Federal loans should be your first choice when pursuing college funding. Federal loans are the most affordable option, they don’t require a credit check, and better yet, almost everyone qualifies for some level of aid.
To begin applying, your first step is to complete the FAFSA, the Free Application for Federal Student Aid. Here are some guidelines for completing this step of the process:
Here is a brief outline of the federal loans:
Find out more about federal student loans here.
Federal loans and other federal financial aid options should be exhausted before pursuing other types of loans. Other loans should be a second choice because most often, your other options will be private loans, which are made directly from banks. These private loans are typically less affordable, and the higher interest rates generally make them a risky proposition for students and their families. Private loans are also credit-based, and many students will require a co-signor because they don’t have the stellar credit score these loans require.
The Kentucky Higher Education Assistance Authority (KHEAA) has been helping state students plan their college educations for years. One of their best options is the Kentucky Advantage Education Loan (KAEL), which is an excellent supplemental choice for college students living in Kentucky.
The KAEL is intended to fill the gap between the cost of college and amount of other financial aid which is received, which means the KHEAA encourages students to use all available federal funding before pursuing the loan.
The loan is distributed by Kentucky Higher Education Student Loan Corporation (KHESLC). KHELSC is a public, nonprofit organization established by the Kentucky General Assembly in 1978 to help Kentuckians pay for higher education.
The Kentucky Advantage Education Loan comes with two different types of repayment plans:
The minimum loan amount is $1,000. The maximum aggregate loan amount is $75,000. The school you plan on attending certify that the KAEL is needed to pay educational costs.
To be eligible for a Kentucky Advantage Education Loan, you must:
To apply for the loan or find out more information, follow this link. More information on the loan or it’s eligibility requirements can also be found by calling 1.888.678.4625.
For more information on student loans for Kentucky residents visit the KHEAAwebsite.