The Kentucky Higher Education Student Loan Corporation (also known as The Student Loan People), the state’s only public nonprofit student loan provider, has resumed operations after being forced to temporarily suspend operations due to the capital market crisis.
“We are very encouraged by recent guidance from the U.S. Department of Education (USDE), which demonstrates the agency’s intention of furnishing capital to student loan providers to ensure students have access to low-cost loans for higher education,” said Edward J. Cunningham, executive director/CEO of The Student Loan People and Kentucky Higher Education Assistance Authority (KHEAA). “Although details have not yet been finalized, USDE’s commitment enables us to once again accept loan applications and continue fulfilling our public-service mission.”
The majority of Kentucky college students receive loans through The Student Loan People, as opposed to private lenders.
In late April, Gov. Steve Beshear sent Finance and Administration Cabinet Secretary Jonathan Miller to Washington, D.C. to meet with members of Kentucky’s congressional delegation and officials from the U.S. Treasury and the USDE to seek their assistance in addressing the matter.
The Student Loan People was created by the state legislature in 1978 to make higher education more accessible for Kentuckians by making, financing and purchasing student loans.