FAQ

Additional Information

Before you apply for a private parent loan, review the school’s financial aid award letter to determine how much you may need to borrow after your daughter/son takes advantage of grants and scholarships.

Do you have additional questions?

You can contact our Advantage Loan advisors toll free at 800‐988‐6333, Monday through Thursday, 8:00 a.m. to 7:30 p.m., and Friday, 8:00 a.m. to 6:30 p.m. (ET), or email advantageloans@kheslc.com if you have additional questions.

Do you currently have an Advantage Education Loan, Advantage Parent Loan or Advantage Refinance Loan and have servicing questions?

Your Advantage Loan is serviced by Kentucky Higher Education Student Loan Corporation (KHESLC). You can contact a KHESLC Servicing Specialist at 800-693-8220 or 888-599-7768, Monday through Thursday, 8:00 a.m. to 5:30 p.m. (ET) and Friday 8:00 a.m. to 4:30 p.m. (ET) or email Servicing@kheslc.com if you have additional questions.

I forgot my User ID/Password. How do I access my application?

You can either click the link to reset your password or call our Technical Support at 877-214-6119.
Still can't find your question? View all questions and answers.

How to Help the Student

Is there a loan that I can take out for my child's college education?
Many parents or stepparents want to be able to pay for their children’s college expenses rather than having the student take on all the responsibility. The Advantage Parent Loan can help, especially with low FIXED rates and NO fees.

The Advantage Parent Loan:

  • Covers the cost of college without adding the burden of debt to the student.
  • Enables parents and stepparents to borrow a private parent loan under their own signature for their student.
  • Is often a better alternative to the Federal PLUS Loan for qualified applicants.
  • Allows you to pay for a student's expenses, in part or in full, without having to tap into your own savings, investment or retirement funds.
  • Offers better benefits than some other types of credit.
Any other way I can help my student pay for college?
Parents or stepparents can also cosign an Advantage Education Loan for which the student applies. By agreeing to share equal responsibility for repayment, a creditworthy cosigner may help a student qualify for a student loan and/or receive a lower interest rate. Anyone of legal age who is a U.S. citizen, U.S. national or permanent resident alien with proper evidence of eligibility, has a permanent U.S. address and meets general loan eligibility and credit requirements, can cosign — a parent, guardian, spouse, relative or even a friend.

Private Parent Loan Basics

Private Loans

What is a private education loan?
A private education loan is a consumer-based loan that is borrowed through a bank or private lender. Private loans are subject to credit approval. Encourage your child to explore all student scholarship, grant and federal borrowing options before you apply for a private parent loan.

Private education loans are also known as school-certified private loans or alternative student loans. The money borrowed through a private education loan can be used for tuition, room and board, books and supplies, a computer, studying abroad and more. The loans must be repaid based on the terms and conditions of the loan note you sign when you take out the loan.

What is the main difference between private and federal education loans?
Private education loans are issued by a bank or financial institution, as opposed to federal education loans, which are offered by the government.
What are my responsibilities as a private parent loan borrower?
The credit agreement (sometimes called a promissory note) explains all borrower and cosigner obligations.

Among them are the following:

  • Private parent loan borrowers and their cosigners, if applicable, are responsible for paying back the loan, even if the student doesn't complete coursework, doesn't graduate from college or can't find a job after graduating.
  • Private parent loan borrowers and their cosigners must notify the lender or servicer if:
    • There is a change in name, address, phone number or Social Security number.
    • The student drops below half-time enrollment status.
    • The student graduates, withdraws or transfers to another school.
    • Scheduled loan payments cannot be made as scheduled.
    • Loan repayment needs to be delayed or put on hold.
    • The student or cosigner becomes an active servicemember in the military.
  • Borrowers and cosigners should open and read all mail related to the loan.
What types of private loans do you offer?
The Advantage Education Loan program includes:

Advantage Parent Loans

Is the Advantage Parent Loan a secured loan?
No. This is an unsecured loan available to qualified applicants — a non-collateral loan.
My daughter/son has received the financial aid award letter but still needs additional money to cover the school costs. Are there loans I can apply for?
Apply for the Advantage Parent Loan. In general, private loans allow you to borrow whatever is needed to cover the balance for the year. These loans are credit based, so some parents may require a creditworthy cosigner to be approved. Also check out the Advantage Student Loan.
Who is eligible for an Advantage Parent Loan?
An eligible borrower must:
  • Be a U.S. citizen or noncitizen with proof of residency card.
  • Be the parent or stepparent of an eligible student.
  • Have an acceptable income and credit history or an approved cosigner.
Should I apply for a parent loan if the student hasn’t finished applying for scholarships and grants?
We recommend students first obtain as much money as possible from scholarships and grants since they do not have to pay back these types of financial aid. Once the student has maximized these options, you will know exactly how much money is still needed for school. If you need to borrow money, only apply for what is needed.
If the student plans to go to school half time, am I eligible for an Advantage Parent Loan?
Parents of students attending school full time or half time are eligible to borrow an Advantage Parent Loan.
What if the student is attending school less than half time? Am I still eligible for your parent loan?
You may still qualify for an Advantage Parent Loan; however, the student’s less than half-time enrollment requires you to sign up for the Immediate Repayment – Principal Plus Interest option.
Can I still apply for a parent loan if the student is studying abroad this semester?
Yes. You can apply as long as we have a lending relationship with the school and the school's main campus is based in the US.
How do I know if the student’s school is an approved school?
When completing the application, select the school’s state and then a list of schools in that state will be shown in a drop-down box. If the branch of the school is not listed, please choose the main campus. If the school does not appear at all, please contact us at 800-988-6333 or email us at advantageloans@kheslc.com.
I already have an Advantage Parent Loan. Do I need to apply for a new loan each year?
Yes. You will need to complete an application each year you need additional funds from the Advantage Parent Loan program.
Do I qualify for a tax benefit on my parent loan?
Advantage Parent Loans are considered education loans for federal and state tax purposes. Please contact a tax advisor to see if your loans are eligible for interest deduction.
Who owns my Advantage Parent Loan?
Advantage Parent Loans are owned, managed and serviced by the Kentucky Higher Education Student Loan Corporation (KHESLC), a not-for-profit entity. We do not sell or subcontract our loans.
How can you offer fixed interest rates that are lower than other lenders?
With Advantage Parent Loans, our low FIXED rates are due to our not-for-profit status. We reinvest profits back into the Advantage loan program. Monies made on our loans go to help students and families – not into the pockets of executives or shareholders.

Decisions Before Application

Funds Can Be Used For

What can an Advantage Parent Loan be used for?
The loan can be used to pay for the student’s qualified education expenses, such as:
  • Tuition
  • Room and board
  • Fees
  • Books
  • Supplies and equipment
  • Computers and electronics for school
  • Transportation
  • Personal needs at school
Can my loan cover the student’s past due college account balances?
Yes. The Advantage Parent Loan can be used to cover a prior academic period balance as long as it is not more than 60 days past the end of the loan period and the student is enrolled in a subsequent term.
Can I use Advantage Parent Loan funds for the student’s living expenses?
Yes. In addition to tuition, books and fees, our private parent loan may be used to help cover the student’s living expenses.
Can I borrow a loan to help pay for the student’s books and personal expenses while at school?
Yes. Our Advantage Parent Loan can be used to help pay for indirect costs (books, fees, personal items, etc.) while the student is enrolled in school. The maximum you can borrow each year is determined by the individual school.

Picking Your Repayment Option

What repayment options are available?
When applying for an Advantage Parent Loan, you can choose one of three repayment options that allow you to either postpone payments or start making total or partial payments while your child is in school. Once you select the repayment option you’d like and complete the application, you cannot make further changes to the repayment plan.

Repayment options:

  • Immediate Full Repayment — With this option, regular loan payments of both the principal and the interest begin within 60 days after the school receives the final disbursement (loan funds). This option will save you the most money overall if you can afford to make payments while the student is in school.
  • Immediate Interest-Only Repayment — You pay only the accrued monthly interest while the student is in school. Principal and interest payments begin six months after the student’s graduation or if the student drops below a half-time status.
  • Postponed Repayment — Both the principal and interest payments are postponed while the student is in school at least half time. Principal and interest payments begin six months after the student’s graduation or if the student drops below a half-time status. Postponed Repayment is the most costly repayment option because any interest that has accrued while the student is in school and in the grace period will be capitalized (added to the loan’s principal balance) when repayment begins. Opting to make payments while the student is in school isn’t required, but doing so will typically lower the total amount of interest paid over the life of the loan.

With any option, interest that is unpaid will accrue and will be capitalized at the time repayment begins. The repayment option you choose can make a big difference in your loan's overall cost — so review your options carefully. It's essential to understand how your rates and payments will be affected by your choices, because once you complete your loan application with those selections, you cannot make any further changes. When you apply, a repayment calculator will be available to check the impact of different repayment options to the loan's overall cost and estimated payment amounts.

What is a grace period?
Once the student has graduated, left school or dropped below half-time status, loans enter a period known as the grace period. During this six month period, you’ll continue with the original payment option (Immediate Full Repayment, Immediate Interest-Only Repayment or Postponed Repayment). Once the grace period is over, you will be in full repayment status.

NOTE: You may only use this six-month grace period, in full, one time per loan. If the benefitting student goes back to school and you take out a new Advantage Parent Loan, you will have a grace period on the new loan, depending on the repayment option you choose when applying.

How Much to Borrow

How do I figure out how much I'll need for my child’s college costs?
The best place to start is the school's financial aid office. Tuition and fees are not the only costs for attending college. The financial aid office can provide estimates for costs such as housing, books, food and transportation. Once you know the total of all these costs, you need to determine how much financial support your family can provide to the student. The difference between the total cost and the family's resources will give you a good idea of how much is needed.
How much can I borrow?
Don’t borrow more than what is needed. Federal or private student loans shouldn’t be used for vacations, entertainment or items that aren’t directly needed for education. Only borrow what you can afford to pay back later. Your total monthly parent loan payment should be no more than 10–15 percent of your monthly salary.

The minimum loan amount is $1,000. The minimum monthly payment is $50.

As a parent, if I have other education loans in my name, do they influence the amount I can borrow?
Yes. The credit review for an Advantage Parent Loan will take into consideration the aggregate education loan debt (both federal and private) of the parent and, if applicable, the cosigner.
  • When there is no cosigner, we take the parent’s aggregate education loan debt into consideration.
  • When there is a cosigner on a loan, we take the parent’s and cosigner’s aggregate education loan debt into consideration.

Interest/ Fees/ Credit Check

Are the interest rates fixed or variable?
All interest rates for the Advantage Parent Loans are FIXED, which, depending on the size of the loan, could save you hundreds or even thousands of dollars compared to other lenders.
What is the difference between an interest rate and APR?
The interest rate is the percentage of the loan amount that is charged for borrowing money. The annual percentage rate (APR) includes the interest rate plus any additional fees charged by the lender and represents the total cost of borrowing. Advantage Parent Loans have NO fees!
How do you determine the interest rate on my loan?
Your specific FIXED interest rate is based on creditworthiness, that is, your credit history, income, repayment plan selected, state of residence and other factors. Take advantage of our autopay service for even lower rates.
Can I find out what my interest rate will be before I begin the application?
Yes, with our payment calculator, you can see your possible interest rate.
How is the accrued interest calculated on my Advantage Parent Loan?
Interest accrues daily and is calculated as simple interest based on the number of days between each payment. Simple daily interest means that each day the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate that day's interest amount. For example, if you have a $10,000 loan and the interest rate is 4%, one day's interest will be ($10,000 x 0.04) / 365 = $1.92.
Are there any fees associated with getting an Advantage Parent Loan?
There are no fees and no prepayment penalties.
What credit score do I need in order to get the lowest interest rate on my loan?
Our credit decision and interest rate is determined by multiple factors, not just your credit score. Your FIXED interest rate is based on creditworthiness, that is, your credit history, income, repayment option you choose, borrower's state of residence and other factors.
What types of credit inquiries does the Advantage Parent Loan program make?
We perform a hard credit pull to get your actual rate. This check will show up on your credit report and may affect your credit score. The same applies for a cosigner, if applicable.
Can you check if I am approved without pulling my credit?
No. Our approval of your loan is based on your credit history and other factors. We need to pull your credit to determine if you are eligible. We perform a hard credit pull to get your actual rate. This check will show up on your credit report and may affect your credit score.

Your Application

When to Apply

Does the student need to file the Free Application for Federal Student Aid (FAFSA) to apply for a federal student loan?
In most instances, students should submit a FAFSA every year for federal funding. The forms are available October 1 of each year. Students may also need to complete the school’s own financial aid application. Check with the college or university to be sure.
Does the student need to file the Free Application for Federal Student Aid (FAFSA) to apply for a private student loan?
Students should submit the FAFSA when going to college to verify if they qualify for grants and scholarships, which do not have to be paid back. Once that is known, you can determine how much additional money you will need.

For our private parent loans, you will need to submit our application each year you need additional funds from the Advantage Parent Loan program.

When should I apply for financial aid?
For private parent loans, we recommend that you allow enough time to be sure that you can complete the process comfortably before funds are due to the school or needed. You will need to complete an application each year you need additional funds from the Advantage Parent Loan program.

Steps to Application

What is the private parent loan application process?
There are six steps to the Advantage Parent Loan application process. These steps may require specific actions to be completed by you, your cosigner or the school in order to successfully progress through the application process.
  • You must complete the online loan application.
  • You must submit the required loan documents.
  • Your school must certify the loan.
  • You must review and accept your Approval Disclosure.
  • You must review your Final Disclosure.
  • The loan funds will be sent to the school.
  • Please pay attention to emails and messages from Advantage Parent Loans, as well as from KHESLC, the owner of the loan.

What information do I need when filling out the application?
The information you should have handy when filling out the application includes:
  • Your permanent U.S. address. If you've lived at your address less than one year, you'll need to provide your previous address too.
  • Your Social Security number.
  • Benefitting student information including:
    • Student’s name and Social Security number.
    • College or university name, enrollment status, year in school, major or course of study, degree expected, and grades.
  • Loan amount you’re requesting, cost of attendance and estimated amount of financial assistance you expect to receive (if applicable).
  • Two personal contacts to use as references, other than your cosigner (if applicable.)

Consider applying with a cosigner. Although a cosigner is not required to apply, having a cosigner may help you qualify and/or receive a lower interest rate. If you’re applying with a cosigner, we’ll ask your cosigner to provide some information and documents about his or her circumstances too.

What additional documents need to be submitted with the application?
Documents to be submitted include:
  • Employment and income information for the borrower and/or cosigner (if applicable), including the employer’s company name and your gross income. Submit either a W2 or 1040 tax form along with a current pay stub, or two recent pay stubs in lieu of a W2.
  • Financial information, including your bank accounts, and monthly mortgage or rent payments.

Consider applying with a cosigner. A cosigner may help you qualify and/or receive a lower interest rate; however, a cosigner is not required to apply. If you’re applying with a cosigner, we’ll ask your cosigner to provide some information and documents about their circumstances too.

What is an Application and Solicitation Disclosure (ASD)?
Regulations governing private education loans require three disclosure documents be provided to borrowers during the application process: an Application and Solicitation Disclosure (ASD), Approval Disclosure, and Final Disclosure. About the ASD:
  • This form will be provided during the application process.
  • The ASD displays current interest rate ranges, loan cost examples, federal student loan alternatives, and other general loan information.
  • Completion of an application is not required in order to view an ASD with current interest rates; however, all applicants must acknowledge that they have reviewed this disclosure before continuing the application process.
What if the student’s school is not listed on the drop down list of approved schools?
If you don’t find the applicable school on the drop down box within the application, please call 800-988-6333 or email us at advantageloans@kheslc.com.
How do I check the status of my application or my cosigner application?
Please call 800-988-6333 or email advantageloans@kheslc.com to check the loan status. We will also contact you whenever the status changes.

Cosigner

What is a cosigner?
A cosigner is an additional applicant who takes on the same legal responsibility as the primary borrower. The cosigner usually has a more established credit history and can sign the promissory note for the loan along with the primary borrower.
Why is a cosigner important?
Many borrowers don't have substantial credit histories to qualify for a loan on their own, or may have other concerns about being approved for a private loan. Adding a creditworthy cosigner may help them qualify and/or obtain a lower interest rate.
Do I need a cosigner?
Cosigners are generally needed if a borrower doesn’t meet certain minimum requirements, such as having a good credit history, being employed and meeting the income-to-debt ratio. A cosigner is not required to apply, but applying with a creditworthy cosigner may help you qualify and/or receive a lower FIXED interest rate.
How is a cosigner added?
Applying as a cosigner is quick and easy. When applying with a cosigner, both you and the cosigner will complete the application for credit, sign the loan note and become responsible for repayment of the loan obligation. Either the cosigner or the primary borrower can start the application online.
What makes a good cosigner on a loan?
A good cosigner:
  • Has a substantial credit history
  • Does not have any serious negative items on his or her credit report
  • Meets his or her credit obligations on time
  • Is not overburdened with debt
  • Has steady employment and/or income sufficient to meet debt obligations
How many cosigners can be on an Advantage Parent Loan?
One cosigner can be on the loan. The cosigner is in addition to the primary borrower.
What happens after the primary borrower adds me as a cosigner to their application and you check my credit?
We will notify the primary borrower immediately if you pass the credit requirements of the loan and we will notify you if you need to come back to look at the terms and conditions and sign the loan documents. If we are unable to approve your credit, we will send you a letter notifying you of our credit decision.
Can I withdraw my cosigner application after I submit it?
Yes. You can withdraw your cosigner application any time before the primary borrower selects you as a cosigner. The primary borrower has 120 days to accept your cosigner application information. Once the primary borrower selects you as a cosigner, you can no longer withdraw your information online.
What happens to my application if the primary borrower does not select me as a cosigner?
If the primary borrower doesn't select you as a cosigner within 120 days, your information will expire.
If I cosign a loan, am I responsible to pay it back if the primary borrower doesn’t make payments?
Yes. A cosigner is considered a co-borrower and is equally responsible for repayment of the loan.
How do I check the status of my application or my cosigner application?
Please call 800-988-6333 or email advantageloans@kheslc.com to check the loan status. We will also contact you whenever the status changes.
Can a cosigner view the borrower’s loan account online?
Yes. Cosigners can view and manage the primary borrower’s account for which they are cosigned via KHESLC.com.
As a cosigner, can I receive statements?
We only provide statements (paper and online) to the primary borrower. However, for any loan you have cosigned, you can view the loan’s balance, monthly payment amount and payment due date by logging in to the borrower’s account via KHESLC.com.
Can the cosigner be released from the loan?
A cosigner can be released after the borrower has made 36 consecutive on-time monthly principal and interest payments.

Processing Your Loan

Certification

What is School Certification?
Private lenders require the school to certify (or verify) loan amounts to ensure the total does not exceed the cost of attendance, as well as verify enrollment. Also during the certification process, the lender is obtaining the school’s disbursement dates to ensure that the funds arrive on time.

A certification request is sent to your daughter/son’s school after your loan is approved. All schools have different processes for certification — some certify daily, weekly, biweekly, etc.

Does the school have to certify my loan?
Yes. The financial aid office at the student’s school certifies the loan amount. The school will not certify an amount that is higher than the cost of attendance (tuition, plus fees, books, housing, etc.).
What is a Self-Certification form, and why do I need it?
The purpose of the federally-required Self-Certification form is to help ensure an applicant does not borrow more than they need when applying for a private student or parent loan. Information required to complete this form includes total cost of attendance (including tuition, fees, room & board, etc.), estimated amount of financial aid, and the difference between the total cost of attendance and estimated financial aid.

The federal government mandates certain regulations be followed for private education loans in an effort to provide more transparency to borrowers. The Applicant Self-Certification is one of those mandates. About this form:

  • This form is provided during the application process but it can also be obtained from the school’s financial aid web site.
  • All private student loan lenders must obtain this form prior to disbursing any private loan funds.
  • During the application process, you will be asked for your child’s total cost of attendance and estimated financial assistance in order to complete the form.
How can I increase my loan if my child’s school certified for a lower amount than what I requested?
The school certifies the amount so you do not borrow more than is needed. If you think the school certified a lower amount in error, please speak to the financial aid office.
Once my loan application is submitted to the school for certification, how long before the funds disburse?
School certification timeframes vary by school but typically take 3-5 weeks to process. Once the school certifies your loan, they will schedule the disbursement date(s) and disbursement amount(s).

Processing

How quickly does the loan processing take once I’m approved for the Advantage Parent Loan?
Once approved and all documentation has been received, the processing should take 2– 3 business days. Disbursement times vary based on the school’s request.
How do I sign my loan documents?
The quickest way to complete and sign your documents is to log in to https://www.kheaa.com/privateloan using the login and password supplied to you (your Case ID, last name and last 4 digits of your Social Security number). Once logged in, you can simply follow the prompts to read and electronically sign your loan documents. Make sure to print a copy of your documents for your records.
I need to send in supporting documents for my Advantage Refinance Loan. How can I do that?
You may send in your supporting Advantage Refinance Loan documents(s) via:
  1. Online Document Upload — Upload your documents securely from anywhere, anytime when you log in to kheaa.com/privateloan with your case ID, last name and last 4 digits of your Social Security number.
  2. Special Delivery (FedEx, UPS, etc.) — KHEAA, 100 Airport Rd, Frankfort, KY 40601
  3. U.S. Postal Service Mail — P.O. Box 4250 Frankfort, KY 40604-4250
  4. Fax — 502-696-7305

Keep a copy of your documents. Once you send us your documents, it usually takes about 3-5 business days for us to process your documents. We will contact you if we need additional information.

How do I check the status of my application or my cosigner application?
Please call 800-988-6333 or email advantageloans@kheslc.com to check the loan status. We will also contact you whenever the status changes.
I forgot my User ID/Password. How do I access my application?
You can either click the link to reset your password or call our Technical Support at 877-214-6119.

Disbursement

How does disbursement work?
Once your loan has been approved and all the disclosures have been sent to you, your parent loan is ready to be disbursed. A disbursement means the loan funds are sent to the school and may be divided into multiple disbursements (usually one per semester).

If you chose a repayment option that requires in-school payments, your monthly payments will begin within 60 days after the funds are fully disbursed.

How do I get my funds sooner than the scheduled disbursement date?
Disbursement dates are set by the school. If funds are needed sooner, talk to the school's financial aid office as they may be able to adjust the disbursement dates.
Do private parent loan funds come to me or go directly to the school?
Once the Advantage Parent Loan is approved and processed, the loan funds are sent directly to the school.
How quickly can the school get the loan funds?
If you're concerned about timing, you can speed up the process by electronically uploading all supporting/required documentation, as well as electronically signing documents included in the loan packet (Credit Agreement, Applicant Self-Certification form, and Approval Disclosure).

If you apply early and documentation is received promptly, the school will likely receive the funds in plenty of time. If you're unsure of the school's loan deadlines, contact the financial aid office or check the school website for a published timeline.

Payments / Repayment

Payments

Who is KHESLC?
Kentucky Higher Education Student Loan Corporation (KHESLC) owns, manages and services Advantage Parent Loans.
When do my principal and interest payments start?
Repayment depends on the repayment option you selected at the time of application.
  • Immediate Full repayment — Full payments of principal and interest begin within 60 days after the loan is fully disbursed.
  • Immediate Interest-only repayment — Interest-only payments begin within 60 days after the loan is fully disbursed. Full payments of principal and interest begin six months after the student leaves school or drops below half time.
  • Postponed repayment — Full payments of principal and interest begin six months after the student leaves school or drops below half time.
Do I have to make payments on my Advantage Parent Loan while my daughter/son has an in-school status?
The answer depends on which payment plan you selected at the time of application.
  • Immediate Full Repayment — Yes. Full payments of principal and interest.
  • Immediate Interest-Only Repayment — Yes. Interest-only payments.
  • Postponed Repayment — No payments required while the student is in school at least half time.
I picked Postponed Repayment so I don’t have to make payments while my child is attending school. Can I make payments anyway?
Yes. We encourage it. By paying early, you can reduce the amount of interest paid over the life of the loan. You’ll save money on interest in the long run.
What should I know about choosing the Postponed Repayment option — to postpone all payments while the student is in school?
The Postponed Repayment option must be chosen during the application process.

Postponed Repayment is the most costly repayment option because any unpaid interest that has accrued during the time the student is in school and the grace period will be capitalized (added to the loan’s principal balance) when repayment begins.

Opting to make payments while the student is in school isn’t required, but doing so will typically decrease the total amount of interest paid over the life of the loan.

Can I change my repayment plan?
Once a repayment plan has been selected you cannot change it for that loan. However, the Advantage Parent Loan offers the standard repayment and a graduated repayment option. The graduated repayment offers an initial reduced payment followed by a 10% increase in payments every two years for the remainder of the loan term. Payment amounts may change to ensure that the loan is paid off within the remaining loan term. We will let you know at least 30 days in advance if your payment amount will change.
Do you offer extended repayment on private student loans?
The standard loan term is set up for 120 months (10 years). You can request an extended repayment term of 180 months (15 years) if your outstanding Advantage Parent Loan balance is more than $10,000. The extended repayment option is only offered on loans disbursed before May 1, 2017.
Can I change my loan term?
Advantage Education Loans with a balance more than $10,000 and disbursed before May 1, 2017 are eligible for an extended loan term (extended repayment).

The standard loan term is set up for 120 months (10 years). You can request an extended repayment term of 180 months (15 years) if your outstanding Advantage Education Loan balance is more than $10,000. The extended repayment option is only offered to loans disbursed before May 1, 2017.

Will my Advantage Parent Loan be sent to a third party to manage payments and service the loan?
No. Advantage Parent Loans are owned, managed and serviced by the Kentucky Higher Education Student Loan Corporation (KHESLC). We do not sell or subcontract our loans.
What is the autopay or EFT discount?
We offer an incentive to borrowers who participate in our automatic payment (autopay) program via electronic funds transfer (EFT) to make payments on their Advantage Parent Loan account.

To earn a 0.25% interest rate reduction, choose autopay! Using autopay can lead to significant savings over the life of the loan.

When your payments are automatically deducted from your checking or savings account each month with our EFT/autopay, your interest rate on the Advantage Parent Loan may be reduced by 0.25%. Example: A loan having a 3.80% interest rate would be reduced to 3.55% while using our EFT service.

Since there are no service fees for using autopay, sign up as soon as your loans are in repayment and start saving time and money! More info…

How can I pay less interest?
Make payments toward your loans before they are due. Make extra payments. Pay more than your regular monthly amount. Avoid using forbearance — or if you need a forbearance, pay the interest each month before the accrued interest capitalizes at the end of the forbearance period.
Can I pay off the loan early before the payment period ends?
Definitely! There is no penalty for paying off the loan early. Doing so will reduce the amount of interest paid over the life of the loan. Make sure to contact us for the exact payoff amount.

Forbearance/ Trouble Making Payments

What is forbearance?
If you are willing but unable to make payments, you may request forbearance. Forbearance allows payments to stop temporarily or the amount decreased for a specific length of time. You are responsible for repayment of the interest that will still be accruing. At the end of the forbearance period, any unpaid accrued interest will be added or “capitalized” to the principal balance.

If your forbearance allows you to stop making payments, you can make full or partial interest payments at your discretion, in order to lessen the amount of interest that will be capitalized.

Does the Advantage Parent Loan offer forbearance options if I have trouble making payments?
Yes. Borrowers can request to temporarily suspend payments upon a proven economic hardship or during military deployment.

If you have any trouble making your payments, please contact us immediately to explore your options. Contact a KHESLC servicing specialist at 800-693-8220 or 888-599-7768.

Caution:
By using forbearance, interest continues to accrue and will be capitalized (added to the principal balance of your loan) at the end of the forbearance period. To avoid this, you can make payments during forbearance to cover the accruing interest.

Can my Advantage Parent Loan be deferred if the benefitting student goes back to school again?
Only the Advantage Parent Loan with Postponed Repayment chosen is eligible to have the payments postponed while the benefitting student is in school.

If the benefitting student sits out longer than their grace period (longer than 6 months) and then returns to school, the parent borrower cannot postpone payments again.

If you take out another new Advantage Parent Loan and choose Postponed Repayment, then the new loan does not require payment while the benefitting student is in school at least half time.

Can my Advantage Parent Loan be deferred if I go back to school?
Only the loan type chosen for Postponed Repayment is eligible to have the payments postponed while the benefitting student is in school.

Death and Disability

Is my Advantage Parent Loan forgiven should I die or become totally and permanently disabled?
If the parent borrower dies prior to loan payoff, the remaining balance on the parent loan is paid by the cosigner (if applicable.) If there is no cosigner on the parent loan, the balance is paid by the parent borrower’s estate. There is no disability benefit on a parent loan.

Your family or representative can get the loan forgiven by sending proper documentation to KHESLC.

Is my Advantage Parent Loan forgiven should the benefitting student die or become totally and permanently disabled?
If the benefitting student dies prior to loan payoff, the parent borrower and cosigner on the parent loan (if applicable) are released from the outstanding debt.

If the benefitting student becomes totally and permanently disabled prior to loan payoff, the parent borrower and cosigner on the parent loan (if applicable) are still required to make payments.