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
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.