• How can I make a payment?
  • There a variety of ways to make a payment. The payment methods are listed on the Make a Payment page.

  • How are payments applied?
  • If you are in an Income Based Repayment plan, payments are applied to accrued interest, outstanding fees and then principal balance.

    For all other repayment plans or statuses, payments are applied to accrued fees, accrued interest and then principal balance.

    Payments cannot be applied to the principal balance only if there is accrued interest or outstanding fees on the account.

  • How is the daily interest calculated on my loan?
  • The formula to calculate daily interest is:

    Interest rate * current principal balance / 365.25 = daily interest

    Example: A loan has a $15,000 current principal balance and a 6% interest rate

    $15,000*.06 / 365.25 = 2.46406…. (round to $2.47)

  • Can I prepay all of my interest?
  • No, interest accrues daily on your student loan from the day it is disbursed until the loan is paid in full.

  • What is capitalized interest?
  • Capitalized interest is accrued interest that is added to your principal balance. Interest may be capitalized at the end of some payment plans, deferments or forbearances.

  • Can I make a payment to only the principal balance on my account?
  • Payments cannot be applied to the principal balance only if there is accrued interest or outstanding fees on the account.

    If payment is made greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest and fees are paid.

  • Why did so much of my payment get applied to interest?
  • Interest accrues daily for the life of the loans, until they are paid in full. The variance you see is due to the number of days between payments, which can change the amount of accrued interest.

  • Is there a penalty if I pay my loan off early?
  • No. There is no penalty for paying your loan off early.

  • How long after my loan is paid in full will I receive a paid in full letter?
  • Paid in full letters are sent within 120 days of the final payment.

  • How can I tell if I am enrolled in EFT (Electronic Funds Transfer)?
  • If you are enrolled in EFT, you will see an EFT Pull Date listed on the Account Summary page. You can also see what EFT bank account information we have on file on the Update EFT page.

  • How do I sign up for automatic withdrawal?
  • You can enroll in EFT to set up automatic withdrawal for your payments.

  • Does KHESLC accept settlements?
  • KHESLC will not accept settlements of any amount that are less than the total payoff for loans that have not defaulted.

  • How do I make extra payments while on EFT?
  • If you would like to make extra payments, please make the payment at least one week before your payment due date. You will need to contact us with instructions on how you would like your payment applied and if you want your due date advanced. You may also make a payment using KHEPAY, which will allow you to allocate how you want your extra payment applied.

  • How do I cancel a KHEPAY payment I have scheduled?
  • You may cancel a pending KHEPAY payment before 3:00pm eastern time. If a payment was scheduled by a Loan Servicing Representative, you must call us before 3:00pm eastern time to have the payment canceled. The pending KHEPAY payments can be found under KHEPAY Payment History on the Make a Payment page.