Kentucky Student Loan Provider Is Out of Money

Student Loan Girl — Wed, 13 Aug 2008 21:08:00 GMT

The Kentucky Higher Education Assistance Authority, the state agency that provides college loans to students attending colleges and universities in Kentucky, will “effectively run out of money” Friday while it waits to receive a $50 million loan from the federal government on August 21, reports the Lexington Herald-Leader (“Student Loan Agency to Run Out of Money,” Aug. 13, 2008).

The one-week funding shortage may temporarily inconvenience KHEAA’s student loan borrowers, some of whom will not likely receive their student loans before classes begin as early as August 18 at some schools.

KHEAA, also known as The Student Loan People, has been in communication with the financial aid offices of affected universities, asking them to be patient until the $50 million “bridge loan” from the government arrives. With the loan, the KHEAA will issue $35 million in financial aid to 16,000 students, says James Ackinson, KHEAA’s executive vice president.

“The issue will not delay or prevent any of our students from beginning classes,” says Shelley Park, director of financial aid at Eastern Kentucky University, which begins classes August 25. Students who rely on their student loans to buy textbooks will get school-issued vouchers to cover the cost until they receive their KHEAA-issued student loans and can repay the school.

By Friday, when the KHEAA will temporarily run out of money, the state loan agency will have issued $40 million in loans to 18,000 students since July 1.

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Western Kentucky University Students to See 9-Percent Jump in Tuition

Student Loan Girl — Thu, 01 May 2008 23:50:00 GMT

Students at Western Kentucky University will see higher tuition costs after the school’s board of regents approved a 9-percent tuition hike on April 25, for the 2008–09 academic year.

Under the new tuition rate, in-state undergraduate tuition will increase by $284 to $3,492 per semester. Out-of-state undergraduates will see an increase of $629, bringing tuition costs to $8,364 per semester.

The tuition increase, which coincides with a 6-percent reduction in the university’s 2008–09 budget, will help pay for increased school costs, salary increases for university employees, and scholarships and financial aid, university President Gary Ransdell told local news station WNKY (“WKU Regents Approve Tuition for 2008–09,” April 25, 2008).

This announcement just comes a few weeks after the state’s student loan agency, the Kentucky Higher Education Student Loan Corp., announced it would temporarily suspend making loans to first-time student loan borrowers (“Kentucky Lender Puts Brakes on Student Loans to New Borrowers,” April 21, 2008).

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Student Loan Blog : Kentucky

Kentucky Student Loan Provider Is Out of Money

Western Kentucky University Students to See 9-Percent Jump in Tuition