Student Loans in Texas
Texas's TEXAS Grant is a large need-based grant for Texas residents at eligible Texas public institutions. The College Access Loan (CAL) is a state-backed supplemental loan for Texas students after federal aid is exhausted. Texas's Top 10 Percent Rule guarantees UT Austin admission to top-10-percent Texas high school graduates. UT, A&M, and the UT System offer competitive in-state tuition.
Texas at a glance
Population
30.5M
U.S. Census Bureau, July 1, 2025 estimate
Editorial note — Texas
Texas students should compare the College Access Loan (CAL) against private lenders — the state-backed structure is competitive. THECB at highered.texas.gov is the authoritative source for TEXAS Grant eligibility and CAL terms.
Texas state student aid authority
The state higher-ed authority, state grants and scholarships, and federal-first guidance for Texas students.
Primary regulator
Texas Higher Education Coordinating Board (THECB)
Administers Texas state financial aid including TEXAS Grants, the Top 10 Percent Scholarship, and the B-On-Time Loan (discontinued for new borrowers; legacy program). Also oversees the College Access Loan (CAL) program.
State aid authority website ↗State aid authority scope
Administers Texas state financial aid including TEXAS Grants, the Top 10 Percent Scholarship, and the B-On-Time Loan (discontinued for new borrowers; legacy program). Also oversees the College Access Loan (CAL) program.
Federal-first: Federal student aid (studentaid.gov) is the authoritative source for Pell Grants, federal subsidized and unsubsidized loans, PLUS loans, income-driven repayment, and loan forgiveness programs (PSLF, Teacher Loan Forgiveness). Exhaust all federal options before private loans. studentaid.gov
What to know before taking private student loans in Texas
Private student loans should only be used after exhausting federal loans and state grants. These are the factors that determine total cost.
Federal loans first
Always apply for federal student loans at studentaid.gov before private. Federal loans offer income-driven repayment, deferment, forbearance, and forgiveness options (PSLF, Teacher Loan Forgiveness) that private loans never match.
State grants and scholarships
Texas Higher Education Coordinating Board (THECB) administers state-specific grants and scholarships. These are free money — exhaust them before any borrowing.
APR (variable vs. fixed)
Private student loan APRs can be fixed or variable. Variable rates may start lower but carry risk if rates rise during repayment. Fixed rates provide payment predictability across a 5–20 year term.
Cosigner requirement and release
Most private student loans require a creditworthy cosigner for undergraduate borrowers. Verify whether the lender offers cosigner release after a specified payment period — this matters for your cosigner's credit.
Deferment and forbearance options
Private lenders vary widely on in-school deferment, grace periods, and hardship forbearance. Federal loans provide much stronger protections — model your post-graduation income before choosing a private repayment term.
Total cost, not just monthly payment
A 20-year private loan term reduces monthly payments but substantially increases total interest paid. Compare total repayment cost across term options — a 10-year term typically costs far less overall.
Compare private student loan picks for Texas students
Ranked by APR, cosigner release policy, and repayment flexibility. Federal loans first — always.
Student loans in Texas — common questions
What state financial aid is available in Texas? +
TEXAS Grant (need-based) and the College Access Loan (state-backed supplemental) are primary programs. Visit highered.texas.gov for current eligibility.
What is the Texas College Access Loan (CAL)? +
The CAL is a state-backed supplemental loan for Texas students after federal aid is exhausted — worth comparing against private lenders. See highered.texas.gov for current rates.
Should I take federal or private student loans in Texas? +
Exhaust federal loans, TEXAS Grant, and CAL before private. Federal loans offer income-driven repayment and PSLF. Apply at studentaid.gov first.
Does Texas have a student loan forgiveness program? +
Texas does not have a broad state forgiveness program. Texas public employees and teachers may qualify for federal PSLF and Teacher Loan Forgiveness — see studentaid.gov.
How do I compare private student loans in Texas? +
After TEXAS Grant, federal loans, and CAL, compare private lenders on APR, repayment, and cosigner release. THECB at highered.texas.gov is the authoritative state resource.
Need a private student loan in Texas?
After exhausting federal loans and state grants, we rank private student loan lenders against our published methodology by APR, cosigner release, and repayment flexibility. Federal-first is non-negotiable — private loans forfeit income-driven repayment and PSLF eligibility.
Compare private student loan options →ClearValue Lending is an independent editorial platform. Some links are affiliate links — see disclosure below. Rankings are based on editorial criteria, not compensation. This page is not financial aid advice. Always exhaust federal student aid options at studentaid.gov before private loans.
Sources
- Texas Higher Education Coordinating Board (THECB) — Official Website ↗
- Federal Student Aid (studentaid.gov) ↗ — federal loan programs, Pell Grants, income-driven repayment, and forgiveness programs
- U.S. Census Bureau ↗ — July 1, 2025 population estimates
Editorial disclaimer: This page provides general educational information about student loans and state financial aid in Texas. It is not financial aid advice. State aid program details were accurate as of May 22, 2026. Verify current state aid program terms directly with Texas Higher Education Coordinating Board (THECB) and federal aid options at studentaid.gov before borrowing. Scored against ClearValue's published methodology. Updated May 2026.
Some links on this page are affiliate links. ClearValue Lending may earn a commission at no cost to you. Rankings are based on editorial criteria, not compensation. See our full advertiser disclosure for details.