The Texas B-On-Time Loan Program

Designed to Encourage Students to Finish Their Degrees On Time With Good Grades


The Texas B-On-Time (BOT) Loan Program provides zero-interest loans to Texas residents attending 4-year colleges in Texas. Since the program is designed to encourage Texas students to be on time for graduation while meeting high grade standards, the loan can be forgiven for students who meet certain requirements.

Specifically, for loan forgiveness, students must graduate with a 3.0 grade point average (on a 4.0 point scale) and must:

  • Finish within a specified length of time after they enter school (four calendar years for most bachelor's degree programs or five calendar years for programs which the Texas Higher Education Coordinating Board (THECB) has determined require a longer period of study*), or
  • Finish with no more than six credit hours beyond what is required to complete their degree or certificate.**

Either way, this program is a good deal for Texas students. If a student qualifies for forgiveness, great — he or she won't have to pay back the BOT loan, and graduating within the specified time period may mean the chance to start working and earning a paycheck earlier. If a student doesn't qualify for forgiveness, he or she has still financed part of a college education with a zero-interest loan, and you literally can't get a better interest rate than that.

Note that the BOT program is not an entitlement program. It is dependent on funding from the Texas Legislature and may be funded at a level that does not meet the full demand for loans. Availability of funds at a particular school is based on whether the school is participating in the program and the amount of appropriations the school has received. Applicants for BOT loans are strongly encouraged to apply early.

Apply for a BOT loan

If you have already borrowed a BOT loan, use our B-On-Time (BOT) Loan calculator to determine your potential BOT renewal and/or loan forgiveness eligibility.

* For example, some architecture and engineering programs which lead to a first degree have been determined by the THECB to require over four years to complete.

** Note: Beginning with the 2014-15 academic year, the eligibility requirements for the BOT loan have changed. However, qualifying students who received one or more BOT loans under the previous requirements may still be eligible for loan forgiveness. If you have already borrowed and have questions about whether you qualify for loan forgiveness, please contact your school's financial aid office.


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