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Texas Statutes (Last Updated: January 4, 2014) |
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EDUCATION CODE |
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Title 3. HIGHER EDUCATION |
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Subtitle A. HIGHER EDUCATION IN GENERAL |
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Chapter 57. GUARANTEED STUDENT LOANS |
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Subchapter C. STUDENT LOANS |
Sec. 57.45. ELIGIBLE LENDERS
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(a) In order to qualify as an eligible lender under this subchapter, the lender must:
(1) be an eligible lender for purposes of the Higher Education Act of 1965, as amended; and
(2) enter into an agreement with the corporation for participation in the program.
(b) In contracting with the corporation, the eligible lender shall agree to adhere to the lending requirements of the corporation and to periodic review of guaranteed student loan accounts as considered necessary by the corporation.
(c) Each eligible lender shall submit to the corporation at the end of each fiscal year a report on the student loan accounts of that lender.
(d) In accordance with federal and state law, the corporation may provide, and charge a fee for, services to eligible lenders necessary to encourage lender participation in the loan program. Services for which the corporation charges a fee shall be provided at the option of the lender.
(e) In order to be guaranteed by the corporation, a loan made by an eligible lender must comply with all provisions of the Higher Education Act of 1965, as amended, including provisions relating to:
(1) limits on annual loan amounts;
(2) cumulative loan amount limits;
(3) maximum interest rates;
(4) grace periods;
(5) repayment terms; and
(6) deferment conditions.
(f) The corporation may suspend or revoke the eligibility of a lender that the corporation determines is not in compliance with this chapter.
(g) Loans guaranteed by the corporation may be assigned or transferred by the holders thereof to any eligible lender as provided by the Higher Education Act of 1965, as amended, notwithstanding the state in which the principal place of business of any such eligible lender is located. Any loan so assigned or transferred shall continue to be guaranteed by the corporation, and, in the event of default, the corporation shall pay the lender or holder under the provisions of the Higher Education Act of 1965, as amended.