KHESLC lowers interest rates on college loans

Fixed rates as low as 4.95 percent

LOUISVILLE, Ky. (July 1, 2014) — Kentucky students and parents who need help paying for college loans may now qualify for lower interest rates on Kentucky Advantage Education Loans from the Kentucky Higher Education Student Loan Corp. (KHESLC).

Interest rates on college loans are fixed and are as low as 4.95 percent. The exact rate will depend on creditworthiness and choice of payment plan.

The low-cost loans fill the gap between other financial aid a student receives and the total cost of education. Students should apply for all free aid, such as grants and scholarships, then for Federal Stafford Loans before applying for a private loan.

To qualify for an Advantage Loan, the student must:

• Be a Kentucky resident enrolled in an approved school or a non-Kentucky resident enrolled in an approved Kentucky school;
• Be 18 by the date of application;
• Be a U.S. citizen or a non-citizen with a proof of residency card; and
• Have an acceptable credit history or an approved cosigner.

To qualify for a parent Advantage Loan, the 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 U.S. citizen or a non-citizen with a proof of residency card; and
• Have an acceptable credit history or an approved cosigner.