Low Fixed Rate Education Loans Starting As Low As

3.56% APR1

with Auto Pay discount6

Apply Today
image of caucasian male wearing headphones looking at textbooks on desk

Low Fixed Rate Education Loans Starting As Low As

3.56% APR1

with Auto Pay discount6

Apply Today

Helping Texans Pursue and Achieve a Higher Education

With a Texas Extra Credit Education Loan

Texas Extra Credit is a low-cost private student loan program provided by Higher Education Servicing Corporation, a Texas-based nonprofit.

Texas Extra Credit Education Loan is designed to help Texas residents pay for their college tuition and expenses when scholarships, grants, and federal student loans just aren't enough.

Before applying for a Texas Extra Credit Education Loan, we highly recommend you apply for and utilize all federal student loan programs through the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. To learn more about the types of federal student loan programs available, when to apply and eligibility requirements, visit https://studentaid.gov/.

Program Features & Benefits

We offer a wide array of loan features and options

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Competitive Fixed Rates

Starting as low as 3.56% APR1 (with Auto Pay Discount6) to 7.60% APR1 along with a variety of repayment terms, options and valuable borrower benefits.

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Loan limits3

Borrow from $1,000 to $65,000 annually

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Zero Fees

No application, disbursement or origination fees

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15 Minute Application4

Complete your loan application online in as little as 15 minutes - initial credit decisions are typically made within minutes

Plus, you get all of these additional features and options

  • Invite A Cosigner With Just a Few Clicks
  • Loans Can Be Used for Past Due Balances4
  • Open to Undergraduate & Graduate Students
  • Total & Permanent Disability Forgiveness8
  • Deferment & Forbearance Options
  • Death Forgiveness9

Graduation Benefit5

Earning your degree is a huge deal! As a way to congratulate you on your hard work, we offer a 0.25% interest rate reduction to each student that earns a bachelor's degree or higher.

Learn More

Auto Pay Discount6

Reduce your interest rate by 0.25% when you sign-up for auto debit payments from a savings or checking account.

Learn More

Cosigner Release7

After making the first 24 consecutive monthly payments of principal and interest, you can request to have your cosigner released from the loan.

Learn More

Repayment Options

All repayment options offer a 10 or 15 year-repayment term

Immediate Repayment

  • Principal and interest payments begin 30-60 days after the last disbursement
  • Minimum monthly payment is $50
  • If you select this repayment option, future opportunities for deferment, including additional deferment for re-enrollment, are not offered
  • No 6 month grace period option after you graduate or cease to be enrolled at least half-time

Interest-Only Repayment

  • 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 option available for re-enrollment

Full Deferment

  • Principal and interest is 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 and interest deferment option available for re-enrollment

With Interest Rate
Reductions Up To

0.50%

Eligibility Requirements

Before you start your application, be sure that you meet all of the following requirements to be eligible to apply for a Texas Extra Education Loan.

Enrollment

Student borrower must be enrolled at least half time in a degree-granting program (as certified by the school) at an approved school

Resident of Texas

Student borrower and cosigner (if applicable) must be permanent residents of Texas - student can attend any approved college or university throughout the United States

Current Income

The applicant applying as creditworthy (i.e. the cosigner or the student applying without a cosigner) must provide proof of current income

Citizenship

Student borrower and cosigner (if applicable) must be United States citizens/nationals or lawful permanent resident aliens of the United States

 

Building Financial Confidence

We know that making smart financial decisions is important, but not always as easy as it sounds.
That's why we offer free financial tools and resources. Below are just a few of the topics and courses you can explore.

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Making smart financial decisions

Learn how you can take greater control of your finances and make smarter financial decisions.

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Planning for life milestones

Explore ways you can prepare for some of life's biggest moments like owning a home, planning for retirement and more.

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Financing your education

Are you interested in going back to college or learning more about the options you have to pay for college? If so, check out our Financing Your Education modules.

Learn More

Download our Financial Aid Checklist to get a headstart on planning for college!

Download Now

Frequently Asked Questions

Loan Information & Details
Why does a cosigner help?

Applying with a cosigner who has good credit and income can help you satisfy credit criteria and may increase your chances of passing the initial credit review and receiving a lower interest rate. Most students will need a cosigner to qualify. In a cosigned application, both you and your cosigner intend to (a) jointly apply for credit and (b) be jointly liable for the requested loan.

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 $65,000.

Are there out-of-pocket fees for obtaining this loan?

No, there are no origination or disbursement fees.

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, we will need to receive your income verification, school certification, and Applicant Self-Certification Form before final loan approval.

Credit History & Information
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 best pricing we can based on your credit history.

What if I have no credit history?

Students can apply with a cosigner to help meet creditworthiness guidelines and increase their chances of passing the initial credit review. If a student does not have credit history, we recommend applying with a cosigner who does.

Application Details & Instructions
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. Completion of the FAFSA however, is not a requirement for the Texas Extra Credit Education Loan.

Personal & Financial Information
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 not a citizen of the United States 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 to be your primary place of residence (like your parents' or guardian's address). Your mailing address is wherever you want to receive all of your loan documents.

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.

Why is my Social Security number needed?

We use your Social Security number to verify your identity and to check your credit history.

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 him or her 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.

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.

Loan Repayment
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 type that requires an in-school payment, all payments must be made on time during the in-school period.

Paying for college just became easier!

Program Disclosures

1 Fixed Interest Rates, APRs and Repayment Examples
The current fixed interest rates range from 3.81% to 8.26% in effect as of 7/1/2021. The fixed interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the student’s and cosigner’s (if applicable) credit histories (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, applicants will be notified of the rate qualified for within the stated range. APRs range from 3.56% (with Auto Pay Discount6) to 7.60%. The APR reflects the estimated total cost of the loan, including upfront fees, accruing interest and the effect of capitalized interest. The APR examples (lowest and highest) assume a $10,000 loan disbursed over two transactions. The lowest current APR, based on a 10-year repayment term (120 months), an immediate repayment plan, monthly principal and interest payments of $99.17, has a 3.56% interest rate which includes a 0.25% interest rate reduction for payments via auto pay6. The highest current APR, based on 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, monthly principal and interest payments of $139.82, has a 8.26% interest rate. The fixed interest rate assigned to a loan will never change except as required by law or if you request and qualify for the ACH reduction benefit(s) or Graduation reward. Repayment terms and options available may vary depending upon the amount borrowed.
2 Credit Review and Approval
The initial credit review is based on review of all the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report(s). If you pass the initial credit review, you will need to provide acceptable documentation such as your income verification and Applicant Self-Certification Form and we will need the certification from your school before the final loan approval.
3 How Much Can You Borrow
Borrow from $1,000 to $65,000 annually (loans are certified by the school and may not exceed full cost of education minus other financial aid) - maximum aggregate loan limit is $150,000, inclusive of all student loan debt
4 Past Due Balances
Program loans may be used to cover educational expenses for academic periods that end up to 90 days prior to the application date.
5 Graduation Benefit - 0.25% Interest Rate Reduction
Student borrowers who earn a bachelor’s degree or higher will receive a 0.25% interest rate reduction if (a) they have made no more than one (1) late payment (more than 10 days late) on the loan, (b) they request the benefit from the servicer within one (1) year after graduation, and (c) they provide proof of graduation to the servicer. The student must request this benefit via phone or mail and must provide either a certified copy of a diploma or a certified transcript. Upon the servicer’s review and acceptance of the student's documentation, the servicer shall send a confirmation letter stating that the graduation benefit has been granted.
6 Auto Pay Discount - 0.25% Interest Rate Reduction
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 will discontinue 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.
7 Cosigner Release for 24 Consecutive Monthly Payments
Request for the cosigner to be released can be made after the first 24 consecutive, on-time monthly payments (not later than ten days after the due date) of principal and interest have been made. At the time of request for cosigner release, the student borrower must (a) meet credit criteria in place for cosigner release, (b) be currently enrolled for automatic deduction of monthly payments from a savings or checking account at the time of the cosigner release application, and (c) must have had at least one payment deducted electronically from such bank account prior to the time of the cosigner release application. Lump sum payments will count as a single payment. If the borrower is granted a forbearance or makes a lump sum payment in excess of the monthly payment amount during the first 24 months of the Repayment Period that permits the borrower to skip one or more scheduled monthly payments, the borrower may lose the ability to qualify for the Cosigner Release Benefit.
8 Total and Permanent Disability
In the event a student Borrower becomes Totally and Permanently Disabled, the student 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 student 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 student Borrower meets the TPD requirements set forth by the Lender, the Servicer shall write down any outstanding principal and accrued interest balance on the Loan to a zero balance (if the Loan has a Cosigner, the Cosigner’s obligation to the Loan will be canceled). For additional information regarding TPD or to request an application, contact the Loan Servicer.
9 Borrower Death
If the student Borrower should die while enrolled at least half-time at an eligible institution, and the Loan is not in default, the student Borrower’s estate and each Cosigner (or Cosigner’s estate, if applicable) 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 death. If the student Borrower dies and the Loan is cosigned and does not qualify to be written down to zero, the Loan will be charged off and the Cosigner (or Cosigner’s estate, as applicable) will be released from any further obligation. The Servicer may attempt to file a claim against the student Borrower’s estate for any unpaid debt under this Credit Agreement. Any payments received from the student Borrower’s estate, less collection costs, will be applied to all applicable Loan(s). If the student Borrower dies for a Borrower only Loan and the Loan does not qualify to be written down to zero, the Loan will become a charge off Loan. The Servicer may attempt to file a claim against the student Borrower’s estate for any unpaid debt under this Credit Agreement. Any payments received from the student Borrower’s estate, less collection costs, will be applied to all applicable Loan(s). If a Cosigner dies, the Servicer will continue to service the Loan in accordance with the Credit Agreement as the student Borrower is still obligated to the debt. The Servicer may attempt to file a claim against the Cosigner’s estate for any unpaid debt under this Credit Agreement. Any payments received from the Cosigner’s estate, less collection costs, will be applied to all applicable Loan(s). If the student Borrower, Cosigner, or any of their respective estates are released from obligations under this section, no refund will be paid for prior payments made on the Loan.