Sec. 61.9955. AWARD. (a) Except as provided by this section, an eligible person is entitled to receive an annual amount of loan repayment assistance payments under this subchapter payable to the holders of the eligible person's eligible loans for each year of eligibility approved by the board under Section 61.9953 or 61.9954 in an amount equal to the lesser of $4,000 or 20 percent of the total amount stated in the person's application under Section 61.9953, subject to the amount of available funding.

(b) If at the time an eligible person submits an initial application under Section 61.9953 the payoff period for the person's total outstanding balance of eligible loans is less than five years, the board shall make annual payments under this subchapter to the holders of the person's eligible loans in the amounts of the payments and accrued interest due for the applicable year.

(c) The total amount of repayment assistance provided under this subchapter to an eligible person may not exceed $20,000.

(d) If in any year the amount of money available for loan repayment assistance under this subchapter is insufficient to provide loan repayment assistance to cover all the payments for the year for all eligible loans of all eligible persons, the board shall establish criteria to determine the amount of available money to allocate to the holders of student loans of eligible persons as the board determines appropriate to further the purpose of this subchapter.

(e) An eligible person whose annual loan repayment assistance under this section is less than the amount necessary to cover the amount of principal and interest due on the person's eligible loans for that year is responsible for the payment of the remainder of the amount due and for otherwise preventing a default on the loan.

Added by Acts 2019, 86th Leg., R.S., Ch. 567 (S.B. 16), Sec. 1, eff. September 1, 2019.