State Democrats Believe Student Loan Plan Creates Highly Educated Workforce

New college graduates in high-technology fields would be encouraged to live and work in Michigan under a proposed interest free student loan plan introduced in the House of Representatives Tuesday, September 12.

As introduced, graduates in the state who takes a first job in Michigan and stays for five years will pay no interest on student loans when they earn degrees in such fields as computer and information sciences and support services, engineering, engineering technology, biological or biomedical sciences, and science technology. These fields comprise about 17 percent of the bachelor's degrees earned at four-year universities in Michigan.

The current interest rate for student Stafford Loans is 6.8 percent, and the average debt for students with loans ranges between $18,000 and $20,000, said State Representative Gary McDowell. The interest-free student loan program would potentially save each student more than $7,600.

The program is designed to better prepare Michigan students for good-paying jobs and create a highly educated workforce in the state.