Overview
Our Texas Extra Credit Undergraduate Student Loan is a low-cost option for undergraduate students who may or may not require a cosigner for credit approval. As a Texas-based nonprofit, our private loan is designed to help Texas residents pay for college tuition and expenses when scholarships, grants, and federal student loans aren’t enough.
Before applying with us, we highly recommend you apply for and utilize all federal student aid programs through the Free Application for Federal Student Aid (FAFSA) at fafsa.gov. To learn more about federal aid available for students, when to apply, and eligibility requirements, visit studentaid.gov.
Program Details
- Borrow from $1,000 to $80,000 annually.
- No origination, disbursement or application fees.
- Up to 0.50% in interest rate reductions with Auto Pay12 and Graduation11 Discounts.
- Choice of 5, 10 or 15-year repayment term and three repayment options.
- Borrower must meet certain income and credit criteria to be eligible. A cosigner can be added to the application to meet the income and credit requirements.
- Cosigner Release13 available once specific requirements are met.
Advantages of a Texas Extra Credit Undergraduate Student Loan
Private education loans can cover educational expenses that federal student loan programs might not fully encompass, including tuition, books, and even housing costs. Our private loan program offers flexible repayment options for you to choose from as well as competitive fixed interest rates.
Credit Review, Eligibility and Requirements
The initial credit review considers your credit score, credit history and any unpaid debt. If you pass the credit review, additional documentation will be required such as income verification, application and an applicant self-certification form before final approval. Note: A credit-worthy cosigner may be required to be approved.
Enrollment: The student must be enrolled at least half time in an undergraduate degree-granting program (as certified by the school) at an eligible institution. Click here to see if your school is on our approved list.
Texas Residents: The borrower and cosigner, if applicable, must be permanent Texas residents – the student can attend any approved college or university throughout the U.S.
Current Income: The applicant applying as creditworthy must earn at least $30,000 per year and provide proof of current income. If you’re a student borrower, but don’t earn at least $30,000 per year, you must add a creditworthy cosigner to your application.
Citizenship: Applicant(s) must be U.S. citizen/national or lawful permanent resident alien of the U.S.
Will I Need a Cosigner?
Since many students have limited credit histories, most applications require a creditworthy cosigner. If any of the following underwriting requirements aren't met, you must include a creditworthy cosigner on your application so we may determine your eligibility for our Undergraduate Student Loan program.
You must have a FICO score of at least 670 (per Equifax Scorecard 9).
Your credit report must have at least one account (excluding deferred loans) that is at least 24 months old.
You must earn, or be projected to earn, at least $30,000 in income for the year at the time of application and provide proof of income.
Note: The underwriting requirements listed above do not contemplate a comprehensive list of items that will be reviewed to determine if a creditworthy cosigner will be required.
How Our Undergraduate Student Loan Application Process Works
Applying for an Undergraduate Student Loan with HESC is a straightforward process. Start by filling out our online loan application. You'll need to provide details about your financial situation, the school you will be attending, and provide any required loan documents. Next, we review your credit. If approved, you'll receive a loan offer outlining the terms and conditions, which each borrower must sign before disbursement of funds. Your school will need to certify the loan, then the requested loan amount will be disbursed directly to your school.
Apply
Start your loan with our easy online application.
Submit
Receive an initial credit decision within minutes of submitting your application.
Verify
Provide any required documentation to verify the information on your application.
Sign
If approved, sign your loan application. We’ll then request the school certify the loan.
Approve
Once certified, provide final loan approval and your funds can be disbursed.
Personal Information
School Information
Employment History
Financial Information
Reference
What You’ll Need to Complete an Application:
Additional Features:
Borrow from $1,000 to $80,000 annually.
No application, origination or disbursement fees.
Loans may be used to cover educational expenses for academic periods that end up to 180 days prior to the application date.
Cosigner may be released from the loan if certain requirements are met.
Deferment and Forbearance options available if you're unable to make your loan payments.
Loan may be forgiven if the student Borrower passes away.
Loans may be forgiven if the student Borrower becomes totally and permanently disabled.
Loan Repayment Options
Select the Repayment Option That’s Right For You
HESC offers 5, 10 and 15-year repayment terms and three repayment options tailored to your needs. These options include immediate repayment, deferred repayment and interest-only repayment. Immediate repayment starts soon after the loan is disbursed, reducing the overall accrued interest balance. Deferred repayment allows you to delay payments until after graduation, which is helpful if you need time to stabilize your finances. Interest-only repayment lets you pay only the accruing interest while you’re in school, keeping your loan balance from growing.
Immediate Repayment Plan
Principal and interest payments begin 30 - 60 days after the last disbursement.
Minimum monthly payment is $50
If you select this option, future opportunities for deferment, including additional deferment for re-enrollment, are not offered.
No six month grace period option after you graduate or cease to be enrolled at least half-time.
Interest-Only Repayment Plan
Principal is deferred for up to 60 months from the date of the first disbursement while you’re enrolled at least half-time.
Interest payments begin 30 - 60 days after the first disbursement.
Principal and interest payments begin 6 months after you graduate or cease to be enrolled at least half-time.
Additional principal deferment options available for re-enrollment.
Full Deferment Plan
Principal and interest are fully deferred for up to 60 months from the date of the first disbursement while you’re enrolled at least half-time.
Repayment begins 6 months after you graduate or cease to be enrolled at least half-time.
Additional principal deferment options available for re-enrollment.
Contact HESC Today
We're happy to help you understand your options among Texas student loans, compare loan scenarios, guide you through the application process, and match loan options to your financial needs and goals. Contact us today to discover the right financial aid solutions for you!
Frequently Asked Questions
-
Why does a cosigner help?
Applying with a cosigner who has good credit and income can help you satisfy credit criteria and may even help you 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.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 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.Can I refinance all my loans into one once I graduate?
Yes, you can refinance your eligible federal and/or private education loans with our Texas Extra Credit Refinance Loan Program. To be eligible for our Refinance Loan Program, your eligible loans must have been fully disbursed at a Title IV institution of higher education, were considered qualified higher education loans, used to cover qualified higher education expenses, and you must be identified as the borrower, cosigner or endorser of the loan(s) being refinanced.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 the lesser of your cost of attendance less other aid or $80,000.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?
All funds are sent directly to your school. Once your tuition and fees (and any other amount income you may owe the school) is satisfied, any excess funds will be disbursed to you 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 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.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 our credit criteria and increase their chances of being approved for a loan. If a student does not have credit history, you must apply with a cosigner who does.Why should I have a cosigner?
A cosigner is not a required if you meet our 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 are made on the loan (7). -
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 Education 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 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."
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?
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 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 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. -
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 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.
Can I sign up for Auto Pay?
Yes, you can sign up to automatically deduct monthly principal and interest payments from your bank account.