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What to expect with KHESLC student loan servicing
How repaying your loans works with this Kentucky-based servicer.
Kentucky Higher Education Student Loan Corporation (KHESLC) is a private company established by the Kentucky state government to help residents access higher education. In addition to being behind Advantage Education Loan, it also handles repayments for federal and private student loans.
How repayments work with KHESLC
KHESLC has multiple options when it comes to how you can repay your student loans. If you’re making a repayment for the first time, you might need to have your bank account and routing numbers on hand.
Electronic funds transfer (EFT) involves signing up to have repayments automatically deducted from your checking account on the due date. It’s the most hands-off way of repaying your student loans. Plus, federal and Advantage Education Loan holders get 0.25% knocked off their interest rate.
Follow these steps to sign up for EFT:
Log in to your KHESLC online account.
Click Pay Now.
Click Enroll in EFT.
Follow the directions to fill out the form.
While EFT is easy to use, keep these factors in mind before you sign up:
Additional repayments. If you make an additional repayment while enrolled in EFT, it’ll just push back your due date rather than paying off your loan early — unless you specify otherwise.
Late or bounced repayments. You could lose your interest rate discount if your repayment doesn’t go through on time.
Holiday weekend repayments. If your due date doesn’t fall on a day banks are open, it’ll be processed the next business day and can take up to two additional business days to show up on your account.
Changing accounts. If you want to update your bank account or routing information, you need to do so in writing at least five days before your next repayment is due. Reach out to customer service for instructions.
KHEPAY is KHESLC’s online repayment portal. With this option, you can schedule a one-time payment for direct withdrawal from your checking or savings account up to six months in advance.
Follow these steps to pay with KHEPAY:
Log in to your KHESLC online account.
Click Pay Now.
Click Schedule a Payment.
Enter your bank account and routing numbers, how much you’d like to pay and the date you’d like it to go through.
Save your bank account information to your KHESLC account so there’s no need to enter it again.
Review and confirm your repayment information. At this point, you can also request an email notifying you when it goes through.
Your repayment will go through the same day if you schedule it before 3 p.m. ET. Otherwise, it’s processed the next business day.
KHEPAY is more flexible than EFT, but you won’t be able to qualify for a rate discount. If you want to make additional repayments on your loan, KHEPAY is the simplest way to go.
You can pay off your loan over the phone by calling 800-693-8220. Have the account and routing numbers for your checking or savings account on hand before you get started.
You can send a repayment by check to one of the following addresses, depending on your loan type and repayment status. Include your account number on the check and mail it at least five to seven business days before it’s due to ensure it gets there on time.
Loan type
Mailing address
All loans that aren’t in default
Advantage Education Loans
Advantage Parent Loans
Loans formerly paid to Georgia Student Finance Authority
KHESLC Payments PO Box 9001774 Louisville, KY 40290-1774
All loans in default except Advantage Education and Advantage Parent Loans
KHEAA Payments PO Box 4869 Frankfort, KY 40604-4869
Prefer paying with plastic? KHESLC allows you to make one-time repayments using your debit card through the Kentucky Interactive website. Kentucky Interactive charges a 2.75% processing fee for each repayment, so you might want to save this option for emergencies.
Follow these steps to make a debit card repayment:
Go to the KHESLC website.
Click Payment Solutions in the left-hand menu.
Scroll down and click Kentucky Interactive under the header Make a Payment.
Enter your personal and student loan information. Click Next.
Follow the directions to enter your debit card information and submit your repayment.
How can I pay off my loans early?
You can pay your loans off early online with KHEPAY, over the phone or by mail. If you make an extra repayment, your loan will automatically go into paid ahead status, which means your next repayment due date will be later.
How to avoid paid ahead status
If you don’t want your loan to go into pay ahead status, you have to specify how you’d like the extra repayment to be applied. If you’re sending a repayment by mail, you need to submit a Special Payment Allocation Worksheet, which you can download on its website.
Otherwise, follow the directions to make a repayment by phone or online with KHEPAY. If paying online, click Schedule a Payment followed by Other Payment. Then enter details on how you’d like your repayment to be applied.
How to contact customer service
Like with most student loan servicers, you can contact KHESLC by phone, mail, email and fax. It has different departments for different types of requests and loans.
Federal loans in repayment: 800-693-8220 or 888-599-7768
Advantage Education Loans in repayment: 800-693-8220
Federal loans in default: 800-928-4241
Advantage Education Loans in default: 888-599-3535
Loans formerly serviced by Georgia Student Finance Authority: 888-599-3535
You can send KHESLC a secure email by logging in to your online account.
General correspondence
KHESLC PO Box 24328 Louisville, KY 40224-0328
Credit reporting dispute
Think KHESLC made an error when reporting your loans to one of the three main credit bureaus? Complete a Credit Dispute Form available on its website and send it to the following address:
KHESLC Attn: Credit Dispute Department PO Box 24328 Louisville, KY 40224-0328
Open records request
According to Kentucky state law, you can send a written request to receive copies of any of KHESLC’s public records. This may help if you’re filing a complaint with the Consumer Financial Protection Bureau or another consumer protection organization.
KHESLC Open Records Request 10180 Linn Station Road, Suite C200 Louisville, KY 40223
Borrowers can fax documents and other correspondence to the following numbers:
Loans in repayment: 502-329-7077
Loans in default: 502-329-7260
Open records request: 502-329-7080
How to refinance your KHESLC student loans
You can refinance your KHESLC loans by taking out a new loan with a private lender to pay off your current student debt. It’s the only way to switch servicers if you have an Advantage Education Loan — and can potentially get you more favorable rates and terms.
But if you have federal loans and want to take advantage of income-driven repayment plans, forgiveness programs and other benefits, you might want to look into a federal Direct Consolidation Loan first. Consolidating your loans allows them to stay federal while giving you a chance to switch servicers.
Must read: What lenders does KHESLC service?
Along with servicing federal student loans, KHESLC also handles repayments for Advantage Education loans as well as loans formerly serviced by Georgia Student Finance Authority.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
KHESLC is a small servicer, so relatively few customers have filed complaints against the company. As of February 2019, it only clocked 45 complaints with the Consumer Financial Protection Bureau (CFPB). And only four customers filed complaints with the Better Business Bureau (BBB), which gives it an A+ rating based on factors like time in business and transparency.
Still, there are two issues to watch out for when working with this servicer.
Incorrect credit reporting
One of the most common complaints about KHESLC is that it reported incorrect information to the three main credit bureaus. Some also noticed that the servicer failed to report details about their account. One borrower complained to the CFPB that they were unable to resolve this issue with the company.
How to avoid it: Check your credit report regularly — you’re entitled to three free copies a year. Find an error? Download and fill out a Credit Dispute Form from the KHESLC website and mail it to the KHESLC Credit Dispute Department. If KHESLC isn’t able resolve the issue, consider filing a complaint with the CFPB.
Trouble adjusting repayment plans
Several borrowers reported problems applying for an alternative repayment plan with KHESLC. At least one borrower who was at risk of default reported having trouble qualifying for more flexible repayments. Another claimed KHESLC attempted to collect on a loan while it was in deferment.
How to avoid it: Consider contacting customer service by phone before applying to make any changes to your repayment plan. Keep tabs on your account to make sure the plan is properly applied. Reach out to customer service again if you notice your repayments haven’t been adjusted.
You can apply for deferment or forbearance with KHESLC by submitting a form, depending on what type of deferment or forbearance you’re interested in. You can find the forms by going to the KHESLC website and clicking Forms in the left-hand menu.
If you have federal loans, you can switch your repayment plan by submitting a form to KHESLC. Otherwise, you’re stuck with the repayment plan you originally chose.
You can, but you’ll have to apply with a written application. You can download the application on the KHESLC website and send it — along with a voided check from that account — to the following address:
KHESLC PO Box 24328 Louisville, KY 40224-0328
You can also fax your application to 502-329-7077.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
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