Advantage Student Loan Refinance Review

Our Rating: B+ ⓘ (Compare)

Advantage is a nonprofit direct lender that offers loan rehabilitation services. Advantage refinance loans are serviced by the Kentucky Higher Education Student Loan Corporation (KHESLC), which is a subsidiary of Advantage’s parent company, the Kentucky Higher Education Assistance Authority (KHEAA).

*Lowest rates always include the 0.25% interest reduction for enrolling in auto-pay.

Skip to: Rates & Fees | Eligibility Requirements | Repayment Options | Consumer Reviews & Complaints | FAQ

‡Parents may refinance in their own names or tranfer debt to their child.

Advantage Refinance Rates & Fees

Advantage Education Loans offers fixed rates are between 5.70% and 9.99%. Note that the lowest rates include a 0.25% interest rate reduction for enrollment in automatic payments.

Additional information about Advantage refinance rates:

• Checking your rate with Advantage may affect your credit score. While the application process includes a soft credit check, Advantage will order a hard credit pull to determine your final approved rate (learn the difference).
• Advantage does offer a discount for setting up auto-pay: 0.25% interest rate reduction.
• In lieu of a variable rate, Advantage offers a Graduated Repayment Plan. Initial reduced payments increase 10% every two (2) years for the remainder of the loan term.

Additional Fees

Beyond interest rates, there are a number of fees a refinance lender may charge up-front or during the loan servicing period. Advantage is one of very few lenders that does not appear to charge fees of any kind.

1. Application fee – fee to apply for rates & approval.
2. Loan origination fee – fee to create the new loan.
3. Disbursement fee – fee for distributing funds to lenders to pay off loans that have been refinanced.
4. Prepayment penalty – fee for making extra payments to reduce a refinance loan balance or pay it off early.
5. Late payment fee – fee for making a late payment.
6. Returned payment fee – fee for failed payments due to insufficient funds, also known as a “bounced check”.
7. Collection fee – fee for collection activity on a defaulted debt.

Current Promotions & Offers

Advantage does not offer any special promotions or referral programs. This is typical of nonprofit lenders.

Advantage Refinance Eligibility Requirements

To qualify for refinancing with Advantage, all borrowers must meet the criteria below.

• Citizenship Requirement: U.S. citizenship or permanent residence.
• Income Requirement: undisclosed; required documents for the application include proof of employment and income “if applicable”.
• Credit Score Requirement: none specified.
• Graduation Requirement: none specified.
• Location Requirement: undisclosed.

Additional restrictions apply for specific individuals and loans.

• Borrowers must have no evidence of past fraud.
• Parent borrowers must be the parent or stepparent of the benefiting student.
• All education loans must be in good standing.
• Loans must have entered grace or repayment period.
• Borrowers must have no previous loans that were discharged due to disability.

Advantage Student Loan Repayment Options

Lenders vary greatly on the benefits and options provided to borrowers during the loan servicing period. Additionally, benefits may only be available on a case-by-case basis. Advantage offers some relief options.

Deferment & Forbearance

Advantage offers discretionary forbearance for financial hardship; it is unclear if this deferment may be applied in cases of military duty, disability, natural disaster, or a return to school. See Advantage’s conditions for deferment and forbearance below.

Additional Options

Advantage may offer other opportunities for relief or contract modification.

• Co-signer release may be available after 12 consecutive qualifying payments.
• Death / disability discharge is available in the unfortunate circumstance that a borrower passes away or suffers total permanent disability.
• Borrowers may add loans to their Advantage refinance loan up to 120 days after the original application.

Advantage Reviews, Complaints & Lawsuits

Beyond our own findings, our team also collected the most genuinely insightful customer experiences we could find, including any instances of legal action against the company in which the details became public.

Advantage Online Reviews

Few Advantage customer reviews are readily available on public forums. We included the material we found here for its value as genuine, uncensored and unsolicited user experiences. Note that these reviews are unverified, may include inaccuracies, and may provide outdated information (about rates, bonus offers, etc.). Some comments include notes from the editor for clarity’s sake.

“Hello! So, I tried a lot of the big, advertised ones [Ed. refinance lenders] (like Sofi, and the options Sofi gives you when you aren’t approved, etc.) – my dad has good credit and makes over six figures, so I assumed it would be super easy. I had/have medical debt in collections that made it much more difficult – we got rejected from a lot right off the bat, because of me, and there were a lot of tears! I ended up going with Kentucky Higher Education Student Loan Corporation [Advantage Education Loans]. We got approved for like a 5-something interest rate I think (and the[y] took all $78K of my SallieMae loans) and I get an additional .05% off the interest rate for having the payment set up on auto-pay. Their interface is definitely old-looking, but the folks I spoke with on the phone were very nice and it was a relatively easy process. I had to do a LOT of digging because of those initial rejections. I’m hopeful it’s a company I’m fine to rock with until the bull is paid off.

(I only refinanced private loans, because I, in theory, qualify for PSLF. SallieMae payments were reaching $1200 – payment went to $619 with the refi.)

Tl;dr Kentucky Higher Education Student Loan Corporation [Advantage Education Loans] lol. Hope this helps!” – roxy_my_socks on reddit, 1/31/2024

“DO NOT RECOMMEND. If it wasn’t for me calling I wouldn’t have heard anything back, over a months time of calling them at least weekly, everyone I talked to HAD NO knowledge of my loan application. And there was always a new issue that I wasn’t informed about or had already previously fixed…… and it had been confirmed that the issues was fixed by an employer. This company is a waste of time and I do not recommend. It took me way over a month to receive the information that I needed and that was with my loan being “rushed” due to the issues they had made.” – Elizabeth Weaver on Facebook, 9/20/2021

“Hey everyone, I owe about $80k in several private student loans and was able to refinance an average of 7% interest to 5.12% with a co-signer through Advantage Education Loans. I’m kinda weirded out because there aren’t too many reviews about this lender but I found it through credible.

My grace period is ending, I have a $900 payment due with my previous lender in 5 days but the new lender won’t be disbursing funds until 12/14. What happens if I make the payment? Would I get the $900 back either from the first or current lender? Should I call to see if I can postpone my payment and how difficult would it be to delay it for a few days?” – disnalio on reddit, 12/1/2018

Advantage Consumer Complaints

As consumer finance companies, student loan refinancing lenders fall under the jurisdiction of the Consumer Financial Protection Bureau (CFPB), a federal agency. As part of their mission, the CFPB allows consumers to log official complaints. These complaints are publicly available on the CFPB official website.

Since November 15, 2013, consumers have filed 157 complaints about Advantage Education Loans’ parent company Kentucky Higher Education Assistance Authority (KHEAA) to the CFPB; that’s equivalent to one (1) complaint every 26 days, which is 71.8% higher than the average daily complaint rate among reviewed lenders.

In 2024, consumers filed 13 complaints about KHEAA, which is 7.78% lower than the amount in an average year. KHEAA received 15 complaints in 2023, equivalent to:

• 6.40% more complaints than in an average year.
• one (1) complaint for every $3.99 million of operating revenue.
• one (1) complaint for every 15 employees.

Overall, 62 complaints (39.5%) include narratives. Among these 62 complaints, four (4) or 6.45% specifically address refinancing. The most recent of these (as of this writing and for which the consumer consented to sharing their details) are listed below.

The allegations made in these complaints are unverified, are not necessarily representative of all consumers’ experiences with Advantage, and may contain outdated information (about rates, bonus offers, etc.). Note that a lender with a large customer base is likely to also have a higher number of complaints when compared with smaller lenders.

Complaint 10260789
9/26/2024
Arizona

“I have a letter from the FSA dated XX/XX/year> that says the following :. We have carefully reviewed your application for borrower defense and determined that any loans that may have been eligible for discharge related to your enrollment at XXXX XXXX were previously cancelled or discharged. Yet this continues to remain on my credit report regardless of how I try to get it off. The only XXXX loans I’ve ever had were from XXXX XXXX XXXX which, due to scamming myself and others ( verifiable by just doing a simple XXXX search ), changed their name to XXXX XXXX XXXX This should be removed from my credit report. Not only did XXXX XXXX withhold my XXXX because they said I needed to pay my XXXX loans in full, but they lied to get me in the door. They specifically said they had a work placement department that would get me interviews with companies in my related field, which was XXXX XXXX XXXX XXXX Well, the only thing they had for me was XXXX XXXX XXXX XXXX XXXX, to which I said the only reason I went with your school was because you said I would get interviews for jobs in my field as I got close to XXXX This is where the loan originated, and whether it was bought, sold, or refinanced doesn’t matter. It’s with XXXX now, but the FSA said it’s discharged, and I want it removed ASAP. I have documentation if needed.”

Complaint 9167511
6/4/2024
Arkansas

“I hope this letter finds you well. I am writing to bring to your attention some concerning issues regarding the predatory sales tactics employed by XXXX XXXXXXXX XXXX XXXX XXXX, which have significantly impacted my financial situation. As a borrower of private student loans, I am deeply troubled by the unethical practices of XXXX XXXXXXXX XXXX XXXX XXXX, which has misled students into taking out loans under false pretenses. The institution has engaged in aggressive and deceptive recruitment strategies, often targeting vulnerable individuals with promises of lucrative careers and high-quality education. Unfortunately, many students, including myself, have fallen victim to these predatory tactics, resulting in substantial financial burdens that we are struggling to manage. XXXX XXXXXXXX XXXX XXXX XXXX has not only failed to deliver on its promises of quality education and job placement but has also left countless students burdened with exorbitant debt and uncertain futures. Furthermore, it is distressing to learn that the accreditation and reputation of XXXX XXXXXXXX XXXX XXXX XXXXXXXX have come into question, casting doubt on the value of the education and credentials obtained from the institution. This has serious implications for students who have invested their time, money, and aspirations in pursuit of a better future. In light of these circumstances, I urge you to consider the broader implications of your association with XXXX XXXXXXXX XXXX XXXX XXXX and reassess the terms of the private student loans issued to students enrolled in the institution. I believe that it is crucial for lenders to exercise due diligence and responsibility in ensuring that loans are offered ethically and in the best interest of borrowers. Additionally, I request that you explore options for loan forgiveness or restructuring for borrowers who have been adversely affected by the predatory practices of XXXX XXXX XXXX XXXX XXXXXXXX. Providing relief to affected students would not only alleviate their financial distress but also serve as a meaningful step towards holding the institution accountable for its actions. I understand that your company was not the original lender for these private loans, however, XXXX, who the loans were refinanced through as been found to be fraudulent with XXXX XXXX XXXX by the president of the United States. I appreciate your attention to this matter and look forward to your prompt response. Please do not hesitate to contact me if you require any further information or clarification. Thank you for your understanding and cooperation.”

Complaint 4155761
2/21/2021
Connecticut

“My name is XXXX XXXX. This loan is in my name and my daughter XXXX. For starters this loan was to refinance a previous student student loan that was through XXXX XXXX, XXXX XXXX had while attending college. We started this new loan process in the fall of XXXX. On XX/XX/XXXX we were approved for XXXX. That check was mailed out to the previous lender on XX/XX/XXXX. This new lender was KHEAA/KHESLC. The loan agreement, percentage rate was fixed at 4.34 %. We were told that if we did auto transfer the rate would be 3.70 %. Recently I was going through paperwork that we receive from KHESLC and while carefully reading the fine print noticed the loan was now 5.03 %. I contacted KHEAA and spoke with a representative that helped us back in XXXX, XXXX XXXX, and ask him what had happened. He said he remembered me because there had been a mix up in the amount that we were to borrow and agreed with what I was saying about the loan agreement. He then said he would investigate this and get back to me. On Friday XX/XX/XXXX he contacted me and told me that, according to upper management, the interest percentage rate had changed to 5.30 % and that they sent us paperwork that confirmed that and that XXXX and I signed off on it .I was never made aware of any interest change. I have every piece of paperwork from them regarding this loan and told him I had no such paperwork. He said he would email me the material, which he did. After close review on my part these signatures, which are just initials, are not mine. XXXX ‘s signature does not even appear on this paperwork and although it does not say on this paperwork, signatures invalid, for some reason on my computer it is printed signatures invalid. I would have never agreed to 5.30 %. I expressed my frustration with XXXX and he understood where I was coming from but said there was nothing he could do. There is definitely something going on here.”

For a full list of complaints made against KHEAA in the CFPB’s Consumer Complaint Database, click here.

Advantage Lawsuits

Advantage Education Loans has been subject to few legal issues. Kentucky Higher Education Student Loan Corporation (KHESLC) was recently named in a suit that was resolved in the company’s favor (a judgement that was affirmed after one appeal). Note that while this information is updated regularly, ongoing legal action is subject to change.

U.S. Ex Rel. Jon H. Oberg v. Nelnet, Inc. et al, Case No. 1:07-cv-00960-CMH-JFA

In 2007, former Department of Education (ED) employee Dr. Jon H. Oberg filed a Complaint for Violations of False Act against several public and private student loan financing entities, including KHESLC (U.S. Ex Rel. Jon H. Oberg v. Nelnet, Inc. et al, Case No. 1:07-cv-00960-CMH-JFA).

Dr. Oberg alleged these entities defrauded the ED and submitted falsified claims for special allowances made to student borrowers.^[1]

The initial complaint was resolved in favor of the defendants in December 2017. Dr. Oberg subsequently filed an appeal, the result of which affirmed the 2017 judgement.^[2]

Frequently Asked Questions

These are the most common questions consumers have about student loan refinancing with Advantage.

• Is Advantage good for refinancing student loans?
  Advantage may be a good option for borrowers who want to refinance with a Graduated Repayment Plan (GRP). Such plans are rarely available with refinance lenders.

• Does Advantage have a minimum credit score requirement?
  Advantage does not disclose a minimum allowable credit score.

• How does Advantage’s Graduated Repayment Plan work?
  Instead of a variable rate, Advantage offers a graduated repayment option. Monthly payments start at a decreased level and increase by 10% every 2 years, growing as the borrower’s career income grows.

• Are Advantage loans federal?
  No, Advantage refinance loans are private loans, not federal loans.

• Is Advantage part of a state government?
  Advantage Education Loans is a brand owned by the Kentucky Higher Education Student Loan Corporation, a state-based, non-profit lender. Advantage Refinance Loans are owned, managed, and serviced by KHESLC.

• Do I have to live in Kentucky to refinance with Advantage?
  No, borrowers do not have to live in Kentucky to refinance their student loans with Advantage though there may be special offers available to Kentucky residents and borrowers with loans used to attend one or more Kentucky institutions. Refinancing may be unavailable in the following states: Alaska, Delaware, Iowa, Maine, Nebraska, Nevada, New Jersey, Rhode Island, and Washington.

• Does Advantage charge a prepayment penalty?
  No, Advantage does not charge a fee for early payments or for paying off a loan in full before its term ends.

• Does checking your rates with Advantage hurt your credit score?
  Checking your rates with Advantage may affect your credit score.

• Is Advantage a bank?
  Advantage is not a bank and is not affiliated with any bank.

• Can I refinance an Advantage loan?
  You can refinance an Advantage student loan or a student loan from another private lender. There is no limit to the number of times a borrower may refinance with Advantage. Note, however, that every new line of credit requires a hard credit check that may affect your FICO score.

• Can I refinance just some of my loans with Advantage?
  Yes, you can refinance some, all, or just one of your qualifying student loans with Advantage. You may choose to refinance your private loans only or refinance private and federal loans together.

• Can I refinance loans that have already been refinanced?
  Yes, you can refinance loans as many times as you want with Advantage. Note that each time you refinance, you will have to submit a new application; every application requires a hard credit check that may affect your credit score.

• Can my spouse and I refinance our loans together with Advantage?
  No, Advantage does not allow spouses to combine debts.

• How long does it take to refinance with Advantage?
  The entire process of refinancing with Advantage may take between 8 and 18 weeks. This includes a 30-day offering period, disbursement, and the onset of repayment. Approved loans take 2-3 business days to process.

• Who services Advantage refinance loans?
  Advantage Refinance Loans are all serviced by The Kentucky Higher Education Student Loan Corporation. KHESLC also owns and manages all Advantage Refinance Loans.

• Does Advantage offer a grace period?
  Advantage does not offer a grace period. Monthly payments begin within 60 days after the Advantage Refinance Loan funds have been disbursed.

• Can I get any special rates or discounts with Advantage?
  Advantage offers a 0.25% rate reduction for signing up for autopay.

• What happens if I file for bankruptcy?
  According to Advantage “[i]f you file for bankruptcy, you may still be required to pay back this loan.”

• Does Advantage partner with any marketplace lenders?
  Advantage does not appear to part of any multilender marketplace.

Compare Student Loan Refinance Reviews

Sources

1. Buckley Firm, Case 1:07-cv-00960-CMH-JFA UNITED STATES DISTRICT COURT EASTERN DISTRICT OF VIRGINIA UNITED STATES OF AMERICA, EX REL. JON H. OBERG V. NELNET, INC. et.al. COMPLAINT FOR VIOLATIONS OF FALSE CLAIMS ACT 31 U.S.C. §§ 3729 ET SEQ.)
2. Fourth Circuit Court of Appeals, No. 18-1028 U.S. Ex Rel. Jon H. Oberg v. Pennsylvania Higher Education Assistance Agency
3. Advantage Education Loan, Advantage Refinance Loans
4. Consumer Financial Protection Bureau
5. Kentucky Higher Education Assistance Authority
6. ZoomInfo, Kentucky Higher Education Assistance Authority