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Your Future   |   Financial Aid   |   Apply   |   What You'll Pay   |   Repayment
Best Start


Best Start Loan
for KY students

0% origination fee
0% federal default
fee

Learn More...

Adults - Student Loan Repayment
Do You Have a Defaulted Loan?

If you have a student loan and your payments are 270 days or more past due, you are in default.

A defaulted loan means:

  • The full balance of your loan becomes due.
  • A collection cost of 24.34% of your balance is added to your loan.
  • The worst possible credit rating is reported to consumer reporting agencies.
  • You may be denied credit for a cell phone, a home, a car, etc.
  • All student financial aid is stopped.
  • Eligibility for deferment and forbearance is lost.
  • Your account may be assigned to a collection agency.
  • Your state and federal tax refund may be seized each year and applied to your loan.
  • Your wages may be garnished.
  • The loan is usually not dischargeable through bankruptcy.

If you are not able to pay your defaulted loan balance in full, you may be eligible for rehabilitation by making nine consecutive, voluntary, full, on-time monthly payments. These monthly payments must continue until you receive written notification that a lender has repurchased the defaulted loan. The benefits of successfully completing a rehabilitation program include:

  • Your loan will be out of default.
  • Your eligibility for financial aid will be restored.
  • You may regain eligibility for deferment and/or forbearance.
  • The negative credit rating, as reported by KHEAA, will be removed.
How do you repay?
  • Phone: You may speak with one of our Debt Recovery Representative at 800.928.4241 to set up recurring payments to be drafted each month.
  • Monday Gram
  • Charge Smart Make your payments online at https://kheaa.chargesmart.com/ with a debit or credit card.
  • Mail a check to:
    Kentucky Higher Education
    P.O. Box 4869
    Frankfort, KY 40604-4869
How do you contact us?
  • Call us toll-free at 800.928-4241. Office hours are 8 a.m. to 8 p.m. Eastern Time Monday through Thursday, and 8 a.m. to 4:30 p.m. on Friday.

Updated: 04/09/2009

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