RADIO ADDRESS: Attracting and retaining young people through meaningful student debt relief

To say the United States has a problem with student debt would be an understatement. The growth of student debt has reached a crisis point, and it is holding back our young people and the growth of our economy.

Hi, this is Senator Nate Libby from Lewiston. Thanks for tuning in.

Over the past few years, student debt has reached an all-time high with Americans of all ages owing about $1.5 trillion worth of student debt–more than any other kind of debt, and that includes credit cards. In Maine, the average student graduates with about $30,000 in debt but many owe much more.

The reality is, student debt impacts how young people are planning for the future. Due to high monthly loan payments, young people are putting off critical moments in their lives, like purchasing a home, starting a family, or saving for retirement. Young Mainers are moving out of state because they cannot afford to live here and pay their bills, putting our economy in serious trouble.

In some cases, the fear of taking on student debt is preventing young people from pursuing any form of higher education. For Mainers from working class or low-income families, burdensome loan payments put an already expensive education or training program even further out of reach. Higher education should be available to all Maine people whether it’s a 4-year Bachelor’s degree or a two-year certificate in the trades. The future of our workforce and economy depend on stabilizing and growing our population.

Maine is already experiencing workforce shortages across a number of industries due to an aging workforce and a lack of qualified young people left to replace those who retire. If Mainers are unable to acquire the skills needed for the jobs available, it will only exacerbate these shortages.

If Maine wants to set itself apart from other states to attract and retain highly skilled young people, we need a program that’s big and bold to provide meaningful student debt relief.

With four weeks left in the legislative session, there are several bills awaiting consideration that seek to address student debt in some manner.

One bill would create a program for low-interest student debt refinancing and another seeks to make long overdue changes to the Educational Opportunity Tax Credit, which is a vastly underutilized program. While I think both bills would make some modest headway in alleviating student debt, neither offer a strategy that would dramatically change the status quo and make a big difference for young people.

My alternative is direct student debt forgiveness. It is the only mechanism that offers real meaningful relief. My bill offers student debt forgiveness to anyone who wants to work and live in Maine for at least five years.

The goal is to create a mutually beneficial arrangement for young people and the state. It will allow more young people to stay and work in Maine as well as incentivize young people from across the country to choose Maine to pursue their profession. And unlike other tax credits and programs, this forgiveness will have an immediate effect on Mainers’ monthly budgets, freeing up more of their paychecks for things like a down payment on a house, spending locally at restaurants and shops, and saving for retirement.

In the coming weeks, lawmakers will determine if we have the political will to enact this game-changing initiative. I am hopeful we can get bipartisan agreement on this approach.

Devising a smart, thoughtful plan to address the student debt crisis and our demographic challenges will lay the foundation for a more prosperous economy. We need a way to attract and retain more young people in Maine and do what we can to ensure folks with student debt can still get ahead. I know Maine can become a state that approaches student debt in a unique and different way. Our future depends on it.

This is Senator Nate Libby, thank you for listening.

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