Your Guide to Kentucky Student Loan Forgiveness Programs

Student loan debt is increasingly a part of the college experience for those with Kentucky student loans. In fact, 61% of graduates in Kentucky are student loan borrowers, according to The Institute for College Access & Success.

Having student loan debt can cause anxiety, especially for those who might not make a large salary or who work in nonprofit fields. For Kentuckians, where the average student loan debt for graduates is $28,356, the pressure is real.

Here’s what you need to know about Kentucky student loan forgiveness options.

Kentucky student loan forgiveness

Kentucky only offers one state-specific loan forgiveness program, called the Kentucky State Loan Repayment Program.

Kentucky State Loan Repayment Program

Eligibility for the Kentucky student loan forgiveness program is aimed at healthcare providers. To get loan forgiveness help, you must commit to working full-time for two years in an underserved area within the state. This includes rural areas and low-income areas.

The program is competitive, however, and applicants are selected to participate. Those who are admitted to this program can have their education loan obligations paid off upon completing the requirements.

Kentucky scholarships and grants

Kentuckians who are current students can reduce their need for student loans by taking advantage of other financial aid options.

Some of the student aid options from Kentucky include:

• Kentucky Educational Excellence Scholarship
• Teacher Scholarship Program
• Early Childhood Development Scholarship
• Work Ready Kentucky Scholarship Program
• Kentucky Tuition Grant
• College Access Program Grant

For students who plan ahead financially, there are many options to reduce their need for student loans, thereby lessening their reliance on debt forgiveness programs overall.

Likewise, federal student aid can also reduce your need for student loan debt. Fill out the Free Application for Federal Student Aid (FAFSA) to find out how much financial aid you’re eligible for and to potentially qualify for federal grants.

Federal student loan forgiveness programs for Kentuckians

Kentucky student loan forgiveness isn’t just about relying on state programs, however. Those who have student loan payments can also take advantage of federal programs from the U.S. Department of Education and other resources.

Public Service Loan Forgiveness (PSLF)

For those who work with nonprofit employers, PSLF can be a way to receive loan forgiveness after making 120 qualifying payments. In order to benefit, you need to have debt from the Direct Loan program and be on an income-driven repayment plan. Your monthly payment will be more manageable, and after you complete PSLF requirements, your remaining federal loan balance can be forgiven.

Teacher Loan Forgiveness

You can receive up to $17,500 in loan cancellation if you teach for at least five years in an underserved area. Your federal loans can be significantly reduced when you use teacher loan forgiveness.

Learn how to fill out the Teacher Loan Forgiveness application.

National Health Service Corps Loan Repayment Programs

If you’re a healthcare professional working in an underserved area, you can get help with repayment from the federal government. There are different loan repayment programs for different healthcare professions through the National Health Service Corps.

Additionally, your loan repayment amount depends on whether you work full-time or part-time, as well as how many years you serve. You can get up to $100,000 in loan repayment, depending on your situation and years of fulfilled service.

Perkins Loan cancellation

If you have Perkins Loans, you can get Kentucky student loan forgiveness depending on your profession. Perkins loan cancellation is commonly available for educators under the program, but borrowers who work as law enforcement officers, public defenders, librarians in certain schools or in other professions can also qualify.

Income-driven repayment options

Finally, if you’re on income-driven repayment, you have the potential to receive student loan forgiveness after you’ve been in the program for 20 or 25 years. You can use a Direct Consolidation Loan and then see if you qualify for income-driven repayment based on whether you fall into the low-income category.

Be aware that any forgiven loan balance that’s granted after your first 20 or 25 years of payments might come with tax consequences.

Other federal loan forgiveness programs

Kentucky student loan forgiveness is also available through other loan repayment programs as well. The Department of Justice offers student loan assistance for some of its employees.

Additionally, if you serve in the military there are different benefits that can student loan repayment help. Participating in a service corps like Americorps or Peace Corps can also help you get a little help with loan repayment.

Private student loan refinancing

If you don’t qualify for federal student loan forgiveness programs, you might be able to reduce your interest rate and save money on your student loan debt by refinancing.

Private student loan refinancing consists of taking smaller student loan balances and paying them off with a new, larger loan. If you have good credit, you might qualify for a much lower rate; this can help you get out of student debt faster while saving on interest.

Each lender has its own requirements, however. To qualify, you need good credit and must meet certain income requirements. If you don’t meet the lender’s requirements, you might need a creditworthy cosigner for your refinancing application.

Realize, though, that once you refinance federal student debt, you no longer qualify for PSLF, income-driven repayment, automatic forbearance in certain situations, and other federal benefits. If you don’t think you’ll need these benefits in the future, refinancing can be one way to save money overall.

Start a Kentucky student loan forgiveness program today

Any student loan forgiveness program takes years to complete. At the very least, you need to plan for at least two years of service to take advantage of a loan repayment program, whether you pursue a state- or federal forgiveness option.

Research available options and requirements, and make a plan for meeting the criteria to get help with your student loan repayment. Our team of student loan professionals to help you determine which programs might work best for you. Schedule a consultation today and create a path to help you get rid of student loan debt faster.