The Texas B-On-Time Loan Program

Helping Students Finance a College Education, on Time, with Good Grades


The Texas B-On-Time (BOT) Loan Program provides zero-interest loans to Texas undergraduate students. Since the program is designed to encourage Texas students to be on time for graduation while meeting high academic standards, the loan can be converted to a grant (that is, forgiven) for student borrowers who meet certain requirements.

To earn loan forgiveness, a BOT loan borrower must graduate with at least a 3.0 grade point average (on a 4.0 point scale) and must:

  • Finish within a specified length of time after he or she enters school (four calendar years for most bachelor's degree programs or five calendar years for programs that require a longer period of study), or
  • Finish with no more than six credit hours beyond what is required to complete his or her degree or certificate.

Simply put, this program is a good deal. If a borrower qualifies for loan 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 borrower doesn't qualify for loan 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.

To help prospective and current borrowers understand how the BOT Loan Program works, TG provides a variety of resources, including:

For more information on the BOT loan, see the Texas Higher Education Coordinating Board's BOT loan page.