Financial Aid: Alternative - CALP
Alternative Loans - College Access Loan Program (CALP)
Alternative Loans
Alternative Loan borrowing should be used for circumstances where you have exhausted all other options in regards to financing your education. These loans typically have high interest rates and fees associated with them.
We highly recommend that students apply for financial aid using the Free Application for Federal Student Aid (FAFSA) prior to seeking an Alternative loan option.
The Alternative loan lender list has been developed to assist students in choosing a lender. You are free to choose a lender from this list or you may choose another lender. The choice of a lender is entirely yours and must be made before your loan(s) will be funded. Choosing another lender will not impact the timing of your funds. However, borrowing an alternative (private) loan is based on credit checks and should only be done after reviewing all of your funding options and contacting different lenders for the best terms.
The interest rates and repayment terms are different for each lender listed. Please research which lender will best suit your needs and provide you with the lowest rates possible.
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College Access Loan Program
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
- 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
- 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.
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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 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