Interest-free education loans in Texas: questions before borrowing

An interest-free education loan can address a different need from a scholarship, but it remains money to repay. List it under borrowing, with its payment obligations visible, rather than subtracting it as gift aid from the cost of college. This guide describes provider statements and questions to resolve; it does not certify a product’s religious compliance or determine an individual’s eligibility.

Qard Hasan Foundation

The foundation’s application page requires Texas Muslim-community activity, U.S. citizenship or permanent residency, accredited U.S. postsecondary enrollment and a 3.0 GPA. It describes direct-to-institution, interest-free funding without application or processing fees, separate contracts and repayment beginning 30 days after disbursement. Its FAQ still specifies Greater Austin membership, while the application page refers to Texas. Ask which geographic rule and repayment terms apply to the current pathway, including its announced ACC partnership. [1] [2]

A Continuous Charity

ACC’s general application page says the 2026 cycle is closed and distinguishes partner-specific cycles. Its current eligibility list includes citizens, permanent residents and DACA recipients, with other conditions; an older FAQ on the same page omits DACA. Confirm that conflict with the provider. Its loan-terms page describes a binding repayment agreement and a cosigner, with dollar-for-dollar repayment rather than interest or hidden fees. These are provider claims; read the contract actually offered. [3] [4]

Compare the contract and monthly cash flow

Ask for the funded amount, recipient of payment, date repayments begin, monthly obligation, cosigner responsibility and treatment of missed payments or interrupted study. Check whether taking a second award creates a second simultaneous payment. Request the terms for the specific partnership or cycle; do not assume that an old FAQ example describes every new contract.

Make a semester budget and a separate monthly repayment budget. In a fictional example, two contracts each requiring $100 monthly create a $200 monthly obligation while both are active. The interest rate alone does not show whether those payments fit a student’s income. Ask the college how outside borrowing should be reported and how it affects the aid package.

The Scholarship Hub keeps repayable resources separate from scholarship records. Compare nonrepayable awards first, check FAFSA or TASFA, and verify the provider’s current cycle before sending sensitive records.