Higher Education Servicing

Name

Higher Education Servicing

Legal name

Higher Education Servicing Corporation

Website

https://hescloans.com

Company type

Private

Founded year

1978

Operating status

Operating

Headcount range

11–50 employees

Ownership category

akta.pro rank

Product category

Education Loan Servicing and Private Student Lending

NAICS

Mortgage and Nonmortgage Loan Brokers (52231), Educational Services (611)

SIC

Personal Credit Institutions (6141), Loan Brokers (6163)

akta.pro primary industry

Private Student Loans (Undergraduate & Graduate) (FSAKAEAB)

akta.pro secondary industries

Parent & Family Education Loans (e.g., PLUS/private parent loans) (FSAKAEAC), In-School Tuition & Fee Financing (Short-term/Bridge) (FSAKAEAG), Continuing Education & Professional Certification Financing (FSAKAEAJ)

Keywords

• Private student loans
• Education loan servicing
• Student loan refinancing
• Graduate education financing
• Nonprofit lending

Headquarters

HQ city

Arlington

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Student Loan Interest Income: HESC generates revenue through interest charged on private education loans, including student loans, parent loans, graduate loans, and refinance loans. Interest rates range from 2.99% to 7.38% fixed, with APRs from 2.74% to 6.89%. No origination or application fees are charged to borrowers.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels4 records

Core offering

HESC originates low-cost private education loans under the Texas Extra Credit program for Texas-resident undergraduates, parents/family members, graduate students, and refinance borrowers, and services federal and private student loans from application through repayment. The company owns its loan origination and servicing platforms internally and also runs the inspirED community outreach division providing college and career planning programs across North Texas.

Product overview

Higher Education Servicing Corporation (HESC) is a Texas-based nonprofit organization offering a comprehensive suite of private education loan products and loan servicing solutions. The core product portfolio centers on the Texas Extra Credit Education Loan Program, which encompasses four distinct loan products: Student Loans (for undergraduate borrowers), Parent Loans (for family members funding student education), Graduate Loans (for masters, doctoral, law, and professional degree programs), and Refinance Loans (for consolidating education debt). Supporting the loan products are three key service platforms: the HESC Borrower Website (for account management, payments, and deferment/forbearance requests), HESC Originations (for new loan applications and document uploads), and the Financial Literacy Center (hosted at hesc.igrad.com for budgeting and planning tools). Additionally, the inspirED division provides free college and career planning outreach programs in North Texas, and the Loan Advocate service offers ombudsman resources for federal loan dispute resolution. The organization has served Texas students and families for over 47 years, managing over $1 billion in loans for 47,000+ borrowers.

Differentiator

Problem solved

Functional benefit

Brands

• Texas Extra Credit: Low-cost private education loan program offering student loans, parent loans, graduate loans, and refinance loans for Texas residents.
• inspirED

Products and services

• Texas Extra Credit Student Loan Low-cost private student loans for Texas-resident undergraduate students attending approved schools at least half-time. Offers competitive fixed interest rates (2.99%–7.38%), APRs from 2.74%–6.89%, annual borrowing from $1,000 to $65,000 with a maximum aggregate limit of $150,000, three repayment options (Immediate, Interest-Only, Full Deferment), 5/10/15-year terms, no origination or application fees, and up to 0.50% interest rate reductions via Auto Pay (0.25%) and Graduation Benefit (0.25%), plus cosigner release after 24 consecutive on-time payments.
• Texas Extra Credit Parent Loan Private education loans for parents, grandparents, or other creditworthy individuals to fund a dependent student's higher education expenses in Texas. Offers 0.25% Auto Pay interest rate reduction, three repayment options (Immediate, Interest-Only, Fully Deferred), 5/10/15-year repayment terms, and no origination or application fees.
• Texas Extra Credit Graduate Loan Private loans for graduate students enrolled at least half-time in approved masters, doctoral, law, medical, or professional degree programs. Borrow $1,000 to $65,000 annually, with 5/10/15-year repayment terms, three repayment options, and no origination, disbursement, or application fees.
• Texas Extra Credit Refinance Loan Education refinance loans allowing borrowers to consolidate eligible federal (FFELP, Direct, Perkins, HEAL, HPSL) and/or private education loans into a single loan with competitive fixed rates, zero application or origination fees, and multiple repayment terms. Supports refinancing of up to $200,000 in qualified higher education loan debt with a fast online prequalification process using a soft credit inquiry.
• inspirED College and Career Outreach Programs College and career planning outreach services delivered throughout North Texas through the wholly-owned inspirED division, including GO Center services, college and career events, and college preparation and financial aid workshops. Since 2014, inspirED has served nearly 50,000 students and parents.

Quantifiable outcome

• Fixed rates from 2.99% to 7.38% with APRs as low as 2.74% with Auto Pay discount
• +3 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators6 records

Direct peers

• Earnest: Earnest focuses on student loan refinancing and private student loans with underwriting-driven customization, competing directly with HESC's refinance loan and graduate loan offerings.
• Nelnet: Nelnet is one of the largest U.S. student loan servicers and also offers private student loan origination and refinancing, making it the closest direct peer to HESC's combined servicing-plus-origination business.
• MOHELA (Missouri Higher Education Loan Authority): MOHELA is a state-based nonprofit student loan servicer and lender operating a model structurally identical to HESC's, including federal loan servicing contracts and a state-focused private loan program — making it the most comparable peer.
• Sallie Mae: Sallie Mae is the largest private student loan originator in the U.S., offering undergraduate, graduate, and parent loans directly competing with HESC's Texas Extra Credit suite across product features and target borrower segments.
• SoFi: SoFi offers private student loans and a large student loan refinance product nationally with competitive fixed rates, directly competing with HESC's refinance and graduate loan products while operating at substantially greater scale.
• College Ave Student Loans: College Ave offers undergraduate, graduate, and parent private student loans plus refinance loans with a multi-state, online-only model — directly comparable to HESC's four-product Texas Extra Credit suite.
• Ascent (formerly Iowa Student Loan): Ascent, the successor to Iowa Student Loan, is a nonprofit-rooted private student loan and refinance lender with outcomes-based underwriting — highly comparable to HESC's nonprofit model and product mix.
• Discover Student Loans: Discover Student Loans offers undergraduate, graduate, and consolidation loans nationally with no-fee structures, directly competing with HESC's fee-free fixed-rate positioning.
• MEFA (Massachusetts Educational Financing Authority): MEFA is a state-based nonprofit providing education loans, college savings plans, and outreach to Massachusetts families — a close structural analog to HESC's nonprofit, state-focused lending and inspirED-style outreach model.
• Navient: Navient is a major student loan servicer and was historically one of the largest federal and private student loan servicers in the U.S., directly comparable to HESC's federal loan servicing operations.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat1 record

Key risks5 records

Key highlights6 records

Customer concentration

• Instagraminstagram.com/hescloans

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Higher Education Servicing