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Kentucky Higher Education Assistance Authority
Kentucky Higher Education Assistance Authority
P.O. Box 798
Frankfort, KY 40602-0798
Phone: (502) 696-7200
Toll-Free: (800) 928-8926
Fax: (502) 696-7496
TTY: (800) 855-2880
Website: http://www.kheaa.com/
Kentucky uses the Federal Family Education Loan Program (FFELP) for its
federal student loans
. The state established a lending agency called the Student Loan People to manage these and to offer their own alternative loan, the 'Student Loan People’s Advantage Loan'.
| On Aug. 12, 2008 the KHEAA announced that the Student Loan People would "run out of money" to loan students until Aug. 21 when federal emergency funds would arrive. On Aug, 14, 2008, the governor announced a unique creative financing solution in which the state bought a $50 million bond from the Student Loan People to be repaid at 3.2% interest. This "bridge loan" allowed lending to continue until the federal money arrived. |
Although the KHEAA and the Student Loan People share a site, the KHEAA provides an alternative loan comparison chart that shows that some lending companies do in fact offer better benefits than SLP. (such as a 0% origination fee- SLP offers 0-9%) The KHEAA pays the federal default fee for Kentucky schools and offers a .25% interest rate reduction for auto-debit.
Kentucky participates in the federal Stafford Teacher Loan Forgiveness Program with benefits of: - up to $5,000 in loan forgiveness (for 5 years teaching)
- up to $17,500 in loan forgiveness (for being a secondary math or science teacher or a teacher of special education)
- loan cancellation if you have taught in a low-income school
Kentucky had participated in the Child Care Provider Loan Forgiveness Program, but the U.S. Department of Education is no longer accepting new applicants into the program. (although renewal benefits for participants continues)
| The Kentucky Higher Education Assistance Authority announced that Kentucky's "Best in Class loan-forgiveness program for teachers is being phased out due to federal cutbacks in aid to loan providers. Students who took out loans after June 30,2008 will not be eligible for loan forgiveness under this program. |
The Kentucky Higher Education Assistance Authority gives students as much information as it can to enable them to make unbiased lender decisions.
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