What Is a College Access Loan?

| January 2, 2012

A college access loan can provide students with much-needed financial income. Because a college access loan is not based on financial need, students from all sorts of backgrounds ultimately take out these types of loans. Even wealthy students find themselves needing to take out a college access loan at some point during college.

The college access loan program is administered in the state of Texas. If one attends a college or graduate school in Texas, then he or she can apply for a college access loan.

A college access loan can be applied toward the student’s expected family contribution (EFC). This figure is calculated after a student fills out the Free Application for Federal Student Aid (FAFSA). To calculate the amount of a college access loan that a student qualifies for, the financial aid office will deduct the amount of federal aid originally received from the cost of a school’s attendance.

To apply for a college access loan, students may submit an online application. Students can also apply for this type of loan in person at the financial aid office of a school. One will have to fill out the CAL application and a promissory note.

If one requires a cosigner for a college access loan, then there are certain requirements that must be met. A cosigner has to be at least 21 years old. In addition, a cosigner must have a regular source of income. One may not be the spouse of a borrower to be a cosigner. A cosigner should be aware that cosigning a loan will impact his or her credit.

Before taking out a college access loan, a student should consider the interest rate of the loan. A college access loan has an interest rate of 6.0%. A borrower will have a six month grace period after graduation before repayment of the loan begins. If a student has a loan balance under $30,000, then he or she will have 10 years to repay the loan. The minimum monthly payment is $50. If one has more than $30,000 in loans, then he or she will have 20 years to repay the loan. There are ways in which a student may qualify for a postponement of repayment upon a loan. In addition, there are certain careers in the public service field that may allow a student’s loans to be forgiven entirely. For example, if one is a teacher, then he or she can have portions of a loan eliminated after teaching for a given number of years.

Category: Student Loan

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