Parent Loans

Need Money for Your Child's College?

A higher education is more important than ever, and so is making smart financial decisions to pay for it. That's why we offer the Texas Extra Credit Parent and Student loans through our partner, Higher Education Servicing Corporation (HESC). The Parent Loan is designed specifically to help Texas residents cover college costs for their child when scholarships, grants, and federal aid fall short (see Important Notice on this page).

We highly recommend students apply for and utilize all federal student aid programs through the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov prior to applying for any private student loan. 

If a private education loan meets your needs, explore the program’s features, borrower benefits, and repayment options below.

Program Features

• Complete your loan application online in as little as 15 minutes- initial credit decisions are typically made within minutes¹
• Fixed rate loans ranging from 2.74% (with Auto Pay Discount5) to 6.89% APR²
• Borrow from $1,000 to $65,000 annually. Loans can even be used for past due balances.³ Loans are certified by the school and may not exceed full cost of education minus other financial aid.
• Maximum aggregate loan limit is $150,000, inclusive of all student loan debt
• Satisfactory Academic Progress (SAP) not required
• No application or origination fees

Benefits

• 0.25% interest rate reduction for auto-debit payments⁵
• Death Forgiveness for student beneficiary⁴
• Discharge for Total & Permanent Disability⁶

Repayment

• Choose from three repayment options: Immediate, Interest-Only or Fully Deferred Repayment⁵
• Choice of 5, 10 or 15 year repayment term
• Repayment of the loan is the sole responsibility of the borrower; the student holds no responsibility to the loan.

Eligibility

• The student beneficiary must be enrolled at least half time in a degree-granting program (as certified by the school) at an approved school
• The borrower must be a permanent resident of Texas
• The borrower must be at least eighteen years old at the time of the loan application
• The borrower must earn at least $30,000 per year and provide verification of current income
• The borrower must be a United States citizen/national or lawful permanent resident alien of the United States

What You'll Need to Apply

• Bio/Demo Information
• Employment History
• Income Information
• Reference
• Student Beneficiary's Bio/Demo Information
• Student Beneficiary's School Information

Start Your Application Today

Completing the online loan application is easy and takes as little as 15 minutes!  The process is so easy, you can invite a cosigner with a few simple clicks, mix and match loan options, and compare loan scenarios to find the best loan for you.

APPLY FOR A PARENT LOAN

APPLY FOR A STUDENT LOAN

Disclosure

The Texas Extra Credit Student and Parent Loans are funded and serviced by Higher Education Servicing Corporation (HESC), a non-profit Texas corporation.  If you choose to submit a loan application, you will be contracting directly with HESC and not ALLIANCE Credit Union.  HESC will determine if you qualify for the loan, including the amount and terms that may be offered to you.  HESC will be your lender and servicer, subject to the terms and conditions of your student loan contract with HESC.

Disclaimers

1) The initial credit review is based on review of all the information the borrower provides during the application process and the information obtained from their credit report. If the borrower passes the initial credit review, they will need to provide acceptable documentation such as income verification and Applicant Self-Certification Form and we will need the certification from the student beneficiary's school before the final loan approval.

2) The current fixed interest rates range from 2.99% to 7.38% in effect as of 7/6/2023. The fixed interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the student’s and cosigner’s (if applicable) credit histories (2) the repayment option and loan term selected, and (3) the requested loan amount and other information provided on the online loan application. If approved, applicants will be notified of the rate qualified for within the stated range. APRs range from 2.74% (with Auto Pay Discount⁵) to 6.89%.  The APR reflects the estimated total cost of the loan, including upfront fees, accruing interest and the effect of capitalized interest.  The lowest APR example assumes a $10,000 loan disbursed in a single transaction; the highest APR example assumes a $10,000 loan disbursed over two transactions.  The lowest current APR, based on a 5-year repayment term (60 months), an immediate repayment plan, monthly principal and interest payments of $178.53, has a 2.74% interest rate which includes a 0.25% interest rate reduction for payments via auto pay⁵. The highest current APR, based on a 15-year repayment term (180 months), a deferred repayment plan with a deferment period of 60 months upon initial disbursement, a six-month grace period before repayment begins, monthly principal and interest payments of $128.78, has an 7.38% interest rate. The fixed interest rate assigned to a loan will never change except as required by law or if you request and qualify for the ACH reduction benefit(s) or Graduation reward. Repayment terms and options available may vary depending upon the amount borrowed.

3) Program loans may be used to cover educational expenses for academic periods that end up to 90 days prior to the application date.

4) If the student beneficiary should die while enrolled at least half-time at an eligible institution, and the Loan is not in default, the Borrower will be released from the Loan and the Servicer shall write down any outstanding principal and accrued interest balance on the Loan to a zero balance if the Servicer receives acceptable proof of death and proof of enrollment at an eligible institution at the time of the student beneficiary’s death. If the student beneficiary dies and the Loan does not qualify to be written down to zero, the Servicer will inactivate the student beneficiary record on the Loan and continue servicing the Loan in accordance with the Credit Agreement as the Borrower is still obligated to the debt. If the Borrower dies, the Loan will become a charge off Loan. The Servicer may attempt to file a claim against the Borrower’s estate for any unpaid debt under this Credit Agreement. Any payments received from the Borrower’s estate, less collection costs, will be applied to all applicable Loan(s). If the Borrower is released from obligations under this section, no refund will be paid for prior payments made on the Loan.

5) An interest rate reduction of 0.25% is available for borrowers who make monthly electronic funds transfer (EFT) payments of principal and interest from a savings or checking account. To qualify, the borrower needs to arrange with the loan servicer to automatically deduct monthly principal and interest payments from a bank account. The automatic payment benefit may be discontinued and be lost for the remaining repayment period in the event any three payments are returned for insufficient funds over the life of the loan. This benefit is not available for interest payments made during the deferment period for the Interest Only Repayment option. This benefit may be terminated during deferment and forbearance periods, but can be re-established if borrower reapplies at the end of the deferment or forbearance period.

6) In the event a Borrower becomes Totally and Permanently Disabled, the Borrower, or his/her representative, may contact the Servicer by phone or mail to request information regarding the Lender’s Total and Permanent Disability (TPD) discharge. Any Loan that has not previously become a charged off Loan or that is not currently in default may be discharged due to the Borrower’s Total and Permanent Disability, as defined by the Lender’s TPD Terms and Application. The definition of TPD, the application form for a TPD discharge, the required supporting documentation, and other terms, limitations, conditions and requirements for a TPD discharge (“TPD Terms”) can be obtained by contacting the Lender or Servicer by phone or mail. The Servicer must receive a completed TPD Application within the timeframe stated within the application that complies with the requirements set forth by the Lender for a Loan to be discharged. If the Borrower meets the TPD requirements set forth by the Lender, the Servicer shall write off any outstanding principal and accrued interest balance on the Loan to a zero balance. For additional information regarding TPD or to request an application, contact the Loan Servicer.