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

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.

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 for documentation. If required, you will receive an e-mail or letter 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).

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.

What is the interest rate on my loan?
You can find your interest rate of your loan and any fees by logging into your account, clicking on the Home tab above and then clicking on the Loan Details link. The interest rate and any fees can also be found on your Truth in Lending disclosures.

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.