KHESLC makes 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.
Federal Loan Repayment Plans
- 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).
Repaying Your Federal Loans
Advantage Education Loan Repayment Plans (private loans only)
Make a Payment
The Advantage Education Loan program has three repayment plans. The repayment plan is selected when applying for the loan.
- Full principal and interest payments upon final disbursement
- Interest–only payments for up to 72 months while in school
- Postpone payments for up to 72 months while in school
Once a loan is disbursed, the repayment plan selected during the application process cannot be changed.
Repaying Your Advantage Education Loan
Repaying Your Advantage Parent Loan
You have your choice of five payment methods. Click on the type for more information.
How Payments Are Applied
- 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
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
- 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.
PO Box 9001774
Louisville KY 40290-1774
PO Box 9001780
Louisville KY 40290-1780
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
Payments cannot be applied to principal unless all fees and accrued interest are paid.
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 on the worksheet. Payments will
be applied normally and then adjusted per special instructions in approximately three
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.