Student Loan Forgiveness In Kentucky
The Kentucky Higher Education Assistance Authority (KHEAA) governs all education loan programs in the state. The agency partners with a number of federal agencies and programs to make sure that students have access to affordable higher education, including financial aid options like Direct Loans and Federal Student Aid. The following is an overview of student loan forgiveness in Kentucky:
What’s the most you could save with student loan forgiveness in Kentucky?
You could save up to $17,500 in student loan debt if you have a qualifying repayment plan. This is the maximum amount of debt that can be forgiven under the Kentucky Student Loan Repayment Program. The average student borrower who has his or her loans forgiven saves $10,000 total and pays back around $70 per month over 10 years instead of an average of over $200 per month for the same period on a standard repayment plan alone.
The Kentucky Student Loan Repayment Program, or KSLRP, is designed to help graduates with high amounts of college-related debt by offering them assistance in repaying their loans at affordable rates and even forgiving some of their debt after two years of payments instead of 20 years as required by most federal programs like income-driven repayment plans (IDRs).
Who is eligible for student loan forgiveness in Kentucky?
You are eligible for student loan forgiveness in Kentucky if you:
- Are a Kentucky resident.
- Work in a public service or non-profit job.
- Are a teacher, nurse, or other public service profession.
- Have a Federal student loan.
- Have a qualifying loan balance on your loans that qualifies you for repayment relief through the Public Service Loan Forgiveness Program (PSLF).
You must be repaying your loans under an income-driven repayment plan with full payment due each month. The amount of debt forgiven will be included as taxable income on your federal tax return next year.
How can I apply for Student Loan Forgiveness In Kentucky?
If you’re looking to apply for student loan forgiveness in Kentucky, there are several options available. You can complete the form and submit it to your loan servicer. You must also have made 120 qualifying payments while working in a public service job or enrolled in an income-driven repayment (IDR) plan on federal student loans.
There are different pathways for public service, healthcare and education professionals.
The first step in applying for student loan forgiveness in Kentucky is to submit a complete application. The deadline for applications is October 1st each year. You can find more information about how to apply here.
If you qualify, your loans will be forgiven after working full-time for five years in public service or ten years as an employee of certain nonprofit organizations (including some hospitals and educational institutions that provide health care).
In order for you to know if you qualify for student loan forgiveness in Kentucky, make sure that:
- Your employer is a qualifying government agency or organization
- You are working at least 30 hours per week on the job
- Your employer has not repaid your loans
If you are a Kentucky resident who has student loans and is looking to have your debt forgiven, you can do this by working in certain public service fields or in certain areas of the healthcare industry. There are also options available for teachers who work in rural areas with low-income students. If you think that you fit into one of these categories, then be sure to fill out an application!