New report shows student loan debt declining in Kentucky

LEXINGTON, Ky. ( FOX 56 ) — The cost of college tuition is expensive. However, according to a new report, it is more affordable than people think, at least in Kentucky.

A report by the Council on Postsecondary Education shows the number of students graduating with loan debt has fallen nearly 15% over the last five years.

“Students are saddled with 100, 200 thousand dollars of debt that’s not Kentucky by no stretch of imagination or most cases,” said Dr. Aaron Thompson, president of the Council of Postsecondary Education.

The findings in the report state that graduates from the Kentucky Community & Technical College System (KCTCS) have an average balance debt of $13,644. With public university graduates at $33,315, there is a 9.4% and 4.4% decline, respectively.

“Debt levels at graduation are falling across the state for students, regardless of their degree level college sector. So that’s two year or four year socioeconomic status or undeserved status,” said Christopher Ledford, Associate Director, Data & Analytics.

Experts said people should not be scared of debt. President Thompson said there is good and bad debt, so when picking a degree, it is important to understand the average debt comparable to the average salary.

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“A college credential matters, for those that you’re hearing that says ‘it doesn’t matter, not everybody needs college,’ please understand by 2030, 62% of you will need some credential, it may be a workforce credential to actually get a sustainable job in the state, a credential to actually move up in your job,” said Thompson.

Thompson also mentioned that nearly $58 million of FASFA money is left on the table each year in Kentucky alone. He encourages students to see federal aid as a way to have more money in their pockets for later.

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