These 4 States May Pay Your Student Loans if You Relocate
For the millions of Americans with student loan debt, it's important to review the various types of loan forgiveness, cancellation and discharge options offered by the government (Public Service Loan Repayment Forgiveness, Teacher Loan Forgiveness, Perkins Loan Cancellation, income-driven repayment plans, etc.).
Additionally, most (but not all) states offer a number of student loan repayment assistance programs. The goal of these programs is to recruit and retain in-demand workers in the health, education and law employment fields. However, there are a few states trying to entice new residents to their cities and towns by wiping out remaining student loan balances as incentives.
The following four states currently have programs in place that may pay your student loans if you decide to move there and meet certain criteria. Let's take a look.
Illinois
Illinois has created programs to encourage teachers, nurses and state and public offenders to maintain their careers by paying off parts of their outstanding student loans. However, as Forbes reported, its Smart Buy home buying program "may provide real, meaningful assistance to borrowers who are struggling with student loan debt and cannot purchase a home as a result."
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Although there are income limits and other conditions, the program will pay off a student loan balance of 15% of the home purchase price -- up to $40,000 -- for new homebuying borrowers (second homes are not eligible).
Kansas
The Rural Opportunity Zones Student Loans Repayment Program (ROZ) is currently open for enrollment and provides income tax waivers for up to five years or student loan repayments up to $15,000 for new full-time Kansas residents living in one of the state's designated and participating rural counties.
Maine
Residents of Maine who meet certain graduation requirements may be eligible to receive up to $25,000 in lifetime student loan forgiveness though the Maine Opportunity Tax Credit. For those with an associate, bachelor's or graduate degree, you must have obtained that degree after 2007.
To qualify for the credit, you must:
Be a full-time Maine Resident
File a Maine Income Tax Return
Maryland
Through its SmartBuy 3.0 program, Maryland gives homebuyers the opportunity to purchase any eligible Maryland Mortgage Program while paying off student debt, up to 15% of the home purchase price for the borrower to pay off their outstanding student debt with a maximum payoff amount of $40,000. Homebuyers wishing to take advantage of this assistance/forgiveness program require a down payment of at least 5%.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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