Help Your Student Pay for College with a Parent Loan.

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 may be the answer you’ve been looking for! 

With competitive fixed interest rates and a variety of repayment terms and options, along with valuable borrower benefits, Texas Extra Credit's Parent Loan is a smart, low-cost private loan option to help a student achieve their higher education dreams without breaking the bank.

Learn more about the Texas Extra Credit Parent Loan program features, benefits and repayment options below.

Please note: The Texas Extra Credit Parent Loan's program is only available for parents, family members or other creditworthy individuals wishing to take a private loan out on behalf of a student. If you’re a student and wish to apply for a private loan in your name (with or without a cosigner), please click here to view the Texas Extra Credit Undergraduate Student loan.
 

Parent Loan Program Features

  • Repayment of the loan is the sole responsibility of the borrower; the student holds no responsibility to the loan.
  • Competitive Fixed rate loans ranging from 2.64% (with Auto Pay Discount 5) to 7.80% APR2.  
  • Borrow from $1,000 up to the student beneficiary cost of attendance minus aid–loans will be certified by the school and can be used for past due balances3.
  • Loans are certified by the student beneficiary’s school and may not exceed full cost of education minus other financial aid.
  • Maximum aggregate loan limit is $400,000 inclusive of all student loan debt. Satisfactory Academic Progress (SAP) is not required.
  • No application, origination, or disbursement fees.
  • Complete your loan application online in as little as 15 minutes – initial credit decisions are typically made within minutes1.

Benefits

  • 0.25% interest rate reduction for auto-debit payments5.
  • Death Forgiveness for student beneficiary4.
  • Discharge for Total and Permanent Disability6.

 Repayment

  • Choose from three repayment options: Immediate, Interest-Only or Fully Deferred Repayment2. 
  • Choice of 5, 10 or 15-year repayment term.

Eligibility

  • The student beneficiary must be enrolled at least half-time in a degree-granting program (as certified by the school) at an approved school.
  • The borrower must be a permanent resident of Texas.
  • The borrower must be at least eighteen years old at the time of the loan application.
  • The borrower must earn at least $30,000 per year and provide verification of current income.
  • The borrower must be a United States citizen/national or lawful permanent resident alien of the United States.

Start Your Application Today

Completing the online loan application is easy and takes as little as 15 minutes!  We even provide loan comparison tools so you can mix and match loan options and scenarios to find the best loan for you.

What You'll Need to Apply

  • Bio/Demo Information.
  • Employment History.
  • Financial Information.
  • Student Beneficiary’s Bio/Demo Information.
  • Student Beneficiary’s School Information.
  • Personal Reference.


APPLY NOW 

Important Notice

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 education loan.
 
Higher Education Servicing Corporation (HESC) is the lender and loan Originator for the Texas Extra Credit Private 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 through Friday from 8:00 a.m. to 5:00 p.m. CT.

Program Disclosures

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 07/01/2026. 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 payment 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.

Frequently Asked Questions

No, anyone can apply on behalf of the student beneficiary as long as they meet the eligibility requirements.
Unfortunately, we do not allow cosigners to be added to a Parent Loan.
The loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
Yes, you can borrow funds through our loan program to cover the student beneficiary’s cost of housing and meal plans; however, the student’s school must certify your loan application indicating the loan amount you are eligible to receive based on 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.
No, there are no origination or disbursement fees.
The credit check serves two main purposes. First, it is used to verify the identity of the person 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.
The initial credit review considers all of the information you provide during the application process and the information obtained from your credit report. If you pass the credit review, you must provide documentation verifying your income. Additional information such as proof of identity may also be requested. An Applicant Self-Certification Form and the Student Consent Form (to be completed by the student beneficiary) must also be completed before final loan approval.
No, neither you nor the student are required to apply for Federal Aid before applying for our loan program.
The loan application must be completed online to be accepted for review. If you are unable to electronically sign your application, it can be uploaded, faxed or mailed to our offices.
The approval process can take from 1 – 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 a request to the student beneficiary’s school to certify the loan. It normally takes schools anywhere from 8 – 12 business days to complete this certification request depending on the time of the year.
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.
 
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."
No, all funds are sent directly to the student beneficiary’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.
We need a personal reference as an additional means of contacting you during the servicing of your loan.
We use your Social Security number to verify your identity and to check your credit history.
Primary sources of income typically reflect employment earnings, but may also come from other sources such as retirement or rental income.
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.
If you select the Immediate or Interest-Only Repayment options, you will be responsible 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.
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.
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