Kentucky Higher Education Assistance Authority
Graduate students have another college financing option
FRANKFORT, Ky. (April 26, 2006) — Graduate and professional students now have another option to help pay the costs of their education.
Beginning July 1, 2006, students in graduate and professional schools may apply for a Federal PLUS Loan. Prior to this date, PLUS Loans have been available only to parents to help pay the costs of a child’s undergraduate education.
Students who take out Federal PLUS Loans can take advantage of big breaks from The Student Loan Peoplesm, the state’s only nonprofit student loan provider.
Beginning with loans disbursed after June 30, 2006, graduate and professional students who get their PLUS Loans from The Student Loan People will receive these benefits:
· The Student Loan People will pay the 1 percent default fee.
· Borrowers will get a 1 percent interest rate reduction as soon as the loan is fully disbursed. Monthly on-time payments must be made to keep this benefit.
· Borrowers will get a 3.5 percent reduction to the principal after 30 consecutive on-time payments.
· The interest rate will be reduced by 0.25 percent for automatic payments.
The same benefits are available to parents taking out traditional PLUS Loans to help their children pay for college.
PLUS Loans require a credit check. People interested in a PLUS Loan may get immediate preapproval by visiting www.kheaa.com and clicking on the Zip Decision logo.
Borrowers who work as nurses, teachers, school counselors, school librarians or public service attorneys in Kentucky may also qualify for more benefits through The Student Loan People’s Best in Care, Best in Class and Best in Law programs. Those benefits may be worth up to $10,000 per year. For more information, visit www.studentloanpeople.com.
For more information about student loans, call (888) 678-4625 or write The Student Loan People, P.O. Box 24328, Louisville, KY 40224-0328. For more information about Kentucky scholarships and grants, call (800) 928-8926, extension 7381, or write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798. To learn more about how to plan and prepare for higher education, visit www.GoHigherKY.org.