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Texas Falls Short with Student Loan Funding

One month before school starts, the Texas Higher Education Coordinating Board has notified college financial aid offices that the "B on Time" student loan program doesn't have enough funding this year to go around.  In fact, they are $8 million short from last year.  The program, aimed at middle and upper-middle class students, offers state-sponsored, interest free loans that are forgiven provided the student graduates on time with at least a B average. 

Last year, Texas spent $49 million on these loans, enough to cover 12,800 students.  This year, however, only an estimated $41million is available, enough for only 9,900 students.  All over Texas, thousands of incoming freshmen are now hearing the bad news.  Also, some 650 students who received the loans last year won't be getting them renewed.  The state's two biggest campuses, The University of Texas at Austin and Texas A&M University, have already sent out hundreds of notices to those that have lost out on the funding they were promised.  Right now, around 700 incoming freshmen have been notified by UT and more than 100 this week by A&M.  College financial aid officers are now trying to offer these students alternative loans, but unlike the interest-free "B on Time" loans, the others can charge about 6 or 8 percent with no forgiveness. 

Some campuses, like UT-Dallas, never made promises to students in order to avoid disappointment because they were never confident that the money would be available.  About 400 students were eligible for the loans at UT-Dallas, but were never notified with letters.  In a different approach at UT-Arlington, around 500 students signed a waiting list for the "B on Time" loans, acknowledging a possible fluctuation of the state-sponsored student aid.  The number of students awarded loans is, after all, subject to the amount of funding.   

Sure enough, the amount of funding and number of students awarded has fluctuated considerably since the program started in 2003.  With this record, the shortage shouldn't have been totally unexpected.  Though, it is still disappointing for the thousands of hopeful students that were promised the money. Especially considering tuition at public, four-year colleges has risen about 40 percent since 2003. 

The fact those students and their families were not given notice of the shortcomings far enough in advance is what is most disheartening, since they now have only a short time to find alternative funds.

Texas Falls Short with Student Loan Funding

One month before school starts, the Texas Higher Education Coordinating Board has notified college financial aid offices that the "B on Time" student loan program doesn't have enough funding this year to go around.  In fact, they are $8 million short from last year.  The program, aimed at middle and upper-middle class students, offers state-sponsored, interest free loans that are forgiven provided the student graduates on time with at least a B average. 

Last year, Texas spent $49 million on these loans, enough to cover 12,800 students.  This year, however, only an estimated $41million is available, enough for only 9,900 students.  All over Texas, thousands of incoming freshmen are now hearing the bad news.  Also, some 650 students who received the loans last year won't be getting them renewed.  The state's two biggest campuses, The University of Texas at Austin and Texas A&M University, have already sent out hundreds of notices to those that have lost out on the funding they were promised.  Right now, around 700 incoming freshmen have been notified by UT and more than 100 this week by A&M.  College financial aid officers are now trying to offer these students alternative loans, but unlike the interest-free "B on Time" loans, the others can charge about 6 or 8 percent with no forgiveness. 

Some campuses, like UT-Dallas, never made promises to students in order to avoid disappointment because they were never confident that the money would be available.  About 400 students were eligible for the loans at UT-Dallas, but were never notified with letters.  In a different approach at UT-Arlington, around 500 students signed a waiting list for the "B on Time" loans, acknowledging a possible fluctuation of the state-sponsored student aid.  The number of students awarded loans is, after all, subject to the amount of funding.   

Sure enough, the amount of funding and number of students awarded has fluctuated considerably since the program started in 2003.  With this record, the shortage shouldn't have been totally unexpected.  Though, it is still disappointing for the thousands of hopeful students that were promised the money. Especially considering tuition at public, four-year colleges has risen about 40 percent since 2003. 

The fact those students and their families were not given notice of the shortcomings far enough in advance is what is most disheartening, since they now have only a short time to find alternative funds.

Texas Falls Short with Student Loan Funding

One month before school starts, the Texas Higher Education Coordinating Board has notified college financial aid offices that the "B on Time" student loan program doesn't have enough funding this year to go around.  In fact, they are $8 million short from last year.  The program, aimed at middle and upper-middle class students, offers state-sponsored, interest free loans that are forgiven provided the student graduates on time with at least a B average. 

Last year, Texas spent $49 million on these loans, enough to cover 12,800 students.  This year, however, only an estimated $41million is available, enough for only 9,900 students.  All over Texas, thousands of incoming freshmen are now hearing the bad news.  Also, some 650 students who received the loans last year won't be getting them renewed.  The state's two biggest campuses, The University of Texas at Austin and Texas A&M University, have already sent out hundreds of notices to those that have lost out on the funding they were promised.  Right now, around 700 incoming freshmen have been notified by UT and more than 100 this week by A&M.  College financial aid officers are now trying to offer these students alternative loans, but unlike the interest-free "B on Time" loans, the others can charge about 6 or 8 percent with no forgiveness. 

Some campuses, like UT-Dallas, never made promises to students in order to avoid disappointment because they were never confident that the money would be available.  About 400 students were eligible for the loans at UT-Dallas, but were never notified with letters.  In a different approach at UT-Arlington, around 500 students signed a waiting list for the "B on Time" loans, acknowledging a possible fluctuation of the state-sponsored student aid.  The number of students awarded loans is, after all, subject to the amount of funding.   

Sure enough, the amount of funding and number of students awarded has fluctuated considerably since the program started in 2003.  With this record, the shortage shouldn't have been totally unexpected.  Though, it is still disappointing for the thousands of hopeful students that were promised the money. Especially considering tuition at public, four-year colleges has risen about 40 percent since 2003. 

The fact those students and their families were not given notice of the shortcomings far enough in advance is what is most disheartening, since they now have only a short time to find alternative funds.

Texas Falls Short with Student Loan Funding

One month before school starts, the Texas Higher Education Coordinating Board has notified college financial aid offices that the "B on Time" student loan program doesn't have enough funding this year to go around.  In fact, they are $8 million short from last year.  The program, aimed at middle and upper-middle class students, offers state-sponsored, interest free loans that are forgiven provided the student graduates on time with at least a B average. 

Last year, Texas spent $49 million on these loans, enough to cover 12,800 students.  This year, however, only an estimated $41million is available, enough for only 9,900 students.  All over Texas, thousands of incoming freshmen are now hearing the bad news.  Also, some 650 students who received the loans last year won't be getting them renewed.  The state's two biggest campuses, The University of Texas at Austin and Texas A&M University, have already sent out hundreds of notices to those that have lost out on the funding they were promised.  Right now, around 700 incoming freshmen have been notified by UT and more than 100 this week by A&M.  College financial aid officers are now trying to offer these students alternative loans, but unlike the interest-free "B on Time" loans, the others can charge about 6 or 8 percent with no forgiveness. 

Some campuses, like UT-Dallas, never made promises to students in order to avoid disappointment because they were never confident that the money would be available.  About 400 students were eligible for the loans at UT-Dallas, but were never notified with letters.  In a different approach at UT-Arlington, around 500 students signed a waiting list for the "B on Time" loans, acknowledging a possible fluctuation of the state-sponsored student aid.  The number of students awarded loans is, after all, subject to the amount of funding.   

Sure enough, the amount of funding and number of students awarded has fluctuated considerably since the program started in 2003.  With this record, the shortage shouldn't have been totally unexpected.  Though, it is still disappointing for the thousands of hopeful students that were promised the money. Especially considering tuition at public, four-year colleges has risen about 40 percent since 2003. 

The fact those students and their families were not given notice of the shortcomings far enough in advance is what is most disheartening, since they now have only a short time to find alternative funds.