When it comes to refinancing your student loans, finding a great interest rate is only half the battle. The other half is finding terms that you (and your loan co-signers) think are fair.
Advantage Education Loans offered by Kentucky Higher Education Student Loan Corporation (for all American citizens and residents) exemplifies fair terms for student loan borrowers. The state-based non-profit offers both private student loans and student loan refinancing. In this review, we'll be looking specifically at the Advantage Refinance Loan.
Keep in mind that Advantage is part of the Credible lender network. So it's easy to quickly compare its rates with other companies. Plus, if you do decide to refinance with Advantage Education Loan through Credible, you can get a gift card bonus of up to $1,000. Visit Credible here >>>
Quick Summary
- State-based, non-profit lender
- Allows Parent PLUS Loans to be transferred to the child
- Cosigners can be released after 36 on-time payments
Advantage Refinance Loan Details | |
|---|---|
Product Name | Advantage Refinance Loan |
Min Loan | $7,500 |
Max Loan | $500,000 |
Loan Terms | 10, 15 or 20 Years |
Rate Type | Fixed |
APR | 3.74% - 6.99% |
Promotions | Up to $1,000 Bonus via Credible |
What Does The Advantage Refinance Loan Offer?
Here's what you need to about the Advantage Refinance Loan.
Rates And Terms
It’s always tough to say which company has the best interest rates. If you have excellent credit, you may find lower interest rates than those you can get with the Advantage Refinance Loan. (To compare interest rates, we recommend getting personalized offers from Credible.)
However, even borrowers with average credit scores can get good rates with Advantage Education Loans. Right now, interest rates range from 3.74% to 6.99% depending on the loan terms you choose.
You’ll also get a 0.25% autopay discount. Advantage offers rates ranging from 10 to 20 years with no prepayment penalties.
Cosigners Allowed (And Allowed To Be Released)
To qualify for Advantage Education Loan refinancing you need to meet certain income and credit history requirements. If you can’t meet those requirements on your own, a cosigner who meets the requirements will allow you to get a great rate.
We generally don’t recommend that people become loan cosigners. This is because cosigners take on the legal obligation to pay your loan if you become unwilling or unable to make the payments.
However, in the case of Advantage Education Loans, cosigners are more protected than they are with other loans. After 36 months of on-time, regular payments, you can apply to have your cosigner released from the loan. Provided that you meet the credit and income requirements at that time, your cosigner will be released from the loan.
Additionally, if you die, your cosigner will not have to pay back the loans. It’s sad that we have to say that's a positive feature of Advantage Education Loans. But the student-lending business can get nasty. It’s great that Advantage protects cosigners in that way.
Parent PLUS Refinancing
Parents are able to refinance their PLUS loans with Advantage Education Loan as well. And it's one of the few lenders that will allow parents to transfer their loans to the child as long as he or she can meet the credit and income requirements on their own.
How Does The Advantage Refinance Loan Compare?
Advantage's rates are reasonable and they allow cosigners to be released in as little as 36 months. Still, other fintech lenders have lower starting rates along with formal forbearance policies. Check out this quick chart to see how the Advantage Refinance Loan compares:
Header | |  |  |
|---|---|---|---|
Rating | |||
Variable APR | N/A | 1.86% - 7.98% | 2.50% - 6.30% |
Fixed APR | 3.74% - 6.99% | 3.99% - 6.99% | 3.99% - 6.40% |
Formal Forbearance Policy | No | Yes, up to 12 months | Yes, up to 12 months |
Soonest Cosigner Release Eligibility | 36 on-time payments | N/A | 36 on-time payments |
Bonus Offer | Up to $1,000 via Credible | Up to $1,100 | $200 |
Cell |
What Borrower Protections Are Available?
By refinancing your loans to Advantage Education Loan, you lose the ability to go onto an income-driven repayment plan or apply for federal forbearance or deferment. And while several private lenders do have formal hardship forbearance policies, Advantage is unfortunately not one of them.
However, Advantage does say that works with borrowers on a case-by-case basis to create reduced payments or forbearance if you’re dealing with financial struggles. And the company will also forgive the full loan amount if you become disabled.
Are There Any Fees?
When you refinance with Advantage Education Loan, you won’t pay an application or origination fee. That means that upfront fees won’t eat into your ability to pay back loans.
There aren't any prepayment penalties either. And Advantage is one of the few private lenders today that doesn't charge a fee for late payments.
How Do I Apply?
To refinance with Advantage, you must be a U.S. citizen or have a proof of legal residency in the United States. You must refinance at least $7,500, and you must have an acceptable credit history and income.
Advantage doesn’t lend in every state (check state eligibility here), so you may not qualify based on your current residency. It also doesn't appear that they offer a pre-qualification tool for borrowers who would like to check their estimated rate before submitting to a hard credit inquiry.
How Do I Contact Advantage Education Loan?
If you need to get in touch with Advantage Education Loan, you can call them at 888-678-4625 or email them at advantageloans@kheslc.com.
If you already have a loan with Advantage and have a billing- or payment-related question, you'll want to reach out to its sister agency, Kentucky Higher Education Student Loan Corporation (KHESLC). You can call KHESLC at 800-693-8220. Payments should be made to the following address:
KHESLC
PO Box 9001774
Louisville, KY 40290-1774
Is It Worth It?
The Advantage Refinance Loan offers some nice cosigner protections and is one of only a few lenders that allow Parent PLUS Loans to be transferred to children. But there are other a few other lenders that offer these perks. We recommend comparing rates at Credible to see if you can get a better rate from another company that offers similar benefits.
Advantage Refinance Loan FAQs
Let's answer a few of the most questions we receive about Advantage Education Loan.
Is Advantage Education Loan a non-profit lender?
Yes, Advantage Education Loans are disbursed by Kentucky Higher Education Assistance Authority (KHEAA), which is a state-based non-profit government entity.
Does the Advantage Refinance Loan qualify for federal benefits?
No, as a state-based agency, Advantage Education Loans are't eligible for any federal protections or repayment plans.
Does Advantage Education Loan also offer college loans?
Yes, Advantage offers both student loans and parent loans that can cover up to 100% of a student's cost of attendance.
Does Advantage Education Loan offer any bonuses or incentives?
Yes, refinance borrowers can qualify for a gift card bonus of up to $1,000 by applying with Credible using our unique link.
Advantage Refinance Loan Features
Min Loan Amount | $7,500 |
Max Loan Amount | $500,000 |
Variable APR | N/A |
Fixed APR | 3.74% - 6.99% |
Pre-Qualified Rates (Soft Credit Check) | No |
Autopay Discount | 0.25% |
Loan Terms | 10, 15, and 20 years |
Origination Fees | None |
Prepayment Penalty | None |
Late Payment Fee | None |
Cosigners Allowed | Yes |
Cosigner Release | Yes, can be requested after 36 consecutive, on-time monthly payments |
Graduation Requirement | No |
Formal Forbearance Policy | No |
Death Forgiveness | Yes |
Disability Forgiveness | Yes |
Customer Service Phone Number | 888-678-4625 |
Customer Service Email | advantageloans@kheslc.com |
Loan Servicer | Kentucky Higher Education Student Loan Corporation (KHESLC) |
Address For Sending Payments | KHESLC |
Promotions | None |
Advantage Refinance Loan Review
-
Rates And Fees
-
Application Process
-
Customer Service
-
Products and Services
Overall
Summary
The Advantage Refinance Loan offers cosigner release in as little as 36 months and will allow Parent PLUS Loans to be transferred to children. However, other private lenders may offer lower rates.
Pros
- 36-month cosigner release policy
- Allows Parent PLUS transfers
- No upfront fees
- Up to $1,000 bonus via Credible
Cons
- May not offer the lowest rates
- No formal forbearance policy
- No variable-rate option
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
