Student loan interest pause ends, adds financial strain for Kentuckians

BOWLING GREEN, KY.- As inflation and rising costs continue to challenge families, many Kentuckians are now facing another burden: growing student loan balances.

On August 1st, the pause on student loan interest officially ended, affecting one in five Kentuckians. Policy experts report that more than 100,000 borrowers in the state are now seeing their balances increase daily.

Researcher Ashley Spalding says this change is hitting families hard at a time when the economy is already strained.

“We already have a student debt crisis in Kentucky, and this is just going to make it worse,” Spalding explained.

According to the Student Borrower Protection Center, typical borrowers will now face around $3,500 a year in added interest—about $300 each month. For many, these extra charges could mean falling behind on basic needs. As loan balances grow, so does the financial pressure on Kentuckians trying to stay afloat.