NC GAZETTE / RADIO WBRT
Thursday September 16, 2021 – If currently enrolled or college students in Kentucky are planning to borrow money for tuition, it is beneficial for them to do a little homework with loan interest rates first. .
According to the Kentucky Higher Education Assistance Authority (KHEAA), the time students spend learning the basics of interest rates and annual percentage rates will pay off significantly, helping them save money when borrowing. .
“Kentucky’s economy is booming unlike any I have seen in my life, and we have unprecedented opportunities ahead of us,” Governor Andy Beshear said. “Kentucky students have more options than ever for career paths that can provide a solid financial foundation for their families for generations to come. And they will be even more successful if they learn tips for paying as little interest as possible when borrowing money.
An interest rate is simple or nominal interest. It’s simple. If you borrow $ 1,000 at a simple interest rate of 5% per annum, you will pay back $ 1,050. But many loans use an annual percentage rate (APR), not just interest.
Let’s say you take out a $ 100,000 mortgage at 5%. However, your closing costs are $ 5,000, which is in addition to the mortgage amount. This means that you will pay interest on $ 105,000, an APR of 5.25%. Over the life of a mortgage, you’ll pay thousands of dollars more than just interest. Lenders are required to disclose the APR on all loans you take out.
KHEAA is the state agency that administers Kentucky’s student financial aid programs, including the Kentucky Excellence in Education Scholarship (KEES). Its sister agency, the Kentucky Higher Education Student Loan Corporation (KHESLC), offers attractive low-cost loans to help students and parents pay for their education or refinance their student loans. For more information on Advantage Loans, visit advantageeducationloan.com.
Many of KHEAA’s student aid programs are funded by the revenues of the Kentucky Lottery.
For more information on Kentucky Scholarships and Grants, visit khea.com; write KHEAA, PO Box 798, Frankfort, KY 40602; or dial 800-928-8926.