FRANKFORT, Ky. - More than 6,000 borrowers in the state each took out 30 or more loans last year, according to the Kentucky Coalition for Responsible Lending. Critics of the short-term loans, known commonly as payday loans, say they are debt traps.

The critics are banking on proposed federal regulations to help protect families who are in a financial bind. The Consumer Financial Protection Bureau is considering stronger rules on payday, car-title and installment loans.

Jason Hall, executive director of the Catholic Conference of Kentucky, said it would be a "big step in the right direction ... because it definitely raises fair-lending practices and makes sure that, if a payday lender is going to loan to a person, that they've made some effort to determine if this is going to be the straw that breaks the camel's back for this individual."

While the federal regulator is contemplating whether to require lenders to make sure borrowers have the means to repay a loan, the new rules would not outlaw high-interest, short-term loans. A coalition of faith-based and poverty-fighting organizations repeatedly has tried to convince the Kentucky General Assembly to cap interest rates on payday loans at 36 percent, but state lawmakers have refused.

As pastor of Great Crossing Baptist Church in Georgetown, the Rev. Rick Hardison said, he regularly meets people who are short on rent, who can't pay their electric bill or whose pantry is empty. He said he has yet to find someone who says the payday loans have helped them.

"Instead, it's people who take these loans out who, they regret it, They wish they hadn't done it," he said. "I found that payday loans are a trap."

However, the Kentucky Deferred Deposit Association, an advocate for the industry, says it's a myth that payday lenders prey on the disadvantaged. The trade group maintains that regulating payday lenders would hurt consumers.

The CFPB also is considering giving lenders the option to establish an outer limit on a consumer's length of indebtedness. While that's not a cap on interest rates, Hall said, "it isn't a bad approach because it does limit that cycle of debt. And, it does create a point, sooner rather than later, where that cycle has to be broken because that's where payday lending really wreaks its most havoc."

Nationwide, the payday loan industry is estimated to be a $46 billion enterprise.


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CLARIFICATION: We updated language to clarify the timing for when the study's authors began tracking certain outcome measures for children within the foster care system. (9:30 a.m. CST, Nov. 22, 2024)

This Saturday is National Adoption Day and the latest findings showed Minnesota has made progress in helping kids in the foster care system secure a better future.

Aaron Sojourner, labor economist at the W.E. Upjohn Institute for Employment Research, helped lead a study of reforms Minnesota approved in 2015. He said states often provide financial support to children in foster care but support ends when a child is adopted or placed in a kin guardianship.

Minnesota decided to continue payments to households who take a child in permanently. Sojourner pointed out three years after foster cases started, positive outcomes became clear.

"The kids were scoring much higher on standardized achievement tests," Sojourner reported. "They were experiencing less turnover in schools and school instability."

He noted the incentives also boosted the chances of kids age 6 and older exiting the foster care system and moving into permanent home settings by 29%. Sojourner added while the results are encouraging, it is just one aspect of the child welfare landscape. Other research has shown racial disparities in Minnesota's foster care system, especially when looking at reducing entry rates.

Sojourner stressed if state lawmakers revisit the extended monthly payments in budget talks, they will need to realize the long-term payoff from these investments.

"The state is paying more money now but they're going to reap the benefits down the road," Sojourner contended. "In terms of increased earnings and employment."

His team's study said prolonged exposure to foster care is tied to poor transitions into adulthood, including homelessness.


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Nearly one in four Kentucky kids has experienced at least two Adverse Childhood Experiences, or ACEs, including abuse, neglect or household dysfunction, according to the latest Kids Count County Data Book.

Experts said the findings should prompt policymakers to better measure risk and pave the way for prevention.

Terry Brooks, executive director of Kentucky Youth Advocates, said the impact of ACEs on children can leave a lifetime imprint.

"When we think about Kentucky in 20 years, data around ACEs today is going to be a leveraged factor that we're going to be seeing the results of," Brooks projected.

According to the Centers for Disease Control and Prevention, ACEs trigger a toxic stress response in the body, which can change brain development and can lead to chronic health problems, mental illness and substance use disorders in adulthood.

Mentorship, guidance and support from adults and community members can help foster positive childhood experiences and buffer the impact of ACEs.

Aleah Stigall, a student at Boyle County High School, said a network of mentors participating in pageantry has helped her cope with loneliness.

"I was able to gain a lot of mentors," Stigall explained. "Some I like to even call my sisters, because of how they've impacted me and really show me what a true titleholder looks like and how you can make a strong impact on your community."

The findings also show more families are transient and struggling to stay housed. Brooks explained the state has seen significant increases in rental cost burdens.

"That eight-year-old little girl going to school has inevitably heard her mom and dad worrying about, are they going to get evicted, and are the lights going to stay on?" Brooks observed. "I don't think any of us can fully measure the impact it has on that little kid."

According to the research, Kentucky is short around 200,000 housing units. And between 2018 and 2022, 44% of Kentucky households spent 30% or more of their income on rent and utilities. In 20 counties, residents' rental cost-burden rates have reached 50%.

A new annual report shows New York City has more than 146,000 homeless students.

The Advocates for Children of New York report finds this is an increase from last year when more than 119,000 students were homeless. It also finds more than half of students were temporarily sharing housing with others, while 41% lived in shelters.

Jennifer Pringle, director of Project LIT with Advocates for Children of New York, says the city can help these students by addressing transportation delays.

"Roughly 40% of students in shelters are placed in a different borough from where they go to school, which means that students in temporary housing often face long commutes and are disproportionately impacted by busing delays," she said.

Other recommendations include eliminating the 60-day shelter limits and addressing shortages in staff supporting students in temporary housing. But, Pringle notes there's work the state can do too. More than 115 groups want the state to add a weight for students in temporary housing as part of the school funding formula re-evaluation.

The biggest challenge to implement these recommendations is political will, although they have broad support. But, student homelessness has been a long-standing issue for the city. This is the ninth year in a row New York City's homeless student population has included more than 100,000 students. There are many reasons students become homeless.

"Certainly we know there's a growing housing-affordability crisis," she continued. "Families indicate that domestic violence is one leading driver of family homelessness. And then also we have immigrant families, newcomers to the city as well, who are in temporary housing."

Living in temporary housing significantly impacts students' education. The report finds most students in either temporary housing or a shelter were chronically absent. It also notes their English Language Arts proficiency was 20% lower than students in permanent housing.


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