FRANKFORT, Ky. (June 28, 2004)—More than $60 million in defaulted student loans was collected by the Kentucky Higher Education Assistance Authority (KHEAA) and The Student Loan Peoplesm during the fiscal year ended June 30, helping thousands of borrowers get back on track to repaying their student loans.
“We have a responsibility to our borrowers who find themselves in dire financial straits to help them find a way to pay back their student loan,” said Dr. Joe L. McCormick, Executive Director of both agencies. “If we can work with them to find a repayment solution, that has a positive effect on their credit record and allows those payments to be recycled into new loans for future college students.”
McCormick added that KHEAA and The Student Loan People work with borrowers to find the best solution based on each borrower’s situation. Those solutions include loan rehabilitation, loan consolidation and lump-sum settlements.
The $60 million is a record for KHEAA and The Student Loan People and puts the agencies on track to having the third best default recovery rate in the country among agencies that guarantee student loans.
As a state agency, KHEAA not only guarantees student loans but also administers need-based grants, the Kentucky Educational Excellence Scholarship (KEES), work-study and savings programs and provides free financial aid information and college planning materials to Kentuckians.
The Student Loan People, the state’s only public, nonprofit student loan provider, provide Kentuckians the lowest cost student loans in the state through the BestStart, Best in Class and Best in Care programs.
For more information about student financial aid, visit kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; call (800) 928-8926, extension 7391; or fax (502) 696-7373. For more information about student loans, visit studentloanpeople.com; write The Student Loan People, P.O. Box 24266, Louisville, KY 40224-0266; or call (888) 678-4625.