College Access Loan: Helping Students from Texas To Bridge The Gap

A College Access Loan (CAL) is a credit-based loan, funded through the Texas Higher Education Coordinating Board (THECB). It is meant to help students, whose families experience difficulty in meeting the Expected Family Contribution (EFC), toward education costs.

Students can use an access loan to cover a part or all of their Expected Family Contribution (EFC), and they don't have to demonstrate financial need to get these loans.

The amount of federal aid for which a student is eligible must be deducted from the cost of attendance, to determine the College Access Loan (CAL) amount.

Who is eligible for College Access Loans (CAL)?

Only people who are residents of Texas are eligible for these loans. Students engaged in all fields of study are eligible to apply for a College Access Loan (CAL).

Students must be enrolled at least half-time in a course of study leading to an associate, bachelor, graduate or higher degree. Alternately they may be enrolled in an approved Alternative Educator Certification Program.

Non-traditional adult students, who are employed, may not be able to meet this requirement. They can seek aid from their employers, state, county and city, and can also fill out the Free Application for Federal Student Aid (FAFSA).

Students are required to meet the satisfactory academic progress requirements set by the institution.

Applicants must provide a cosigner with a good credit history, who meets other requirements. Cosigners must be at least 21 years of age and have a regular source of income. They must get a favorable credit evaluation.

A co-signer must be a permanent US resident or a US citizen and reside in the US or in a US territory. The borrower or the spouse of the borrower may not act as a cosigner.

Interest rate and other features

Applicants can opt for a fixed interest rate of 5.25 percent, or a variable interest rate, not to exceed the rate at which the loan is issued, by more than 4 percent. The loan involves an origination fee of 3 percent that will be deducted from the proceeds of the loan.

Aggregate loan limits are not applicable for these loans and they carry a grace period of six months, before the repayment begins.

For balances under $30,000, there is a ten-year repayment period, and minimum monthly payments of $50. For balances of over $30,000, the repayment period is twenty years.

Interest is never capitalized, and there are no guarantees or insurance premiums involved.

The THECB will service the loan from the time it is granted to the time it paid off in full, and the loan will not be sold to any other lender.

Students who opt for a College Access Loan can opt for postponement of loan repayment and income-sensitive or graduated loan repayment schedules.

These loans offer needy students a flexible means of finance that can help them to obtain a college degree, and to get ahead in their careers.

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