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Types of Loans   |   Student Loan   |   Parent Loan   |   Benefits
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What We Offer - Repayment Information

Flexible Repayment Options
KHESLC make it easier to repay your student loan with a variety of options including standard, income-sensitive, interest-only and extended repayment plans. Loans are automatically serialized to pay off the oldest loans first. You even receive annual statements of interest paid which may help you claim an income tax credit.

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

  • Electronic Funds Transfer
    Student loan monthly payments can be automatically deducted from the borrower's checking or savings account. Click here to find out more.

  • Standard Repayment
    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, loans are paid off quickly and the interest expense is minimized. However, the minimum monthly payment amount could possibly be higher than other repayment options.

  • Income-Sensitive Repayment
    The payment is based on 4% of your gross income with the payment covering at least the monthly interest. The application will ask you to submit a copy of your pay stub showing your most recent month’s income as well as a letter from your employer stating your position and monthly income. If your Income-Sensitive monthly payment amount is more than your Standard Repayment monthly payment amount, it will be denied.

    Income-Sensitive schedules are set for a year at a time and may be renewed annually up to five years. Lower monthly payments are possible, and the term of the loan may be extended up to five years to match the term of the Income-Sensitive repayment plan. You will pay additional interest over the life of the loan, and this option requires an application and verification of income.

  • Interest-Only Repayment
    This option can only be used for six months at a time for Stafford Loans. No application is needed; however, you must request Interest-Only Repayment in writing (fax, letter or email). Your account must be current to request this repayment option.

  • PLUS Interest-Only Repayment
    This option allows you to make interest-only payments on your loan while your student is in school. The plan is granted for 12 months at a time.
    Download the Interest Only Repayment Form

  • PLUS In-School Payment Postponement/Forbearance
    This option allows you to postpone interest and principal on your PLUS loan while 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 12 months at a time. If you would like this option, complete Forbearance Request Form

  • Extended Repayment
    This option is available only to those who are considered new borrowers on or after October 7, 1998. Borrowers must have federal student loan debt in excess of $30,000. Repayment can be extended over a maximum of 25 years; however, this will increase the amount of interest paid over the life of the loan.

Updated: 11/13/2008