- Best Cities To Live In If You Want To Pay Off Your Student Loans Quickly
- 20. Omaha, Nebraska
- 19. Colorado Springs, Colorado
- 18. Oklahoma City
- 17. Wichita, Kansas
- 16. Washington, D.C
- 15. Charlotte, North Carolina
- 14. San Francisco
- 13. Bakersfield, California
- 12. Austin, Texas
- 11. Raleigh, North Carolina
- 10. Littleton, Colorado
- 9. Seattle
- 8. Spring, Texas
- 7. Silver Spring, Maryland
- 6. San Jose, California
- 5. Katy, Texas
- 4. Virginia Beach, Virginia
- 3. Nashville, Tennessee
- 2. Alexandria, Virginia
- 1. Plano, Texas
- How To Pay Off Your Student Loan Debt
- The Best Cities to Pay Off Student Loan Debt
- Key Findings
- Data and Methodology
- Student Loan Forgiveness: Move to a Place that Pays Your Loans
- Why Are Places Locations Offering Student Loan Forgiveness?
- Things to Consider Before Moving for Student Loan Forgiveness
- Places to Move to get Student Loan Forgiveness
- Detroit, Michigan
- Niagara Falls, New York
- Saskatchewan, Canada
- Things to Keep In Mind For Any Student Loan Forgiveness
Best Cities To Live In If You Want To Pay Off Your Student Loans Quickly
Student loan payments can take a big bite the budget of recent college graduates — such a big bite, in fact, that 42% of Americans say the cost of higher education isn’t worth it. The trick to getting out from under the responsibility of student loans is to pay them off as quickly as possible. Where you live can have a big impact on your ability to do that.
GOBankingRates analyzed the cost of living and median salaries for recent college grads in 100 cities across the U.S.
This information was compared with the average student loan balance in that city to determine where in the country recent graduates can live comfortably and still pay off their student loans in record time, putting 15% of their disposable income toward paying off those debts.
The best cities might not be those where recent grads make the most money, or where the cost of living is lowest. In fact, you might be surprised to see which cities topped the list of where you should live if you have student loan debt.
20. Omaha, Nebraska
- Years to repay student loans: 7.06
In Omaha, the average rent is $1,250 per month, the third lowest on the list, and the median income is $53,789 per year, or $4,482 per month, also third lowest on the list. Omaha also has the second-lowest transportation costs of any of the 20 cities.
The average student loan balance in Omaha is $33,288, putting it just about in the middle of the pack for loan balances.
Must Read: How One Woman Paid Off $81,000 in Student Loans While She Was Broke
19. Colorado Springs, Colorado
- Years to repay student loans: 7.05
Graduates in Colorado Springs have an average loan balance of $28,714, the fourth lowest of any of the 20 cities on this list. This city also has the second-lowest utility costs at $65.91.
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18. Oklahoma City
- Years to repay student loans: 6.95
Oklahoma City has the second-lowest rent of any of these cities at $1,000 a month, and the second-lowest grocery costs at $88.93 per month. It also has the second-lowest income at $51,581 per year or $4,298 per month.
In keeping with its second-place rankings, Oklahoma City also has the second-lowest average debt at $27,727.
17. Wichita, Kansas
- Years to repay student loans: 6.94
Of the 20 cities on this list, Wichita has the lowest average rent at just $800 per month and the lowest average transportation costs at $142.06 per month. Offsetting this is the fact that it also has the lowest average income at $4,082 per month or $48,982 per year.
Student loan balances in Wichita are the third lowest, on average, at $28,492.
16. Washington, D.C
- Years to repay student loans: 6.78
In the nation’s capital, students have the highest loan balance of any of the 20 cities on the list at $46,360.
Washington also has a high cost of living, with the third-highest average rent at $3,000 per month and the third-highest utility costs at $75.61 per month. At $104.51, the city is tied for third-highest grocery costs, with Alexandria, Virginia, and Silver Spring, Maryland.
More on the Nation’s Capital: A Wealthier Middle Class Is Emerging In Washington, DC, Study Finds
15. Charlotte, North Carolina
- Years to repay student loans: 6.78
Among the 20 cities on the list, Charlotte has a relatively lower median income of $58,202 per year or $4,850 per month. Graduates here have the sixth-highest average student loan balance at $35,962.
14. San Francisco
- Years to repay student loans: 6.72
San Francisco is notorious for its high cost of living, so it might be a surprise to see it on this list. And it’s true that it has the highest average rent of any city in the top 20 at $4,500 per month. It also has the highest transportation costs at $270.65 per month and is tied with San Jose, California, for the highest grocery costs at $109.97 per month.
However, the median income is the second highest at $96,265 per year or $8,022 per month, and the high salaries offset the steep living costs.
In San Francisco, the average student loan balance is $39,435, the fourth highest on the list.
Compare: What You Can Get In Every State for the Price of a California Home
13. Bakersfield, California
- Years to repay student loans: 6.64
Bakersfield students have the lowest average loan balance of any city on the list at $25,436, making it one of the best cities for college grads. But this city doesn’t share the high salaries — or high cost of living — of many other cities in California. The median income is $60,058 per year or $5,005 per month, and the average rent is just $1,550 per month.
12. Austin, Texas
- Years to repay student loans: 6.35
Austin is about in the middle of the pack for median income, at $63,717 per year or $5,310 per month, and has an average rent of $1,700. It does have the lowest monthly grocery costs of any city on the list, at $88.03.
In Austin, the average student loan balance is $31,967.
Get In the Black Faster: 10 Creative New Ways To Pay Off Your Student Loans
11. Raleigh, North Carolina
- Years to repay student loans: 6.15
In Raleigh, the average loan balance is $33,917. Rent is the fourth lowest of any city on the list at an average of $1,450, and median income comes in at $61,505, or $5,125 monthly.
10. Littleton, Colorado
- Years to repay student loans: 6.02
Graduates who live in Littleton benefit from a median income of $71,315. Rent, however, is on the higher side of these cities at $2,150. The average balance of student loan debt is $31,601.
Learn: 15 Ways To Pay Off Student Loans
- Years to repay student loans: 6
Seattle residents pay the fifth-highest rent of the 20 cities on this list, at an average of $2,800. Seattle does have the lowest utility costs, at an average of just $49.08 per month. Graduates in Seattle have an average student loan balance of $35,305, which will take six years to repay.
8. Spring, Texas
- Years to repay student loans: 5.73
In Spring, the average student loan balance is $31,514. Rent will cost you an average of $1,575 per month, and the median income is $66,815 per year or $5,568 per month.
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7. Silver Spring, Maryland
- Years to repay student loans: 5.66
Silver Spring has a high cost of living, including the third-highest grocery costs at $104.51 (tied with Washington, D.C., and Alexandria, Virginia), second-highest utility costs at $78.04 and third-highest transportation costs at $249.99.
Graduates in Silver Spring also have the third-highest average student loan balance at $39,617. But they benefit from a median income of $76,608 per year or $6,384 per month, the seventh highest of any city on the list.
6. San Jose, California
- Years to repay student loans: 5.14
Despite having the second-highest rent at $3,600 per month, being tied with San Francisco for highest grocery costs at $109.97 per month and having the second-highest transportation costs at $261.31, you’ll spend just over five years paying off student loans in San Jose.
That’s because this city enjoys the highest median income at $96,662 per year or $8,055 per month, and the average loan balance is only the sixth highest, at $29,307.
Check Out: Your Kids Can Avoid Student Loan Debt by Applying To These Colleges
5. Katy, Texas
- Years to repay student loans: 5.13
In Katy, the median income is $73,865 per year or $6,155 per month, and the average rent is $1,750, putting this city near the middle of the pack for both. Katy does have the third-lowest utility costs on the list at $66.27.
Graduates who live in Katy can expect to pay back the average loan balance of $31,380 in a little over five years.
4. Virginia Beach, Virginia
- Years to repay student loans: 5.12
If you earn the median income of $5,875 per month or $70,500 per year and pay the average rent of $1,500 per month in Virginia Beach, Virginia, you’ll be in good shape to pay off your loans in just over five years. This assumes you have the average student loan balance of $30,266.
3. Nashville, Tennessee
- Years to repay student loans: 4.81
In Nashville, the average rent is $1,700, just about in the middle of the cities on this list. Nashville has the third-lowest grocery costs, however, at $89.62. The median income is $75,998 per year or $6,333 per month, which is on the higher end of the list.
With an average loan balance of $37,158, you’ll be able to pay your student loans in under five years in Nashville.
See: 20 College Majors That Take the Longest To Pay Back
2. Alexandria, Virginia
- Years to repay student loans: 4.56
Alexandria has the third-highest income of any city in the top 20 at $93,370 per year or $7,781 per month. It has one of the highest rents at $2,850 per month. It’s tied with Washington, D.C., and Silver Spring, Maryland, for the third-highest grocery costs at $104.51 per month.
Alexandria has the second-highest student loan debt at $40,085. Even so, you’ll have it paid off in about four and a half years.
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1. Plano, Texas
Years to repay student loans: 4.07
If you live in Plano, you could be free of student loan debt in just over four years. That’s because Plano has the fourth-highest income of the cities on this list, at $88,578 per year or $7,382 per month. Rent is $1,993 per month, and transportation costs are the third lowest at $153.08 per month.
The average student loan balance in Plano is $34,047.
How To Pay Off Your Student Loan Debt
How long it takes to pay off your student loans depends heavily on where you live. The 20 cities on this list could be the best places to live if paying off student debt is your top priority, but you can make a dent in your debt no matter where you live. Here are some tips on how to pay off student loans faster:
- Pay as much as you can as soon as you can. These numbers are paying 15% of disposable income toward student loan debt. If you can pay even more, do it. The sooner you pay, the less interest you’ll be charged — and that’s the best way to pay off student loans fast.
- Pay your highest interest loan first. If you have multiple loans with different interest rates, make the required payments on all of them, but throw all of the rest of your payments at the one with the highest rate.
- Put any windfall you get toward your loans. This includes tax refunds, gifts and raises.
Keep reading to find out how you can still buy a house with student loan debt.
More on Student Loan Debt
Methodology: GOBankingRates analyzed 100 cities across the United States to find the top cities where recent graduates can pay off their student loans quicker.
GOBankingRates used the following criteria: 1) median rent list price for a single-family residence for February 2019, sourced from Zillow; 2) monthly grocery cost, “Food at home” annual expenditure for a person under 25 years, sourced from the 2017 Bureau of Labor Statistics Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places grocery index; 3) monthly utilities cost, “Utilities, fuels and public services” annual expenditure for a person under 25 years, sourced from the 2017 BLS Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places utilities index; 4) monthly transportation cost, “Gasoline, other fuels and motor oil” plus “Other vehicle expenses” plus “public and other transportation” annual expenditure for a person under 25 years, sourced from the 2017 BLS Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places transportation index; 5) median monthly income for each city, median household income, sourced from the 2017 American Community Survey done by the U.S. Census Bureau. This leftover was then was multiplied by 15% to give a monthly student loan payment. To see how many months it would take to pay off an average student loan debt in each of the cities analyzed, this monthly payment was then divided by the national student debt average as sourced by Debt.org’s 2018 data.
This article originally appeared on GOBankingRates.com: Best Cities To Live In If You Want To Pay Off Your Student Loans Quickly
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The Best Cities to Pay Off Student Loan Debt
According to a report from the Institute for College Access & Success, the average 2014 graduate with loans owed nearly $29,000. With that much debt, paying off student loans can seem nearly impossible for a new graduate. And it isn’t just the amount of debt that can make repayment difficult.
Try SmartAsset’s free student loan calculator.
Among the other obstacles to debt repayment for new graduates are rising housing costs, stagnant wages and a tough job market. Indeed, that same report found that unemployment among young college graduates remains stubbornly high at 7.2% for the year 2014.
In some parts of the country, however, the situation is not quite so dire for college graduates with student loan debt. In fact, SmartAsset’s analysis found that in some areas a person with the average loan debt burden may be able to pay off debt in less than 7 years.
To find the best cities to pay off student loan debt, SmartAsset looked at data from Credit Karma, a company that provides consumers with free credit scores, reports and monitoring, on the average student loan debt in America’s 100 largest cities. We also considered the median income for college graduates in these cities, which we ran through our income tax calculator to generate an after-tax income estimate for each area.
Lastly, we subtracted median housing costs to calculate disposable monthly income. that number, SmartAsset calculated the number of years it would take the typical graduate to pay off average debt in each city. (Read our full methodology below.)
- Texas at the top. Eight of the top ten cities to pay off student loan debt are in Texas. The Lone Star State combines a relatively low cost of living with low taxes and a strong economy. That means graduates can put more money toward paying off debt.
- East Coast issues. Outside of the state of Florida, no eastern cities rank among the 25 best places to pay off student loan debt. In general, major East Coast cities Boston and New York have higher housing costs and taxes than cities in the Great Plains and the West.
The average college graduate with student loan debt in Laredo owes $19,774, far below the national average. Additionally, college graduates in Laredo face low housing costs and low taxes. That means more money can be put toward paying off debt. In all, our analysis found that the typical graduate in Laredo could pay off debt in 7.4 years—about seven years and five months.
Alaska is known for its low taxes, but what makes Anchorage a top city for paying off student loan debt is the relatively high level of income earned by college graduates in the city. Workers with a college degree earn a median income of $61,037 in Anchorage. Among the 100 largest cities in the U.S., that is the sixth highest amount.
Our analysis found that the typical college graduate who has student loan debt in Bakersfield could pay off that debt in about 8.8 years. The average debt owed by graduates in Bakersfield is $24,414, below the national average.
One reason for that low debt load may be the relative affordability of California State Bakersfield, where the cost of annual tuition and fees is $6,792. According to the College Board, the national average is $9,410 among public four-year institutions.
Corpus Christi, Texas
Located on the Gulf Coast, south of San Antonio, Corpus Christi has a very low cost of living, which leaves college graduates with more money to pay down their student loan debt.
Despite the generally high property taxes in the state of Texas, median annual housing costs paid by Corpus Christ residents are less than $11,000.
That’s just 22% of the income earned by a typical college graduate in the city.
El Paso, Texas
Median housing costs in El Paso are less than $800 per month, making it one of the most affordable big cities in the country. A college graduate earning the typical income for an El Paso resident with a bachelor’s degree could put $246 per month toward her student loan debt, paying it off in just over 10 years.
Fort Worth, Texas
It is hard for a college graduate to pay off student debt without a job. For grads in Fort Worth, that shouldn’t be a problem. Among bachelor’s degree holders in the city, the unemployment rate is just 3.2%, which is near (or even below) the level economists consider to be full employment.
The Dallas area has experienced something of an economic boom in recent years. That means lots of job opportunities for college graduates. That type of growth can also lead to wage increases for workers across the city. The median income for bachelor’s degree holders in Dallas is $54,256, according to the U.S. Census Bureau.
Houston is the largest city in Texas and the fourth-largest in the country, but for college grads who need to pay off debt it rates well-ahead of places New York, Los Angeles and Chicago. For starters, un residents of those cities, people who live in Houston do not have to pay any state or local income taxes.
Find out now: What is the true cost of living in Houston?
Additionally, housing in Houston is relatively affordable for such a large city. According to the U.S. Census Bureau, the typical Houston resident pays $10,920 annually in housing costs. That adds up to thousands of dollars in savings as compared with the country’s other largest cities.
San Antonio, Texas
The median income for workers with a bachelor’s degree in San Antonio is $47,328. After subtracting taxes and typical housing costs, someone earning that level of income in San Antonio would have $30,383 in disposable income. Dedicating 10% of that disposable income to student loan debt payments, it would be possible to pay off the average debt for graduates in the city in about 11.8 years.
Located between Dallas and Fort Worth, college graduates in Arlington have access to the region’s strong employment market. The unemployment rate in Arlington is currently less than 4%. Meanwhile, the typical income for residents with a bachelor’s degree was $50,045 as of 2014.
Data and Methodology
In order to find the best cities to pay off student loan debt, SmartAsset calculated the length of time a typical college graduate in America’s 100 largest cities would need to pay off average student loan debt in each city. That calculation involved several steps.
First, we looked at the unemployment rate faced by college graduates in each city. Since it’s hard to pay off debt without a job, we only considered cities with low unemployment rates. We eliminated any city in which the unemployment rate for workers with a bachelor’s degree was higher than 5% (as of 2014, the most recent year for which that data is available) from our analysis.
Next, we estimated the typical disposable income for graduates in each city. We ran U.S. Census Data on the median income among bachelor’s degree holders in each city through our income tax calculator, which incorporates state and local taxes, in addition to federal income taxes. That generated an expected after-tax income.
From that after-tax income we subtracted the median housing costs in each city, which includes things mortgage payments, insurance costs, real estate taxes and utilities. (That data also comes from the U.S. Census Bureau.)
After subtracting taxes and housing costs from income, we assumed that graduates would dedicate 10% of their remaining income to student debt payments (the amount anyone would be able to earmark for debt varies but for this study we made this assumption for each of the cities). That leaves room for other expenses, food or child care.
The last step was to calculate the length of time it would take to pay off debt at that rate of 10% of disposable income.
To make this calculation, we used Credit Karma data on the average student loan debt owed by people with student loans in each city. We assumed an interest rate of 4.
6%, which is the average rate across subsidized and unsubsidized federal student loans for undergraduates over the past five years.
Photo credit: ©iStock.com/Daniela Jovanovska-Hristovska
Student Loan Forgiveness: Move to a Place that Pays Your Loans
Dealing with student loan debt can seem unbearable and overwhelming. As mentioned in the article, 15 Ways To Deal with Student Loan Debt, the average student owes a whopping $40,000 after graduation but almost 19 percent owe $50,000 and above with 5.6 percent owing over $100,000.
Maybe you worked hard to save money in college diligently keeping your student loan debt in mind. Maybe you made some huge financial mistakes during college and ended up taking out much more than you imagined. Whatever road you took to have this student loan debt, now is the time to start planning your exit route.
One idea often thrown around when talking about student loan debt is the option of Student Loan Forgiveness. Student Loan Forgiveness is simply what it sounds – a portion of your student loan debt gets forgiven, and you no longer owe that set amount of money. Pretty sweet, right?
Many people don’t explore this “too good to be true” option since they don’t know about it, they don’t understand it, or they don’t think they’d qualify for such an amazing benefit. That is exactly why I decided to do this Student Loan Forgiveness Series, exploring different ways you can eliminate your student loan debt.
Next up, moving to a place that offers a student loan forgiveness incentive.[Read: Best Student Loans 2020]
Why Are Places Locations Offering Student Loan Forgiveness?
The places mentioned in this article are looking to grow economically and/or build their population.
Generally speaking, college graduates would add to economy by drawing more businesses to the area and putting more money into the economy.
Recent college graduates can not only mean more apartments are getting rented and even homes being built, but it can also mean more money spent at restaurants, shops, and other businesses.
Things to Consider Before Moving for Student Loan Forgiveness
Before you start packing your bags, take some time to consider if this opportunity would be right for you. It’s a big decision and comes with other stipulations, including a length of time you’d be required to live there before you receive student loan forgiveness. Here are some questions to ask yourself before changing your zip code:
- What is the cost of living in these locations compared to where you live now?
- Would you be comfortable moving to a new area, possibly leaving your family and friends behind and not knowing anyone?
- Does exploring a new area and getting a change of pace sound exciting? Do you want to move your area anyway
- What is the job market in these areas compared to your current location? Would you be able to find a job in your industry? What would your salary be in this area compared to where you live now?
- What is this area really ? Before you consider moving, do your research on crime, transportation, attractions, and the general culture of the area. If possible, a trip to the area would be helpful, too.
- What would your transportation be in this new region? For example, if you live in a big city right now and depend on public transportation, moving to rural Kansas would probably require purchasing a car.
Places to Move to get Student Loan Forgiveness
The following places offer some type of incentive for recent college graduates with a student loan balance to move there. Check out these locations, what it’s all about there, what you’re required to do, and how much you can earn to pay down your student loan debt:
Where you need to live: Live in Downtown Detroit or one of the nearby neighborhoods listed below.
Location details: They boast 13,000 theatre seats, pro sports teams, and the Detroit RiverWalk, a 3.5 mile promenade with bike paths along with Detroit River. many urban big cities, you’ll find museums, a variety of bars and restaurants, and shopping. However, Neighborhood Scout ranks Detroit at number six for most dangerous cities in the U.S.
Requirements: You need to live in one of the following Detroit neighborhoods: Downtown, Corktown, Lafayette Park, Eastern Market, Woodbridge, Brush Park, Cass Park, Art Center, and Lower Cass. You also need to work for a specific company. These include Blue Cross Blue Shield of Michigan, Compuware, DTE Energy, Marketing Associates, Quicken Loans, or Strategic Solutions.
What you’ll get in return: If you’re buying a new home, you can receive up to $20,000 forgivable loan toward the purchase of the primary residence. If you want something less permanent and want to rent instead, you’ll receive $2,500 allowance of funding towards the cost of your apartment the first year and then $1,000 the next year.
Learn more at Detroitlivedowntown.org.
Where you need to live: Reside in one of 77 counties included in the Rural Opportunity Zone list. These counties cover most of the state. Also, in addition, some participating Kansas communities – Plainville, Osborne, Lincoln, and Marquette, offer free land if you’re building a home.
Requirements: To be eligible for student loan repayments, you must establish residency in the Rural Opportunity Zone after July 1, 2011, which shouldn’t be an issue if you’re researching this now.
You’ll need to have previously earned an associate’s, bachelor’s, or post-graduate degree, and have an outstanding student loan balance. There is no requirement on when you graduated, un the other programs that stipulate a time restriction on graduates.
This eligibility is also only determined by where you live so you may live in one area and work in another.
Location details: Every community and county offers something a little different. In general, most boast a lower cost of living, a slower pace with fewer people, and a safer community vibe.
While entertainment opportunities might not be as great as a big city, the Kansas Tourism Bureau highlights a variety of breweries, wineries, art, and small-town, rural charm across the state.
What you’ll get in return: For moving to the Rural Opportunity Zone, you can get student loan repayments up to $15,000. In late fall, you’ll receive a check that you must deposit and then send to your lender (you’ll need to show proof).
The program pays 20 percent of your outstanding loan debt up to a maximum of $3,000 per year. You can take advantage of this program for up to five years, hence the total $15,000 reimbursement towards your loans.
But according to their website, each county can determine if it wants to pay over that $15,000 amount, but the state will not match anything over $15,000.
Plainville is giving free lots for construction of a new home plus a 50 percent property tax saving over a 10-year period. The City of Osborne is also offer free home lots as well as Lincoln and Marquette.
Also, you can be eligible for a Kansas income tax waiver (if you’ve lived outside of Kansas for five or more years immediately prior to establishing a residency in one of these Rural Opportunity Zones). You’d need to live in the zone for the entire tax year to claim these benefits.
For more information on these Rural Opportunity Zones, visit their website. You can also find out how you can apply, where exactly you’d need to live, and how the process works.
Niagara Falls, New York
Where you need to live: You need to live in the designated downtown area on Niagara Falls, NY.
Location details: Despite being a major tourist attractions for both Americans and visitors, Niagara Falls has experienced a rapid population decline over the last 50 years. The city boasts, most notably, Niagara Falls State Park, a wine trail, and festivals and events year-round.
Requirements: In order to receive student loan reimbursement, you need to have earned a 2 or 4-year degree from an accredited college and either rent an apartment or buy a home in the designated area.
What you’ll get in return: According to Inquisitr, you’ll earn $3,500 per year for the next two years.
Where you need to live: You’ll need to live and work in the province of Saskatchewan in Canada to qualify. If you’re not familiar with where it is, it is directly above North Dakota and Montana.
Location details: The province boasts an arts culture with festivals and events, parks, a good health care system, and leisure sports and recreation opportunities.
According to their website, Saskatchewan’s taxes and household charges are amongst the lowest in Canada, and if you have little ones, kindergarten through grade 12 is no cost for residents. The province has a mix of cities, smaller villages and towns, and a vast Northern area.
In an effort to appeal to immigrants, the province offers many cultural organizations, various religious centers, and says they have a “high quality of life with a low cost of living”.
Requirements: To earn money towards your student loan debt, you must have graduated from an approved program and approved college after January 1, 2006. You’ll also need to either already live in Saskatchewan or be moving there.
Besides simply living in this province, you will need to file a Saskatchewan income tax return so this means you are also required to steadily earn an income. All graduates are eligible, even if you’re from the U.S. or another country outside of Canada.
What you’ll get in return: The Graduate Retention Program (GRP) offers a refund up to $20,000 of tuition fees. According to their website, you’ll receive this over the course of seven years.
The amount you can earn depends on the duration of your program. For example, that $20,000 amount is for graduates of a 4-year degree program.
If you’ve taken a one, two, or three year program, your student loan reimbursement amount will be less.
Visit their website for more information on how the program works, requirements, and how to apply.[Read: Student Loan Consolidation Guide]
Things to Keep In Mind For Any Student Loan Forgiveness
Once you think you have the chance to get a portion of your student loans forgiven, it can be quite tempting to instantly sign up. But before you apply and especially before you sign a contact, you need to thoroughly understand how you receive this loan reimbursement and what you’ll be doing to get this. Here is what you need to know:
- Understand the terms of your contract. Understand exactly where you need to live, how long you need to live there, and what other requirements there are.
- Know what happens if it doesn’t work out. What is the Plan B? If you move to the area, and have to move back home because of a loss of a job or family emergency, what happens now?
- Be certain your loans qualify. Certain types of loan are only permitted as well as when you took them or how you used these loans. The same is true for where you went to school and the program you studied. Confirm that your course of study qualifies for reimbursement.
- Compare the benefits of the programs. How much will you be forgiven? How much will your salary be? If the loan forgiveness program forces you to take a lower salary than you could have gotten elsewhere or move to an area that has higher rent and cost of living, it might not be the best option for you.
- Get confirmation prior to moving to a new location. Learn what you need to do prior to signing up and moving there. You may need to apply before actually relocating.
- Don’t jump in. This is a big commitment. Do your research, and learn all the ins and outs of the programs and rules and regulations.
- As mentioned before, really get to know the area before moving there.