Student debt help from states: Here are the incentives
- The requirements for repayment assistance vary by state
- Some states are even offering help to recent grads who want to buy a home
- Roughly 43M people will resume paying off their student debt this month
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(NewsNation) — Some states are offering a huge benefit to potential employees: Help paying off student loans for recent college graduates.
It’s primarily happening in states with aging populations with a goal of attracting young, skilled workers.
Nearly 70% of college seniors say student loan debt will affect their life and career choices after they graduate, according to CNBC. It’s with that in mind that the following states are offering the perk, according to Bankrate.
Kansas
Recent graduates who move to one of 95 designated counties could qualify for loan assistance to the tune of $15,000 over five years.
Maine
First and foremost, you have to be a full-time resident. According to Bankrate, those who meet degree requirements can receive up to $25,000 over their lifetime.
Maryland
If you have at least $1,000 in student debt, Maryland will provide $5,000 in down payment assistance to recent graduates who want to buy a home.
The full student debt of at least one borrower must be paid in full by the time of the home purchase. Borrowers must also qualify for the Maryland Mortgage program.
Michigan
If you work as a health care provider in an area that experiences disproportionate access to treatment, you could qualify for up to $300,000 in tax-free repayment assistance. Those who participate must do so for at least two years to qualify.
The job market has defied an array of threats this year, notably high inflation and the rapid series of Fed interest rate hikes. But student loan debt persists as a roadblock for many trying to put their college degree to use in the workforce.
Student loans are expected to take a noticeable bite out of the economy. Roughly 43 million people will resume paying several hundred dollars a month to the government, which Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, estimates could cut one-half of a percentage point from annual growth in the October-December quarter. More expensive gas could shave an additional 0.3 percentage point from growth in both the fourth quarter and the first three months of next year, Goldman estimates.
The Associated Press contributed to this report.
