Kentucky residents whose children's financial aid doesn't meet college expenses can apply for a state-based loan.
The Kentucky Higher Education Assistance Authority says the loan has a lower interest rate than federal PLUS loans, and a parent can use it to help pay for a student attending graduate or professional school. If the borrower begins paying the funds back while the student is in school, the interest rate is 7.25% with a 2% guarantee fee. If payment is postponed until after school is finished, the rate is 7.75% percent with a guarantee fee of 3%. There's also a 0.5% interest rate reduction for automatic debit payments.