Kentucky Student Loan Forgiveness Programs
Kentucky offers student loan repayment assistance programs for health care workers, large-animal vets, and future teachers who commit to working where the state needs them. The Healthcare Worker Loan Relief Program is the one to watch this fall, since it opens September 28, 2026, and doesn't require an employer match. Teachers get help up front through KHEAA scholarships and forgivable loans, and everyone else should start with federal forgiveness programs.
Kentucky Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Kentucky State Loan Repayment Program (KSLRP) | Primary care, dental, pharmacy, and behavioral health providers | $125,000 for physicians; $40,000 to $100,000 for other providers (includes 1:1 sponsor match) | 2 years full time or 3 years part time at an eligible site in a shortage area | Annual Cycle |
| Healthcare Worker Loan Relief Program (HWLRPC) | Physicians, dentists, pharmacists, nurses, and other health providers | $100,000 for physicians, dentists, and pharmacists; $40,000 to $60,000 for others | Up to 4,160 hours over 2 to 3 years at an eligible site | Annual Cycle |
| Veterinary Medicine Student Loan Repayment | Livestock veterinarians within 10 years of their DVM | $87,500 over 5 years | 5 years of full-time livestock practice in a shortage or rural area | Annual Cycle |
| KHEAA Teacher Scholarship | Kentucky residents in teacher education programs with financial need | $3,000 per fall or spring semester; $2,000 for summer | 1 semester of teaching per semester of scholarship | Annual Cycle |
| Teacher Recruitment Loan Program | Kentucky residents in teacher education at 15 participating schools | $5,000 per semester | 1 year of Kentucky public school teaching per semester of loan | Annual Cycle |
| Osteopathic Medicine Scholarship | Kentucky residents at the Kentucky College of Osteopathic Medicine | Tuition gap between KYCOM and the in-state average | 1 year of Kentucky practice per year of scholarship | Annual Cycle |
| Early Childhood Development Scholarship | Early childhood workers pursuing a CDA or degree | Up to $7,089 per semester | Service commitment tied to the credential | Annual Cycle |
Programs That Help Repay Loans You Already Have
Kentucky borrowers carry roughly $33,200 in federal student debt on average, according to our Kentucky student loans and financial aid breakdown. These three programs send money toward that debt once you're working in a qualifying job. Compare them against Public Service Loan Forgiveness, since many qualifying Kentucky employers are also PSLF employers.
Kentucky State Loan Repayment Program (KSLRP)
KSLRP pays up to $125,000 to physicians, $100,000 to pharmacists and dentists, $60,000 to PAs, NPs, midwives, dietitians, and behavioral health specialists, and $40,000 to RNs, dental hygienists, and substance use disorder counselors for a two-year commitment (UK Center of Excellence in Rural Health). Those totals are built on a 50/50 match, so an employer, foundation, or community sponsor has to put up one dollar for every federal dollar. Doctors comparing this against federal awards should read our breakdown of student loan forgiveness for doctors.
| Administered by | University of Kentucky Center of Excellence in Rural Health |
| Who qualifies | Physicians, PAs, NPs, CNMs, RNs, dentists, dental hygienists, registered dietitians, LCSWs, LPCCs, health service psychologists, marriage and family therapists, psychiatric nurse specialists, substance use disorder counselors, and pharmacists at public or nonprofit sites in a Health Professional Shortage Area |
| Award | Maximums listed above for a two-year commitment, including the 1:1 sponsor match |
| Commitment | Two years full time or three years part time |
| Status | The 2026 window is closed, and the next cycle opens in April 2027 |
| Official source | KSLRP |
Healthcare Worker Loan Relief Program Of The Commonwealth (HWLRPC)
The legislature created HWLRPC in 2022 through HB 573, funded it with state general fund money and grants, and barred it from requiring a dollar-for-dollar employer match (2022 Ky. Acts Ch. 226). Maximum awards for a two-year commitment are $100,000 for physicians, dentists, and pharmacists, $60,000 for PAs, NPs, midwives, and behavioral health specialists, and $40,000 for RNs, dental hygienists, and substance use disorder counselors, tiered by provider type and debt level (UK Center of Excellence in Rural Health). Nurses who don't fit have other routes in our roundup of student loan forgiveness for nurses.
| Administered by | University of Kentucky Center of Excellence in Rural Health |
| Who qualifies | Health workers employed at an eligible site in a shortage area matching their discipline, or starting there and seeing patients by December 31, 2026 |
| Commitment | 24 to 40 hours a week, up to 4,160 hours over two to three years, providing primary health services |
| Eligible loans | Qualifying educational loans only |
| Status | The next window runs September 28 through October 23, 2026, at 5 p.m. Eastern; the number of awards depends on available funds |
| Official source | HWLRPC applications |
Veterinary Medicine Student Loan Repayment
KHEAA repays up to $12,500 in year one, rising by $2,500 a year to $22,500 in year five, for veterinarians who practice livestock medicine in designated shortage or underserved rural areas (KHEAA). That adds up to $87,500 over five years, and KHEAA selected six applicants from the 2026 cycle. Vets with private loans should also check our list of private student loan forgiveness options.
| Administered by | Kentucky Higher Education Assistance Authority |
| Who qualifies | Veterinarians who earned a DVM within the past 10 years with more than $75,000 in eligible loans |
| Commitment | Five years, at least 40 hours a week for 48 weeks a year |
| Status | The 2026 deadline was June 15, 2026; watch KHEAA for the next cycle |
| Official source | KHEAA Veterinary Medicine Student Loan Repayment |
Service-Based Funding For Students In Training
These programs fund school up front and cancel the debt through service after graduation. They count as forgiveness only if you complete the service, and walking away means repaying the award with interest, so weigh them against a private student loan with no strings attached.
KHEAA Teacher Scholarship
KHEAA pays up to $3,000 per fall or spring semester and $2,000 for summer to Kentucky residents with financial need who are pursuing teacher certification (KHEAA). Recipients teach one semester at a Kentucky public or certified non-public school for each semester of scholarship. Pair it with our list of student loan forgiveness options for teachers.
| Administered by | Kentucky Higher Education Assistance Authority |
| Who qualifies | U.S. citizens and Kentucky residents who demonstrate financial need |
| Penalties | Repay the scholarship plus interest if you don't finish the program or the teaching service |
| Deadlines | May 1, 2026, for the 2026–2027 year |
| Official source | KHEAA Teacher Scholarship |
Teacher Recruitment Loan Program
This KHEAA program lends up to $5,000 a semester to students admitted to a college of education and $2,500 a semester to declared education majors not yet admitted, at 15 participating Kentucky colleges (KHEAA). Each semester of loan is canceled by one year of teaching at a Kentucky public school. Public school teachers can also pursue PSLF on any federal loans they carry.
| Administered by | Kentucky Higher Education Assistance Authority |
| Who qualifies | U.S. citizens or permanent residents who are Kentucky residents in an approved teacher education program at a participating school |
| Penalties | Repay the loan plus interest if you don't finish the program or the teaching service |
| Deadlines | The 2026–2027 application opened April 1, 2026 |
| Official source | KHEAA Teacher Recruitment Loan Program |
Osteopathic Medicine Scholarship
KHEAA covers the difference between the average in-state tuition at Kentucky medical schools and the tuition charged by the Kentucky College of Osteopathic Medicine at the University of Pikeville (KHEAA). Recipients practice one year in Kentucky in a qualifying field for each year of scholarship. Compare the terms with a standard medical school student loan before signing.
| Administered by | Kentucky Higher Education Assistance Authority |
| Who qualifies | Kentucky residents enrolled at KYCOM |
| Penalties | Repay the scholarship plus interest if you don't complete the program or the service |
| Official source | KHEAA Osteopathic Medicine Scholarship |
Early Childhood Development Scholarship
KHEAA pays up to full tuition and fees, capped at $7,089 per semester for 2026–2027, for early childhood workers pursuing a Child Development Associate credential, an associate, bachelor's, or master's degree in early childhood education, or the Kentucky Early Childhood Development Director's Certificate (KHEAA). Recipients agree to a service commitment that depends on the credential. Child care workers at nonprofits should also read our nonprofit student loan forgiveness breakdown.
| Administered by | Kentucky Higher Education Assistance Authority |
| Who qualifies | Workers employed at least 20 hours a week at a participating early childhood facility, or as a preschool associate teacher in a state-funded preschool program |
| Commitment | Set by credential; KHEAA doesn't list the lengths on its program page |
| Official source | KHEAA Early Childhood Development Scholarship |
Federal Forgiveness Options For Kentucky Borrowers
Federal programs reach far more Kentucky borrowers than the state programs, and each one runs on its own rules for combining with a state award. Our full list of forgiveness programs covers every federal option.
Public Service Loan Forgiveness (PSLF). Borrowers who make 120 qualifying payments while working full time for a government agency or qualifying nonprofit get their remaining Direct Loan balance forgiven tax-free (StudentAid.gov). Kentucky public school teachers, state and county employees, and public university staff all work for qualifying employers, and our PSLF breakdown covers the 2026 employer rule litigation.
Teacher Loan Forgiveness. Teachers with five consecutive years at a low-income school can receive up to $17,500 if they teach secondary math, science, or special education, or up to $5,000 in other subjects (StudentAid.gov). The same years can't count toward both Teacher Loan Forgiveness and PSLF, which our teacher forgiveness breakdown walks through.
Repayment Assistance Plan (RAP) and IBR. RAP launched July 1, 2026, and forgives any remaining balance after 360 qualifying payments (How RAP Works). Borrowers deciding between plans can run the numbers in our RAP vs. IBR comparison.
Health care programs. The National Health Service Corps paid full-time primary care providers up to $80,000 for a two-year commitment in its 2026 cycle, including a $5,000 Spanish-language bonus (HRSA). KSLRP is Kentucky's HRSA-supported State Loan Repayment Program (HRSA SLRP contacts). Our nursing and health care forgiveness roundup covers eligibility for the federal programs.
Veterinarians. Beyond KHEAA's livestock program, the USDA Veterinary Medicine Loan Repayment Program pays up to $25,000 a year for service in designated shortage areas (USDA NIFA). Our private student loan forgiveness list covers vets with private debt.
Lawyers. KHEAA runs the federal John R. Justice program for Kentucky prosecutors and public defenders, with an estimated award of $2,000 a year for 48 attorneys, subject to federal funding (KHEAA). The 2026 deadline was January 5, and prosecutors and public defenders can also pursue PSLF.
Is Student Loan Forgiveness Taxed In Kentucky?
Kentucky conforms to the federal tax code as of a specific date rather than automatically, and it adopted the American Rescue Plan exclusion for student loan forgiveness as of December 31, 2023 (The College Investor). PSLF, Teacher Loan Forgiveness, and death and disability discharges are tax-free federally.
The American Rescue Plan exclusion expired for forgiveness granted after December 31, 2025, so income-driven plan forgiveness is federally taxable again starting in 2026 (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness should confirm Kentucky's current conformity date with the Department of Revenue and estimate the bill with our student loan tax bomb calculator.
NHSC loan repayment awards are tax-free (HRSA). Ask the administering agency whether your Kentucky state award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.
If Your Job Isn't Covered
Borrowers outside health care, teaching, and veterinary medicine won't find a Kentucky program, but three options remain. Employers can pay up to $5,250 a year toward your student loans tax-free, and our list of companies that offer student loan repayment assistance shows who offers it.
Borrowers with private loans or high-rate federal loans they don't plan to have forgiven can lower their rate through student loan refinancing. Refinancing federal loans into a private loan ends eligibility for PSLF, RAP, and IBR, so don't refinance a balance you expect to have forgiven.
Families with leftover 529 money can put up to $10,000 per beneficiary toward student loans, which our 529 plan for student loan repayment explainer covers. Kentucky savers should also review the KY Saves 529 plan.
Frequently Asked Questions
Does Kentucky Have A Student Loan Forgiveness Program?
Kentucky offers student loan repayment assistance programs rather than broad loan forgiveness. It runs seven service-based programs for health care workers, veterinarians, teachers, osteopathic medical students, and early childhood workers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What's The Difference Between KSLRP And HWLRPC?
Both are run by UK's Center of Excellence in Rural Health, but KSLRP's award totals rely on a 1:1 sponsor match, while the state law behind HWLRPC bars a dollar-for-dollar employer match (2022 Ky. Acts Ch. 226). KSLRP opens again in April 2027, and HWLRPC opens September 28, 2026, so check the nursing and health care forgiveness roundup for federal options that can run alongside either one.
How Much Can Kentucky Teachers Get Toward Their Student Loans?
Kentucky's teacher help comes before you teach, through the KHEAA Teacher Scholarship and the Teacher Recruitment Loan Program (KHEAA). Teachers already carrying loans rely on federal Teacher Loan Forgiveness, up to $17,500, and PSLF, but years used for Teacher Loan Forgiveness can't also count toward PSLF.
Can Kentucky Doctors And Nurses Get Help Repaying Student Loans?
Physicians can receive up to $125,000 through KSLRP with a sponsor match or up to $100,000 through HWLRPC, and RNs can receive up to $40,000 through either program (UK Center of Excellence in Rural Health). Our student loan forgiveness for doctors breakdown covers the federal awards they can add.
Is Student Loan Forgiveness Taxable In Kentucky?
PSLF and Teacher Loan Forgiveness are tax-free federally, and Kentucky adopted the American Rescue Plan exclusion as of December 31, 2023 (The College Investor). Income-driven plan forgiveness granted after 2025 is federally taxable, so use our tax bomb calculator to estimate what you'd owe.
Related Kentucky Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the University of Kentucky Center of Excellence in Rural Health, the Kentucky Higher Education Assistance Authority, and 2022 Kentucky Acts Chapter 226 (HB 573). Federal program details come from StudentAid.gov, HRSA, and USDA NIFA, and Kentucky's tax treatment comes from The College Investor's state tax tracker. Read more about how we fact-check and update content.
Page refreshed annually in August, after Kentucky's legislative session and agency rule approvals, and reviewed in January for tax season. Last full refresh: September 23, 2026.
Editor: Clint Proctor Reviewed by: Claire Tak