(a) Unless a student's payment due date has been postponed due to pending disbursements of financial aid as described in subsection (b), of this section, the following conditions shall apply in the collection of tuition and/or tuition and fees at institutions of higher education and in the conducting of enrollment audits.
  (1) On or before the dates for reporting official enrollments to the Texas Higher Education Coordinating Board each enrollment period, each community college shall collect in full from each student that is to be counted for formula funding purposes the amounts set as tuition by the respective governing boards.
  (2) On or before the 20th class day for each regular semester and the 15th class day for each summer session, institutions other than community colleges shall collect from each student who is to be counted for state formula funding appropriations, the tuition and fees (mandatory and optional) established by state law or by the respective governing boards.
  (3) Valid contracts with the United States government for instruction of eligible military personnel, approved financial assistance, and valid contracts with private business and public-service type organizations or institutions such as hospitals, may be considered as collected tuition and fees; the amount of collected tuition and fees may be adjusted pursuant to terms of the contract once actual collections are made.
  (4) Returned checks must be covered by a transfer from a self-supporting auxiliary enterprise fund or other non-state fund source (e.g., food service, bookstore) within ten days of the date the institution receives the returned check in order for contact hours to be presented to the state for funding.
  (5) Auxiliary enterprise or other non-state fund sources may not be reimbursed with state-provided funds.
  (6) Institutions must retain records of individual student tuition or tuition and fee payment and returned checks for verification by the State Auditor.
(b) Payment Options for Students with Delayed Financial Aid.
  (1) If an institution's financial aid office has awarded aid to a student but the institution has not received the relevant disbursements by the date that tuition and fees must be paid, the student's aid is delayed. If the student agrees to assign to the institution a portion of the awards equal to the amount of tuition and fees to be met with financial aid payments, the governing board may postpone the due date for the portion of the tuition and or tuition and fee payment that will be met through financial aid funds and the hours to be paid for with the financial aid may be counted for formula funding purposes.
  (2) If, after the student's due date is postponed, the student becomes ineligible to receive one or more of the pending financial aid awards or the award amount is less than the amount of tuition and fees due, the governing board is to grant the student a repayment period for the unpaid amount that:
    (A) does not exceed 30 days,
    (B) allows for multiple payments, if necessary, and
    (C) entails a processing fee not to exceed 5 percent of the total amount to be collected.
  (3) An institution may deny academic credits for hours completed in the semester or term if the student fails to pay the full tuition and fee amount by the end of the 30-day repayment period.
(c) A student paying tuition and fees by installments shall be granted the options of delayed payment outlined in subsection (b) of this section (relating to Payment Options for Students with Delayed Financial Aid) if he or she is awaiting the disbursement of financial aid.

Source Note: The provisions of this §21.4 adopted to be effective March 16, 1995, 20 TexReg 1532; amended to be effective May 23, 2002, 27 TexReg 4335; amended to be effective November 28, 2005, 30 TexReg 7853