This new idea that’s been floating around and getting picked up by various areas across the country is kind of a match made in heaven between areas in need of economic revival and student loan borrowers in need of financial assistance. For mutual benefit, student loan payoff programs have been created in Niagara Falls, NY and in Kansas. These areas, which are suffering economically, would benefit greatly from an influx of young college educated people. The programs have been created to offer student loan reductions in order to incentivize college grads to move to these areas. These are great opportunities for borrowers to reduce the amount of debt owed as well as take part in shaping a new community.
The City of Niagara Falls has recently received a $450,000 grant to help reinvent the downtown area in preparation for borrowers flocking to take advantage of the offered student loan reductions. The money will be used to clean the area up as well as revitalize it by bringing in new business that will be attractive to educated young people. If you’re going to move to Niagara Falls, you’re going to need there to be great work available, right? With the grant money, new jobs and an available work force the city has high hopes for the success of the program. How exactly will the money be spent? According to The Buffalo News: $200,000 will go towards property acquisition; $160,000 for demolition of blighted structures; $60,000 for administrative costs (not salaries); and $30,000 in matching grants for storefront improvements for local businesses.
For those more at home in the peace and quiet of a rural setting, the program in Kansas might be more up your alley. The state of Kansas has created what they call Rural Opportunity Zones. Very similar to the program in Niagara Falls, the only requirements are a college degree, an outstanding student loan balance and the establishment of residency in one of the ROZs. According to the program guidelines: “Qualified individuals will receive student loan payments in equal shares over a maximum term of 5 years. The annual payments will be equal to 20% of the individual’s outstanding student loan balance up to a maximum of $15,000.” The Kansas Legislature has identified 50 counties as ROZs, all of them counties in which the state would like to see an increase in population.
These are definitely a couple of cool new repayment options for intrepid young people looking to get a break on student loans and try someplace new at the same time. For help finding more ways to manage student loans try getting some help from the experts on how to optimize student debt.