Parent Loans

Is the Parent Loan limited to only parents of the student?
No, anyone can apply on behalf of the student beneficiary.

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.

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 student's 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, 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 determined by the school the student is attending, but is limited to the lesser of the student’s cost of attendance less other aid.

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, 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, we hold the right to review/update interest rates at any time.

Will the funds be deposited into my personal account?
No, all funds are sent directly to the student beneficiary’s 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.

Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of the person 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.

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, you must provide documentation verifying your income. Additional information such as proof of identity may also be requested. An Applicant Self-Certification Form and the Student Consent Form (to be completed by the student beneficiary) must also be completed before final loan approval.

Do I need to apply for Federal Aid before applying for this loan?
No, neither you nor the student are required to apply for Federal Aid before applying for our loan program.

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 our office or uploaded through your online account when you apply.

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, we will send the 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.

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."

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.

Who can I use as a reference?
Your reference can be anyone over the age of 18, as long as you are not living at the same address as the reference.

Why is my Social Security number needed?
We use your Social Security number 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.

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.

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.

How do I choose the right loan repayment plan for me?
Our repayment plans are designed to allow borrowers the financial flexibility they need to successfully manage their debt. You can choose a repayment period that best suits your budget, whether you prefer shorter terms to minimize interest or longer terms for smaller monthly payments.