(a) A student must repay the department costs of attendance paid for courses not completed. To recover funds, the department may:
  (1) deduct the amount owed from the student's next scheduled loan disbursement;
  (2) request the financial aid office of the academic institution the student attends to remit an institutional check for the amount owed; or
  (3) require the student to repay the amount owed in the event the student will not receive any more loan disbursements.
(b) A student who is found to be in breach of contract must immediately pay the department liquidated damages equal to one time the total forgivable loan amount plus collection costs, fees and interest as specified in the contract or this section. If the student is unable to immediately pay the full amount due, the student may request a repayment plan.
(c) In the event the student breaches the contract by beginning but failing to complete the obligated period of service, the student shall pay to the department a prorated share of the damages based on the percent of the obligated period of service which has not been completed, plus collection costs, fees and interest as specified in the contract or this section.
(d) Interest assessed to a forgivable loan may be up to the highest rate allowed by law and shall commence with the date of the first disbursement.
(e) The department will forward to the sponsor its portion of the forgivable loan and accrued interest collected from the student. However, in the event the department is unsuccessful in collecting payment from the student, the department shall not be responsible for repaying the sponsor any forgivable loan portions or interest accrued on those portions.
(f) In the event a student fails or refuses to make payments as required by the department, the department may initiate collection procedures against the student in accordance with 4 TAC §1.52, and the department may report outstanding debts or loans in default to a national credit bureau to be placed on the students' credit reports.

Source Note: The provisions of this §30.147 adopted to be effective January 1, 2015, 39 TexReg 10395