Kentucky Student Loans

Don't Overlook All of the Benefits

The Kentucky Higher Education Assistance Authority (KHEAA) is a great resource for students in Kentucky to use when planning for college. This institution was created in 1966 to improve students’ access to higher education. They offer tools to help find schools, prepare for the freshman year, and plan a budget while in school. They also offer a few scholarship programs which are largely funded by the Kentucky Lottery. This program alone provides millions annually to Kentucky college students. The Kentucky Educational Excellence Scholarship provides up to $500 in funding for each year of college. The minimum GPA required is a 2.5. You can also get extra funding if your ACT score is high enough and if you are in either advanced or International Baccalaureate classes.

About Kentucky Higher Education Student Loan Corporation

Where the KHEAA leaves off, Kentucky Higher Education Student Loan Corporation (KHESLC)- also known as Student Loan People- picks up. They aim to expand educational opportunities for all Kentuckians to reach their educational goals. KHESLC offers loans for both students and parents and a calculator to help you find out how much monthly payments will be. Having trouble with paying back your loans? Well, if you received your loan through Student Loan People (SLP) they will work with you to get you back on track. KHESLC also offers free brochures with information regarding types of loans, interest rates, and loan repayment.

Direct Loans from the Government

The Federal Government is a great source when it comes to getting financial aid for college. The William D. Ford Federal Direct Loan Program provides billions in financial assistance annually.

This program also offers borrowers flexible repayment options which can be changed during the life of the loan with no additional fees. All you have to do is fill out a Free Application for Federal Student Aid to register. By filling out this form you apply for all federal aid programs.

Alternative Loans for Kentucky Students

The signature low-interest, long-term alternative student loan offered by SLP is KHESLC’s Advantage Education Loan.

The primary role of this loan is to provide the additional funding students need to pay for college. After you have exhausted all of your other scholarships and grants and still need that little bit to fully cover tuition, room and board, books, and other fees, then is the perfect time to apply for a Kentucky Advantage Education Loan. The minimum amount offered for these loans are $1,000 and the maximum is $75,000. A great feature of the Advantage Education Loan is that students are offered a fixed interest rate based on the repayment plan chosen. Any Kentucky resident is eligible for this award and so are non-Kentucky residents studying at an eligible Kentucky School.

**Tip: Students are encouraged to compare alternative and private student loans through a variety of lenders before making any borrowing decision.

Application Criteria

When applying for the Advantage Education Loan students will be subject to a credit check (you must be 18 years or older to apply). If you don’t have a credit history you may need to find a cosigner- this can be your parent or legal guardian. Depending on the creditworthiness of the person applying for the loan, as stated before, you can earn up to $75,000! There are simple online applications which can give you quick approvals even if you choose not to apply for the KHESLC’s Advantage Education Loan.

Repaying Kentucky Student Loans

Often, students have a difficult time finding a job directly out of college. This could potentially make paying student loans back a tricky task. Most loans offer a six month grace period after graduation before students are required to start repayment. This can be very beneficial to students searching for that first job. However, once all of the loans start looking for their money at the same time, students can be left scrambling for funds.

One of the best weapons that borrows have are loan deferment options. This allows you to either start paying back your loans while in college at a lower rate or allows you to wait till some time after graduation to repay. Knowing which payment option fits best is key. if you feel like you may be one of the ones struggling right out of college, you may decide to start repaying little-by-little early. If you are confident that you will acquire a position in the workforce you may choose to wait. The best way to guarantee that you have the funds to pay back your loans is to study, study, study! Even if you choose an option and are still unable to keep up with payments, you should discuss extended repayment plans with your lender. There are many other factors which may prevent you from making timely payments. Check out KHESLC’s page on the different types of hardships that could occur and what to do in each situation.