Kentucky parents who need help paying for a child’s college expenses may want to consider a Kentucky Advantage Parent Loan from the Kentucky Higher Education Student Loan Corporation (KHESLC).
The low-cost, state-based loan can fill the gap between other financial aid a student receives and the total cost of education. It has a fixed interest rate lower than that of the Federal PLUS Loan. In addition, a parent can use the KHESLC loan to help pay for a student attending graduate or professional school.
Students should apply for all free aid, such as grants and scholarships, and Federal Stafford Loans before parents turn to a private loan.
To qualify, a borrower must:
• Be the parent or stepparent of an undergraduate or graduate student, as determined by the Free Application for Federal Student Aid (FAFSA).
• Be a Kentucky resident.
• Be a U.S. citizen or a non-citizen with a proof of residency card.
• Have an acceptable credit history or an approved cosigner.
The loan is only available to parents who reside in Kentucky.
Borrowers who begin repaying the loan while in school pay a fixed interest rate of 7.25 percent and a 2 percent guarantee fee. If payments are postponed until after the student finishes school, the interest rate will be 7.75 percent and a guarantee fee of 3 percent. Borrowers will also receive a 0.5 percent interest rate reduction for auto debit payments.
Applications may be submitted online at www.kheslc.com. For more information, call 888-678-4625.
KHESLC is a public, nonprofi t corporation that provides education loans for students and parents. It was established by the Kentucky General Assembly in 1978.