least half time.
© 2012 Texas Guaranteed Student Loan Corporation

18. REMEMBER THAT FORGIVEN LOANS MUST BE REPORTED TO THE IRS.
One final note on forgiveness paperwork:
IRS regulations require that forgiven loans be reported as taxable income. The Coordinating Board will mail you IRS Form 1099-C Cancellation of Debt at the end of the following January. Use the form in preparing your income tax return.
Also, be prepared for that tax bill! Plan ahead to make sure you can afford to pay taxes on your forgiven loan amount.
© 2012 Texas Guaranteed Student Loan Corporation

19. IF YOU DO NOT QUALIFY FOR FORGIVENESS, YOU MUST REPAY THE LOAN
If you do not meet the requirements for forgiveness, you must repay the B-On-Time loan.
Once you are no longer enrolled at least half time at an eligible institution, you’ll have a six month grace period during which no payments will be due. This period is intended to give you time to find full-time employment, possibly move to a new apartment or city, and generally adjust to the “real world.” Take advantage of this time to get your financial affairs in order and set a budget based on your new income, expenses, and — of course — upcoming student loan payments.
At the end of your grace period, your loan will be in repayment, and you’ll be required to make regular monthly payments to the Coordinating Board. Your minimum monthly payment will be $75 (or $900 per year), to be paid over a 15-year period. Depending on your total balance, however, your actual monthly payment may be higher.
© 2012 Texas Guaranteed Student Loan Corporation

20. Open all correspondence from the Coordinating Board
Make payments by due date
You may contact the Coordinating Board at
(800) or
(512) (Austin area)
Access your loan information at
Keep address current
To access your information online, go to click on “Loans Online,” then click on “Account Login.”
The Coordinating Board will contact you about the B-On-Time loan repayment process. Be sure to open and read all correspondence you receive from the Coordinating Board.
To find out where you should send your monthly payments, call the Coordinating Board toll-free at (800) Residents of the Austin metro area may also call (512)
You may also access your information online. To do so, go to and click on “View My Account.” You must create an online account to be able to monitor and view your account status. Once you’ve established a password, remember to keep it in a secure location.
© 2012 Texas Guaranteed Student Loan Corporation

21. CONTACT THE COORDINATING BOARD. OPTIONS INCLUDE:
If you have difficulty making payments on your B-On-Time loan, be sure to contact the Coordinating Board. You have several options if you experience financial hardship, including:
Education deferment: Under the B-On-Time Loan Program, if you are enrolled at least half time in school, you may claim an education deferment to postpone payments. You’re eligible for a deferment as long as your account is not in default and you provide enrollment documentation directly to the Coordinating Board for at least a half-time course load.
Forbearance: You may be granted a period of forbearance in the form of postponed or reduced payments for unusual financial hardship if the Coordinating Board receives a written request that documents your eligibility.
Deceased or disabled borrowers: BOT loans are discharged in the event of your death or total and permanent disability.
Even if you do not meet the requirements for deferment or forbearance, if you are experiencing difficulty in meeting the repayment terms, you should contact the Coordinating Board. Representatives are available to assist you with any question you may have at or within Austin at
© 2012 Texas Guaranteed Student Loan Corporation

22. IF YOU DON’T MAKE YOUR PAYMENTS ON TIME, YOU COULD
FACE A SERIES OF UNPLEASANT CONSEQUENCES
As we’ve discussed, the B-On-Time loan’s zero interest makes it a great deal. If you don’t make your loan payments on time, however, you risk losing this benefit, and may face other unpleasant consequences:
If a payment on your B-On-Time loan is not received within 20 days of the scheduled due date, a late fee of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), whichever is less, will be assessed on your account.
If your account is 90 days or more past due, the Coordinating Board is required to notify the Comptroller of Public Accounts. Travel reimbursements may be held if your account is delinquent. In addition, a hold may be placed on enrollment clearance at your school, and transcripts can also be held.
If you miss five consecutive monthly payments, you are required to pay the full remaining principal balance on the loan, along with all other charges and late fees.
If you miss six consecutive payments (making your loan a total of 180 days or more past due), the loan will be considered in default. Upon establishing loan default, the Office of the Attorney General, at the request of the Commissioner of Higher Education, may file suit for the unpaid balance plus collection fees. Failure to resolve this delinquency may result in a judgment being requested against you.
If a judgment is entered against you, interest charges will begin to be assessed to your account. If this happens, your B-On-Time loan will no longer be zero interest.
Be careful to avoid any of the penalties described above. Make a plan to submit your loan payments on time, and take advantage of the B-On-Time loan’s favorable terms.
© 2012 Texas Guaranteed Student Loan Corporation

23. Loan balance coming due in full immediately
AVOID THE CONSEQUENCES OF DEFAULTING ON YOUR LOAN
Loan balance coming due in full immediately
College records placed on hold
Loss of eligibility for loan deferment
Damaged credit rating
Difficulty renting an apartment
Difficulty qualifying for credit cards, a car loan, or a mortgage
It’s important to understand the consequences of defaulting on your loan:
• The entire loan balance, including the principal and judgment interest, will be due in full immediately.
• Your college records may be placed on hold.
• You will lose eligibility for loan deferment.
• Your credit rating will be damaged.
• You’ll have difficulty renting an apartment, and qualifying for credit cards, a car loan, or a mortgage.
© 2012 Texas Guaranteed Student Loan Corporation

24. Make the most of your grace period by getting your finances in order
AVOID DEFAULTING ON YOUR LOAN BY PLANNING AHEAD
Make a spending plan
Make the most of your grace period by getting your finances in order
Keep track of your loans
Keep track of your passwords and other log-in information
You can avoid defaulting on your loan by planning ahead:
• Make a spending plan.
• Make the most of your grace period by getting your finances in order.
• Keep track of your loans. Keep all of your student loan documents in a file and organize your payment schedules, amounts, and servicer contact information for each of your outstanding state, federal, and private loans.
• Keep track of your passwords and other log-in information for all of your student loan accounts.
© 2012 Texas Guaranteed Student Loan Corporation

25. Keep up with monthly payments
AVOID DEFAULTING ON YOUR LOAN BY PLANNING AHEAD
Keep up with monthly payments
Keep your contact information up to date
Read all correspondence pertaining to your B-On-Time loan
Ask for help if you have difficulty making payments
• Since the B-On-Time loan cannot be consolidated with other federal and private loans, make sure to keep up with your regular monthly payments in addition to any payments you must make on your other student loans.
• Update your contact information, including your mailing address, your address, and your phone number, with the Coordinating Board any time this information changes.
• Open and read all correspondence pertaining to your B-On-Time loan immediately, including direct mail sent to your mailing address and all correspondence.
• Ask your loan holder, the Coordinating Board, for help if you have difficulty making payments. Consider an education deferment (if applicable) or forbearance before you miss a payment.
© 2012 Texas Guaranteed Student Loan Corporation

26. (512) 427-6340 (800) 242-3062 CONTACT THE TEXAS HIGHER EDUCATION
COORDINATING BOARD:
To find your information online, go to
click on Texas B-On-Time Loan (BOT)
(512)
or toll-free (outside Austin metro)
(800)
For questions about payments and managing your loan, contact the Coordinating Board. You can also access your information through the online account log-in page. Remember to keep your password in a secure location.
For questions about loan forgiveness eligibility, be sure to check with your institution before contacting the Coordinating Board.
© 2012 Texas Guaranteed Student Loan Corporation

27. Remember at the beginning of the module, when we took a quiz to see what you know about the Texas B-on-Time Loan Program? It’s that time again! Let’s re-take the same quiz, and see what you’ve learned.
Note that in this round, the questions and answers are mixed. So while you’ll recognize the language in each, be attentive because their order is different.
And we’ve thrown in a bonus question to assess your overall confidence with this subject.
Once again, use the evaluation form we gave you. Right now, we’re taking the “Post-Test.” Let’s get started.
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

28. 1. I am eligible for a grace period before I am required to make payments. My grace period will start the day I drop below half-time enrollment. My first payment will be due in ________ from the start of my grace period.
a. 9 months
b. 6 months
c. 90 days
d. 20 days
[Read Q1 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

29. 2. If I don’t qualify for loan forgiveness, I will have up to ____ years to pay back my loan and my monthly payment will be at least $____ , depending on my balance.
a. 10 and 100
b. 20 and 50
c. 5 and 125
d. 15 and 75
[Read Q2 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

30. b. Request a forbearance c. Make a spending plan d. b and c only
3. My loan will go into default should I miss six consecutive payments. However, I can avoid defaulting on my loan by doing the following:
a. Borrow more money
b. Request a forbearance
c. Make a spending plan
d. b and c only
[Read Q3 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

31. 4. The Texas B-On-Time Loan Program requires that I pay back the loan if I don’t qualify for forgiveness. I will be charged an interest rate of _____% and an origination fee of ______%.
a. 0 and 3
b. 3 and 5
c. 4.5 and 1
d. 6.5 and 4
[Read Q4 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

32. b. U.S. Department of Education c. State Comptroller’s Office
5. Once I start making payments on my student loan, I will send payments to the _____________.
a. Financial aid office
b. U.S. Department of Education
c. State Comptroller’s Office
d. Texas Higher Education Coordinating Board
[Read Q5 aloud, giving time for the class to answer on the form]
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

33. 6. This presentation has increased my understanding of my student loan obligations and loan forgiveness requirements.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
[Read Q6 aloud, giving time for the class to answer on the form]
Now that the quiz is over, please complete the rest of the evaluation form. Thank you!
[Click]
© 2012 Texas Guaranteed Student Loan Corporation

34. 67
[End Slide]
© 2014 TG
© 2012 Texas Guaranteed Student Loan Corporation