Alabama College Student Loans
Get Approved at the Best Rates
Not too long ago the Department of Education deemed it wise to grant the Kentucky Higher Education Assistance Authority (KHEAA) responsibility for Alabama’s student loans. KHEAA-Alabama now administers low cost federal loans for students attending colleges and universities in the state.
Types of student loans available through KHEAA-Alabama:
- Federal Family Education Loans like the Stafford
- Parent PLUS Loans
When it’s time to think about financial aid, use your state resources as a primary borrowing option.
Federal Family Education Loan Benefits in Alabama
Every state-sanctioned lender has its own incentives for financing your federal loans with them. Universally termed “borrower benefits” means your Alabama College Loan Program FFEL loans come with attractive low interest rates with additional interest rate cuts available for consistent periods of on-time payments and even for managing your repayment automatically through bank account deductions.
You save money on your federal loans through your state-sanctioned student loan providers or servicers because the funds they use are from tax-exempt education bonds that are not subject to federal taxation. That already saves hundreds of thousands of dollars you can make in interest rate cuts and loans sans the traditional fees.
Stafford Loans for Alabama Students
The Stafford Loans, subsidized and unsubsidized, are the most used student loans. Offered through KHEAA Alabama students get the Staffords at really great rates with better borrower incentives than may be offered elsewhere:
- No fees
- Make so many on-time payments and your loan principal will be rewarded with a 5% credit.
- Set up your account payments for automatic bank drafts and you’ll get an additional .25% interest rate discount.
Alabama PLUS Loans for Parents and Grad Students
The Federal PLUS Loans are critical financial tools for parents with dependent college students and for grads that require increasing funds for graduate degrees. KHEAA-Alabama offers both with appealing features:
Remember, PLUS Loans are credit-based student loans and as such borrowers must agree to a credit check. Use KHEAA’s online Zip Decision—it’s a lightning fast online credit pre-approval form and designed for both parents and grad borrowers.
Applying for the Alabama College Loan Program
Apply for the Stafford Loans, the Parent PLUS or Grad PLUS directly through KHEAA’s website.
For PLUS borrowers with less than ideal credit, prepare in advance to borrower with a creditworthy co-borrower.
Loan Forgiveness for Special Careers
First in Care, First in Class and First in Defense represent loan forgiveness programs available to nurses, teachers and military service people, respectively.
Programs provide loan interest forgiveness for eligible candidates.
Visit the KHEAA-Alabama website for full program disclosure and online applications.
