Student Loan Forgiveness in Kentucky: Who Qualifies & How

• Kentucky offers three loan repayment programs for healthcare workers, mental health professionals, and teachers who work in high-need areas.

• If state programs don’t apply, federal options like PSLF and Teacher Loan Forgiveness can still erase some or all of your student debt.

• Student loan forgiveness in Kentucky isn’t automatic. You have to apply, follow the rules, and submit the right paperwork to get approved.

Student loan forgiveness in Kentucky is available through both state and federal programs, offering relief for healthcare workers, teachers, and public service employees.

If you work in a high-need field, you may qualify for state-based loan repayment assistance, while federal programs like PSLF and Teacher Loan Forgiveness provide additional options.

Understanding which program fits your situation is the key to eliminating your debt. This guide breaks down Kentucky’s state-specific student loan forgiveness programs, federal options, and alternative solutions if you don’t qualify for forgiveness.

Kentucky offers three state-based programs to help healthcare professionals, mental health providers, and teachers reduce or eliminate their student loan debt. These programs provide loan repayment assistance or scholarships in exchange for service in high-need areas.

Kentucky State Loan Repayment Program (KSLRP)

The Kentucky State Loan Repayment Program helps healthcare professionals pay off student loans when they work in underserved areas. Through a 50/50 matching program, eligible participants can receive up to $300,000 in loan repayment assistance by committing to at least two years of full-time service. Related: Rural Medicine Loan Forgiveness

• Who It’s For: Healthcare professionals, including doctors, dentists, nurse practitioners, pharmacists, and behavioral health providers, working in Health Professional Shortage Areas (HPSAs).

• Benefits: Up to $300,000 in loan repayment assistance through a 50/50 matching program. Requires a minimum two-year full-time service commitment, with renewal options for additional repayment assistance.

• Eligibility: Must be a U.S. citizen or national with a valid healthcare license in Kentucky. Cannot have other service obligations or federal debt judgments. Employment must be at an approved HPSA site.

• How to Apply: Applications are submitted through the Kentucky Office of Rural Health. Applicants must review program guidelines and provide proof of employment at an eligible practice site.

Kentucky Behavioral Health Workforce Initiative (KBHWI)

The Kentucky Behavioral Health Workforce Initiative offers loan repayment assistance to mental health specialists working in underserved communities.

This program provides up to $300,000 in tax-free loan repayment funding through a 50/50 matching program for those who commit to a two-year full-time service term in a Mental Health Professional Shortage Area (MHPSA). Related: Student Loan Forgiveness for Mental Health Professionals

• Who It’s For: Counselors, therapists, psychologists, and social workers working in Mental Health Professional Shortage Areas (MHPSAs).

• Benefits: Up to $300,000 in tax-free loan repayment assistance through a 50/50 matching program. Requires a two-year full-time service commitment, with potential for renewal.

• Eligibility: Must be a U.S. citizen or national with a valid mental health license in Kentucky. Cannot have other service obligations or federal debt judgments. Employment must be at an approved MHPSA site.

• How to Apply: Applications are submitted through the Kentucky Office of Rural Health. Applicants must review program guidelines and provide proof of employment at an eligible site.

KHEAA Teacher Scholarship Program

The KHEAA Teacher Scholarship Program provides financial aid to Kentucky residents pursuing teacher certification. This scholarship does not require repayment if recipients fulfill their service requirement by teaching in Kentucky schools. If the teaching obligation isn’t met, the scholarship converts into a loan with interest.

• Who It’s For: Kentucky residents pursuing initial teacher certification at a participating Kentucky institution.

• Benefits: Up to $2,500 per semester in scholarship aid. Funds can cover tuition and other education expenses.

• Eligibility: Must be a U.S. citizen or eligible non-citizen enrolled full-time in a teacher certification program (exceptions apply for final-term students). Must demonstrate financial need through the FAFSA.

• Service Requirement: Recipients must teach in a Kentucky public or certified non-public school for one semester per semester of aid received. If they don’t fulfill this requirement, the scholarship converts into a repayable loan with interest.

• How to Apply: Submit the FAFSA first, then apply through KHEAA.

Kentucky residents can also benefit from several federal student loan forgiveness programs designed to reduce or eliminate their student debt. Here’s a quick overview of each:

• Public Service Loan Forgiveness (PSLF): If you work full-time for a government or nonprofit organization, you may qualify for PSLF. This program forgives your remaining federal student loan balance after 120 qualifying payments under an income-driven repayment (IDR) plan. Many public employees, including teachers, healthcare workers, and government employees, use PSLF to eliminate their debt tax-free.

• Teacher Loan Forgiveness: If you’re a teacher who has worked full-time for five consecutive years in a low-income school or educational service agency, you may qualify for up to $17,500 in loan forgiveness. The amount forgiven depends on your subject area, with math, science, and special education teachers receiving the highest benefits. This program can be used in addition to PSLF, but the years of service cannot overlap.

• Income-Driven Repayment (IDR) Forgiveness: Borrowers who enroll in an IDR plan can have their remaining loan balance forgiven after 20 or 25 years of payments, depending on the plan. IDR plans cap monthly payments based on income and family size, making them a long-term strategy for loan forgiveness, especially for those with high debt and lower earnings.

• Borrower Defense to Repayment: If your college misled you or engaged in misconduct, you may qualify for loan forgiveness under Borrower Defense to Repayment. This program cancels federal student loans for borrowers whose schools engaged in fraud, false advertising, or other illegal practices. Many students from now-defunct for-profit schools have had their loans wiped out through this program.

Related: Is it Too Late to Apply for Student Loan Forgiveness?

Both Kentucky state programs and federal student loan forgiveness programs offer ways to reduce or eliminate your debt—but none of them happen automatically.

Follow these steps to make sure your application gets approved:

1. Identify the right program: Are you a healthcare worker, teacher, or public servant? Pick the program that fits your situation.

2. Gather your documents: This usually includes employment verification forms, proof of licensure (for healthcare professionals), and student loan statements.

3. Check deadlines: Some programs, like the KSLRP, have specific application windows. Others, like PSLF, require annual employment certification.

4. Submit your application: Follow the specific program’s instructions. For federal forgiveness, use the Federal Student Aid website. For state programs, apply through the Kentucky Office of Rural Health or KHEAA.

5. Follow up: Loan forgiveness processing times can be slow. Check with your loan servicer or program administrator to make sure everything is moving forward.

For more details, check out our guide on how to apply for student loan forgiveness to make sure you don’t miss any steps.

Not everyone qualifies for loan forgiveness, but you still have options to lower your payments or get out of default:

• Refinancing: If you have private loans or high interest rates, refinancing can lower your payments. (But don’t refinance federal loans if you might need forgiveness later.)

• Deferment or Forbearance: Temporary relief options if you’re facing financial hardship.

• Rehabilitation or Consolidation (if in default): If you’ve fallen behind on payments, these are your two main ways to get back in good standing.

Even if forgiveness isn’t on the table, the right strategy can still make your loans more manageable.

Student loan forgiveness in Kentucky is possible, but choosing the right program and navigating the application process can be overwhelming.

Whether you’re a healthcare worker, mental health provider, teacher, or public servant, you may qualify for state or federal loan forgiveness—but missing key details could delay or even disqualify your application.

You don’t have to figure this out alone. Our student loan expert can help you understand your options, avoid common mistakes, and take the right steps toward eliminating your debt.

Book a call today—take control of your student loans and start moving toward financial freedom.

Related Readings:

• Student Loan Forgiveness for Healthcare Workers

• Are Federal Student Loans Forgiven After 25 Years

• Best Repayment Plan for Student Loans