College Loans
FAQ
Loan Information and Details
Why does a cosigner help?
Applying with a cosigner who has good credit and income can help you satisfy credit criteria. It may even help you increase your chances of passing the initial credit review and ultimately receive a lower interest rate.
Why can’t I find my school on the approved school list?
The Texas Extra Credit Education Loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
Can I apply for funds to pay for housing and meal plans?
Yes, you can borrow funds through our loan program to cover the cost of housing and meal plans; however, your school must certify your loan application indicating you are eligible to receive the loan amount requested.
How much can I borrow?
The minimum loan amount is $1,000 and the maximum you can borrow is $65,000. However, the final amount may be limited based on the school’s certification.
Are there out-of-pocket fees for obtaining this loan?
No, there are no origination or disbursement fees.
Who is the lender for the Texas Extra Credit Education Loan program?
The lender for the Texas Extra Credit Education Loan program is Higher Education Servicing Corporation, a Texas-based private, nonprofit organization established in 1978 to ensure Texas students and families have access to low-cost education loans in order to achieve a higher education. Higher Education Servicing Corporation may sell its loans to its sister organization North Texas Higher Education Authority, Inc. Loans sold to North Texas Higher Education Authority, Inc. will continue to be serviced by Higher Education Servicing Corporation.
How often are interest rates adjusted?
Higher Education Servicing Corporation reviews interest rates on a quarterly basis to determine if changes are needed; however, they hold the right to review/update interest rates at any time.
Credit History and Information
Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps in determining the interest rate to be offered based on your credit history.
What factors are used in the initial credit review?
The initial credit review considers all of the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report. If you pass the credit review, you will need to supply income verification, school certification, and Applicant Self-Certification Form before final loan approval.
What if I have no credit history?
Students can apply with a cosigner to help meet creditworthiness guidelines and increase their chances of passing the initial credit review. If a student does not have credit history, we recommend applying with a cosigner who does.
Application Details and Instructions
Do I need to apply for Federal Aid before applying for this loan?
While you are not required to apply for Federal Aid before applying for our loan program, we recommend students apply with the Free Application for Federal Student Aid to see what they qualify for.
What options do you offer to complete the loan application?
The loan application must be completed online to be accepted for review. If you are unable to sign your application electronically, please contact HESC’s Originations office at info@hescloans.com or call 877-817-9158, Monday through Friday from 8:00 a.m. to 5:00 p.m. CT.
How long will it take to complete the application process?
The approval process can take from 1 or 2 business days depending on how quickly you’re able to submit all required documentation. Once the loan has been approved and you have signed the loan application, HESC sends your school a request to certify the loan. It normally takes schools anywhere from 8 to 12 business days to complete the certification depending on the time of the year.
How early should I apply?
We recommend that you begin the application process at least 30 days before the semester begins – this should allow for ample time to complete the application and submit any required documentation.
Personal and Financial Information
What is the difference between a U.S. Citizen and a Permanent Resident?
U.S. Citizen – A person who was born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam and the U.S. Virgin Islands; or who became a citizen through naturalization; or who was born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.
Permanent Resident – Any person who is not a citizen of the United States and who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder” and “Green Card Holder.”
Will the funds be deposited into my personal account?
All funds are sent directly to your school. Once your tuition and fees (and any other amount you may owe the school) are satisfied, any excess funds will be disbursed to you by the school.
What is the difference between permanent address and mailing address?
Your permanent address is the location that you consider to be your primary place of residence (like your parent’s or guardian’s address). Your mailing address is wherever you want to receive all of your loan documents.
Why do you need a personal reference from me?
We need a personal reference as an additional means of contacting you during the servicing of your loan. If we are not able to reach the student or cosigner on the loan, we will contact your personal reference.
Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as they are not living at the same address as you. If you are applying with a cosigner, you cannot use them as your reference, nor can your reference live at the same address as your cosigner. Lastly, you and your cosigner cannot use the same reference.
Why is my Social Security number needed?
Your Social Security number is used to verify your identity and to check your credit history.
What qualifies as income?
Primary sources of income typically reflect employment earnings but may also come from other sources such as retirement or rental income.
Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers its Texas Extra Credit Education Loan program under the authority provided to it in Chapter 53B of the Texas Education Code, which limits our program to serve only Texas residents.
Loan Repayment
Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.
Which repayment type should I choose?
Making payments of any type during the in-school period can significantly reduce the total cost of your loan. If you select a repayment type that requires an in-school payment, all payments must be made on time during the in-school period.
How can interest be capitalized?
In general, interest will capitalize at the end of the grace period following an initial deferment or following any subsequent deferment period, if any, or forbearance unless otherwise noted in the Credit Agreement. For Borrowers that have elected the “Immediate Repayment” option, interest that accrues between the first disbursement and the final disbursement will be capitalized once as of the day after the final disbursement. For Borrowers who have elected the Interest Only or Full Deferment Repayment Option, interest that is accrued and unpaid will be capitalized as of the last day of the grace period. Interest is also capitalized upon default. In all cases, capitalized interest is thereafter considered part of the principal, and interest will accrue on the new principal balance. Complete interest capitalization rules are contained in the Credit Agreements.
Loan Information
Is the Parent Loan limited to only parents of the student on the loan?
No, anyone can apply on behalf of the student beneficiary.
Can I apply with a cosigner to qualify?
Unfortunately, we do not allow cosigners to be added to a Parent Loan.
Why can’t I find my school on the approved school list?
The Texas Extra Credit Education loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
Can I apply for funds to pay for housing and meal plans?
Yes, you can borrower funds through our loan program to cover the cost of housing and meal plans; however, the student’s school must certify your loan application indicating the loan amount you are eligible to receive based on the student’s financial aid/need.
How much can I borrow?
The minimum loan amount is $1,000 and the maximum you can borrow is $65,000. However, the final amount may be limited based on the school’s certification.
Are there out-of-pocket fees for obtaining this loan?
No, there are no origination or disbursement fees.
Credit History & Information
Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps determine the best pricing that can be offered based on your credit history.
What factors are used in the initial credit review?
The initial credit review considers all of the information you provide during the application process, and the information obtained from your credit report. If you pass the credit review, we will need to receive your income verification, school certification, and Applicant Self-Certification Form before final loan approval.
Application Details & Instructions
Do I need to apply for Federal Aid before applying for this loan?
While you are not required to apply for Federal Aid before applying for our loan program, we recommend students apply with the Free Application for Federal Student Aid to see what they qualify for.
What options do you offer to complete the loan application?
The loan application must be completed online to be accepted for review. If you are unable to electronically sign your application, please contact HESC’s Originations office at info@hescloans.com or call 877-817-9158, Monday through Friday from 8:00 a.m. to 5:00 p.m. CT.
How long will it take to complete the application process?
The approval process can take from 1 -2 business days depending on how quickly you’re able to submit all required documentation. Once the loan has been approved and you have signed the loan application, a request will be sent to the School to certify the loan. It normally takes schools anywhere from 8 – 12 business days to complete this certification request depending on the time of the year.
How early should I apply?
We recommend that you begin the application process at least 30 days before the semester begins – this should allow for ample time to complete the application and submit any required documentation.
Personal & Financial Information
What is the difference between a U.S. Citizen and a Permanent Resident?
U.S. Citizen – A person who was born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam, and the U.S. Virgin Islands; or who became a citizen through naturalization; or who was born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.
Permanent Resident – Any person not a citizen of the United States who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder,” and “Green Card Holder.”
Will the funds be deposited into my personal account?
No. All funds are sent directly to the students’ school. Once the student’s tuition and fees (and any other amount they may owe the school) are satisfied, any excess funds will be disbursed to the student by the school.
Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as they are not living at the same address as you.
Why do you need a personal reference from me?
A personal reference is needed as an additional means of contacting you during the servicing of your loan.
Why is my Social Security number needed?
Your Social Security number is used to verify your identity and to check your credit history.
What qualifies as income?
Primary sources of income typically reflect employment earnings but may also come from other sources such as retirement or rental income.
Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers its Texas Extra Credit Education Loan program under the authority provided to it in Chapter 53B of the Texas Education Code, which limits our program to serve only Texas residents.
Loan Repayment
Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.
Do I have to make payments on my loan while the student beneficiary is enrolled in school?
If you select the Immediate Repayment option or Interest-Only Repayment option, you will be responsible to make payments on the loan while the student beneficiary is enrolled in school. If you select the Full Deferment Repayment option, payments will be deferred for up to 66 months while the student beneficiary is continuously enrolled at an approved school at least half-time.
Loan Information and Details
Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers its Texas Extra Credit Education Loan program under the authority provided to it in Chapter 53B of the Texas Education Code, which limits our program to serve only Texas residents.
Who is the lender for the Texas Extra Credit Education Loan program?
The lender for the Texas Extra Credit Education Loan program is Higher Education Servicing Corporation, a Texas-based, nonprofit organization established in 1978 to ensure Texas students and families have access to low-cost education loans in order to achieve a higher education. Higher Education Servicing Corporation may sell its loans to its sister organization North Texas Higher Education Authority, Inc. Loans sold to North Texas Higher Education Authority, Inc. will continue to be serviced by Higher Education Servicing Corporation.
How much can I borrow?
The minimum loan amount is $1,000 and the maximum you can borrow is determined by the school you are attending, but is limited to your cost of attendance less other aid.
Are there out-of-pocket fees for obtaining this loan?
No, there are no application, origination or disbursement fees.
Why can’t I find my school on the approved school list?
The Texas Extra Credit Education Loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
Can I apply for funds to pay for housing and meal plans?
Yes, you can borrow funds to cover the cost of housing and meal plans; however, your school must certify your loan application indicating you are eligible to receive the loan amount requested.
How often are interest rates adjusted?
Higher Education Servicing Corporation reviews interest rates on a quarterly basis to determine if changes are needed; however, they hold the right to review/update interest rates at any time.
Will the funds be deposited into my personal account?
All funds are sent directly to your school. Once your tuition and fees (and any other amount you may owe the school) are satisfied, any excess funds will be disbursed to you by the school.
Credit History and Information
Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps in determining the interest rate to be offered based on your credit history.
What factors are used in the initial credit review?
The initial credit review considers all of the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report. If you pass the credit review, you or your cosigner (if applicable) must provide documentation verifying your income. Additional information such as proof of identify may also be requested. The student borrower must also submit an Applicant Self-Certification Form and the loan must be certified by the student’s school before final loan approval.
What if I have no credit history?
Students can apply with a credit-worthy cosigner to help meet the credit criteria and increase their chances of being approved for a loan. If a student does not have credit history, they must apply with a cosigner who does.
Why should I have a cosigner?
A cosigner is not required if you meet the income and credit criteria. A cosigner’s income, FICO score and credit history may help you qualify for a Texas Extra Credit Education Loan. The cosigner may be released after the first 24 consecutive on-time payments of principal and interest are made on the loan.6
Application Details and Instructions
Do I need to apply for Federal Aid before applying for this loan?
We suggest you exhaust all Federal Aid, grants and scholarships before applying for this loan. However, completion of the FAFSA is not a requirement to receive a Texas Extra Credit Graduate Loan.
What options do you offer to complete the loan application?
The loan application must be completed online to be accepted for review. If you are unable to sign your application electronically, it can be faxed or mailed to HESC or uploaded through your online account with HESC.
How long will it take to complete the application process?
The approval process can take from 1 or 2 business days depending on how quickly you’re able to submit all required documentation. Once the loan has been approved and you have signed the loan application, HESC will send your school a request to certify the loan. It normally takes schools anywhere from 8 to 12 business days to complete the certification depending on the time of the year.
How early should I apply?
We recommend that you begin the application process at least 30 days before the semester begins – this should allow for ample time to complete the application and submit any required documentation.
Personal and Financial Information
What is the difference between a U.S. Citizen and a Permanent Resident?
U.S. Citizen – A person who was born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam and the U.S. Virgin Islands; or who became a citizen through naturalization; or who was born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.
Permanent Resident – Any person who is not a citizen of the United States and who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder” and “Green Card Holder.”
What is the difference between permanent address and mailing address?
Your permanent address is the location that you consider your primary place of residence (like your parent’s or guardian’s address). Your mailing address is wherever you want to receive all of your loan documents.
Why is my Social Security number needed?
Your Social Security number is used to verify your identity and to check your credit history.
Why is a personal reference needed?
A personal reference is needed as an additional means of contacting you during the servicing of your loan. If HESC is not able to reach the student or cosigner on the loan, they will contact your personal reference.
Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as he or she is not living at the same address as you. If you are applying with a cosigner, you cannot use the cosigner as your reference, nor can your reference live at the same address as your cosigner. Lastly, you and your cosigner cannot use the same reference.
What qualifies as income?
Primary sources of income typically reflect employment earnings, but may also come from other sources such as retirement or rental income.
Loan Repayment
Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.
Which repayment type should I choose?
Making payments of any type during the in-school period can significantly reduce the total cost of your loan. If you select a repayment option that requires an in-school payment, all payments must be made on time during the in-school period.
How can interest be capitalized?
In general, interest will capitalize at the end of the grace period following an initial deferment or following any subsequent deferment period, if any, or forbearance unless otherwise noted in the Credit Agreement. For Borrowers that have elected the Immediate Repayment option, interest that accrues between the first disbursement and the final disbursement will be capitalized the day after the final disbursement. For Borrowers who have elected the Interest Only or Full Deferment Repayment Option, interest that is accrued and unpaid will be capitalized as of the last day of the grace period. Interest is also capitalized upon default. In all cases, capitalized interest is thereafter considered part of the principal, and interest will accrue on the new principal balance. Complete interest capitalization rules are contained in the Credit Agreement.
Loan Information and Details
Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers its Texas Extra Credit Education Loan program under the authority provided to it in Chapter 53B of the Texas Education Code, which limits our program to serve only Texas residents.
Who is the lender for the Texas Extra Credit Education Loan program?
The lender for the Texas Extra Credit Education Loan program is Higher Education Servicing Corporation, a Texas-based, nonprofit organization established in 1978 to ensure Texas students and families have access to low-cost education loans in order to achieve a higher education. Higher Education Servicing Corporation may sell its loans to its sister organization North Texas Higher Education Authority, Inc. Loans sold to North Texas Higher Education Authority, Inc. will continue to be serviced by Higher Education Servicing Corporation.
How much can I borrow?
The minimum loan amount is $1,000 and the maximum you can borrow is determined by the school you are attending, but is limited to your cost of attendance less other aid.
Are there out-of-pocket fees for obtaining this loan?
No, there are no application, origination or disbursement fees.
Why can’t I find my school on the approved school list?
The Texas Extra Credit Education Loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
Can I apply for funds to pay for housing and meal plans?
Yes, you can borrow funds to cover the cost of housing and meal plans; however, your school must certify your loan application indicating you are eligible to receive the loan amount requested.
How often are interest rates adjusted?
Higher Education Servicing Corporation reviews interest rates on a quarterly basis to determine if changes are needed; however, they hold the right to review/update interest rates at any time.
Will the funds be deposited into my personal account?
All funds are sent directly to your school. Once your tuition and fees (and any other amount you may owe the school) are satisfied, any excess funds will be disbursed to you by the school.
Credit History and Information
Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps in determining the interest rate to be offered based on your credit history.
What factors are used in the initial credit review?
The initial credit review considers all of the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report. If you pass the credit review, you or your cosigner (if applicable) must provide documentation verifying your income. Additional information such as proof of identify may also be requested. The student borrower must also submit an Applicant Self-Certification Form and the loan must be certified by the student’s school before final loan approval.
What if I have no credit history?
Students can apply with a credit-worthy cosigner to help meet the credit criteria and increase their chances of being approved for a loan. If a student does not have credit history, they must apply with a cosigner who does.
Why should I have a cosigner?
A cosigner is not required if you meet the income and credit criteria. A cosigner’s income, FICO score and credit history may help you qualify for a Texas Extra Credit Education Loan. The cosigner may be released after the first 24 consecutive on-time payments of principal and interest are made on the loan.6
Application Details and Instructions
Do I need to apply for Federal Aid before applying for this loan?
We suggest you exhaust all Federal Aid, grants and scholarships before applying for this loan. However, completion of the FAFSA is not a requirement to receive a Texas Extra Credit Professional Loan.
What options do you offer to complete the loan application?
The loan application must be completed online to be accepted for review. If you are unable to sign your application electronically, it can be faxed or mailed to HESC or uploaded through your online account with HESC.
How long will it take to complete the application process?
The approval process can take from 1 or 2 business days depending on how quickly you’re able to submit all required documentation. Once the loan has been approved and you have signed the loan application, HESC will send your school a request to certify the loan. It normally takes schools anywhere from 8 to 12 business days to complete the certification depending on the time of the year.
How early should I apply?
We recommend that you begin the application process at least 30 days before the semester begins – this should allow for ample time to complete the application and submit any required documentation.
Personal and Financial Information
What is the difference between a U.S. Citizen and a Permanent Resident?
U.S. Citizen – A person who was born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam and the U.S. Virgin Islands; or who became a citizen through naturalization; or who was born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.
Permanent Resident – Any person who is not a citizen of the United States and who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder” and “Green Card Holder.”
What is the difference between permanent address and mailing address?
Your permanent address is the location that you consider your primary place of residence (like your parent’s or guardian’s address). Your mailing address is wherever you want to receive all of your loan documents.
Why is my Social Security number needed?
Your Social Security number is used to verify your identity and to check your credit history.
Why is a personal reference needed?
A personal reference is needed as an additional means of contacting you during the servicing of your loan. If HESC is not able to reach the student or cosigner on the loan, they will contact your personal reference.
Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as he or she is not living at the same address as you. If you are applying with a cosigner, you cannot use the cosigner as your reference, nor can your reference live at the same address as your cosigner. Lastly, you and your cosigner cannot use the same reference.
What qualifies as income?
Primary sources of income typically reflect employment earnings, but may also come from other sources such as retirement or rental income.
Loan Repayment
Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.
Which repayment type should I choose?
Making payments of any type during the in-school period can significantly reduce the total cost of your loan. If you select a repayment option that requires an in-school payment, all payments must be made on time during the in-school period.
How can interest be capitalized?
In general, interest will capitalize at the end of the grace period following an initial deferment or following any subsequent deferment period, if any, or forbearance unless otherwise noted in the Credit Agreement. For Borrowers that have elected the Immediate Repayment option, interest that accrues between the first disbursement and the final disbursement will be capitalized the day after the final disbursement. For Borrowers who have elected the Interest Only or Full Deferment Repayment Option, interest that is accrued and unpaid will be capitalized as of the last day of the grace period. Interest is also capitalized upon default. In all cases, capitalized interest is thereafter considered part of the principal, and interest will accrue on the new principal balance. Complete interest capitalization rules are contained in the Credit Agreement.
Refinance Loan Info
What is the difference between consolidating and refinancing student loans?
Student loan consolidation is when you combine multiple loans into one new loan. To determine the new interest rate for a consolidation loan, the weighted average of the interest rate for each loan being consolidated are used. Student loan refinancing, on the other hand, is when you refinance one or more eligible student loans into a new loan and receive a new interest rate based on your credit and other underwriting requirements.
Can I refinance both federal and private student loans?
Yes, you can refinance federal and private student loans as long as they are considered qualified education loans used for qualified higher education expenses at a Title IV institution of higher education in the United States.
Can I refinance my undergraduate and graduate loans into one?
Yes! As long as the underlying loans you plan to refinance are considered qualified education loans used for qualified higher education expenses at a Title IV institution of higher education in the United States.
What is a qualified education loan?
Qualified education loans are loans taken out by an individual solely to pay qualified higher education expenses. The loan must be for the individual, their spouse or any dependent claimed on the individual’s tax return as of the time the debt was incurred. The student’s educational expenses must be paid or have incurred within a reasonable period of time before or after the loan was taken out and the education expenses paid by the loan must be for a period of time when the recipient was an eligible student.
What are qualified higher education expenses?
Qualified higher education expenses are amounts paid for tuition, fees, books, supplies and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution.
Are there out-of-pocket fees for obtaining this loan?
No, there are no application, origination or disbursement fees.
Can I apply with a cosigner to qualify?
Unfortunately, we do not allow cosigners to be added to a Refinance Loan.
How much can I refinance?
The minimum refinance loan amount is $7,500 and the maximum is $200,000.
Who is the lender for the Texas Extra Credit Education Loans program?
The lender for the Texas Extra Credit Education Loans program is Higher Education Servicing Corporation, a Texas-based private, nonprofit organization established in 1978 to ensure Texas students and families have access to low-cost education loans in order to achieve a higher education. Higher Education Servicing Corporation may sell its loans to its sister organization North Texas Higher Education Authority, Inc. Loans sold to North Texas Higher Education Authority, Inc. will continue to be serviced by Higher Education Servicing Corporation.
How often are interest rates adjusted?
Higher Education Servicing Corporation reviews interest rates on an on-going basis to determine if changes are needed. We hold the right to review/update interest rates at any time.
Credit history
Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps us offer you the lowest interest rate we can based on your credit history.
How can I sign my credit agreement?
There are several ways to sign your credit agreement. The fastest option is to sign electronically. You can also download and print the credit agreement, sign and mail it to the address provided or upload it through your online account.
Application Details
How long does it take to refinance my loan(s)?
Applicants will receive prequalification results within minutes. Based on the prequalification results, you can decide if you wish to complete a full application. Note, you may be asked to upload documents verifying income, loan payoff or other items. Review of your full application once all documents have been submitted usually takes 24-48 hours.
Once my loan is approved, what are the next steps?
After your loan is approved, you may be required to provide additional information or documentation. If required, you will receive an e-mail describing what is needed. After we receive the requested information and your credit agreement is signed, you will be sent a loan approval disclosure which must be accepted within 30 days. Upon acceptance, a final disclosure will be delivered to you and then funds will be disbursed directly to your current loan servicer(s).
Personal and Financial
How are funds for my refinance loan disbursed?
Funds will be disbursed directly to your current loan servicer(s) to pay off the education loans being refinanced.
Why is my Social Security number needed?
We use your Social Security number to verify your identity and to check your credit history.
Why do you need a personal reference from me?
We need a personal reference as an additional means of contacting you during the servicing of your loan. If we are not able to reach you, we will contact your personal reference.
Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as he or she is not living at the same address as you.
What qualifies as income?
Primary sources of income typically reflect employment earnings but may also come from other sources such as retirement.
Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers its Texas Extra Credit Education Loans program under the authority provided to it in Chapter 53B of the Texas Education Code, which limits our program to serve only Texas residents.
Loan Repayment
When will I begin making payments on my loan?
Payments begin 30-60 days after disbursement of funds to your servicer(s).
Do you offer graduated or income-sensitive repayment options?
No. Federal Loans have a variety of repayment options, like graduated and income driven repayment and various forgiveness programs that you will lose if you refinance them. Make sure you understand what you may be giving up before you apply. You can learn more about repayment options on Federal Loans by visiting www.studentaid.gov/.
When will interest begin to accrue on my loan?
Interest begins to accrue on your loan as soon as funds are disbursed.
Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.
How can interest be capitalized?
In general, interest will capitalize at the end of any deferment or forbearance period unless otherwise noted in your Credit Agreement. Interest is also capitalized upon default. In all cases, capitalized interest is thereafter considered part of the principal, and interest will accrue on the new principal balance. Complete interest capitalization rules are contained in your Credit Agreement.