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Your KHEAA College Connection
Fall 2025
KHEAA posts newsletters like this one online, providing students, families and school staff with information about higher education. If you’d like to be notified when one has been posted, send us a direct email or go to kheaa.com, click on Plan for the Future → Student Resources → Your KHEAA College Connection Newsletters. You’ll find back issues and a link where you can sign up for the notifications.
KHEAA is the Kentucky Higher Education Assistance Authority.
KHESLC is the Kentucky Higher Education Student Loan Corporation.
Table of Contents
Big News: Lower Costs for AP Exams in 2025–2026
Taking Advanced Placement (AP) classes is a great way to earn college credit while still in high school. For the 2025–2026 school year, Kentucky has updated the cost of AP exams to make them more affordable for families.
Most AP exams will cost $25 per test for students who do not qualify for fee reductions. Students who do qualify will not have to pay anything for their exams.
There is even better news for students interested in computer science. Both AP Computer Science Principles and AP Computer Science A will be completely free for every Kentucky public school student, regardless of whether they qualify for a fee reduction. Students who qualify for fee reductions will also be able to take AP Seminar and AP Research at no cost.
Eligibility for fee reductions is determined individually, even at schools where most students receive free or reduced lunch. Families should check with their school’s AP coordinator to find out if they qualify.
These changes mean that Kentucky students are paying far less for AP exams compared to the national cost. That makes it easier for more students to challenge themselves academically and save money on college courses later.
If you have questions, talk to your school’s AP coordinator or counselor for more details.
Smart Money Moves for Young Adults Heading to College or the Workforce
Jill Schlesinger, CBS News business analyst, offers clear, practical advice for soon-to-be college students and young adults entering the workforce. Her core message: building healthy financial habits now sets the foundation for long-term success.
1. Set Clear Financial Boundaries
Parents and young adults should openly discuss who will cover which expenses — tuition, textbooks, rent, meals, and extras like entertainment. Be clear and honest about what support is feasible without compromising future goals like retirement.
2. Track Income and Expenses from Day One
Understanding exactly what’s coming in and going out is essential. Encourage young adults to note all sources of income — work-study, part-time jobs, allowances — and match them against expenses. Whether they use an app like Rocket Money or a simple spreadsheet, the habit of tracking is what matters.
3. Start Saving — Even if It’s Small
Aim to save at least 10 percent of earnings from the start. Consistent saving, no matter how modest, builds a habit that leads to financial independence.
Why These Steps Matter
Prevent burnout on family finances: Setting boundaries helps parents support without jeopardizing their own financial plans.
Cultivate financial responsibility: Learning to budget early makes managing money automatic and less stressful later.
Harness the power of savings: Even minimal savings add up and open opportunities for investments like Roth IRAs or retirement accounts later on.
When it comes to financial aid, understanding the options available and completing the Free Application for Federal Student Aid (FAFSA) can feel overwhelming. That's where KHEAA steps in as your trusted partner. Whether you're a student or parent, navigating the FAFSA is crucial in unlocking access to grants, scholarships, work-study programs, and student loans to help make college more affordable.
At KHEAA, we’re committed to providing you with expert guidance every step of the way. Our team of Outreach Counselors is ready to help you fill out your FAFSA accurately and on time, ensuring that you don’t miss out on financial aid opportunities. Whether you’re applying for the first time or renewing your application, KHEAA offers personalized support that caters to your unique situation.
We also understand that every student's financial aid needs are different. That’s why we provide comprehensive resources to guide you through federal and state financial aid options, including the KY Advantage Education Loan. No matter where you are in the process, our team can answer your questions, offer tips on maximizing aid, and make sure you're prepared for what's next. The FAFSA is the gateway to funding your future, and KHEAA is here to make the process as smooth as possible. Whether in-person, by phone, or online, our services are designed to take the stress out of financial aid.
Let KHEAA be your go-to resource for all things FAFSA and financial aid. Start your journey today by visiting kygoestocollege.com or contacting us at 888.452.7322 for personalized assistance. Together, we’ll make sure you have the support you need to achieve your college dreams.
Private Student Loan Myths — What Families Need to Know
Paying for college can feel like putting together a giant puzzle. Scholarships, grants, and federal aid usually cover part of the picture, but many families find there’s still a gap. That’s where private student loans come in. Unfortunately, myths and confusion often make the process harder than it has to be.
Myth 1: All lender lists are the same
Not true. Schools and platforms use different types of lists. Some are “historical,” showing only lenders past students have used. Others, like ELMSelect or FastChoice, let you compare current options side by side, including interest rates, repayment terms, and borrower perks. The best approach is to start broad with a comparison tool, then narrow down your top lenders.
Myth 2: The lowest advertised interest rate is what you’ll get
That’s only for the most creditworthy borrowers, usually with a qualified co-signer. For everyone else, the actual rate may be higher. Always check whether the rates are fixed (stay the same) or variable (start lower but may increase).
Myth 3: All private loans have hidden fees
Many reputable lenders, especially nonprofit ones, charge no origination fees and may even offer discounts for enrolling in autopay. Still, it’s important to read the fine print so you know exactly what you’re agreeing to.
Myth 4: Federal and private loans work the same way
Federal loans come with benefits like income-driven repayment and possible forgiveness programs. Private loans don’t offer those, though some nonprofit and state-based lenders do provide flexible repayment terms and hardship options. We recommend applying for all eligible grants and scholarships first.
Borrower-First Underwriting: A Student-Friendly Approach
One new trend that benefits students is “borrower-first underwriting.” Instead of requiring a co-signer right away, the lender first evaluates the student’s own credit and income. Only if needed is a co-signer added. This gives borrowers more independence and can sometimes lead to better terms for students with solid credit. Programs like KHESLC’s Advantage Education Loan use this model, and several nonprofit lenders are adopting it as well.
Smart Steps for Choosing a Private Loan
Start with federal aid, then explore private options only for what you truly need.
Use comparison tools like ELMSelect or FastChoice to view lenders side by side.
Pay attention to repayment terms, borrower benefits, and co-signer policies — not just the interest rate.
Consider nonprofit lenders, which often have lower costs, more flexible terms, and better customer support.
Always match your borrowing to your expected career income. A good rule of thumb: borrow no more than your first year’s expected salary.
Bottom line: Choosing the right private student loan is about more than picking the lender with the lowest advertised rate. It’s about finding a lender that matches your financial needs, career goals, and future earning potential — without creating unnecessary stress down the road.
Dual Credit Scholarship
Kentucky high school juniors and seniors can earn college credit while still in high school and save money doing it through the Dual Credit Scholarship (DCS).
The scholarship helps pay for dual credit courses at participating Kentucky colleges and universities, making it easier for students to get a jump-start on their education and future career.
Who’s Eligible?
To qualify, students must:
Be a Kentucky resident enrolled in a public, private, or home school; and
Be in 11th or 12th grade; and
Be enrolled (or approved to enroll) in a dual credit class at a participating college; and
Complete a short 30-minute college success counseling session each year they receive the award.
How to Apply
Public & Private High School Students: Schools will send KHEAA the names of students taking dual credit. KHEAA will then contact students to confirm their college and semester choices.
Home School Students: Must complete and submit the Dual Credit Scholarship Application online application by logging into MyKHEAA. Deadlines for the 2025–26 year are:
October 1, 2025 for fall classes
March 1, 2026 for spring classes
How Much Is the Award?
Covers the dual credit tuition amount charged by the college, up to $97 per credit hour for 2025–26.
Limited to two General Education dual credit courses per year.
Cannot be used for developmental, remedial, repeated, or audited classes.
Funds are paid directly to the college once enrollment is confirmed. Students can track their scholarship in their MyKHEAA account.
Why It Matters
The Dual Credit Scholarship is a smart way for students to save money, reduce future college debt, and experience real college coursework before graduating high school.
For a list of participating institutions, visit KHEAA.com, click on Scholarships and Grants → Dual Credit Scholarship.
Optometry Scholarship
The Optometry Scholarship program provides eligible Kentucky residents the opportunity to attend a participating school of optometry to become certified practitioners that render medical service to the Commonwealth.
Eligibility Requirements
To qualify for the Optometry Scholarship, a student must:
Be a U.S. citizen; and
Be a Kentucky resident; and
Be enrolled or accepted for enrollment at a participating institution in a program of study that leads to a Doctor of Optometry degree; and
Have no past due financial obligations to KHEAA or to any Title IV program.
A student may submit a scholarship application prior to being accepted for enrollment. However, it is recommended applicants take steps to be accepted at a participating institution prior to the December 1 deadline.
Application
Scholarship decisions have been finalized for awards that begin with the 2025–2026 year.
The 2026–2027 year application and instructions are now available. Apply by logging into MyKHEAA. The deadline to apply is December 1, 2025.
Award Amount
The scholarship award varies each year depending on available funding. For the 2025–2026 year, the scholarship was $15,000 per recipient.
For more details and a list of participating institutions, visit KHEAA.com, click on Scholarships and Grants → Optometry Scholarship.
Rowan County Student Wins Statewide Essay Contest
The Kentucky Higher Education Assistance Authority (KHEAA) is proud to announce Anthony Lin of Rowan County Senior High School as the winner of this year’s Promote Your School Essay Contest. The contest invited students to respond to the prompt: “Describe a memorable experience at your school where people came together to achieve a goal or overcame a challenge.”
Anthony’s powerful essay shared his personal journey with mental health struggles and how his school community worked together to support students in need. After experiencing depression at a young age, Anthony realized just how critical open conversations and support systems are for young people. He was inspired to take action after learning about the alarming number of teen suicides in Kentucky schools.
With the help of a teacher and two fellow students, Anthony co-founded Fight For Life through Healthy Ways at the University of Kentucky. This initiative provided mental health resources, worked to reduce stigma, and established Code Red plans to help both students and staff. Their efforts created a stronger, more supportive environment at Rowan County Senior High.
“Had it not been for my little brother being my beacon of hope, I may not be here today,” Anthony wrote in his essay. His story is a reminder of the importance of mental health awareness and the power of community action.
Anthony’s essay not only earned him top honors in the contest but also shines a light on the resilience and leadership of Kentucky students.
Coffee with KHEAA
Join us for a stimulating brew of education, career insights, and financial advice on 'Coffee With KHEAA' with Casi Benedict and Keith Ritchie!
Pour yourself a cup and settle in as we explore the rich blend of topics surrounding higher education, career planning, and financial literacy. Each episode, we chat with experts, students, and professionals to serve up valuable tips and engaging discussions to help you navigate the journey toward your academic and professional goals. Whether you're savoring your morning latte or enjoying an afternoon espresso break, 'Coffee With KHEAA' is the perfect podcast companion for anyone seeking to caffeinate their mind with knowledge and inspiration.
Subscribe now and brew up success with us. Available anywhere you get your podcasts!
Dream Big and Save Smart with KY Saves 529
Kids dream about their futures just as much as their parents do. Whether it’s imagining the first day of college, stepping into a dream career, or walking across the graduation stage, those dreams start with a plan. KY Saves 529 is here to help Kentucky families turn those dreams into reality by providing a smart and flexible way to save for rising education costs.
Why Choose KY Saves 529? KY Saves 529 is created specifically for Kentucky residents and offers significant advantages to make saving for education simple and rewarding:
Significant Tax Advantages: Contributions grow tax-deferred, and withdrawals for qualified education expenses are tax-free.
No Minimum Investment: Open an account without a minimum contribution, making it accessible for all families.
Exclusive Benefits for Kentucky Residents: KY Saves 529 accounts do not impact state need-based financial aid eligibility, and some beneficiaries may still qualify for in-state tuition rates even if they move out of state.
Flexible and Convenient Saving Options Saving for education has never been easier with KY Saves 529. Families can:
Set up recurring contributions directly from a bank account.
Opt for payroll contributions for a hassle-free saving process.
Make one-time contributions electronically or by check.
Save up to $450,000 across all qualified tuition programs sponsored by Kentucky.
Low Fees, More Savings Unlike some other savings plans, KY Saves 529 keeps fees low, ensuring your money goes toward education rather than administrative costs. With no enrollment fee and annual asset-based fees ranging from 0.20% to 0.81%, families can maximize their savings potential.
Maintain Control Over Your Savings With KY Saves 529, you retain full control over your account. You choose how your funds are invested, when to withdraw them, and how to use them. Options include:
A variety of investment choices, including Year of Enrollment Options that adjust as your child grows.
Coverage for a range of education expenses, from tuition and fees to room and board.
Flexibility to roll over unused funds into an IRA or change the beneficiary to another qualified family member if needed.
Tax Benefits Beyond Savings KY Saves 529 offers additional tax benefits, such as:
Gift-tax benefits: Contributions qualify for the $19,000 annual gift exclusion ($95,000 if making a five-year contribution in one lump sum).
Estate planning advantages: Reduce your taxable estate by contributing up to $190,000 for married couples filing jointly in a single year.
Start Saving Today Education is one of the best investments a family can make, and with KY Saves 529, you can begin saving today with no minimum contribution. Your child’s future is full of possibilities, and every dollar saved helps bring those dreams closer to reality. Enroll online and start building a lifetime of value with KY Saves 529.
ACT and SAT Fall 2025 National Test Dates
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