One of the US states will help pay student loans in exchange for a move
In the summer of this year, it became known that the total student debt of US residents exceeded an incredible 1,5 billion dollars. Some Americans still pay their loans to study after decades after graduation from college. One of the US states offers to help repay excessive debts, but on one condition: you must move to this state.
Maine annually attracts about 36 millions of tourists who are seduced by the beauty of the four seasons, from snow-white sandy beaches to world-class ski resorts, writes CNN. But in the northeastern part of the state, there seems to be a shortage of young people who could live and work there.
Officials have decided to offer an effective incentive: move to Maine, and the state will help you pay off student debts.
How the program works
The program started in 2008 year as a tool to retain young professionals already living in Maine. The Education Loan Tax Credits program is aimed at Maine college graduates and gives them the opportunity to use debt contributions as tax credits.
“Over time, the employer community expressed it clearly and clearly: even if 100% of college graduates in Maine chose to stay here and work, it still would not have been able to meet our labor needs,” says Nate Wilds, Sector Live + Work.
So the program has become an attractive step for workers from other states.
When you move to Maine, the money you spend on paying student loan debt each year is deducted from your state income taxes.
For example, if you pay 1800 dollars for a loan and must pay another 2 000 dollars in taxes, you will end up paying the state of Maine for all 200 dollars.
“We need to import labor,” said Wildes. "We need to attract people from other states."
STEM specialists who study science, technology, engineering and mathematics may even get a check from the government - if the amount paid on their loan outweighs their taxes. Specialists who are not part of STEM are subject to a non-refundable tax credit program, which means that, according to the same scenario, they owe the state $ 0.
How the program helps employees
Matthew Glatz was a STEM specialist and graduated from the University of Southern Maine, receiving a bachelor's degree and owing 60 thousands of dollars in tuition. After graduation, Glatz did not waste time and signed up for a tax credit program. Now he owns his own catering company and cafe on wheels SaltBox Cafe, and since he works independently, he can effectively control loan repayments and repayments.
Most college graduates in Maine, he says, are well aware of the program — residents of other states should also be aware of it.
“It's fantastic,” says Glatz. "Maine is a great place to live and work, it’s an incentive that you have to show people and make them understand that it’s profitable."
Why should Maine attract workers
The state is leading in terms of the number of elderly people in the country. The median age in Maine is 44, which is five years older than that in any other part of the United States. Therefore, state legislators have decided that they need a way to attract young people to life and work in the state.
“This is a significant financial investment by the state, many millions of dollars,” said Wildes. "But we recognize that student loans are a big financial and emotional burden."
“Message to Employees: We appreciate everything you have done to invest in yourself, and we would like this talent to work and reward you not only by having a job, but also by alleviating your student debt.”
Wildes understands what he is talking about - he himself moved to Maine partly because of this initiative.
“The tax lending program is the basis for simplifying change,” he said. "She talks about financial advantages, as well as the culture of Maine."
According to him, this is the only program of this kind at the state level. As a rule, such proposals are strictly attached to individual schools or geographic areas.
“From this point of view, Maine is several light years ahead,” says Wildes. "This is by far the most common universal tax break program in the United States."
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