Hinson-Hazlewood College Student Loan ProgramThe Hinson-Hazlewood College Student Loan Program offers low interest student loans to Texas residents and also to those others who may qualify to pay in-state tuition rates. The Texas Higher Education Coordinating Board (THECB) has run the Hinson-Hazlewood loan program since 1965.
There are three loan programs that fall under the Hinson-Hazlewood College Student Loan Program: the College Access Loan (CAL) Program, the Federal Family Education Loan Program (FFELP)including both subsidized and unsubsidized Stafford loans and the Health Education Loan Program (HELP).
The College Access Loan (CAL) Program provides alternative loans to Texas students unable to cover the cost of their education. It is not need based, meaning anyone can apply. Although the students can borrow up to the cost of attendance, any other aid received will be deducted from the attendance cost to get a maximum loan amount. Interest rates can either be a flat 6% or a variable that is currently at 3.91%, but can vary from year to year.
There is a fee to receive the loan...it will either be 3% of the loan amount if the borrower (and cosigner, if any) have good credit, or 5% if the borrower or the co-signer have less than good credit. The loan has a six month grace period before payments begin. One good thing about the CAL is that you never have to worry about who you will be paying for the loan. The THECB doesn't sell any of their loans, they will service the loan from beginning to end.
The Health Education Loan Program (HELP) offers education loans to students in the following fields: dentistry, medicine, nursing, osteopathy, pharmacy, podiatry, public heath, veterinary medicine, and allied health. You must be eligible to pay in-state tuition rates and also must be attending at least half-time in a program leading to an eligible degree.
Depending on your course of study, you may be able to borrow up to $12,500 to $20,000 per year. As with the College Access Loan (CAL), the origination fee will be will either 3% of the loan amount if the borrower (and cosigner, if any) have good credit, or 5% if the borrower or the co-signer have less than good credit. The interest rate is a flat 6% and there is a nine month grace period before repayment of the HELP loan begins.
The Federal Family Education Loan Program (FFELP), includes the Stafford Loans, both subsidized and unsubsidized. Students must fill out the FAFSA and be eligible to receive Federal aid. The subsidized Stafford is preferred, if eligible, because the Federal government will pay the accumulating interest as long as you are a student and meet the other qualifications.
The subsidized Stafford will have a 6% interest rate for the life of the loan, while the unsubsidized will carry a 6.8% rate. The website of the THECB states that "To obtain a Stafford Loan through the Hinson-Hazlewood College Student Loan Program, you must have an active or previous loan with the Texas Higher Education Coordinating Board". If a student were to obtain a different type of loan, such as the College Access Loan, first then they would qualify to apply for a Stafford Loan with the Texas Higher Education Coordinating Board. Otherwise, the student may choose a different lender for the Stafford Loan. This policy applies to any student, not just incoming freshman.
For more information on the Hinson-Hazlewood College Student Loan Program, visit the THECB website.
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