Student Loan Forgiveness Offered to Those Living in These States

About 45 million Americans have restarted to pay back their student loans.

After a pause instituted during the pandemic, interest on those loan began to kick-in at the beginning of this month. And starting in October, monthly payments will resume.

Last year, the Biden administration introduced a program to forgive student debt, but the Supreme Court struck down those efforts in the summer. The White House is offering other ways to offer relief for borrowers.

But, some states have their own local approaches that offer aid to those grappling with student loans.

A New Way To Lower Student Loans: Moving

One proposition that’s quite intriguing is one that says if you move to these states, and in some cases want to purchase a home, they will forgive at least some of that student debt.

Some of these programs are rooted in the idea that with younger people struggling to buy their own homes, a key component of wealth building in America, having to pay off thousands in student loans is making it tougher to realize that aspiration.

Data shows that on average, Americans owe nearly $38,000 in student debt with private student loans going up as high as $40,000, according to the Education Data Initiative.

Kansas

In Kansas, the state’s Department of Commerce started more than a decade ago to offer assistance to new residents of the state who promise to live in rural areas that have been hit hard by population losses.

“The program aims to help rural businesses and communities recruit people with higher educations and a broader range of skills to fill positions within the area,” the state said.

If an individual established residency in a Kansas county beginning on or after July 1, 2011, the state will pay off up to $3,000 a year for half a decade on one’s loan. If an individual’s loan balance is less than $15,000, they will get 20 percent of it paid off ($2,000/year) for five years.

Georgia

Georgia is another state that offers a similar program for healthcare workers who commit to moving and working in areas with 50,000 or less populations.

Maryland

Maryland has gone a step further and is offering to pay off loans for those who want to purchase a home in the state.

To qualify, individuals must have outstanding student debt of at least $1,000. The State, through its SmartBuy 3.0 program, will help with financing of up to 15% of the price of the house. Maryland promises to help settle a maximum of $40,000 of student loans through the program.

Illinois had established an identical Smart Buy program but closed it in 2021.

More than half of America’s states offering to help pay off student loans as an incentive to attract talent for specialized professions, such as teachers and those who work in healthcare and even lawyers who would work in public service, including Arizona, California, Colorado, Delaware, the District of Columbia, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, South Dakota, Texas, Vermont, Washington, West Virginia, and Wisconsin.