<p>please someone explain how this works. and is the debt really forgiven?</p>
<p>I heard that's when you take out a loan, but if you get a 3.0 or something like that in a certain amount of time, it turns into a grant.</p>
<p>I got the Be-on-Time loan as well. It is initially a loan, but if you graduate within four years OR you don't go over 6 hours over the number of hours required for your intended major then the loan is forgiven and you don't have to pay back anything. Now, if you don't meet those criteria at graduation, then you do have to pay back the loan, BUT there won't be any interest on it EVER. It's a 0% interest loan, so even if you don't get the loan forgiven, you still get a great deal with no interest.</p>
<p>I've already accepted the loan - who wouldn't want a loan with no interest? Plus, these loans are extremely difficult to come by at UT, so feel VERY lucky you got one. VERY few people get these.</p>
<p>BTW, at the time that the loan is forgiven, UT will issue a Form 1099 that reflects taxable income in the amount of debt that is forgiven. Not quite a free lunch like the grant.</p>
<p>BS to UT, what if i graduate in four years but have more than 6 credits over the required, will my loan still be forgiven? </p>
<p>also, what does a 3% origination fee mean? </p>
<p>magoolacutti, so how much tax would i have to pay if the loan is forgiven?</p>
<p>How do you get the B-on time loan?</p>
<p>collegenow-</p>
<p>Honestly, I'm not quite sure about that. I would call UT and ask about the graduating in four years but having over six credits thing.</p>
<p>But the 3% origination fee means that 3% of your total loan will be deducted. So in other words, take 3% of your loan amount and subtract that and thats how much you will get. You just wont get 3% of what they originally offered. </p>
<p>And glucose101-</p>
<p>UT chooses who gets these loans. I guess those who qualify are the ones who get them.</p>
<p>so not everyone gets one?! that's stupid</p>
<p>"Important: Funds for this program are extremely limited and if you are awarded the B-On-Time loan by our office, we will direct you to complete an application/promissory note on-line."</p>
<p>I copied that directly from the UT website.</p>
<p>Here's the URL:
<a href="http://finaid.utexas.edu/sources/loans/loantypes/bot.html%5B/url%5D">http://finaid.utexas.edu/sources/loans/loantypes/bot.html</a></p>
<p>That should explain everything about this loan - qualifications and such.</p>
<p>How do you get the Texas Grant?</p>
<p>Would one be notified already if one was selected?</p>
<p>I'm in the summer program, and it says I haven't filled out the information, albeit I turned in the FAFSA, with UTA being one of my selected schools.</p>
<p>It depends on the amount of your other income in the year that the debt is forgiven. If you are considered insolvent at the time when the debt is forgiven, you could exclude the income under Internal Revenue Code Section 108 ~ consult your tax advisor.</p>