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Private Parent Loans

Your child's education is more important than ever, and so is making smart financial decisions when it comes to paying for that education.

Help Your Student Pay for College

If you’re a parent, family member or other creditworthy individual interested in paying for a student’s higher education expenses, a Texans Private 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, our Parent Loan is a smart, low-cost loan option to help a student achieve their higher education dreams without breaking the bank. 

Learn more about our program features, valuable borrower benefits, and repayment options below.

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 2.74% (with Auto Pay Discount 5) to 6.89% APR2
  • Borrow from $1,000 to $65,000 annually - loans can even be used for past due balances
  • 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 $150,000 inclusive of all student loan debt
  • Satisfactory Academic Progress (SAP) is not required
  • No application or origination fees
  • Complete your loan application online in as little as 15 minutes – initial credit decisions are typically made within minutes1

    Borrower Benefits

    • 0.25% interest rate reduction for auto-debit payments5
    • Death Forgiveness if the student beneficiary passes away while enrolled at least half-time at an approved school4
    • Discharge for Total and Permanent Disability6

    Repayment Options

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

    Program 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 meet certain income requirements and must submit verification of current income
    • The borrower must be a United States citizen/national or lawful permanent resident alien of the United States

    Starting Your Application

    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

    • Demographic Information
    • Current Employment Information
    • Financial Information
    • Student Beneficiary’s Demographic Information
    • Student Beneficiary’s School Information
    • Personal Reference
    Higher Education Servicing Corporation (HESC) is the loan Originator for our 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

    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 2.99% to 7.38% in effect as of 7/6/2023. 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 2.74% (with Auto Pay Discount5) to 6.89%. The 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 assumes a $10,000 loan disbursed in a single transaction; the highest APR example assumes a $10,000 loan disbursed over two transactions. The lowest current APR, based on a 5-year repayment term (60 months), an immediate repayment plan, monthly principal and interest payments of $178.53, has a 2.74% interest rate which includes a 0.25% interest rate reduction for payments via auto pay5. 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, and monthly principal and interest payments of $128.78, has a 7.38% 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. 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 90 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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