Brazos Review: Refinancing Student Loans and Private Student Loans

Full Review

Brazos Higher Education started offering student loans to in-school undergraduate and graduate students in 2022, building on its longtime business of refinancing student and parent debt.

Brazos private student loans are available to Texas residents studying at one of 2,000+ approved U.S. schools. This can include online schools and satellite campuses.

A non-profit organization, Brazos is notable for its low interest rates and lack of origination fees. This combination makes Brazos a particularly good option for graduate students. For the best-qualified borrowers, Brazos graduate student loan interest rates are lower than those charged by the federal government. The federal government also charges an origination fee, while Brazos does not.

Brazos student loans don’t come with the same protections as federal student loans do, however. If you think you’ll need income-driven repayment or will qualify for Public Service Loan Forgiveness, it’s better to go with the federal loan — even if the interest rate is higher.

To qualify for a Brazos private student loan, you must be a resident of Texas, typically be enrolled more than half-time at a qualifying school and have a credit score of at least 680. If you don’t meet the credit requirement, you’ll need a co-signer who does.

Brazos at a glance

• Ideal for Texas residents studying at an approved U.S. school who have strong finances or a qualified co-signer.

• Interest rates may be lower than what is offered by the federal government for graduate borrowers.

• No origination fee.

• Allows biweekly student loan payments via autopay.

How Brazos could improve

• Offer loans to borrowers at community colleges who are earning two-year degrees.

• Provide disability discharge for co-signers.

Brazos private student loan details

• Interest rates, fees and termsInterest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: 5, 7, 10, 15 or 20 years.

  • Loan amounts: $1,000 up to the cost of attendance, minus other aid.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes. 5% of the entire payment that was not paid when due or $35, whichever is less, if the borrower fails to make any part of a payment within 15 days of its due date.

  Compare Brazos' range of interest rates with other lenders. Your actual rate will depend on factors that include your — or your co-signer's — credit history and financial situation. To see what rate Brazos will offer you, apply on its website.

• RequirementsRequirements

  Financial

  • Minimum credit score: 680.

  • Minimum income: $35,000, or apply with qualified co-signer.

  • Typical credit score of approved borrowers or co-signers: 778.

  • Typical income of approved borrowers: $106,600.

  • Maximum debt-to-income ratio: 85%.

  • Can qualify if you’ve filed for bankruptcy: Yes, after five years.

  Other

  • Citizenship: Must be a U.S. citizen or permanent resident, or a non-U.S. citizen with a creditworthy co-signer who is a U.S. citizen or permanent resident.

  • DACA borrowers: Yes, with a citizen or resident co-signer.

  • Location: Available to Texas Residents attending accredited Title IV schools nationwide and to non-Texas residents attending accredited Title IV schools in Texas.

  • Must be enrolled half-time or more: No. Students obtaining final credit hours qualify.

  • Loan can be used for past-due tuition: Yes.

  • Types of schools served: Borrowers must attend an accredited Title IV school nationwide

  • Percentage of borrowers who have a co-signer: 93%.

• Repayment optionsRepayment options

  In-school repayment options:

  • Immediate repayment: Yes. Make full payments as soon as the loan is disbursed, while you’re still in school.

  • Interest-only repayment: Yes. Pay interest every month you’re in school and during the grace period.

  • Full in-school deferment: Yes. Don’t make any payments while you’re in school.

  Post-school repayment options

  • Grace Period: 6 months.

  • Income-based repayment option: No.

  • In-school deferment: Yes.

  • Internship deferment: Yes.

  • Residency deferment: Yes.

  • Military deferment: Yes.

  • Forbearance: Borrowers are able to defer payment on their loan for 3 months at a time, with a cumulative forbearance length of 12 months.

  • Co-signer release available: Yes. Release available after prepaying an amount equaling 24 months of principal and interest payments before the request or after 24 consecutive on-time payments.

  • Death discharge available: Yes.

  • Disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

  Repayment Preferences

  • Allows greater-than-minimum payments via autopay: No.

  • Allows biweekly payments via autopay: Yes.

• Customer serviceCustomer service

  • Loan servicer: American Education Services (AES).

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: Yes.

  • Average time from approval to disbursement: Loans are school certified and disbursed directly to the school shortly after certification..

• ExtrasExtras

  • 0.25% interest rate discount for autopay.

  • Scholarship Giveaways: Brazos offers monthly $5,000 and $1,000 no-essay scholarships to Texas residents.

Before applying for a Brazos loan

Before taking out a Brazos student loan or any other private student loan, exhaust your federal loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for a Brazos student loan

If Brazos denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or those that specialize in bad-credit or no-credit student loans.

STUDENT LOAN RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

Full review

Brazos Higher Education, a non-profit, offers refinancing student loans to borrowers in Texas. Borrowers can see what rate they would qualify for without a hard credit check.

You must have a minimum income of $60,000 and a 720 credit score to qualify. If you don’t meet those criteria, you’ll need a co-signer who does, as well as an income of $30,000.

Brazos refinancing student loans at a glance

• Available only to student loan borrowers who are residents of Texas.

• Brazos, unlike most private lenders, is a non-profit.

• Borrowers must be employed even if applying with a co-signer.

How Brazos could improve

Brazos, like other five-star loans, isn't perfect. It could improve by offering additional programs such as:

• Longer than 12 months of forbearance.

• Academic deferment for borrowers who return to school.

Brazos student loan refinancing details

• Interest rates, fees and termsInterest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: 5, 7, 10, 15 or 20 years.

  • Loan amounts: $10,000 to $400,000.

  • Can transfer a parent loan to a child: Children can refinance parent PLUS loans in their own name.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes, 5% of the monthly payment or $35, whichever is less.

  Compare Brazo’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Brazos will offer you, apply on its website.

• RequirementsRequirements

  Financial

  • Minimum credit score: 720.

  • Minimum income: $60,000, or $30,000 if applying with a co-signer.

  • Typical credit score of approved borrowers or co-signers: 786.

  • Typical income of approved borrowers: $95,000.

  • Maximum debt-to-income ratio: 40%.

  • Can qualify if you’ve filed for bankruptcy: Must not have had a bankruptcy within the past 5 years.

  Other

  • Citizenship: Must be a U.S. citizen or permanent resident. If applying with an eligible co-signer, a non-citizen with a work or student visa can qualify.

  • Location: Borrowers must be a Texas resident.

  • Must have graduated: No. Borrowers with no degree can refinance without a co-signer

  • Must have attended a school authorized to receive federal aid: Yes.

  • Percentage of borrowers who have a co-signer: 29%.

• Repayment optionsRepayment options

  • Academic deferment: No.

  • Military deferment: Yes for up to 36 months.

  • Hardship forbearance: Yes, borrowers are eligible for 12 months of economic hardship forbearance, in three-month increments, over the life of the loan.

  • Natural disaster forbearance: Borrowers affected by a natural disaster may request a forbearance of up to 12 months, in three-month increments.

  • Co-signer release available: Yes, after 12 on-time payments. Borrower will also have to pass credit check.

  • Death discharge: Yes.

  • Disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

  Repayment Preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No.

• Customer serviceCustomer service

  • Loan servicer: American Education Services (AES).

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: Yes.

  • Average time from approval to payoff: Funds could be dispersed as quickly as five business days.

Before refinancing with Brazos

Before deciding on a student loan refinance lender, compare student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer for borrowers who are struggling to make payments.

If you aren’t eligible to refinance with Brazos

If Brazos denies your refinance application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or need a co-signer.

NerdWallet recommends prequalifying with multiple refinance lenders before you apply. This will let you know which lenders you may be eligible with, without affecting your credit.

STUDENT LOAN REFINANCE RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

Full review

Brazos Parent Loans allow parents or other creditworthy individuals, who are Texas residents, to finance a benefiting student's undergraduate or graduate education at one of over 2,000 eligible schools nationwide. The benefiting student does not have to be a resident of Texas.

Consider a parent loan only after your child has maxed out all federal student loan options and your finances are strong. A parent loan will be your responsibility to pay unless your child refinances the debt with a private lender in their name.

Brazos Parent Loans private student loans at a glance

• Available to Texas residents only.

• Can finance undergraduate and graduate degree programs.

• Children don't have to attend college in Texas.

• No origination fee.

How Brazos Parent Loans could improve

Brazos could improve by offering additional programs such as:

• Longer than 12 months of forbearance.

• Academic deferment for parents while their children are in school.

Brazos Parent Loans private student loan details

• Interest rates, fees and termsInterest rates, fees and terms

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: 5, 7, 10, 15 or 20 years.

  • Loan amounts: From $1,000 up to the cost of attendance minus other financial aid.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes, 5% of the monthly payment or $35, whichever is less.

  Compare Brazo's range of interest rates with other parent lenders. Your actual rate will depend on factors including your — or your co-signer's — credit history and financial situation. To see what rate Brazos will offer you, apply on its website.

• RequirementsRequirements

  Financial

  • Minimum credit score: 680.

  • Minimum income: $35,000.

  • Typical credit score of approved borrowers or co-signers: 809.

  • Typical income of approved borrowers: $130,000.

  • Maximum debt-to-income ratio: 85% for borrower or co-signer.

  • Can qualify if you’ve filed for bankruptcy: Must not have had a bankruptcy within the past 5 years.

  Other

  • Citizenship: Must be a U.S. citizen or permanent resident. If applying with an eligible co-signer, a non-citizen with a work or student visa can qualify.

  • DACA borrowers: DACA students may qualify with an eligible cosigner.

  • Location: Borrower parent must be a Texas resident, but students do not have to attend college in Texas to qualify.

  • Must be enrolled half-time or more: No. You can be enrolled less than half-time if you are obtaining final credit hours.

  • Loan can be used for past due tuition: Yes.

  • Types of schools served: Must attend a school authorized to receive federal aid.

  • Percentage of borrowers who have a co-signer: 17%.

• Repayment optionsRepayment options

  In-school repayment options:

  • Immediate repayment: Yes.

  • Interest-only repayment: No.

  • Full in-school deferment: No.

  Post-school repayment options

  • Grace Period: No grace period.

  • Academic deferment: No.

  • Military deferment: The military forbearance is intended to cover active duty status in any of the U.S. Armed Forces if either the borrower or cosigner is on active duty. The maximum aggregate time for a military forbearance is 36 months.

  • Economic hardship forbearance: A hardship forbearance may be approved in three-month increments, with an aggregate limit not to exceed 12 months.

  • Natural disaster forbearance: Borrowers are eligible to receive a natural disaster forbearance in three-month increments, with an aggregate limit not to exceed 12 months.

  • Co-signer release available: Yes, after 12 on-time payments. Borrower will also have to pass credit check.

  • Death discharge: Yes.

  • Disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

  Repayment Preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No.

• Customer serviceCustomer service

  • Loan servicer: American Education Services (AES).

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: Yes.

  • Average time from application to approval: Initial approval is online and takes only a few minutes. Brazos verifies income, debt-to-income ratio and other requirements prior to final loan processing.

Before applying for a Brazos Parent Loan

Before taking out a Brazos Parent Loan or any other parent student loan, your child should submit the Free Application for Federal Student Aid, known as the FAFSA, and max out their federal loan options. And make sure the loan payments won't stop you from reaching other financial goals, like saving for retirement.

» MORE: NerdWallet’s FAFSA Guide

Compare federal and private parent student loans to make sure you’re choosing the right option and getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for a Brazos student loan

If Brazos denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other parent loan options or, if you haven’t already, try applying with a co-signer.

STUDENT LOAN RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.