SECTION 23.35. Eligible Lender and Eligible Education Loan

(a) The Board shall retain the right to determine the eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, or graduate education of the teacher and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, or private foundation. Credit card, equity loans and other similar personal loan products are not considered educational loans eligible for repayment.

(b) To be eligible for repayment, an education loan must:

(1) be evidenced by a promissory note for loans to pay for the cost of attendance for the undergraduate or graduate education of the individual applying for repayment assistance;

(2) not be in default at the time of the teacher's application;

(3) not have an existing obligation to provide service for loan forgiveness through another program; and

(4) if the loan was consolidated with other loans, the applicant must provide documentation of the portion of the consolidated debt that was originated to pay for the cost of attendance for his or her undergraduate or graduate education.

Source Note: The provisions of this §23.35 adopted to be effective June 6, 2016, 41 TexReg 4002; transferred effective December 15, 2016, as published in the Texas Register November 25, 2016, 41 TexReg 9341