Kentucky Higher Education Assistance Authority
Financial Aid Tip of the Month, October 2007
Many Kentuckians have saved thousands of dollars repaying their student loans by taking advantage of the borrower benefits offered by The Student Loan People, the state’s only public, nonprofit student loan provider.
Borrowers of BestStart Stafford Loans save by paying no origination or default fees when they receive their loan funds. They may also save when repaying their loans. If they make their first 30 payments on time, they may qualify for a 3.5 percent credit to the original principal. They may also qualify for a 0.25 percent interest rate reduction for having payments automatically deducted from a bank account.
Graduate and professional students who borrow BestGrad loans and parents who borrow BestPLUS loans to help pay for a child’s undergraduate education may also save money with The Student Loan People. BestGrad and BestPLUS borrowers pay no default fees and receive a 1 percent interest rate reduction after the loan is fully disbursed. They may also qualify for the 3.5 percent credit for making their first 30 payments on time and the 0.25 percent interest rate reduction for auto debit.
These savings are also available to out-of-state students attending college in Kentucky.
Nurses, educators and public service attorneys who work in Kentucky may qualify for interest forgiveness each year. They may also qualify for up to $10,000 per year in principal forgiveness if they work in certain critical-need areas.
For more information about student loans and these savings, visit www.studentloanpeople.com; write The Student Loan People, P.O. Box 24328, Louisville, KY 40224-0328; or call (888) 678-4625. To learn how to plan and prepare for higher education, visit www.GoHigherKY.org. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, extension 7381.