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 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 (two calendar years for programs at public or private 2-year institutions, four calendar years for most bachelor's degree programs, and five calendar years for programs which the Texas Higher Education Coordinating Board (THECB) has determined to 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 is currently 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. So, applicants for these loans are strongly encouraged to apply early.
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.