Kentucky Debt Statistics

Kentucky Debt Statistics 2023: Facts about Debt in Kentucky reflect the current socio-economic condition of the state.

LLCBuddy editorial team did hours of research, collected all important statistics on Kentucky Debt, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to start a Kentucky LLC business in 2023? Maybe for educational purposes, business research, or personal curiosity, whatever it is – it’s always a good idea to gather more information.

How much of an impact will Kentucky Debt Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any word.

Top Kentucky Debt Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 21 Kentucky Debt Statistics on this page 🙂

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Kentucky Debt “Latest” Statistics

• According to LendEDU’s fifth annual Student Loan Debt by School by State Report, the average student loan debt per borrower figure in Kentucky was $29,523.^[1]
• Kentucky was towards the bottom of the pack for that measure with over 60% of its college graduates from the class of 2019 having some debt from student loans.^[1]
• According to KyPolicy, income driven repayment plans with a monthly payment ceiling of 10% or 15% of the borrower’s gross or discretionary income are currently in place for 20% of Kentucky borrowers, who are responsible for paying down 32% of the debt.^[2]
• In Berea College, 49% of 2018-2019 graduates had zero student loan debt.^[2]
• The median debt of all 2018-2019 graduates in Berea College was $305, compared to an average nationwide debt of $29,200.^[2]
• 60% of Kentucky’s college graduates from the Class of 2019 had some amount of student loan debt upon receiving their diploma.^[1]
• In 2021, the average Kentuckian has a $34,910 debt.^[1]
• According to the Department of Numbers, Kentucky’s median household income is just $52,295, $13,475 lower than the national median household income.^[1]
• According to InCharge, Kentucky has the fifth-lowest amount of mortgage debt in the nation at $126,310 on average.^[1]
• The average Kentucky resident owed $32,500 in student debt in 2020.^[1]
• Kentucky has one of the lowest automobile debt ratios in the nation with an average auto loan debt of $4,120.^[1]
• For 2019, the conforming loan limit across Kentucky is $484,350, according to Lending Tree.^[3]
• According to USN, in terms of education in Kentucky, the national average debt at graduation is almost $28,996.^[3]

Kentucky Debt “Other” Statistics

• According to KyPolicy, when federal student loans were disaggregated by race, black students had a larger proportion of recipients who made less than $30,000 than any other race or ethnicity.^[2]
• If the federal government forgives $10,000 in student loan debt, 209,400 Kentuckians, or 34% of Kentucky borrowers, will have their loans (a total of $1.09 billion) forgiven entirely, according to KyPolicy.^[2]
• More than 125,000 Kentucky residents owe more than $50,000 in federal student loan debt.^[2]
• The student debt crisis has been garnering increased attention recently, with calls for the federal government to forgive between $10,000 and $50,000 in student debt.^[2]
• According to Team Kentucky, selling farmers who complete an eligible sale may qualify for a tax credit up to 5% of the purchase price of qualifying agricultural assets, subject to caps of $25,000 per calendar year and $100,000 lifetime.^[2]
• The average debt across the U.S. was over $5,000.^[2]
• People who currently had a debt that was at least 30 days past due would have to pay over $2,250 on average just to become current on those debts.^[2]
• According to Pew, research on debt collection lawsuits from 2010 to 2019 has shown that less than 10% of defendants have counsel, compared with nearly all plaintiffs.^[4]

Also Read

How Useful is Kentucky Debt

On one hand, debt can be a powerful tool for states like Kentucky to fund important investments that may not be feasible through traditional means. Infrastructure projects such as roads, bridges, and public buildings can be funded through debt, allowing the state to address critical needs and improve the quality of life for its residents. Additionally, debt can help stimulate economic growth by providing the capital needed for businesses to expand and create jobs, boosting tax revenues and overall prosperity.

Proponents of debt argue that as long as the borrowing is done responsibly and the funds are used wisely, debt can be a prudent and effective way for states to manage their finances and invest in the future. By spreading out the costs of large projects over time, debt can make expensive investments more manageable and affordable, without placing undue strain on current taxpayers.

On the other hand, excessive debt can have serious consequences for states like Kentucky. High levels of debt can limit a state’s ability to respond to unexpected challenges or emergencies, as resources become tied up in servicing existing debt obligations. In the worst-case scenario, excessive debt can lead to financial insolvency and even bankruptcy, as seen in cases like Detroit and Puerto Rico.

Critics of debt also argue that it can create a burden for future generations, as they will be responsible for repaying the debt incurred by current leaders. This intergenerational transfer of debt can create inequalities and unfairly burden individuals who had no say in the decisions that created the debt in the first place.

In the case of Kentucky, the question of debt usefulness is particularly relevant given the state’s unique economic challenges and demographic trends. With an aging population and slow job growth, Kentucky faces significant fiscal pressure to fund essential services and support economic development. Debt may be necessary to address these challenges, but it must be managed carefully to avoid creating long-term financial instability.

Ultimately, the usefulness of Kentucky debt depends on how it is used and managed. If debt is used to finance critical investments that have the potential to generate long-term economic returns, it can be a valuable tool for promoting growth and prosperity. However, if debt is incurred recklessly or without a clear plan for repayment, it can be a destructive force that undermines the state’s financial health and wellbeing.

As Kentucky policymakers grapple with these complex issues, it is essential that they carefully weigh the potential benefits and risks of debt and prioritize investments that will help build a stronger and more sustainable future for the state and its residents. By approaching debt management with a clear-eyed assessment of its implications and ensuring transparency and accountability in decision-making, Kentucky can harness the potential of debt to achieve its goals and secure a brighter tomorrow.

Reference

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1. courier-journal – https://www.courier-journal.com/story/opinion/2020/11/13/kentucky-student-loan-debt-how-to-reverse-states-problems/6214924002/
2. kypolicy – https://kypolicy.org/student-debt-forgiveness-would-benefit-hundreds-of-thousands-of-kentuckians-help-with-economic-recovery-and-improve-race-equity/
3. lendingtree – https://www.lendingtree.com/debt-relief/kentucky/
4. pewtrusts – https://www.pewtrusts.org/en/research-and-analysis/reports/2020/05/how-debt-collectors-are-transforming-the-business-of-state-courts