Those with student loan debt could soon have all or some of their federal student loans forgiven under a new plan released by the White House Wednesday.
Those who earn less than $125,000 per year will be eligible for up to $10,000 worth of federal student loan debt forgiveness. Those who received a Pell grant for higher education can get up to $20,000 forgiven.
The White House is also extending a pause on student loan repayments through the end of the calendar year.
About 616,000 Kentuckians hold federal student debt, which is about 18% of the state’s adult population. That debt totals around $20.5 billion in principal and interest, or about $33,300 per individual.
Nearly one-third of that debt is held by people between the ages of 30-49 and 15 percent by people over age 50, according to the Kentucky Center for Economic Policy.
More details are expected in the coming weeks about how those with federal student loan debt can apply for the forgiveness plan.