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If you’re a parent, family member or
other creditworthy individual interested in paying for a student’s higher
education expenses, a Texas Extra Credit Parent Loan through our partner Higher
Education Servicing Corporation (HESC) may be the answer you’ve been looking
for! With competitive fixed interest rates, a variety of repayment terms
and options and valuable borrower benefits, the 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.
Higher Education Servicing Corporation (HESC) is the lender and loan originator for the Texas Extra Credit Education Loan program(s). HESC is responsible for all private education loan processing and communications with the borrower(s) throughout the application process. Questions related to the application process or the status of your loan should be directed to HESC at info@hescloans.com. You can also contact HESC at 877-817-9158, Monday thru Friday from 8:00 a.m. to 5:00 p.m. CT.
We highly recommend students apply for and utilize all federal student aid programs through the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov prior to applying for any private student loan. If you decide to apply for a private loan, it is best to apply with a creditworthy cosigner as most student applicants do not meet the credit criteria. Having a cosigner may also help secure a lower interest rate.
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, cosigners cannot be added to a Parent Loan.
Why can't I find the student beneficiary'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 to cover the cost of housing and meal plans; however, the student's school must certify your loan application indicating you are eligible to receive the student’s financial aid/need.
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.
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.
Does the student beneficiary 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 HESC or uploaded through your online account with HESC.
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."
No. All funds are sent directly to the student’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.
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 a personal reference needed?
A personal reference is needed as an additional means of contacting you during the servicing of your loan.
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 required 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.
1) The initial credit review is based on review of all the information the borrower provides during the application process and the information obtained from their credit report. If the borrower passes the initial credit review, they will need to provide acceptable documentation such as income verification and Applicant Self-Certification Form and we will need the certification from the student beneficiary's school before the final loan approval.
2) The current fixed interest rates range from 2.89% to 8.49% in effect as of 7/1/2026. The fixed interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the applicant’s credit history (2) the repayment option and loan term selected, and (3) the requested loan amount and other information provided on the online loan application. If approved, the applicant will be notified of the rate qualified for within the stated range. APRs range from 2.64% (with Auto Pay Discount5) to 7.80%. Lowest rates are only available for the most creditworthy applicants. The APR reflects the estimated total cost of the loan, including upfront fees, accruing interest and the effect of capitalized interest. The lowest APR example is based on a $10,000 loan disbursed in a single transaction, a 5-year repayment term (60 months), an immediate repayment plan, an interest rate of 2.64%, and monthly principal and interest payments of $178.09. The lowest APR example includes a 0.25% interest rate reduction for payments via Auto Pay5. The highest APR example is based on a $10,000 loan disbursed over two transactions, a 15-year repayment term (180 months), a deferred repayment plan with a deferment period of 60 months upon initial disbursement, a six-month grace period before repayment begins, a 8.49% interest rate, and monthly principal and interest payments of $142.99. The fixed interest rate assigned to a loan will never change except as required by law or if you request and qualify for the Auto Pay Discount5. Repayment terms and options available may vary depending upon the amount borrowed.
3) Program loans may be used to cover educational expenses for academic periods that end up to 180 days prior to the application date.
4) If the student beneficiary should die while enrolled at least half-time at an eligible institution, and the Loan is not in default, the Borrower will be released from the Loan and the Servicer shall write down any outstanding principal and accrued interest balance on the Loan to a zero balance if the Servicer receives acceptable proof of death and proof of enrollment at an eligible institution at the time of the student beneficiary’s death. If the student beneficiary dies and the Loan does not qualify to be written down to zero, the Servicer will inactivate the student beneficiary record on the Loan and continue servicing the Loan in accordance with the Credit Agreement as the Borrower is still obligated to the debt. If the Borrower dies, the Loan will become a charge off Loan. The Servicer may attempt to file a claim against the Borrower’s estate for any unpaid debt under this Credit Agreement. Any payments received from the Borrower’s estate, less collection costs, will be applied to all applicable Loan(s). If the Borrower is released from obligations under this section, no refund will be paid for prior payments made on the Loan.
5) An interest rate reduction of 0.25% is available for borrowers who make monthly electronic funds transfer (EFT) payments of principal and interest from a savings or checking account. To qualify, the borrower needs to arrange with the loan servicer to automatically deduct monthly principal and interest payments from a bank account. The automatic payment benefit may be discontinued and be lost for the remaining repayment period in the event any three payments are returned for insufficient funds over the life of the loan. This benefit is not available for interest payments made during the deferment period for the Interest Only Repayment option. This benefit may be terminated during deferment and forbearance periods, but can be re-established if borrower reapplies at the end of the deferment or forbearance period.
6) In the event a Borrower becomes Totally and Permanently Disabled, the Borrower, or his/her representative, may contact the Servicer by phone or mail to request information regarding the Lender’s Total and Permanent Disability (TPD) discharge. Any Loan that has not previously become a charged off Loan or that is not currently in default may be discharged due to the Borrower’s Total and Permanent Disability, as defined by the Lender’s TPD Terms and Application. The definition of TPD, the application form for a TPD discharge, the required supporting documentation, and other terms, limitations, conditions and requirements for a TPD discharge (“TPD Terms”) can be obtained by contacting the Lender or Servicer by phone or mail. The Servicer must receive a completed TPD Application within the timeframe stated within the application that complies with the requirements set forth by the Lender for a Loan to be discharged. If the Borrower meets the TPD requirements set forth by the Lender, the Servicer shall write off any outstanding principal and accrued interest balance on the Loan to a zero balance. For additional information regarding TPD or to request an application, contact the Loan Servicer.
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