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Parent Education Loan

Brighten Your Child's Dreams

When dreams soar high, finances shouldn't be the anchor holding them down. Partnering with the Higher Education Servicing Corporation, First Service Credit Union presents the Texas Extra Credit Education Loan. Tailored for Texas residents, this loan bridges the gap when traditional financial aids don't measure up, ensuring that the next academic chapter for your loved one is within reach.
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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 Texas Extra Credit Parent Loan 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.

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Unveiling the Magic of Texas Extra Credit Parent Loan

  • Fixed Interest Rates

    Enjoy fixed interest rates, spanning from 2.74% (bag an Auto Pay Discount1) to 6.89% APR.2

  • Swift Application

    Spare just 15 minutes. Receive your credit decisions in moments.3

  • Choice at Your Fingertips

    Simulate different loan scenarios—choose terms, options, and rates to find your perfect match.

  • Generous Loan Options

    Opt for amounts between $1,000 and $65,000 yearly, even for past dues.4

  • Service Charge-Free Experience

    No application, disbursement, and origination charges.

  • Competitive Rates

    Enjoy fixed rates starting as low as 2.74% APR (with Auto Pay Discount1) up to 6.89% APR.2 

Borrower Bonuses

  • Auto Debit Perk

    Trim your interest by 0.25% with auto debit sign-ups.1

  • Protection Against Loss

    Find solace in our Death Forgiveness clause.5

  • Comprehensive Disability Relief

    Experience our Total and Permanent Disability (TPD) release initiative.6

Education Loans Made Easy

  • Start Your Application!

    Venturing into our online loan application is a breeze, clocking in at a mere 15 minutes. Plus, it’s flexible, allowing you to adjust loan options and evaluate scenarios that fit your goals.

  • Your Repayment,  Your Rules

    Choose your tenure: 5, 10, or 15 years. Then pick from three flexible repayment methods that best align with your financial strategy.

  • Gathering Your Toolkit

    Personal Details
    Work History
    Financial Data
    Student's Academic & Personal Information
    Referrals


Don’t sweat the small stuff. If some pieces are missing, your application's safe with us, ready to resume whenever you are.

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Still Have Questions?

Chat with the Higher Education Servicing Corporation (M-F, 8am to 5pm CT)

1-877-817-9158
[email protected]

Important Notice:

Before exploring private educational loans, explore federal student aids via FAFSA at www.fafsa.gov.

Frequently Asked Questions

If you select the Immediate Repayment option or Interest-Only Repayment option, you will be responsible to make payments on the parent 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.
No, you can pay your parent loan off early regardless of your repayment terms without any penalty. You will only be charged the interest accrued on the loan until the day the loan is paid off.
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 United States citizen 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, this Parent Loan program has no origination or disbursement fees.
Yes, you can borrow funds through our Parent Loan program to cover the 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.
Unfortunately, we do not allow cosigners to be added to a Parent Loan.
No, you are not required to apply for Federal Aid before applying for our parent loan program.
We recommend that you begin the parent loan 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.
The parent loan 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 the School a request 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.
The minimum Parent 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 or $65,000.
No, anyone can apply for a Parent Loan on behalf of the student beneficiary.
The initial credit review for a parent loan 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, we will need to receive your income verification documents, signed Loan Agreement and Applicant Self-Certification Form and the Student Consent Form (to be completed by the student beneficiary) before final loan approval.
The parent 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.
Primary sources of income typically reflect employment earnings but may also come from other sources such as retirement or rental income.
Your reference can be anyone over 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.
The lender for the Texas Extra Credit Education Loan program is Higher Education Servicing Corp., a Texas-based private, non-profit organization established in 1978 to ensure Texas students and families have access to low-cost education loans in order to achieve a higher education.
The credit check when applying for a parent loan serves two primary 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 based on your credit history.
The Texas Extra Credit Education loan program is only available for Title IV eligible institutions that offer a Bachelor’s degree or higher.
We need a personal reference as an additional means of contacting you while servicing your loan.
We use your Social Security number to verify your identity and credit history.
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.
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.
[1]

APR = Annual Percentage Rate. 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.

[2]

The current fixed interest rates range from 2.99% to 7.38% APR in effect as of 7/6/2023. 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 2.74% (with Auto Pay Discount) to 6.89%.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 pay. 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 $128.78, has an 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(s) or Graduation reward. Repayment terms and options available may vary depending upon the amount borrowed.

[3]
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.
[4]

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. Program loans may be used to cover educational expenses for academic periods that end up to 90 days prior to the application date.

[5]
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.
[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.