Monday, 07 01, 2013
Many sources of financial aid are available to help college-bound students pay higher education expenses, including federal and state grants, scholarships and Federal Stafford and PLUS Loans. In addition, merit-based scholarships and need-based grants are often available at the local level, according to the Kentucky Higher Education Assistance Authority (KHEAA).
All of these programs may help ease the burden of paying for college. However, sometimes these sources are not enough to cover all the costs. When that happens, parents and students may take advantage of private student loans, also called alternative loans.
The interest rate on private loans will largely depend on the borrower’s credit rating, so students and parents may have to pay higher interest rates than they would on federal student loans. In addition, many lenders require students to have a cosigner, and some require the college to certify that the student needs the loan.
Students and parents are encouraged to do research before committing to any loan. They should compare the loans offered by various lenders to find the best possible deal.
KHEAA is the state agency that administers Kentucky’s student aid programs, including the Kentucky Educational Excellence Scholarship (KEES).
To find links to other useful education websites, go to www.gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602; or call 800-928-8926, ext. 6-7372.