(a) Denial. The Board may deny an application for a license if it receives information from an administering entity that the applicant has defaulted on a student loan or has breached a student loan repayment contract by failing to perform his or her service obligation under the contract. The Board may rescind a denial under this subsection upon receipt of information from an administering entity that the applicant whose application was denied is now in good standing.     
      (b) Renewal.      
        (1) The Board shall not renew a license of a licensee who is in default of a student loan or a repayment agreement except as provided in paragraph (2) of this subsection.       
        (2) For a licensee in default of a loan or repayment agreement, the Board shall renew the license if the licensee presents to the board a certificate certifying that:                  (A) the licensee has entered into a repayment agreement on the defaulted loan; or                   (B) the licensee is not in default on the loan or on the repayment agreement.         
     Source Note:        The provisions of this §571.63 adopted to be effective June 19, 2012, 37 TexReg 4425