Parent Loans Help Your Student Pay for College
If you’re a parent, family member, or another creditworthy individual looking to help a student pay for college, the Texas Extra Credit Parent Loan through our partner, Higher Education Servicing Corporation (HESC), may be the perfect solution. With competitive fixed interest rates, flexible repayment terms and options, and valuable borrower benefits, this loan provides a low-cost way to support a student’s higher education goals—helping them pursue their dreams without straining your finances.
Program Features
Borrower Responsibility: Repayment of the loan is solely the borrower’s responsibility; the student is not responsible for the loan.
Quick Credit Decision: Initial credit decisions are typically made within minutes.
Fixed Interest Rates: Loans offer fixed rates ranging from 2.64% (with Auto Pay Discount) to 7.80% APR.
Loan Amounts: Borrow from $1,000 up to cost of attendance annually (loans are certified by the student beneficiary’s school and may not exceed full cost of education minus other financial aid).
Past Due Balances: Loans can be used to pay past due balances.
Maximum Aggregate Limit: The maximum total loan amount is $400,000, including all education loan debt.
Academic Progress Not Required: Satisfactory Academic Progress (SAP) is not required.
No Fees: There are no application or origination fees.
Benefits
0.25% Interest Rate Reduction – Receive a rate reduction when you enroll in auto debit payments.
Death Forgiveness – The loan may be forgiven in the event of the student beneficiary’s death.
Total & Permanent Disability Discharge – The loan may be discharged if the borrower becomes totally and permanently disabled.
Repayment Options
Choice of 5, 10, or 15-year repayment term
Eligibility Requirements
- The student beneficiary must be enrolled at least half-time in a degree-granting program (as certified by the school) at an approved institution.
- The borrower must be a permanent resident of Texas.
- The borrower must be at least 18 years old at the time of application.
- The borrower must earn a minimum annual income of $30,000 and provide proof of current income.
- The borrower must be a U.S. citizen, U.S. national, or lawful permanent resident of the United States.
What You’ll Need to Apply
Start Your Application Today
Apply NowImportant Information
Higher Education Servicing Corporation (HESC) is the lender and loan originator for the Texas Extra Credit Education Loan program(s). HESC manages all private education loan processing and serves as the primary point of contact for borrower communications throughout the application process.
For questions about your application or the status of your loan, please contact HESC at info@hescloans.com or call 877-817-9158, Monday through Friday, 8:00 a.m. to 5:00 p.m. CT.
Notice
Before applying for a private student loan, we strongly encourage students to first apply for and utilize all available federal student aid programs by completing the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov.
Have Questions? We have Answers!
Loan Information
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Is the Parent Loan only available to parents of the student?
No. Anyone may apply on behalf of the student beneficiary.
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Can I apply with a cosigner?
No. Cosigners are not permitted for the Parent Loan.
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Why can’t I find the student beneficiary’s school on the approved list?
The Texas Extra Credit Education Loan program is only available for Title IV–eligible institutions that offer a bachelor’s degree or higher.
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Can I borrow funds to pay for housing and meal plans?
Yes. You may borrow funds to cover housing and meal plans; however, the student’s school must certify your loan application and determine the amount you are eligible to receive based on financial aid and need.
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How much can I borrow?
The minimum loan amount is $1,000. The maximum is the lesser of:
The student’s cost of attendance minus other aid, or
$65,000.
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Are there any out-of-pocket fees for obtaining this loan?
No. There are no origination or disbursement fees.
Credit History & Information
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Why is a credit check necessary?
A credit check serves two main purposes:
To verify the identity of everyone signing the application.
To determine eligibility and help identify the best pricing options based on your credit history.
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What factors are considered in the initial credit review?
The initial review takes into account:
The information you provide in your application.
The information obtained from your credit report.
If you pass the credit review, final loan approval will require income verification, school certification, and submission of the Applicant Self-Certification Form.
Application Details & Instructions
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Does the student beneficiary need to apply for Federal Aid before I apply for this loan?
No. The student beneficiary is not required to apply for Federal Aid before you submit an application for our loan program.
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What options are available to complete the loan application?
The loan application must be completed online to be considered for review. If you are unable to electronically sign your application, you may fax it, mail it to HESC, or upload it online.
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How long does the application process take?
The approval process typically takes 1–2 business days, depending on how quickly you submit all required documentation. Once the loan is approved and the application is signed, a request will be sent to the school for certification. Schools generally take 8–12 business days to complete this step, depending on the time of year.
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When should I apply?
We recommend applying at least 30 days before the semester begins to allow sufficient time to complete the process and submit all required documentation.
Personal & Financial Information
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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 48 contiguous states, Alaska, Hawaii, Puerto Rico, Guam, and the U.S. Virgin Islands), became a citizen through naturalization, or was born abroad to U.S. citizen parents under qualifying circumstances (derivative citizenship) and has not renounced U.S. citizenship.
Permanent Resident – A person who is not a U.S. citizen but resides in the United States under legally recognized and lawfully recorded permanent residency status as an immigrant. This status is also referred to as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder,” or “Green Card Holder.”
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Will the funds be deposited into my personal account?
No. All funds are sent directly to the student’s school. After the school applies the funds toward tuition, fees, and any other outstanding balance, any remaining funds will be disbursed to the student by the school.
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Who can I use as a reference?
You may list anyone over the age of 18 who does not live at your address.
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Why do you need a personal reference?
A personal reference provides an additional way to contact you during the servicing of your loan.
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Why is my Social Security number required?
We use your Social Security number to verify your identity and to obtain your credit history.
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What qualifies as income?
Income typically comes from employment earnings but may also include other sources such as retirement income or rental income.
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Why is the program only offered to Texas residents?
Higher Education Servicing Corporation administers the Texas Extra Credit Education Loan program under the authority of Chapter 53B of the Texas Education Code, which limits the program to Texas residents.
Loan Repayment
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Is there a penalty for prepayment or paying the loan off early?
No. You may pay off your loan early, regardless of your repayment terms, without any penalty. You will only be responsible for the interest that has accrued up to the payoff date.
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Do I have to make payments while the student beneficiary is in school?
It depends on the repayment option you select:
Immediate Repayment – Payments begin immediately, even while the student is in school.
Interest-Only Repayment – You will make interest-only payments while the student is in school.
Full Deferment – Payments are deferred for up to 66 months while the student remains continuously enrolled at least half-time at an approved school.
Disclosures
| Parent Loan Disclosure |