Kentucky Higher Education Student Loan Corporation
(KHESLC/Student Loan People)

The KHESLC loan is a Federal Stafford loan that is only available after students complete the Free Application for Federal Student Aid (FAFSA), which is available from financial aid offices at your school or online at This check will be sent in two equal installments (one for each semester) directly to the school and students need to check with their institution to find out the procedure for releasing this money. There is a possibility that your school may hold your loan money until the end of the semester when your account is paid.

To qualify for any type of Stafford loan, including KHESLC, students must meet certain eligibility requirements. Students must be enrolled at least half-time and be seeking a degree at an eligible institution. In addition, all applicants must also be in good standing and making satisfactory academic progress if they are currently enrolled. Students cannot be in default or owe a refund on any federal education grant or loan unless satisfactory arrangements have been made to repay the outstanding debt.

There are two types of Stafford loans: subsidized and unsubsidized. Subsidized loans are based upon financial need and do not require the student to pay any type of interest payments while in school. Unsubsidized loans do require students to pay interest monthly; however, these interest payments can be deferred until students graduate. The interest rate on KHESLC loans vary annually and they are capped at 8.25%. The amount of a student’s loan may not exceed the loan limits for an academic year based on the borrower’s dependency status and grade level and the length of the program of study in which the borrower is enrolled. The current loan limits are:

Grade Level Dependent Status Independent Status
First Year $2,625 $6,625
Second Year $3,500 $7,500
Each Remaining Year of Undergraduate Study $5,500 $10,500
Each Year of Graduate or Professional Study $8,500 $18,500

Note: Independent status typically refers to students who are at least 24, and/or married, and/or have dependents living at their residence, and/or a veteran of the U.S. Armed Forces, and/or working on a Masters or doctorate program, and/or an orphan until age 18. Dependent status refers to almost everyone that does not meet the independent status. If you do not know your status, contact your Financial Aid Office.

Important: Students interested in this program should contact the Student Loan People to determine if they are eligible for a loan. Guidelines for the loan and availability of funds are determined by the vendor and are not under the control of UPS or Metropolitan College.


  1. Complete the Free Application for Federal Student Aid (FAFSA)
  2. Answer Yes to the question, "Are you interested in Student Loans?"
  3. You will receive an award letter from your school's Financial Aid Office. If you qualify for a KHESLC loan, this paper will specify the amount for which you qualify as well as whether your loan is subsidized or unsubsidized.
  4. You must sign and return the Award letter to the school to accept the financial aid package. You must specify the Lender Code as 826688 on the Master Promissory Note.
  5. After all necessary paperwork has been completed you will receive your loan in two equal installments, one for the Fall semester and one for the Spring semester. NOTE: Disbursement dates are subject to guidelines established by the individual schools.

**For more information on federal student loans or the student loan people, please visit their website at