LOUISVILLE, Ky. – Kentucky student loan borrowers are running out of time. The SAVE plan has ended. Borrowers in the first notice wave must pick a new federal repayment plan by September 29, 2026. Borrowers who do not pick one get placed in the Standard or Tiered Standard plan.

 

Loan servicers began mailing notices on July 1. Each notice starts a 90-day clock. Later waves have later deadlines. Two borrowers in one home may have different dates.

 

The stakes are local. About 615,600 Kentucky residents carry federal student loan debt. The average balance is $35,088. Roughly 18.5% of Kentucky borrowers already have at least one loan in default.

 

“A lot of people set the notice aside and forget it,” said Nick Thompson, a Louisville bankruptcy and foreclosure attorney. “Then a payment shows up that they did not plan for. That is when other bills start slipping.”

 

Federal loans go into default after 270 days without payment. Default lets the government collect without going to court. The U.S. Department of Education paused that collection in January. The pause was still in place in August. The Department called the pause temporary.

 

Thompson says these loans are rarely wiped out in bankruptcy. The relief usually comes from a different direction. His page on student loan help in Kentucky walks through the options.

 

“Bankruptcy does not make the loan go away,” Thompson said. “What it can do is clear the credit cards and medical bills sitting on top of it. That frees up money for the loan payment.”

 

Chapter 7 can erase debts such as credit card balances and medical bills. Chapter 13 sets up a court-approved plan to pay debt back over time. His overview of Chapter 13 in Louisville explains how those plans run. The right choice depends on income, assets, and family size.

 

Thompson has practiced law in Kentucky since 1991 and in West Virginia since 1988. He holds U.S. Tax Court License #51. He also served as an attorney for the West Virginia state tax department. His office serves Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties.

 

Borrowers who are not sure of their deadline should call their loan servicer. Borrowers already falling behind on other bills can reach the office at (502) 625-0905.

About Nick Thompson Bankruptcy & Foreclosure Attorney

 

Nick Thompson Bankruptcy & Foreclosure Attorney is a Louisville law practice handling Chapter 7, Chapter 13, and Chapter 11 bankruptcy, foreclosure defense, wage garnishment, tax debt discharge, and creditor harassment defense. The office is located at 800 Stone Creek Parkway, Suite 6, Louisville, KY 40223.

Media Contact

Name
Nick Thompson Bankruptcy & Foreclosure Attorney
Contact name
Nick Thompson
Contact phone
(502) 625-0905
Contact address
800 Stone Creek Parkway, Suite 6
City
Louisville
State
KY
Zip
40223
Country
United States
Url
https://www.bankruptcy-divorce.com/

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