College Access Loan Program Fact Sheet

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College Access Loan Program Fact Sheet

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 . However, the amount of federal aid for which you are eligible must be deducted from the cost of attendance in determining the CAL loan amount.

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 Texas resident
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
Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements

ANNUAL LOAN AMOUNTS

Students may borrow 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 if both the borrower and cosigner have a good credit standing
A 5% origination fee will be deducted from the proceeds of each loan if either the borrower or cosigner, but not both has a good credit standing

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

2008-2009 INTEREST RATES -- Students may choose either:

A fixed annual rate of 6.00% 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 3.91%.

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