Trusted Student Loan Lenders for Texas Residents

Trusted-Student-Loan-Lenders-for-Texas-Residents
Brazos Staff

BIG Ideas:

  • Completing the FAFSA is the first step in getting federal aid, grants, and other help that could reduce your student loan debt after college.
  • Texas students and families have a variety of options to help pay for college, including grants, scholarships, and private student loans.
  • Comparing rates, fees, repayment options, and lender types can help you find a trusted private student loan lender.

They say everything is bigger in Texas.

If you’re a Texas student or parent looking to help pay for college, there’s one thing you don’t want to be bigger – student loan debt.

Sure, college can be one of the best investments you can make for your future, but it should never come at the cost of taking on debt you can’t afford.

The good news is, if you’re a Texas resident or plan to attend school in the Lone Star state, you’ve got options beyond just federal aid that can make college affordable.

Let’s take a closer look at student loans in Texas, including federal aid, state financial assistance programs, scholarships, and private student loan lenders.

Start with federal aid, including grants and federal student loans

If you’re planning to attend college, your first step should be to apply for federal aid. You can do that by completing the Free Application for Federal Student Aid or FAFSA. Federal aid can be in the form of federal loans and work study. And don’t forget grants, which represent free money that you don’t have to pay back. Woohoo!

Texas financial aid programs

The State of Texas offers several grants designed to help residents pay for college. Because grants (generally) don’t need to be repaid, they can help reduce the amount you’ll need to borrow through private student loan lenders.

Some of the most common Texas financial aid programs include:

  • TEXAS Grant (Toward Excellence, Access and Success) Provides need-based financial assistance to eligible undergraduate Texas residents attending public colleges and universities.
  • Texas Public Educational Grant (TPEG) A need-based grant funded by individual colleges and universities. Awards vary by institution and are often distributed on a first-come, first-served basis.
  • Texas Educational Opportunity Grant (TEOG) Provides need-based financial assistance to eligible students attending Texas public community and technical colleges.
  • Tuition Equalization Grant (TEG) Helps eligible Texas residents attending private nonprofit colleges and universities within the state.
  • Texas Transfer Grant Provides assistance to eligible transfer students pursuing a bachelor’s degree at participating Texas institutions.

And if those grants aren’t reason enough to complete the FAFSA, many colleges and universities use FAFSA information to determine eligibility for institutional grants, scholarships, and other forms of aid.

Don’t forget about scholarships

In addition to applying for federal aid, you can also apply for scholarships, which also represent FREE MONEY. Scholarships are offered by Texas colleges and universities, employers, community and civic organizations, as well as non-profits.

At Brazos, we offer the Murray Watson, Jr. Scholarship, which awards scholarships of up $5,000 to eligible Texas residents who are graduating high school seniors, undergrads, or graduate students.

Private student loans in Texas to help bridge the gap

After you’ve exhausted federal aid and Texas-based financial assistance, there still may be a gap between the cost of attendance and the aid you’ve received. That’s when private student loans may help. There are many private student loan lenders that serve Texas students and families.

Unlike federal loans, which are funded by the government, private student loans are offered by banks, credit unions, and non-profit lenders like Brazos.

Because private student loan lenders assume the risk of lending you money, they need assurance that you’ll be able to repay the loan. So, approval is based on your income and creditworthiness. Students who have not yet established credit may need to apply with a creditworthy cosigner.

In some cases, nonprofit student loan lenders may offer competitive rates, lower fees, or borrower-friendly benefits compared to some for-profit lenders.

While loans from private student loan lenders can help make college more affordable, it’s important to borrow only what you need. Although you may be approved for more than your educational expenses require, borrowing more than necessary can lead to higher monthly payments and more debt to repay after graduation. It’s no way to start your financial future.

Tips for finding good private student loan lenders

When comparing private student loan lenders, it’s important to do your homework. While interest rates matter, they’re only one factor to consider. Private student loans can vary significantly from lender to lender, so it’s important to compare your options carefully.

Here are some important factors to consider when choosing among private student loan lenders:

  • Interest rates. Compare interest rates and determine whether they are fixed or variable. With a fixed rate, your payments remain the same for the life of the loan. With a variable rate, however, your rate may rise or fall over time, causing your payments to change.
  • Fees. Some private student loan lenders charge fees such as application fees, origination fees, or late payment fees. Be sure to read the fine print carefully.
  • Repayment options. Student loans do make college possible, but they do have to be repaid. That’s why it’s so important to know when your payments must be made. For example, can you defer payments until after graduation or do you have to make them while you’re in school?
  • Co-signer options. If you have limited credit history or income, applying with a creditworthy cosigner may help you qualify or secure a better rate. If you use a cosigner, check whether the lender offers a cosigner release option after you make a certain number of consecutive, on-time payments.
  • Reputation. Not all lenders are alike. That’s why you need to research them online, read reviews, and talk with your school’s financial aid office to ensure the lender is reliable and offers good customer service.
  • Type of lender. Consider all your options, including non-profit student loan lenders. Non-profit lenders are mission-driven organizations focused on helping students access higher education and may offer competitive rates, lower fees, and borrower-friendly benefits.

One final tip: Be cautious when you see websites and online ads promoting the “best student loan lenders,” which may include paid rankings and sponsored advertisements that may not list all available lenders.

There’s a lot to love about living in and going to school in Texas, which is home to some of the nation’s largest and most respected schools. To help make college affordable, be sure to understand all the options available to you. By doing your homework, exploring all available aid, and borrowing responsibly, you can get the degree you want without the high debt you don’t need.

Looking for a trusted private student loan lender?

For more than 40 years, Brazos Higher Education has helped students and parents finance the cost of college. As a Texas nonprofit, we offer private student loans with competitive rates to make college possible and help you save BIG. Contact us today to learn more.