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).
| Loan Limits | $7,500 – $200,000+ |
| Fixed Rates | 4.90%* – 10.69% |
| Variable Rates | NA |
| Terms | 10, 15, or 20 years |
| Min. Credit Score | Undisclosed |
| Apply | Link |
*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
| Private student loans | ✓ |
| Private parent loans | ✓ (in either name‡) |
| Federal student loans | ✓ |
| Federal Parent PLUS loans | ✓ (in either name) |
‡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 4.90% and 10.69%. Note that the lowest rates include a 0.25% interest rate reduction for enrollment in automatic payments.
| Term | Fixed Rate |
|---|---|
| 10 Year | 4.90% – 9.90% |
| 15 Year | 7.55% – 10.11% |
| 20 Year | 8.94% – 10.69% |
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.
| Year End | Low APR | High APR |
|---|---|---|
| 2025 | 4.90% | 10.69% |
| 2024 | 5.70% | 10.69% |
| 2023 | 5.70% | 9.19% |
| 2022 | 3.54% | 7.07% |
| 2021 | 3.74% | 7.78% |
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.
| Fee Type | Amount Charged |
|---|---|
| Application Fee | None |
| Loan Origination Fee | None |
| Disbursement Fee | None |
| Prepayment Penalty | None |
| Late Payment Fee | None |
| Returned Payment Fee | None |
| Collection Fee | None |
- Application fee – fee to apply for rates & approval.
- Loan origination fee – fee to create the new loan.
- Disbursement fee – fee for distributing funds to lenders to pay off loans that have been refinanced.
- Prepayment penalty – fee for making extra payments to reduce a refinance loan balance or pay it off early.
- Late payment fee – fee for making a late payment.
- Returned payment fee – fee for failed payments due to insufficient funds, also known as a “bounced check”.
- 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: availability varies by location; as of this writing, Advantage services 40 states.
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.
| Condition | Coverage |
|---|---|
| Returning to grad school | Undisclosed |
| Disability rehabilitation | Undisclosed |
| Active military duty | Undisclosed |
| Involuntary unemployment | Forbearance |
| Natural Disaster | Undisclosed |
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 178 complaints about Advantage Education Loans’ parent company Kentucky Higher Education Assistance Authority (KHEAA) to the CFPB; that’s equivalent to one (1) complaint every 25 days, which is 79.1% higher than the average daily complaint rate among reviewed lenders.
In 2025, consumers filed 18 complaints about KHEAA, which is 22.8% above its annual average. KHEAA received 16 complaints in 2023, equivalent to:
- 9.15% more complaints than in an average year.
- one (1) complaint for every $32.937 million of operating revenue.
- one (1) complaint for every 21 employees.
Overall, 71 complaints (39.9%) include narratives. Among these 71 complaints, four (4) or 5.63% 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 15532816
8/26/2025
Connecticut
“To Whom It May Concern, I am filing this complaint against the Kentucky XXXX XXXX XXXX XXXX XXXX ( XXXX ) regarding my private student loan. Original loan amount : approximately {$35000.00} Payments already made : over {$20000.00} Remaining balance : still $ XXXX despite my payments Breakdown so far : ~ {$11000.00} has gone toward principal, ~ {$8700.00} toward interest The loan balance remains extraordinarily high because XXXX has been charging interest on interest ( capitalized interest/negative amortization ). This practice is predatory and unfair, as it traps borrowers in a cycle where the balance never meaningfully decreases even after years of payments. As a result of this loan structure, I am unable to start a family, buy a home, or save for retirement. I have already repaid well over half of what I originally borrowed, but KHESLC still claims I owe nearly the full balance. I believe XXXX interest practices are : Unfair and abusive under consumer protection standards, Deceptive because the terms make it appear as though repayment is achievable, when in fact the loan compounds faster than it can be repaid under normal circumstances, In violation of fair lending expectations for state-affiliated lenders. Requested resolution : XXXX. A review of XXXX interest accrual practices, particularly capitalization of unpaid interest. XXXX. A fair settlement or discharge of the remaining loan balance, given that I have already repaid more than half of the original loan. XXXX. Correct reporting on my credit report that does not unfairly punish me for refusing to pay compounding interest on interest. I am also filing this complaint with the Consumer Financial Protection Bureau, the Kentucky Attorney General, and the Connecticut Attorney General for oversight, since KHESLC is a state-affiliated lender that services out-of-state borrowers. Thank you for your attention to this matter. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX / ( XXXX ) XXXX”
Complaint 15045825
8/1/2025
Kentucky
“This is in reference to my existing complaint XXXX XXXXXXXX. Since filing, my student loan lender updated my credit report to show my account as only XXXX days past duenot defaulted. However, they previously claimed I was in default and blocked my account access. If Im not in default, they had no legal right to treat the account as such or demand XXXX XXXXXXXX. I believe this further shows deceptive and inconsistent handling of my loan. I am requesting full removal of negative remarks and restoration of access.”
Complaint 14931054
7/28/2025
Kentucky
“I contacted my private student loan lender in early XX/XX/year> to set up a payment plan and avoid default. I was told over the phone I qualified for an interest-only plan. XXXX days later, I received an email saying I had to first pay {$260.00} to qualify. I called back and confirmed that if I paid that amount and made monthly payments, I would not default. I complied. Despite this, the loan was placed into default. I called again and was told I could pay $ XXXX for 6 months to remove the default from my credit. I agreed. Then I was contacted again and told this was a system error and the actual payment would be $ XXXX. I have the email proving the change and the lender has recorded calls confirming the terms I was told. To make matters more confusing, my account is now listed as in collections rather than in default, showing inconsistent reporting. I am requesting the CFPB review this case, stop credit damage, and ensure accurate reporting and fair resolution.”
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
| Lender | Rating |
|---|---|
| RISLA | A |
| Brazos | A- |
| ELFI | A- |
| Credible | A- |
| Advantage | B+ |
| Laurel Road | B+ |
| Splash Financial | B |
| LendKey | B |
| Panacea Financial | B |
| UW Credit Union | B |
| Purefy | B |
| SoFi | B- |
| INvestEd | B- |
| Mpower Financing | B- |
| Earnest | C+ |
| Yrefy | C+ |
| EDvestinU | C+ |
| SC Student Loan | C+ |
| Sparrow | C+ |
| Citizens Bank | C |
| College Ave | C |
| ISL | C |
| MEFA | C |
| SuperMoney | C |
| SELF Refi | C |
| CU Student Choice | C |
| iHelp | C |
| Navy Federal | C |
| BECU | C |
| First Tech Federal | C |
| PA Forward | C- |
| Nelnet Bank | C- |
| NaviRefi | D- |
Sources
- 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.)
- Fourth Circuit Court of Appeals, No. 18-1028 U.S. Ex Rel. Jon H. Oberg v. Pennsylvania Higher Education Assistance Agency
- Advantage Education Loan, Advantage Refinance Loans
- Consumer Financial Protection Bureau
- Kentucky Higher Education Assistance Authority