College Access Loan Program (CAL)

The College Access Loan Program provides alternative education loans to Texas students who are unable to meet the cost of attendance. The CAL may be used to cover part or all of the student's Expected Family Contribution ( EFC ); students do not have to demonstrate financial need . This loan program is part of the Hinson-Hazlewood College Student Loan Program administered by the Texas Higher Education Coordinating Board (THECB).

ELIGIBILITY REQUIREMENTS -- Students must:

• Be a U. S. citizen or permanent resident eligible to pay resident tuition at a Texas public or independent institution of higher education
• Be enrolled at least half-time in a course of study leading to an associate, bachelor, graduate or higher degree or be enrolled in an approved Alternative Educator Certification Program
• Meet the satisfactory academic progress requirements set by the institution
• Provide a cosigner who has good credit standing and meets other requirements

ANNUAL LOAN AMOUNTS

• Students may borrower an amount up to the cost of attendance less other financial aid
• A 3% origination fee will be deducted from the proceeds of each loan

COSIGNER ELIGIBILITY REQUIREMENTS

• Must be at least 21 years of age
• Must have a regular source of income
• May not be the borrower or the spouse of the borrower
• Must receive a favorable credit evaluation
• Must be a permanent U.S. resident or a U.S. citizen and reside in the U.S. or in a U.S. territory

INTEREST RATE -- Students may choose either:

• A fixed annual rate of 5.25% or
• A variable rate that is re-set annually and will never be higher than 4 points above the rate at which the loan is made. Currently that rate is 5.00%

OTHER FEATURES

• No guarantee fees or insurance premiums
• Interest is never capitalized
• The loan will not be sold to another lender
• THECB will service the loan from the time it is originated until it is paid in full
• Six-month grace period before repayment begins
• Ten-year repayment period, with minimum monthly payments of $50.00 for balances under $30,000; 20-year repayment for balances of $30,000 or more
• Postponements of loan repayment and income-sensitive or graduated repayment schedules available

ON-LINE APPLICATION

Apply on-line by visiting Loans Online . Paper applications for fixed rate CAL loans are available at your institution or you may submit an on-line request .

For more information, review Coordinating Board Rules, Chapter 21, Subchapter C , and Texas Education Code, Chapter 52 . You may also call our Loan Services department in Austin (512) 427-6340 or toll-free (outside Austin metro): 1-800-242-3062 or send an e-mail to Loan Services.

Last Updated February 9, 2006