College Loans
FAQ
College Loans
Need Help paying for
Higher education?
Student Loans
Need Money for College? Texas Extra Credit is a private student loan developed specifically to help Texas residents pay for college when scholarships, grants and federal aid aren’t enough to cover the full cost of attendance.
Parent Loans
Help Your Student Pay for College. Texas Extra Credit Parent Loan is a great, low-cost loan option to help a student achieve their higher education dreams without breaking the bank.
Student Loans FAQ
Have questions? We have answers!
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.
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.
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.
Parent Loans FAQ
Have questions? We have answers!
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 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.
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.
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.
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.
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.