The Kentucky Higher Education Student Loan Corporation (KHESLC) offers Advantage Education Student Loans. While the lender is located in Kentucky, Advantage Education student loans are available to people living around the country. The KHESLC offers loans for students and parents along with refinancing options.

Student Loans with KHESLC

Advantage Education Student Loans are available to both students and parents. Students can receive the loans to fund both undergraduate and graduate degree programs.

Student and parent loans currently have a fixed interest rate ranging from 4.05 to 6.99 percent. These aren't the best private student loan rates available - but they are pretty good. The interest rate is based on the payment plan selected and the applicant’s creditworthiness. Borrowers have the option of reducing the interest rate by 0.50 percent by enrolling in autopay. Borrowers also might be able to get a better rate by using a cosigner.

Students and parents must borrow a minimum of $1,000 to be eligible for a student loan. There are no origination fees, and part-time students are also eligible. Part-time students must start repaying both the principal and interest immediately.

Loans come with 10-year repayment terms. The minimum monthly payment is $50, and repayments begin six months after graduating or dropping below half-time status.

Student Loan Refinancing

Students have the option to refinance student loans with KHESLC as well. Advantage Education Student Refinancing loans are currently available with fixed interest rates as low as 3.49 percent.

The interest rate is based on:

  • Credit history
  • Income
  • Types of loans being refinanced
  • Repayment terms
  • State of residence

Borrowers have the option of adding a cosigner to the loan if they need some help getting approved. The loan’s terms include a cosigner release from the debt after the borrower makes 36 months of on-time payments.

Borrowers can choose between 10, 15, 20, or 25-year repayment terms. Regardless of the choice, they won’t have to pay any refinancing fees. They also won’t have to pay prerepayment fees.

These loans have a minimum amount of $7,500 and a minimum monthly payment of $50. All school-certified education loans are eligible for refinancing.

The Benefits and Drawbacks

Advantage Education Student Loans come with various helpful benefits and protections for borrowers.

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First, there are death and disability benefits. Borrowers and cosigners are released from debt if the student becomes permanently disabled or passes away before the debt is paid in full. Parents who take out loans on their child’s behalf are also released from the debt if the child passes away before the loan is paid.

These loans also come with a forbearance option. People who suffer economic hardships can defer repayment of the loan for up to 36 months.

The graduated repayment plan is also helpful. Borrowers have the option of paying less at first and then increasing the payment every two years. Of course, this means borrowers lengthen the loan term and increase the interest paid. Thus, borrowers should consider the benefits and risks before moving forward with this option.

The cosigner release is also a big perk. It can be hard to get cosigners to sign onto a loan. Understanding they can get released from it gives them confidence.

These loans also have low fixed interest rates. The rates are as low or lower than many of the top lenders out there. That makes these loans affordable.

Keep in mind these loans don’t come with the federal student loan perks many borrowers enjoy.

Are Advantage Education Student Loans the Right Choice?

Advantage Education Student Loans have a lot of benefits, so if you can get the best terms possible, they could be a good move. As with any student loan, borrowers should read the fine print, look at their payment options, and decide if it is the right choice for their specific needs.

If so, they can move forward with the application process. It is easy to apply online. Start by filling out the FAFSA, and then head to the website. Borrowers just need to fill out the application to find out if they qualify. If they do, they can receive the money they need for college or graduate school. If they don’t, they can try seeking out a cosigner for help.