1. Hinson-Hazlewood College Student Loan Program

2. Hinson-Hazlewood College Student Loan Program (HHSCLP)
MODEL FOR STATE GOVERNMENT
The program is self-supporting; borrowed funds are repaid by students, not taxpayers*
Efficiently managed program since inception
Stable source of financial assistance for students, regardless of changes in the marketplace
Excellent value for students
*Loan repayments and depositor interest cover all bond and administrative costs

3. Hinson-Hazlewood College Student Loan Program (HHSCLP)
Texas Opportunity Plan Fund Authorized in 1965: co-sponsored by Representative George Hinson & Senator Grady Hazlewood

4. Hinson-Hazlewood College Student Loan Program (HHSCLP)
1st program in the country to offer state-funded low-interest loans to college students
Still the only student loan program backed by tax-exempt General Obligation bonds (AAA rating)
Bond authority approved by Texas voters 8 times
Since the fall of 1966, approximately $2.7 billion in low-interest loans disbursed to Texas students

5. Student Loan Program Funding
Bond Sale $
Pre 1992 Bonds
Net Proceeds
1992 to Present
Loan Funds (TOP Fund)
HH Student Loans
$ Loan Repayments
Loan Funds (SLA Fund)
HH Student Loans
Interest & Sinking Fund
Excess
Transferred to SLA & TOP
Required Reserve
Pay Off Bonds
Bond Principal & Interest Payments
TOP = Texas Opportunity Plan
SLA = Student Loan Auxiliary

6. Hinson-Hazlewood College Student Loan Program (HHSCLP)
All loan origination, servicing, customer service, and pre-default collection activities performed by THECB staff
THECB has never sold a loan
Students have a reliable resource for help with their loans
Numerous options for payment arrangements
Defaulted loans referred to the OAG for litigation

7. 5.25% Fixed annual interest (no compounding)
Hinson-Hazlewood College Student Loan Program College Access Loans (CAL)
5.25% Fixed annual interest (no compounding)
Lowest alternative loan rate available nationally, with payments deferred while in school*
Comparison: Federal PLUS (parent loans) current rate 7.21%
Most borrowers qualify for a 0% origination fee
Current default rate is 3.35%
*Rhode Island offers a 4.99% rate with repayment beginning immediately

8. Hinson-Hazlewood College Student Loan Program College Access Loan Requirements
Be a Texas resident and enrolled at least ½ time in a program leading to an Associates degree, Bachelor’s degree, graduate degree, or (alternative) teacher certification
Meet Satisfactory Academic Progress requirements
Meet credit requirements or provide creditworthy cosigner
Loan may be used to cover all or part of student’s Expected Family Contribution (EFC)
Loan may not exceed Cost of Attendance minus student’s eligibility for federal aid, including loans

9. Hinson-Hazlewood College Student Loan Program (HHSCLP) FY 2014 Activities
$150 million in loans disbursed (B-On-Time, TASSP, CAL)
Loan applications processed: 33,422 (15,411 students)
Calls answered: 132,992
Correspondence answered: 30,634
Online inquiries answered : 12,312
Forbearance/deferment requests processed: 14,274

10. 52,826 collections/courtesy calls
Hinson-Hazlewood College Student Loan Program (HHSCLP) FY 2014 Activities, Cont’d
Total payments processed: 980,171 for $122,460,615 (including 44,954 requiring manual handling)
52,826 collections/courtesy calls
42,599 due diligence/collections s
17,833 skip-traced accounts
Staff in Loan Program Operations: 56 FTEs

11. Contract with OAG - increased focus on collections, enhanced expertise
Hinson-Hazlewood College Student Loan Program 2009 Transfer of Default Collections to the OAG
Contract with OAG - increased focus on collections, enhanced expertise
238% Increase from 08/09 avg.

12. Hinson-Hazlewood College Student Loan Program
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