FAQ

Additional Information

Before you apply for a private student loan, review the financial aid award letter from your school to determine how much you may need to borrow after taking advantage of grants and scholarships.

Do you have additional questions?

You can contact our Advantage Loan advisors toll free at 800-988-6333, Monday — Thursday, 8:30 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.

Private Student 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 and subject to credit approval. You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private 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 student loan borrower?
The credit agreement (sometimes called a promissory note) explains all borrower and cosigner obligations. Among them are the following:
  • Private student loan borrowers and their cosigners, if applicable, are responsible for paying back the loan, even if the student borrower doesn't complete coursework, graduate from college or cannot find a job after graduating.
  • Private student 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 service member within 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 Education Loans

Is the Advantage Education Loan a secured loan?
No. This is an unsecured loan available to qualified applicants — a non-collateral loan.
I have received my financial aid award letter, but I still need additional money to cover the school costs. Are there other loans I can apply for?
Apply for the Advantage Education Loan. In general, private loans allow you to borrow whatever else you need to cover your balance for the year. These loans are credit based, so most students will probably require a creditworthy cosigner, such as a parent or legal guardian, to be approved. Also check out the Advantage Parent Loan.
Who is eligible for an Advantage Education Loan?
An eligible borrower must:
  • Be a U.S. citizen or noncitizen with proof of residency card.
  • Be enrolled at an eligible school.
  • Be the age of majority at the time of application based on student's state of permanent residence.
  • Have an acceptable income and credit history or an approved cosigner.
Should I apply for a student loan if I haven't finished applying for scholarships and grants?
We recommend you first obtain as much money as you can from scholarships and grants since you do not have to pay back these types of financial aid. Once you have maximized these options, you will know exactly how much money you still need for school. If you need to borrow money, apply for only what you need.
I plan to go to school half time. Am I eligible for an Advantage Education Loan?
Students attending school full time or half time are eligible to borrow an Advantage Education Loan.
I'm attending school less than half time. Am I still eligible for an Advantage Education Loan?
You may still qualify for an Advantage Education Loan; however, your less than half-time enrollment requires you to sign up for the Immediate Repayment – Principal Plus Interest option.
Can I still apply for a loan if I'm studying abroad this semester?
Yes. You can apply as long as we have a lending relationship with your school and your school's main campus is based in the US.
How do I know if my 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 your school is not listed, please choose the main campus. If your 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 Education 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 Education Loan program.
Is there a loan that my parent can take out for my education?
We offer the Advantage Parent Loan, which enables a parent or step-parent to borrow a private loan under their own signature for their student, to cover the cost of college without adding the burden of debt to the student. With no fees and lower rates, qualified applicants may find this loan a better alternative to the federal PLUS Loan. Check our comparison of Advantage Parent Loan to PLUS.
Do I qualify for a tax benefit on my student loan?
Advantage Education 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 Education Loan?
Advantage Education 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 Education 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 Education Loan be used for?
The loan can be used to pay for 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 past due college account balances?
Yes. The Advantage Education 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 you are enrolled in a subsequent term.
Can I use Advantage Education Loan funds for living expenses?
Yes. In addition to tuition, books, and fees, our private student loans may be used to help cover living expenses.
Can I borrow a loan to help pay for books and personal expenses while at school?
Yes. Our Advantage Education Loan can be used to help pay for your indirect costs (books, fees, personal items, etc.) while you are enrolled in school. The maximum you can borrow each year is determined by your individual school.

Picking Your Repayment Option

What repayment options are available?
When applying for an Advantage Education Loan, you can choose one of three repayment options that allow you to either postpone payments or start making total or partial payments while you're 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 in school.
  • Immediate Interest-Only Repayment — You pay only the accrued monthly interest while in school. Principal and interest payments begin six months after graduation or dropping below a half-time status.
  • Postponed Repayment — Both the principal and interest payments are postponed while you're in school at least half time. Principal and interest payments begin six months after graduation or if you've dropped below a half-time status. Postponed Repayment is the most costly repayment option because any interest that has accrued while you're 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 you're 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 you've 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 continue with full repayment status.

NOTE: You may only use this six-month grace period, in full, one time per loan. If you go back to school and take out a new Advantage Education 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 college?
The best place to start is your 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 you. The difference between the total cost and your family's resources will give you a good idea of how much you need to pay for college.
How much can I borrow?
Don't borrow more than you need. Federal or private student loans shouldn't be used for vacations, entertainment or items that aren't directly needed for your education. Only borrow what you can afford to pay back later.

Think about your future career and how much you may make in your chosen field. Your total monthly student loan payment should be no more than 10–15 percent of your starting monthly salary.

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

If I have other student loans, do they influence the amount I can borrow?
Yes. The credit review for an Advantage Education Loan will take into consideration the aggregate student loan debt (both federal and private) of the student and, if applicable, your cosigner.
  • When there is no cosigner, we take the student's aggregate student loan debt into consideration.
  • When there is a cosigner on a loan, we take the student and cosigner's aggregate student loan debt into consideration.

Interest/Fees/Credit Check

Are the interest rates fixed or variable?
All interest rates for the Advantage Education 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 Education 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 Education 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 Education 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 Education 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

Do I need to file the Free Application for Federal Student Aid (FAFSA) to apply for a federal student loan?
In most instances, you should submit a FAFSA every year for federal funding. The forms are available October 1 of each year. You may also need to complete the school's own financial aid application. Check with your college or university to be sure.
Do I need to file the Free Application for Federal Student Aid (FAFSA) to apply for a private student loan?
It's a good idea for students to file 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 student loans, you will need to submit our application each year you need additional funds from the Advantage Education Loan program.
When should I apply for financial aid?
For private student 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 Education Loan program.

Steps to Application

What is the private student loan application process?
There are six steps to the Advantage Education 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.
  • Complete the online loan application.
  • Submit the required loan documents.
  • Your school must certify the loan.
  • Review and accept your Approval Disclosure.
  • Review your Final Disclosure.
  • The loan funds will be sent to your school.

Please be attentive to emails and messages from Advantage Education 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.
  • 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. 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 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 my school is not listed on the drop down list of approved schools?
If you don’t find your 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 their credit report
  • Meets their credit obligations on time
  • Is not over burdened with debt
  • Has steady employment and/or income sufficient to meet debt obligations
How many cosigners can be on an Advantage Student 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 his or her application and you check my credit?
We will notify the primary borrower immediately if you pass the credit requirements of the loan. We will also 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?
The primary borrower has 120 days to accept you as a cosigner. If they don'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 school after your loan is approved. All schools have different processes for certification — some certify daily, weekly, biweekly, etc.

Does my school have to certify my loan?
Yes. The financial aid office at your 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 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 to students 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 total cost of attendance and estimated financial assistance in order to complete the form.
How can I increase my loan if the 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 your 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 Education 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 student 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 your school. If funds are needed sooner, talk to your school's financial aid office as they may be able to adjust the disbursement dates.
Do private student loan funds come to me or go directly to the school?
Once the Advantage Education Loan is approved and processed, the loan funds are sent directly to your school.
How quickly can my 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, your 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 Education 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 leaving school or dropping below half time.
  • Postponed repayment — Full payments of principal and interest begin six months after leaving school or dropping below half time.
Do I have to make payments while I’m attending college?
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 in school at least half time.
I picked Postponed Repayment so I don't have to make payments while in school or during the grace period. 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 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 you are in school and the grace period will be capitalized (added to the loan’s principal balance) when repayment begins.

Opting to make payments while you're 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 Education 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 Education 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 on loans disbursed before May 1, 2017.

Will my Advantage Education Loan be sent to a third party to manage payments and service the loan?
No. Advantage Education 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 Education 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 Education 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/autopay 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 Education 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 Education Loan be deferred if I go back to school again?
If you take out another new Advantage Education Loan for the return to school, and choose Postponed Repayment, then the new loan does not require payment while in school at least half time. If you are out of school longer than the 6-month grace period, you cannot postpone payments again on those loans if you return to school.

Death and Disability

Is my Advantage Education Loan forgiven should I die or become totally and permanently disabled?
No one wants to think about the unfortunate things in life, but should the worst happen, relief is available.

If the Advantage Education Loan student borrower dies or becomes totally and permanently disabled prior to loan payoff, the borrower and cosigner (if applicable) are released from the outstanding debt.

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