Bill > HB924

This bill establishes the Kentucky Public Service Student Loan Forgiveness Program, administered by the Kentucky Higher Education Assistance Authority (KHEAA), to help repay eligible student loans for individuals working in public service within Kentucky. To qualify, applicants must reside in Kentucky, be employed full-time in a public service role (defined as working for the Commonwealth, its counties, cities, political subdivisions, public schools, universities, or qualifying non-profit organizations providing direct public services), and not be in default on federal student loans or other obligations to KHEAA. The program aims to recruit and retain these essential workers by offering loan repayment benefits, with specific criteria for awarding funds, including addressing critical shortages, serving rural or distressed areas, and considering income levels. Participants must commit to at least two years of full-time public service, and benefits can range from $5,000 to $10,000 annually, with a lifetime maximum of $40,000 or the outstanding loan balance, whichever is less. The bill also appropriates $30,000,000 from the budget reserve trust fund and $30,000,000 from the general fund for the program's initial implementation, with an emergency clause making it effective July 1, 2026. KHEAA will report annually to the Legislative Research Commission on the program's participation, impact, and financial disbursements.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb924.html