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Opportunity Maine helps in times of bad economy

By Shoshanna Muyderman

Posted on Thursday, October 2nd, 2008, 12:00 am

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A study conducted by the Public Interest Research Group concluded Maine college graduates have one of the worst rates of student debt in the nation. Ranking sixth in the country for students exceeding manageable levels, with an average of anywhere between $21,000 and $60,000 in debt by graduation, it is no wonder why Maine suffers from the familiar “brain drain.”

The rising cost of living, education and lack of insurance for many students is causing large amounts of credit card debt, medical bills and lack of savings. These can force many students out of Maine after graduation in hopes of gaining employment in more economically stable states.

Many graduates do not have the luxury of taking lower-paying jobs as teachers, social workers and community leaders within Maine. Often, graduates are not able to pay off their student loans with rising interest costs, while maintaining a comfortable standard of living – further leading to a lack of abilities to save for the future.

With an economy that has been labeled by the president as “being at risk to slip into a recession” it is no wonder why many high school graduates feel more compelled to go straight to work rather than racking up thousands of dollars in debt.

One program hopes to change all that.

A citizens’ initiative was placed on the ballot in 2007. More than 600 trained volunteers and 72,000 registered voters’ signatures gained the attention of policy makers. The House of Representatives unanimously passed the initiative, with Governor Baldacci’s signature in July 2007.

“The Governor remains very supportive, and there are certainly funding issues that remain, so there’s more work to be done on this,” Joy Leach, deputy director of communications for the governor’s office, said.

The Opportunity Maine Program will provide reimbursement of student loan payments through a state income tax credit to any student who earns an associate or bachelor’s degree from a Maine college, and continues to live, work and pay taxes in Maine. Credits will include student loans taken out for classes after Jan. 1, 2008.

“I agree that these are important initiatives for Maine students, but as the chair of the Colby College board of trustees, I would add another to the list: Two of Maine’s private colleges, Colby and Bowdoin, have recently made it possible for all of their students to graduate debt-free,” said Joseph F. Boulos, former director of the Area Business Council of Maine.

Not only will students be eligible for tax credits, giving them the option of living and working within Maine, but employers will also have an incentive to recruit and retain Maine-educated graduates.

This law will include tax credits for any employers that provide benefits of student loan repayments, providing incentives for employers to seek Maine graduates. Keeping educated Mainers within state boundaries may help expand and create new businesses, stimulating economic growth.

“Tax credits would have a maximum of $2,100 per year or $8,400 total for a graduate who spent all four years at a Maine college,” according to the Associated Press in 2007.

This initiative also aims to encourage more high school graduates to pursue higher education, knowing they will be assisted in paying off the cost of their education. Many college students have dropped out of school, stating that they could not afford the cost, entering the workforce with exorbitant amounts of debt and without degrees – this program will help them be able to consider further educational opportunities.

The program will provide reimbursement and incentives for individuals who either dropped out or opted out of higher education due to the high costs associated. Working parents, labor employees and low-income families may now be able to view graduate education as a resource rather than a financial burden. Many residents who are eligible for Opportunity Maine already live, work and pay taxes in Maine – allowing for the expansion of a greater college educated workforce.

More educated Mainers may lead to better and diversified employment opportunities. Many leave Maine to move to a state with larger cities and more employment opportunities. This program hopes to foster economic growth and prosperity by creating the workforce needed to provide employers with individuals who can compete in the global market.