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Texas B-On-Time Loan

The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If the student meets specified goals, the entire loan amount can be forgiven upon graduation. If this loan is offered to you, the Financial Aid Office will instruct you to complete an application and promissory note online. To be eligible you must:

  • Have completed a FAFSA and be eligible to receive federal financial aid
  • Be enrolled full time in an undergraduate degree or certificate program at an eligible institution and
  • Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces


  • Have graduated from a high school operated by the U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in Texas


  • Have earned an associate's degree from an eligible institution
  • Persons who have earned a bachelor's degree are not eligible for B-On-Time loans.
  • A 3% origination fee will be deducted from the loan proceeds.
  • In the 1st Academic Year - make satisfactory academic progress toward a degree or certificate as determined by Tarleton.
  • In the 2nd and Subsequent Academic Years - complete at least 75% of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education.

A student may not receive B-On-Time loans for more than 150 hours.

Forgiveness Requirements for the B-On-Time Loan

At 4-year universities a Texas B-On-Time Loan shall be forgiven if you receive an undergraduate degree from an eligible institution and either:

  • Graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:
    • 4 calendar years after the date you initially enrolled in an eligible institution; or
    • 5 calendar years after the date you initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete;


  • Graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree.

Forgiven B-On-Time loans must be reported to the IRS as taxable income.