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Veterans’ Personal Loan — $10,000 From a State Trust Fund, Including for Debt Consolidation

A state trust fund lends a resident veteran, or a deceased veteran’s unremarried spouse, up to $10,000 for a home, a business, education, family medical or funeral expenses, or consolidating debt. A separate $10,000 route funds a veteran’s child under 27 through school or university.

Verified August 22, 2026

What this benefit is

A state trust fund lends a resident veteran, or a deceased veteran’s unremarried spouse, up to $10,000 for a home, a business, education, family medical or funeral expenses, or consolidating debt. A separate $10,000 route funds a veteran’s child under 27 through school or university.

What it's worth: A loan of up to $10,000, repayable over no more than ten years

  • This is CREDIT, not a grant. The headline figure is what may be borrowed and repaid with interest, so its worth to a household is the difference between this rate and the alternative, not $10,000.
  • The weight hint reflects that difference rather than the loan principal, because treating borrowed money as a benefit total would overstate it.
  • $10,000 is a total indebtedness cap across all loans under the section, not a per-loan cap: a second loan is limited by the balance of the first.
  • The department may set a lower amount by administrative regulation, so $10,000 is the statutory ceiling rather than a promised figure.

Who is entitled to it

  • The statute lends to a qualified veteran, a deceased veteran’s unremarried spouse, or a qualified child of a veteran or that child’s parent or guardian.
  • Your discharge is honorable or general under honorable conditions.
  • You are in this state.
  • The remarriage condition does not stand in your way.
  • This condition only applies to a surviving spouse.
  • You have not remarried, so the benefit carries over to you.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1You must be a resident of, and living in, the Commonwealth on the date of the application. Both limbs are in the statute — residence and actual presence.
  2. 2The permitted purposes are narrow and worth checking against your need before applying: purchase of a home, business or business property; education of the applicant or their spouse; family medical or funeral expenses; or consolidation of debt.
  3. 3Debt consolidation being an authorised purpose is the unusual part. A veteran carrying high-interest debt has a statutory route here that most state veteran programmes do not offer.
  4. 4The child route is separate and education-only: a qualified child of a veteran under 27, or that child’s parent or guardian, may borrow up to $10,000 for the child’s education at a university, junior college, vocational training institute, or a non-public school taking children from preschool through grade twelve.
  5. 5The term cannot exceed ten years, which is a statutory limit the department cannot extend.
  6. 6Ask what "qualified" means before you apply. The statute leaves the loan conditions to administrative regulation, so the credit test is set outside the statute and can be tightened without a change in the law.
  7. 7Expect loan expenses to be charged to you: the fund is expressly permitted to charge a loan applicant the expenses it incurs.
Form
Veterans’ Personal Loan Program application
File with
Kentucky Department of Veterans’ Affairs
Documents you will need
dd214
No renewal
Once granted it does not need renewing.
CorrectionThis is frequently listed among state veteran BENEFITS without saying that it is a loan. It is a loan: the fund executes instruments, collects principal and interest, may take a real estate mortgage, and may sue. Nothing here is forgiven, and the fund may write off only what it considers uncollectible on its own initiative.
Worth knowingThe definition of veteran in KRS 40.650(1)(b) includes a person RETIRED from the active armed forces under honorable or general conditions, and names the Coast Guard expressly.
Worth knowingFuneral expenses appear here as well as in the indigent burial programme, but on a different footing — this route lends to a family with means, where the burial programme reimburses where there are none.
Known gapNo interest rate is in the statute, and the department is not required to publish one there. Neither the rate, the credit test, nor whether the programme is currently lending could be verified: veterans.ky.gov is edge-blocked from here. Confirm the programme is open before planning around it.

Sources

Why only one source type: Only the statute could be read. The administering department’s site is edge-blocked from here, and the administrative regulation that sets the loan conditions could not be located on the regulations server this session, so nothing operational is claimed beyond what KRS 40.650 itself says.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.