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<strong>KHEAA</strong><br />
ADVISOR<br />
simplifying the process<br />
In this issue:<br />
Private loan myths.............................................. 2–3<br />
School highlight.................................................. 4–5<br />
Staff highlight......................................................... 6<br />
Products and services............................................. 7<br />
Your marketing representatives............................. 8<br />
Volume 14, Issue 1 <strong>Winter</strong> <strong>2023</strong><br />
PO Box 798 Frankfort, KY 40602 800-928-8926 kheaa.com
PRIVATE<br />
LOANS<br />
MYTH<br />
VERSES<br />
FACT<br />
Let’s dispel some common myths about private loans<br />
Myth<br />
Private loans are more expensive<br />
and charge more fees.<br />
Myth<br />
Cosigners are held responsible for<br />
the duration of the loan.<br />
Fact<br />
Myth<br />
Fact<br />
The federal student loan rate is set once a<br />
year. For 2022–23, the interest rate is set<br />
at 4.99% for undergraduate loans, 6.54% for<br />
graduate Direct Unsubsidized Loans and 7.54%<br />
for PLUS loans. In July 2022, some private<br />
loan rates for borrowers (or their cosigners)<br />
<strong>with</strong> excellent credit were under 3%.<br />
Many private student loan lenders charge<br />
no loan application, origination or other<br />
fees. The origination fee on Federal<br />
Direct Loans for 2022–23 is 1.057%.<br />
Private loans always require a cosigner.<br />
Adding a cosigner to a private loan may<br />
help a borrower to qualify for a lower<br />
interest rate. However, if the borrower<br />
has a low debt-to-income ratio and good<br />
credit, a cosigner may not be required.<br />
Fact<br />
Myth<br />
Fact<br />
Most major lenders have a cosigner release<br />
option. If the borrower makes timely<br />
payments for a pre-determined number<br />
of consecutive months (usually ranging<br />
from 12 to 48 months), the cosigner may<br />
file for a release of their obligation.<br />
Private lenders are all for-profit.<br />
Some private student loan lenders are<br />
nonprofit organizations created by state<br />
legislatures to provide low-cost student loans.<br />
Not-for-profit lenders have one goal — to help<br />
students pay for college. Any profits they make<br />
go back to helping students and families afford<br />
college, not to shareholders or executives.<br />
2
PRIVATE<br />
LOANS<br />
MYTH<br />
VERSES<br />
FACT<br />
Myth<br />
Fact<br />
Myth<br />
Fact<br />
Just use Google to find the best private loan.<br />
When you conduct a Google search, the<br />
companies that are most likely to show<br />
up are those companies that pay to be<br />
positioned at the top of the list through<br />
strategic search engine optimization.<br />
Some schools provide a preferred lender list,<br />
which is one of the best ways to compare<br />
different private lenders. If the borrower<br />
has an existing relationship <strong>with</strong> a bank or<br />
lending institution, there may be special<br />
promotions for being a current customer.<br />
ELMSelect and Great Lakes provide<br />
neutral comparisons of student<br />
loans. Visit https://www.elmselect.<br />
com or https://mygreatlakes.org/.<br />
Private loans lead to more student debt.<br />
Federal loans consider the cost of attendance<br />
and any grants, scholarship and financial<br />
aid received. The borrower’s ability to<br />
repay a federal loan is not factored in.<br />
In addition to grants, scholarships and financial<br />
aid received, private lenders also take into<br />
consideration income and credit scores. This<br />
allows a borrower to only receive as much<br />
as they can reasonably afford to repay.<br />
Myth<br />
Fact<br />
may be available for some hardship cases.<br />
The borrower should check <strong>with</strong> the lender<br />
to see what deferment options it will provide<br />
before taking out a loan. Be warned, if you<br />
ask for help from your lender and you have a<br />
cosigner who can afford your loan payments,<br />
the lender may not grant a pause to your<br />
loan payments. Borrowers should file a<br />
cosigner release as soon as they are eligible.<br />
Private loans do not provide as many<br />
repayment options as federal loans.<br />
Private Lenders have many repayment<br />
options, loan terms and a variety of perks<br />
Repayment options offered by private lenders<br />
can extend repayment terms to up to 20<br />
years, defer payments until six months postcollege<br />
and charge interest-only after final<br />
disbursement. Additional perks include no<br />
application or origination fees, no requirement<br />
to maintain satisfactory academic progress,<br />
a rate reduction for automatic payments<br />
and death and disability benefits.<br />
Not-for-profit lenders have one goal – to<br />
help students pay for college. That means<br />
any money they make does not go to enrich<br />
shareholders or executives. All profits go<br />
back to helping students and families.<br />
Myth<br />
Fact<br />
Private loan lenders don’t offer<br />
forbearances or deferments.<br />
If a borrower has trouble paying their loan, it<br />
is in the lender’s best interest to help prevent<br />
a loan from defaulting. Some lenders will<br />
offer a payment reduction or brief pause in<br />
payments if you notify the lender prior to<br />
missing a payment. An interest-only forbearance<br />
3<br />
Myth<br />
Fact<br />
Interest on private student loans<br />
is not tax deductible.<br />
The interest on both private student loans<br />
and federal student loans is tax deductible.<br />
For 2021, the deduction was up to $2,500<br />
or the amount of interest actually paid.
School highlight<br />
Daniel Donner | Director of Financial Aid | University of Pikeville<br />
What made you choose financial<br />
aid as a profession?<br />
I got into financial aid by accident. I was<br />
working for a cable company, outside in the<br />
heat, cold, rain and snow. I found an ad in the<br />
newspaper wanting someone <strong>with</strong> computer<br />
and math skills. My degree is Computer<br />
Science and Mathematics, so I thought this<br />
would be a great opportunity. Found out<br />
it was for a financial aid advisor position.<br />
Been in higher education ever since.<br />
Is there anything in particular that drove<br />
you to pursue a career in financial aid?<br />
What has kept you in financial aid? Short<br />
answer, I never found a job anywhere else.<br />
Over my career I have had not-so-wonderful<br />
bosses or wonderful employers and I have<br />
looked for jobs outside of financial aid.<br />
But through the years and turmoil, I have<br />
realized that I am good at my job, good<br />
<strong>with</strong> students and co-workers. I think the<br />
biggest thing that has kept me in financial<br />
aid is knowing that I am good at my job.<br />
That and the interactions <strong>with</strong> the students.<br />
What do you find the most rewarding<br />
and fulfilling about your work?<br />
What is one thing you love about working at<br />
your company? It would be hard to say just<br />
one thing. I work <strong>with</strong> amazing people in<br />
my offices and other offices. My boss allows<br />
me the freedom to perform my job <strong>with</strong>out<br />
micro-managing and they will listen when<br />
I bring up ideas or concerns. So I guess<br />
I would have to say that I feel valued.<br />
How do you spend your free time, what<br />
energizes you? My normal response would<br />
be, what is free time? But since coming to<br />
UPike, I have been able to really have a work/<br />
life balance, probably for the first time in my<br />
career. I like to read, watch TV and movies,<br />
and I work out at home. My family tries to<br />
do a vacation once a year (did a little time<br />
around Fort Myers this spring, Gatlinburg<br />
SEE SCHOOL HIGHLIGHT - PAGE 5<br />
4
School highlight<br />
Daniel Donner | Director of Financial Aid | University of Pikeville<br />
CONTINUED FROM PAGE 4<br />
last year) and every few years we will do a<br />
cruise. We have one scheduled just before<br />
Christmas this year. Knowing that is right<br />
around the corner is a great motivator.<br />
What book or TV show have you read or seen<br />
recently that you’d recommend, and why?<br />
Books – I am huge fan of Jim Butcher.<br />
He has several series and I love them<br />
all. For TV, I would recommend the new<br />
Quantum Leap. I like that it is not a reboot<br />
but a continuation of the original series<br />
and they have ties to the original show.<br />
If you would like to talk about your<br />
family or organizations, charities or<br />
clubs you belong to, please do!<br />
I am married for 19 years (makes it easy<br />
tracking anniversary… same number of<br />
years in financial aid), two girls (tween and<br />
teen, please pray for me) and my motherin-law.<br />
We bought the house specifically<br />
so she could be close but also independent<br />
<strong>with</strong> her own area. Makes it nice to have her<br />
close <strong>with</strong>out being too close. I convinced<br />
my wife to apply at UPike, and she is<br />
now the optometry librarian. It is nice to<br />
be able to car pool to work most days.<br />
Name one thing on your<br />
bucket list. – Skydiving!<br />
I have been parasailing, and the utter calm and<br />
quiet up in the air is unreal. To be able to do<br />
that and not be tethered would be fantastic.<br />
How has working <strong>with</strong> <strong>KHEAA</strong> or<br />
KHESLC improved your workflow<br />
or helped your students?<br />
Creating the relationships <strong>with</strong> members<br />
of <strong>KHEAA</strong> and KHESLC has been all the<br />
difference in my job. I am new to Kentucky and<br />
never worked <strong>with</strong> the state grant programs.<br />
By building those relationships, I have been<br />
able to get answers for myself and my students<br />
to ensure everything is a smooth as possible.<br />
5
Staff highlight<br />
Chester Priest | Business Development Manager<br />
Chester Priest is the Business<br />
Development Manager for <strong>KHEAA</strong>/<br />
KHESLC. He works <strong>with</strong> schools both<br />
in and out of state making sure they are<br />
aware of our products and services. You<br />
may have seen him at many financial<br />
aid administrators conferences.<br />
Chester started work in the admissions<br />
area, then moved over to financial<br />
aid. He joined <strong>KHEAA</strong>/KHESLC<br />
almost 25 years ago. He’s worn<br />
many hats, including being the first<br />
driver of <strong>KHEAA</strong>’s mobile outreach<br />
vehicle. This year, he was promoted<br />
to Business Development Manager.<br />
Joining <strong>KHEAA</strong>/KHESLC was<br />
the right step for his career, says<br />
Chester. His favorite part of<br />
the job is interacting <strong>with</strong> school personnel and helping them solve their problems.<br />
When Chester is not hard at work, he likes to be outside<br />
hanging <strong>with</strong> his old pal, Rocky (his dog).<br />
6
<strong>KHEAA</strong> products and services<br />
In these unprecedented times, you can continue to depend on our services to help fulfill all your<br />
higher education needs. For more information on any of our services, contact marketing@kheaa.com.<br />
Advantage<br />
Education Loans<br />
The Advantage Education Loan is a great<br />
choice for students who have exhausted their<br />
grant and scholarship options. The Advantage<br />
Parent Loan is also available for the student's<br />
parents. Rates vary based on the repayment<br />
plan selected, credit history and other<br />
factors. Borrowers may qualify for a lower<br />
interest rate if they apply <strong>with</strong> a cosigner.<br />
Cohort Default<br />
Management Services<br />
Proactively manage your cohort default rate<br />
<strong>with</strong> our Cohort Default Management<br />
Services. <strong>KHEAA</strong> understands the<br />
importance of keeping your default rates as<br />
low as possible — that’s why we offer two<br />
levels of our Cohort Default Management<br />
Services to meet your needs: Early<br />
Intervention and Default Prevention.<br />
The Advantage Refinance Loan is offered<br />
to students once they are out of school and in<br />
repayment. Getting an Advantage Refinance<br />
Loan is an excellent way for student and<br />
parent borrowers to roll all their educational<br />
loans into one convenient loan, save on<br />
interest charges and get out of debt faster.<br />
<strong>KHEAA</strong> Verify<br />
<strong>KHEAA</strong> Verify is a comprehensive online,<br />
turn-key FAFSA verification service. Our<br />
service performs the entire verification<br />
process, all the way from the student's initial<br />
notification to verifying and submitting<br />
corrections. This gives your staff the<br />
opportunity to focus on other pressing matters.<br />
* Please see the Advantage Education Loan website<br />
for all the fine print.<br />
For information on <strong>KHEAA</strong>’s products and services, email marketing@kheaa.com or call 800-928-8926.<br />
7
Your <strong>KHEAA</strong> Marketing Representatives<br />
Chester Priest<br />
Business Development Manager<br />
Indiana, Kentucky, Michigan,<br />
Minnesota, Missouri, Nebraska,<br />
New York, Ohio, Pennsylvania,<br />
Virginia, West Virginia, Wisconsin<br />
cell: 502-382-7354<br />
direct: 502-696-7266<br />
cpriest@kheaa.com<br />
Andy Weaver<br />
Business Development <strong>Advisor</strong><br />
Alabama, Florida,<br />
Georgia, North Carolina,<br />
South Carolina, Tennessee<br />
cell: 256-361-3628<br />
aweaver@kheaa.com<br />
8
Your Opinion Matters<br />
<strong>KHEAA</strong><br />
ADVISOR<br />
Do you have a subject you would like to<br />
see addressed in the <strong>KHEAA</strong> <strong>Advisor</strong>?<br />
Someone you would like to see highlighted?<br />
If so, please send your suggestions to<br />
Eleanor Kley at ekley@kheslc.com.
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