SECTION 22.341. Enforcement of Collection

(a) When any Texas B-On-Time borrower fails to make as many as five monthly payments due in accordance with his or her repayment schedule, the full amount of remaining principal and other charges shall become due and payable immediately.

(b) When as many as six payments have been missed, the loans will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the unpaid balance plus court costs, attorney fees, and judgment interest, as described in §21.130 of this title (relating to Loan Interest).

(c) In accordance with state law, the Board will notify the Comptroller of Public Accounts when a borrower's account has become 90 days or more past due. Until the delinquency is cured, no state warrant other than a wage warrant will be released to the borrower. This prevents the delinquent borrower from receiving further warrants for state student financial aid.

Source Note: The provisions of this §22.341 adopted to be effective December 7, 2003, 28 TexReg 10757; transferred effective June 1, 2017, as published in the Texas Register May 19, 2017, 42 TexReg 2739; amended to be effective November 22, 2020, 45 TexReg 8342