Tuition, Refunds, and Financial Aid Frequently Asked Questions

Yes.

Due to the continued COVID-19 disruption, THECB is temporarily allowing institutions to transfer up to 100% of the institution’s unexpended Texas College Work-Study (TCWS) allocation, including the institution’s unexpended Work-Study Mentorship Program allocation, to its TEXAS Grant, Texas Educational Opportunity Grant (TEOG), or Tuition Equalization Grant (TEG) allocation. An Authority to Transfer form must be submitted to THECB to allow an institution to access the transferred funds in the grant program. Institution’s may disregard the language on the Authority to Transfer form that limits the amount of TCWS that may be transferred. This will provide institutions with greater flexibility to provide grant funding to students during this continued COVID-19 public health emergency. This waiver is in effect for the 2019-2020 and 2020-2021 academic years, regardless of when the state’s COVID-19 disaster declaration is lifted.

Institution’s may not exceed the limitations on transferring grant funds from TEXAS Grant, TEOG, and TEG to the TCWS Program. Up to 10% of the institution’s total annual program allocation or $20,000 (whichever is less) may be transferred from TEXAS Grant, TEOG, and TEG into either TCWS or WSMP in a given fiscal year.

The March 5, 2020 Electronic Announcement from the Department of Education provides guidance on when Federal Work-Study funds can be used to pay students who are unable to work due to school closures or other modifications a school makes in light of the public health emergency.

Since an institution’s revenue comes from multiple sources (e.g. federal grants, tuition revenue, state grants, auxiliary revenue, etc.), the source of the institutional share of work-study wages may vary by student. Restrictions on using revenue to pay students for hours not worked would vary by source. The agency is not aware of any restrictions on the use of tuition revenue as the institutional work-study match to pay hours not worked, but we encourage financial aid officers to consult with their institution’s legal counsel to determine the institution’s response to using various funding sources in these situations.

The satisfactory academic progress (SAP) requirements for the state’s grant and exemption programs are outlined in the following rules and statute:

• TEXAS Grant – Rule §22.229
• Texas Educational Opportunity Grant (TEOG) – Rule §22.256(b)(8)
• Tuition Equalization Grant (TEG) – Rule § 22.25
• Exemptions – TEC §54.2001(a)(1)

Institutions may allow a student to continue receiving a grant or exemption in another semester or term on a showing of hardship or other good cause.

• TEXAS Grant – Rule §22.231
• Texas Educational Opportunity Grant (TEOG) – Rule §22.257
• Tuition Equalization Grant (TEG) – Rule § 22.27
• Exemptions – TEC §54.2001(d)

The agency has determined that institutional modifications to semesters in response to COVID-19 would be considered an “other good cause” if those modifications impact a student’s ability to achieve SAP.

The agency has also determined that institutions do not need to require a student to submit a formal appeal in these situations. Institutions may apply the COVID-19 “other good cause” provision as deemed appropriate, though the institution must keep a record of this decision in the student’s financial aid file and notify the student that the provision has been applied.

Information regarding the Texas Armed Services Scholarship can be found below in the FAQ titled “What flexibility do institutions have regarding the Satisfactory Academic Progress requirements of the Texas Armed Services Scholarship Program (TASSP)?”

Note: The SAP requirements for the following state financial aid programs are based on an institution’s minimum requirements for enrollment, rather than an institution’s financial aid SAP policy: College Access Loan, Texas College Work-Study, Texas Work-Study Mentorship, exemptions outlined in TEC §§54.216, 54.341, 54.342, 54.366, or 54.367, and all waiver programs (e.g. those programs that allow an out-of-state student to pay in-state tuition rates).

The Texas Higher Education Coordinating Board (THECB) will allow a limited satisfactory academic progress hardship provision during this public health emergency.

In the event of a hardship, the TASSP Program Officer at an eligible institution may allow an otherwise eligible person to receive a Texas Armed Services Scholarship if the student’s grade point average or completion rate falls below the satisfactory academic progress requirements of 19 TAC Rule §22.169 (1)(A) and (B). Such conditions are limited to hardships related to the COVID-19 public health emergency, and include situations such as:

• a showing of a severe illness or other debilitating condition that may affect the student’s academic performance;
• an indication that the student is responsible for the care of a sick, injured, or needy person and that the student’s provision of care may affect his or her academic performance; or
• another good cause related to the COVID-19 public health emergency, as determined by the institution’s TASSP Program Officer.

The conversion of a scholarship to a loan, as outlined in 19 TAC Rule §22.170(a), is suspended in situations where an institution approves a satisfactory academic progress hardship based on the limited circumstances described above related to the COVID-19 public health emergency. This waiver is in effect until rescinded by the THECB or until the state disaster declaration is no longer in effect.

The THECB services student loans through several programs. The largest program is the College Access Loan (CAL). Other programs include the B-On-Time (BOT) Loan, the HELP loan, two federal student loan programs (FFELP and HEAL), and conditional scholarships that have converted to loans through the Texas Armed Services Scholarships and the Teach for Texas programs.

Borrowers in these programs may be eligible for a reduced payment or a temporary postponement (forbearance) of payments. Borrowers may submit a request for a reduced payment or a forbearance online at: Contact Us (Borrowers will need to select “Student Loan Question” for the Contact Reason, describe their financial relief request, and include COVID-19 in the body of their e-mail.) Interest continues to accrue during a forbearance period.

The interest waiver and other student loan provisions recently passed by Congress only apply to federally held student loans. Loans held and serviced by the Texas Higher Education Coordinating Board are not included in those student loan provisions.

There are no formula funding restrictions if a student did not pay tuition in full by the end of the previous term. Institutions may, however, prohibit such students from registering for classes until full payment is made as per Texas Education Code, Section 54.007(d).

There is no rule that prohibits students from entering into an installment plan if they have an outstanding balance from the previous semester. (See also the FAQ below for more details: What flexibility do institutions have to establish tuition installment (payment) plans for students that will still allow these students to be reported to the THECB?)

TEC §54.007 and TAC Rule §21.4 outline an institution’s ability to utilize installment plans for the payment of tuition and mandatory fees. As per previous guidance from the THECB, students are not required to pay tuition and mandatory fees in full by the Census Date for community colleges or the 20th class day for GAIs (15th class day for each summer session), as long as the student enters into a written or electronic agreement reflecting the terms and conditions of an installment plan by those dates. With an appropriate plan in place, a student may be reported as fundable to the THECB.

Installment plans must include an initial payment by the appropriate date. They must also include a plan of subsequent payments that result in the tuition and mandatory fees being paid in full by the end of the semester or session. The institution may determine what amount is required in the first payment, as well as what amounts will be required in subsequent payments. There is no requirement that the payments must be equal across the installment plan.

While statute allows an institution to collect administrative fees or late fees, those are not requirements of an installment plan and may be waived at an institution’s discretion.

TEC §54.0071 outlines an institution’s ability to provide payment options for students whose financial aid is delayed. It includes delaying the payment due date for tuition and mandatory fees while a student awaits the receipt of financial aid. It also includes providing a 30-day extension on payment if the student becomes ineligible for the financial aid or the amount of financial aid is reduced to less than the tuition and mandatory fees owed.

Texas public institutions of higher education are required to refund at a minimum a certain percentage of a withdrawing a student’s tuition and mandatory fees paid for a term or semester, based on his or her withdrawal date. For community, state, and technical colleges, the specific requirements and percentages reside in Texas Administrative Code, Rule §21.5 For universities and health-related institutions, the specific requirements and percentages reside in Texas Education Code, Section 54.006. However, institutions of higher education may adopt policies to refund an amount greater than the minimum required by statute and rule.

Students who are sent home as a result of coronavirus should check with their college or university to determine the institution’s policy with respect to refunds concerning room and board.

With respect to tuition refunds for students who withdraw from the institution due to coronavirus, Texas public institutions of higher education are required to refund at a minimum a certain percentage of a withdrawing a student’s tuition and mandatory fees paid for a term or semester, based on his or her withdrawal date. For community, state, and technical colleges, the specific requirements and percentages reside in Texas Administrative Code, Rule §21.5 For universities and health-related institutions, the specific requirements and percentages reside in Texas Education Code, Section 54.006. However, institutions of higher education may adopt policies to refund an amount greater than the minimum required by statute and rule.