An Interesting Solution for Students in Debt

By Shea McGlynn on June 23, 2012

It’s no secret that college is an expensive undertaking. 1.8 million students will graduate this year with a four-year degree, and 94 percent of those students will have loans to pay back. For our generation, being that far in debt before you even get started is scary. A shaky job market and bad economy are not helping the post-grad cause either. Paying back student loans looms in an uncertain future. Any help to pay back those student loans would be a God-send, right?

Photo by DonkeyHotey via Flickr.com

According to ABC News, Niagara Falls, NY is one of the first to implement a new strategy to entice young people to their dwindling town. Community directors and others in charge in specific areas are offering to help students pay of their student loans. Accepted applicants could receive up to $3,500 a year to repay loans for up to two years. The catch is that these students will have to rent or buy a home in a designated city limit. They must move to the city that has agreed to pay off their debt.

Other cities, including rural areas of Kansas, are planning on flowing suit by offering similar incentives. In order to qualify in Kansas, applicants must have a college degree, possess an outstanding student loan balance, and must make the move to live in one of the establish Rural Opportunity Zones (ROZs) in the state. If they meet these requirements, they may be eligible for student loan repayments up to $15,000. So far, Kansas has received applications from people with a variety of professions such as nurses, lawyers, and teachers, many of which are out from outside the state.

Cities around the United States are taking advantage of the loans that burden students in order to draw them to their under populated towns. Young professionals are wanted in towns with aging populations because these cities are lacking new talent and fresh perspective. These cities are dying to attract recent graduates in hopes of boosting their economies.

Higher education obviously costs a lot of money and a lot of pressure is on students to not only get the degree, but pay for it themselves. It’s not only a burden for a student; it can sometimes be a burden for the family as well. 3 in 10 graduates go back home to live with their parents after graduation due to the difficulties that come with paying for their education. 93 percent of baby boomer parents are providing some kind of support for their college graduate children, whether it be car payments, rent, or paying back loans.

Maybe if the city you moved to paid back your loans all would be well. But what if you can’t move to these cities and be successful in your chosen field. I’m a little skeptical of these types of programs for this reason. The money would be probably be worth it, depending on your situation.

2013 graduates are the first who will be able to apply for these types of programs. Investment for you future comes at a high price. Would you move to a city if they would help pay off your student loans?