You’ve probably spent hours staring at a FAFSA form, wondering if federal aid is actually going to cover the insane cost of a degree these days. For most Texans, it doesn't. That’s usually when the texas higher education coordinating board loan options start popping up in your search results. Honestly, the names are a mouthful, and the state's website looks like it was designed in 2004, but these loans are often the "secret sauce" for students who don't want to mess with high-interest private lenders.
Texas is one of the few states that acts like a bank for its own students. Basically, the Texas Higher Education Coordinating Board (THECB) manages several programs that offer fixed interest rates that often beat out big-name banks. But here is the thing: they aren't "one size fits all." If you pick the wrong one, or don't understand the "manageable debt" rule they added recently, you might find your application rejected before you even get to buy your first textbook.
The Big Three: Understanding Your Options
Most people think there’s just one "Texas loan." Not true. The THECB actually juggles a few different buckets of money.
1. The College Access Loan (CAL)
This is the heavyweight champion. If you've exhausted your federal Stafford loans and still have a gap in your tuition, the CAL is usually where you turn. It’s an alternative loan, but unlike a Chase or Wells Fargo loan, the interest rate is fixed and set by the state. For the 2025-2026 academic year, the rate is sitting at 6.30%.
One quirk about the CAL? You don't need to show financial "need." You just need to be a Texas resident and have a decent credit score. Or, more realistically for most 19-year-olds, a cosigner who has one.
2. The FORWARD Loan Program
This one is newer and much more specific. It stands for Future Occupations & Reskilling Workforce Advancement to Reach Demand. Yeah, it's a lot. Essentially, if you are going into high-demand fields like Nursing, Teaching, or Energy, the state wants to give you a break.
The interest rate here is typically lower than the CAL—around 4.30% for the current cycle. The catch? You have to be at least halfway through your degree to qualify. It’s designed to help you cross the finish line, not to fund your freshman year of finding yourself.
3. Texas Armed Services Scholarship Program (TASSP)
Don't let the word "scholarship" fool you. It’s actually a conditional loan. The state gives you up to $15,000 a year (though often it's closer to $4,000–$7,000 depending on funding) to be in ROTC. If you graduate and serve in the military, the debt is forgiven. If you quit or don't commission? It turns into a loan you have to pay back with interest. It's a high-stakes bet on your future career.
The "Manageable Debt" Hurdle You Might Hit
Since September 1, 2023, the THECB has been playing hardball with a rule called the Manageable Debt Calculation.
In the past, if you qualified, they’d just send the money. Now, they look at what you’re majoring in and how much you’ve already borrowed. If you’re a junior majoring in a field with a low starting salary, but you’ve already racked up $50,000 in federal debt, the Coordinating Board might say "No" to your CAL application. They literally calculate whether your future self can afford the monthly payments based on average earnings for your specific degree.
It’s frustrating, sure. But honestly, it's sorta the state's way of making sure you don't drown in debt later.
Credit Scores and the Cosigner Reality
Let's talk about the 650. That is the magic number. To get a texas higher education coordinating board loan, either you or your cosigner needs an Experian VantageScore of 650 or higher.
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If you're a student, you probably don't have that yet. That means you’ll need a cosigner. But here's a detail people miss: your spouse cannot be your cosigner. The state is very firm on this. It has to be someone else—usually a parent or a relative—who is at least 21 years old and has a steady income.
- Fixed Rates: Unlike some private loans that can spike to 12% or 15%, these stay put.
- No Origination Fees: The THECB stopped charging these fees a while back, which saves you a few hundred bucks right off the bat.
- Simple Interest: They use simple interest, not compound. This means you aren't paying interest on your interest, which makes a massive difference over 10 years.
Repayment: The 6-Month Grace Period
Life after graduation is expensive. Luckily, THECB loans usually give you a six-month grace period. You graduate, you find a job, and then you start paying.
If your balance is under $30,000, you generally have 10 years to pay it off. If it’s over $30,000, they give you up to 20 years. They also offer "Income-Sensitive" repayment plans, which is a lifesaver if you end up in a low-paying entry-level gig.
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Is it Better Than a Federal Loan?
Probably not. Most experts—and I'd agree—say you should max out your Federal Direct Subsidized and Unsubsidized loans first. Federal loans have better forgiveness options (like PSLF) and more flexible deferment rules.
However, the texas higher education coordinating board loan is almost always better than a high-interest private loan from a commercial bank. It’s the "middle ground" of student lending.
What You Should Do Next
If you're staring at a tuition bill and the math isn't adding up, don't just click the first private loan ad you see on social media.
- Check your degree progress. If you're 50% done and in a high-demand field, look at the FORWARD loan first because that 4.30% rate is a steal.
- Run the numbers on HHloans.com. This is the official portal (HelmNet) where you’ll actually apply. They have a calculator that helps you see what your payments might look like.
- Talk to your Financial Aid Office. Not all Texas schools participate in all THECB programs. Make sure your school is on the "eligible institutions" list before you spend an hour on the application.
- Find a cosigner early. If your credit isn't at 650, have that awkward conversation with a parent or relative now. They’ll need to provide their income and tax info, so give them lead time.
Applying for a texas higher education coordinating board loan takes a bit of patience, but in a world of predatory lending, it's one of the few ways to keep your debt somewhat under control while staying in the Lone Star State.