Illinois offers to PAY off up to $ 40,000 in student loans from new homeowners in an effort to attract buyers in a massive $ 25 million settlement
- The ‘SmartBuy’ program pays back up to $ 40,000 in student loans per applicant
- Prospective home buyers with incomes less than $ 109,200 are eligible
- Since December 1, nearly 200 buyers have signed up for the trial
- Peter Maloney, 26, moves to Illinois with his fiancé after the state paid off his $ 44,000 student loan
Illinois is offering to pay off up to $ 40,000 in student loans from new homeowners in an effort to attract new buyers as part of a new $ 25 million settlement.
The Illinois Housing Development Authority’s SmartBuy program offers a loan equal to 15% of the home purchase price, or pays off up to $ 40,000 in student loans, whichever is the lower. It also brings in $ 5,000 that can be applied to your down payment or closing costs.
A Florida couple considered moving to Indiana before hearing about the SmartBuy program.
‘It certainly made the decision to move easier and made buying a house possible,’ says Peter Maloney, 26.
Illinois now offers a $ 25 million program that offers eligible residents up to $ 40,000 off student loans. Pictured: File photo of a residential lot in Des Plaines, Illinois, advertising a ‘lot for sale’ sign
Maloney and his fiancé thought his $ 44,000 in student loans would make it nearly impossible to buy a home for several years, but they are now closing a two-bedroom, two-bath condo in Plainfield, Illinois.
Prospective home buyers with incomes less than $ 109,200 may qualify for the SmartBuy program. The price limit for home purchases is between $ 325,000 and more than $ 500,000, depending on the type of home and location.
The program expects to help between 500 and 1,000 new homeowners purchase their first home.
Illinois is one of several states that offer repayment assistant programs and tax breaks for those with student debt.
Maryland also offers a SmartBuy program where homebuyers with an existing debt of at least $ 1,000 can receive a payout amount of up to $ 30,000.
Texas offers several programs for people in the fields of education, legal affairs, and health care.
One reimbursement program provides doctors who practice in Texas for four years up to $ 180,000 in awards.
Kansas has designated 77 counties in the state as Rural Opportunity Zones and provides additional benefits to new homeowners in those areas.
Kansas has designated 77 counties as Rural Opportunity Zones where financial incentives are provided for new full-time residents
Selected counties offer income tax exemptions for up to five years or student loan repayments of up to $ 15,000 over five years.
In late 2020, the Federal Reserve estimated that Americans owed more than $ 1.7 trillion in student loans.
President Joe Biden has asked Secretary of Education Miguel Cardona and the United States Department of Education to review the president’s authority to forgive up to $ 50,000 in student debt.
Biden has previously stated that he supports $ 10,000 in student loan waivers, but he is now investigating the higher amount after increasing pressure from progressive Democratic lawmakers.
Senator Chuck Schumer tweeted Saturday: “Today would be a great day for President Biden and Vice President Harris for #CancelStudentDebt.”
Senate Leader Chuck Schumer (D-NY) speaks at a press conference on student debt outside the Capitol on Feb. 4 in Washington, DC
Deputy Alexandria Ocasio-Cortez attacked President Biden last month for flatly refusing to write off $ 50,000 student debt, which he said he didn’t think he had the jurisdiction to wipe out.
White House Chief of Staff Rob Klain says the memo on whether the administration has the authority will “ hopefully ” be released in the coming weeks. ‘