State of Student Aid in Texas – 2022

Section 6: Loans

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Volume for the Largest State Loan Program, HHL-CAL, Increases

The Hinson-Hazlewood College Access Loan (HHL-CAL) is the largest of the loan programs that the state of Texas offers for students. Recipients are not required to demonstrate financial need to receive HHL-CAL loans. A student may borrow up to the cost of attendance at his or her institution, minus any other financial aid he or she is receiving. In AY 2019-2020 HHL-CAL awards totaled $149.9 million, a one percent increase over the previous year.

HHL-CAL Loan Volume by Award Year (in Millions of Dollars)*

HHL-CAL Loan Volume by Award Year (in Millions of Dollars)*

In AY 2018–2019, 36 percent of the HHL-CAL dollars went to students attending schools in the Central Texas region. Although Central Texas comprises only 26 percent of Texas enrollment, it is home to the state’s two flagship universities, the University of Texas at Austin and Texas A&M University. The Metroplex and Panhandle regions also received proportionately more HHL-CAL dollars compared to enrollment. All other regions received a smaller percentage than their share of the state’s enrollment.

HHL-CAL Volume and Enrollment by Region

HHL-CAL Volume and Enrollment by Region

* Includes only the amounts reported in the Texas Higher Education Coordinating Board’s Financial Aid Database. The Financial Aid Database primarily records aid that was based on financial need, but may include some amounts that were not based on need.
Sources: Loan volume: Texas Higher Education Coordinating Board (THECB), “Financial Aid Database for AY 2019–2020,” Austin, Texas, 2021 (Unpublished tables); Data on loan terms and loan eligibility: THECB, “College for Texans” Website (http://www.collegeforalltexans.com/apps/financialaid/tofa.cfm?Kind=L); Enrollment: THECB. Texas Higher Education Data (http://www.txhighereddata.org/).

HHL-CAL Loans Go Predominantly to Private, Four-Year Schools

In AY 2019– 2020, 34 percent of HHL-CAL dollars went to students attending public four-year institutions, and this sector accounted for 41 percent of student enrollment. Private four-year students accounted for 9 percent of enrollment in Texas postsecondary institutions, but 60 percent of HHL-CAL volume. In contrast, public two-year students accounted for 49 percent of enrollment, but only 1 percent of HHL-CAL volume. The lower cost of attendance at public two-year schools compared to four-year schools helps explain the low usage of the loans at these schools.

HHL-CAL Volume and Student Enrollment by Sector

HHL-CAL Volume and Student Enrollment by Sector

* HHL-CAL volume data for students who attended for-profit institutions are not available.
Sources: Loan volume: Texas Higher Education Coordinating Board (THECB). “Financial Aid Database, 2019-2020,” Austin, Texas, 2021 (Unpublished tables); Public Enrollment: U.S. Department of Education, National Center for Education Statistics, “Integrated Postsecondary Education Data System (IPEDS) 2020” (https://nces.ed.gov/ipeds/datacenter).

HHL-CAL Volume Not Comparable to HBCU and HSI Enrollment

Texas has nine Historically Black Colleges and Universities (HBCUs) and 92 Hispanic-Serving Institutions (HSIs). In AY 2019–2020, HBCUs and HSIs comprised 63 percent of total Texas enrollment and received 35 percent of HHL-CAL dollars.

HHL-CAL Volume and Enrollment*

HHL-CAL Volume and Enrollment*

The average HHL-CAL award differed some across ethnic groups in AY 2019–2020. White students on average borrowed about $1,013 more than African-American students and $1,812 more than Hispanic students.

Average HHL-CAL Award by Ethnicity (AY 2019-2020)

Average HHL-CAL Award by Ethnicity (AY 2019-2020)

* Includes only the amounts reported in the Texas Higher Education Coordinating Board’s Financial Aid Database. The Financial Aid Database primarily records aid that was based on financial need, but may include some amounts that were not based on need.
Sources: Loan volume and HBCU/HSI list: Texas Higher Education Coordinating Board (THECB). “Financial Aid Database for AY 2019–2020.” Austin, Texas, 2021 (Unpublished tables); Enrollment: THECB. Texas Higher Education Data (http://www.txhighereddata.org/). HBCUs: U.S. Department of Education, Office for Civil Rights database. “Accredited Postsecondary Minority Institutions” (http://www.ed.gov/about/offices/list/ocr/edlite-minorityinst.html) 

Federal Loan Volume Concentrated in Rural Areas, More Widely Distributed in Urban Areas

In the rural areas of the state, Award Year (AY) 2020–2021 Federal Direct Loan Program (FDLP) volume remains concentrated among a few schools. In regions that contain the state’s largest cities, loan volume is more widely distributed. For example, in the Rio Grande region, five schools account for 93 percent of regional loan volume, while in the Gulf Coast region the five schools with the largest loan volume account for less than half of regional volume. This is most likely due to the greater number of school choices that exist in the more urbanized regions of the state.

Top Schools by Region (AY 2020–2021)

Top Schools by Region (AY 2020–2021)

Sources: U.S. Department of Education, Federal Student Aid Data Center, Programmatic Volume Reports (https://studentaid.ed.gov/sa/about/data-center/student/title-iv).

Four-Year Public Schools Account for Almost Two-Thirds of Federal Loan Volume

Four-year public school volume makes up the largest share of the volume in all regions. Proprietary school volume exceeds two-year* school volume in two regions (West and Rio Grande regions). In Award Year (AY) 2020–2021, public four-year schools accounted for 62 percent of the state’s Federal Direct Loan Program (FDLP) volume. Four-year private school volume accounted for 22 percent, two-year* school volume accounted for 8 percent, and proprietary school volume accounted for 8 percent of total FDLP volume in Texas.

Federal Loan Volume by Region and School Type In Millions of Nominal Dollars (AY 2020–2021)

Federal Loan Volume by Region and School Type In Millions of Nominal Dollars (AY 2020–2021)

Texas Federal Loan Volume by School Type, AY 2020–2021

School Type Amount (in Millions) % of Amount
Public Four-year $3,049 62%
Private Four-year $1,095 22%
Two-year* $420 8
Proprietary $380 8%

* The two-year category includes both public and private, not-for-profit, and excludes proprietary.
Sources: U.S. Department of Education, Federal Student Aid Data Center, Programmatic Volume Reports (https://studentaid.ed.gov/sa/about/data-center/student/title-ivl). 

Federal Loan Volume Is Proportionally More Than Enrollment at HSIs and HBCUs

Texas has nine Historically Black Colleges and Universities (HBCUs) and 92 Hispanic Serving Institutions (HSIs). HBCUs comprised one percent of total Texas enrollment in fall 2019 while generating four percent of Award Year (AY) 2019-2020 Federal Direct Loan Program (FDLP) volume. HSIs made up 58 percent of enrollment and accounted for 65 percent of federal loan volume.

HBCUs are higher education institutions that were established prior to 1964 with the intention of primarily serving the African-American community, though students of all races and ethnicities are welcome to apply. There are 107 HBCUs nationwide.

Institutions meeting certain eligibility criteria, such as having at least a 25 percent Hispanic undergraduate enrollment, can apply for federal funding under Title III of the Higher Education Act. This federal program helps HSIs better serve their populations, which often include first generation and low-income students.

Ratio of Federal Loan Volume at HBCUs, HSIs and Non-HBCUs/HSIs*

Ratio of Federal Loan Volume at HBCUs, HSIs and Non-HBCUs/HSIs*

* Does not include proprietary schools for volume or enrollment.
Sources: Enrollment: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); Loan Volume: U.S. Department of Education, Federal Student Aid Data Center, Programmatic Volume Reports (https://studentaid.ed.gov/sa/about/data-center/student/title-iv); HBCUs: U.S. Department of Education, Office for Civil Rights database. “Accredited Postsecondary Minority Institutions” (http://www.ed.gov/about/offices/list/ocr/edlite-minorityinst.html); HSIs: U.S. Department of Education, unpublished report (special request).

Veterans Less Likely to Borrow Student Loans Compared to Non-Veterans

Undergraduate students who were veterans were less likely to borrow student loans compared to undergraduates who were not veterans, with 29 percent of veterans borrowing compared to 39 percent of non-veterans.

Percent With and Without Student Loans by Veteran Status, In AY 2017-2018

Percent With and Without Student Loans by Veteran Status, In AY 2017-2018

Sources: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das).

Undergraduates Nationwide Borrowed More Than $22,000 For Their Education

Almost half of undergraduates nationwide who graduated in academic year (AY) 2017-2018 had borrowed student loans, and 10 percent had parents who had borrowed parent PLUS loans. The public two-year sector had the lowest borrowing rates, with 21 percent of students borrowing and 2 percent of students’ parents borrowing. The private four-year sector had the highest parent borrowing rate, at 14 percent, and the proprietary sector had the highest student borrowing rate, at 70 percent.

While parent borrowing rates were much lower than student borrowing rates, the average cumulative amounts borrowed were more comparable, especially at private four-year colleges. In the private four-year sector, parents ended up borrowing more than the students, with both groups having the highest median amounts among all the sectors. Overall, undergraduates who graduated in 2017-2018 ended up borrowing almost $23,000 and the parents ended up borrowing more than $18,000.

Percentage of 2017-2018 Graduates Who Borrowed for Undergraduate Education, by Loan Type and Sector

Percentage of 2017-2018 Graduates Who Borrowed for Undergraduate Education, by Loan Type and Sector

Cumulative Loans Borrowed by 2017-2018 Graduates, by Loan Type and Sector

Cumulative Loans Borrowed by 2017-2018 Graduates, by Loan Type and Sector

Sources: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das).

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