By Nadia Ramlagan
Public press service
Kentuckians collectively owe more than $20 million in student loan debt, and a new informal survey sheds light on how heavy student loan payments are affecting the lives of borrowers across the Commonwealth.
A study by the Kentucky Center for Economic Policy found that nearly one in five residents had student debt, including 20,000 people at or near retirement age.
Ashley Spalding, director of research at the Centre, said the situation is preventing many people from buying a home, starting a business or accessing health care.
“Wages aren’t going up that much, and the cost of college is skyrocketing, and interest rates have been high on those loans,” Spalding explained.
The US Department of Education estimates over the past year that it has forgiven more than $17 billion in debt for more than 700,000 borrowers. The Biden administration’s pause on student loan repayments is set to expire on August 31. Experts said it is still unclear whether the break will be extended into the fall.
Louisville resident Celine Mutuyemaria said she currently has more than $100,000 in student loan debt and said her financial situation is affecting her mental health.
“It affects me in many ways,” Mutuyemaria stressed. “I actually have a lot of anxiety about if and when student loan repayments will start up again.”
She added that her student loans are negatively affecting her credit rating, which is a hindrance to her dream of owning a home.
“I think home ownership seems really out of my sight right now because of the burden of my student loans,” Mutuyemaria lamented.
The White House also recently announced it would cancel student loans for all former Corinthian Colleges students, after investigations found the for-profit colleges defrauded students, the federal government’s largest loan release. nowadays.