DALLAS
Just weeks before starting a new academic year, thousands of
college students throughout Texas are being told they won’t get the
interest-free, forgivable loan they were counting on to pay tuition.
The Texas Higher Education Coordinating Board notified
college financial aid offices this month that there isn’t enough money in the
Texas “B On Time” loan program to cover all the students who qualify.
The program awards students interest-free loans that are
totally forgiven if they graduate on time with at least a B average. But with
$8 million less in the program than last year, state officials told college
financial aid offices that there is no loan money available for new students.
About 650 students who obtained the loan last year also
won’t be able to renew, though which returning students will lose out hasn’t
been determined.
“If you’re not going to do the program, then at least
give notice far enough in advance so that you’re not counting on that
money,” said DeSoto parent Emily Barmer, whose son, Brad, won’t be getting
the loan.
Last year, Texas
spent $49 million on “B On Time” loans, enough for 12,800 students.
But there’s only an estimated $41 million available for the loans this academic
year, enough for 9,900 students.
