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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.

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.

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.

Compare student loan refinancing options

Name Product APR Min. Credit Score Loan amount Loan Term
Purefy Student Loan Refinancing (Variable Rate)
1.88% to 5.54%
$5,000 - $300,000
5 to 20 years
Refinance all types of student loans — including federal and parent PLUS loans.
Credible Student Loan Refinancing
1.90% to 8.90%
Good to excellent credit
Starting at $5,000
5 to 20 years
Get prequalified offers from top student loan refinancing providers in one place.
SoFi Student Loan Refinancing Variable Rate (with Autopay)
2.25% to 6.43%
Starting at $5,000
5 to 20 years
A leader in student loan refinancing, SoFi can help you refinance your loans and pay them off sooner.
Splash Financial Student Loan Refinancing
1.89% to 6.66%
Starting at $7,500
5 to 25 years
Save on your student loans with this market-leading newcomer.
Education Loan Finance Student Loan Refinancing
2.39% to 6.01%
Starting at $15,000
5 to 20 years
Lower your student debt costs with manageable payments, affordable rates and flexible terms.
Earnest Student Loan Refinancing
1.88% to 5.64% APR with autopay
$5,000 - $500,000
5 to 20 years
Get a tailored interest rate and repayment plan with no hidden fees.

Compare up to 4 providers

How to avoid common problems with KHESLC

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.

What to expect with other student loan servicers

Bottom line

KHESLC is a relatively user-friendly servicer with few complaints compared to other companies. But if you’re one of the few that are unhappy with your experience, you might want to consider consolidating your federal student loans or refinancing with a different student loan provider.

Want to see how KHESLC stacks up to the competition? Read our guide to student loan servicers.

Frequently asked questions

Learn more about KHESLC with these answers to common questions.

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