Q:  What is KHEAA and what role does it play in my loan process?

 

KHEAA stands for Kentucky Higher Education Assistance Authority, and is a nonprofit agency that insures Federal Stafford Loans made by participating lenders against default, death, or total and permanent disability. You may also hear KHEAA referred to as the Guarantor. KHEAA will process your loan for guarantee once your Master Promissory Note (MPN) is received by your lender and Auburn has certified your eligibility. KHEAA will notify you in writing after the loan has been processed for guarantee.

 

Q: Am I required to do an Entrance Interview?  How and where?

 

Yes, the Entrance Interview for new borrowers is a requirement for student loans. You may complete the process on line with KHEAA. The AU Financial Aid Office has computers available for your use during regular business hours if you do not have access otherwise.

 

Q: Am I required to sign a Master Promissory Note (MPN)?

 

Yes. After you have accepted your loan (completed your Award Letter and returned to our office), KHEAA will mail MPN instructions to your permanent address.  The instructions will tell you how to Esign your MPN on KHEAA's web site.  By completing and signing the MPN, you are promising to repay all student loans made under this note. You may have to sign only one MPN for the life of your student loan. However, if you change lenders or transfer to another school that requires an annual note, a new MPN must be signed. An MPN expires ten years after the note is signed. An MPN is revoked if a disbursement is not made within one year.

 

Q: Which lender should I use? Can you recommend one?

 

Our participating lender list displays incentives of the lenders participating with AU through KHEAA so you and your parents can make an informed decision about your loans. While we will not recommend one lender over another, we are confident that any lender on the list will provide the quality service we want for our students.  We have both national, regional, and local lenders so you will have the widest options available when choosing a lender.

 

Q: Will my lender be able to buy my Direct Loans?  Now, or at repayment?

 

Yes, once your loans are in repayment you may consider consolidating all your school loans with one lender.   Consolidation may help simplify repayment by allowing you to make one payment instead of a payment to each loan provider.  You may contact your new lender for more information.