KHESLC make it easier to repay your student loan with a variety of options, including standard, income-based, income-sensitive and extended repayment plans. Your oldest loans are paid first. You receive annual statements of interest paid, which may help you claim an income tax credit.

Each repayment plan has its own advantages, so you should carefully consider the benefits of each. There is no prepayment penalty for any of these repayment options. For more information, click on the plan.

• Standard Repayment: Equal monthly payments over 10 years.
  

  Equal monthly payments of principal and interest are calculated so that the student loans are repaid within the standard 10-year term. By not extending the repayment period, you pay your loans off quickly and minimize the interest you pay. However, your minimum monthly payment may be higher than with other repayment options.

• Income-Based Repayment: Takes into consideration your income, family size, and federal education loan debt.
• Income-Sensitive: Based on your gross income and covering at least monthly interest.
  

  The monthly payment amount is based on the greater of either an interest-only payment or 4% of your monthly adjusted gross income, if it can be determined. Income-Sensitive schedules are set for one year at a time and may be renewed annually for up to five years. Your loan term may be extended up to five years to match the term of the repayment plan and you may pay more interest over the life of the loan.
  
  You must provide a completed application and documentation from all sources of income over the previous tax year. If your loans include a spousal consolidation loan, your spouse’s income must be documented as well. Your annual adjusted gross income statement (Federal tax return) may result in the most affordable loan payments. If this does not reflect your current income, you may submit: a letter from your employer stating your position and annual earnings, a written and signed statement of your most recent annual income if you are self-employed, or your pay stubs for the last month. If your monthly Income-Sensitive payment is greater than your monthly Standard payment, your application will be denied. Download the application form here.

• PLUS In-School Payment Postponement/Forbearance: Lets you postpone payments while you or your student is in school.
  

  This option allows you to postpone interest and principal payments on your PLUS Loan while you or your student is in school. Interest will continue to accrue if you select the payment postponement option. Unpaid interest will be capitalized (added to the principal balance) when the postponement period ends. The in-school payment postponement option is granted for one year at a time. Download the form here.

• Extended Repayment: A possible option if you owe more than $30,000 in student loans.
• Graduated Repayment
  

  Start out making reduced payments for the first 2 years. Your payment amount then increases by 10% every 2 years for the remaining loan term. Please contact us for an estimated payment amount. If you have determined this plan is right for you, we must receive your request in writing (fax, letter or e-mail).

You have your choice of four payment methods. Click on the type for more information.

• Electronic Funds Transfer (EFT ): Payments are automatically deducted from your account. You may get an interest rate reduction with EFT.

  Monthly student loan payments can be automatically deducted from your checking or savings account. This option may offer a 0.25% rate reduction incentive. (more info) Download EFT form (PDF).
  
  Please note: Additional payments or large payments will advance your due date and will prevent your EFT payment from being pulled. Please advise us if you do not want to advance your due date. If at any time your bank account or routing information needs to be changed, you must submit those changes in writing to our office at least five days prior to your EFT payment date.

• KHEPAY: Online payment system. This is not the same as EFT.

  Replaces E-Pay as our online payment system. Our new in-house online payment system allows you to make one-time payments or schedule recurring payments up to 6 months in advance. You may also make special allocations to a single loan or group. Please note: KHEPAY and Electronic Funds Transfer (EFT) are not the same. Changes to your bank account or routing information in KHEPAY will not automatically update your EFT account. Click here for Frequently Asked Questions.

• Pay by phone: Lets you make payments by phone using an automated voice system.

  An Interactive Voice Response (IVR) bill payment program can be accessed by calling our toll-free number 1-800-693-8220. Please have your checking or savings account and routing numbers ready.

• U.S. mail: Receive your statements and make your payments by mail.

  Please make checks payable to The Student Loan People. Be sure to include your account number on the check.
  
  

  KHESLC Payments PO Box 9001774 Louisville KY 40290-1774 Default Payments PO Box 9001780 Louisville KY 40290-1780

  Other Correspondence: KHESLC PO Box 24328 Louisville, KY 40224-0328

• ChargeSmart – Debit Card payment (additional fee): Don't have your check book? Make a payment with your debit card. You may make a one–time payment or schedule recurring payments.

  In addition to your payment amount, a convenience fee will be charged for each transaction. This convenience fee is charged by ChargeSmart, LLC, a third–party payment processor.

Payments are applied in the following order, unless in an Income-Based Repayment Plan:

• Outstanding fees
• Outstanding accrued interest
• Principal

Payment cannot be applied to principal unless all fees and accrued interest are paid. Payment reallocations must be requested within 60 days of the payment posting date.

Please note: Large or extra payments may advance your due date. Subsidized and unsubsidized consolidation loans made on the same date will be adjusted to have the same due date.

Special Allocations – For any payment type, if you would like to allocate a payment to a specific group or loan please complete and return the following form: Special Payment Allocation Worksheet. This form may be faxed to 502-329-7077 or mailed along with your payment to the appropriate address listed above. Payments will be applied normally and then adjusted per special instructions in approximately three business days. Payment cannot be applied to principal unless all fees and accrued interest are paid.

Please note: Additional or large payments may advance your due date unless otherwise instructed. Subsidized and unsubsidized consolidation loans made on the same date will be adjusted to have the same due date.

Payment reallocations must be requested within 60 days of the payment posting date.

Updated: 4/29/2010