Radio Address: Reducing student debt and lowering the cost of education requires bold policy changes
March 29, 2016
(MP3 Audio)Businesses in Maine need highly skilled workers, and college graduates need to start their careers without the crushing burden of student debt.
Hello, this is Governor Paul LePage.
Reducing the debt that our young people are saddled with just as they are beginning their careers is too important to get lost in partisan politics. For the first time in more than a century-and-a-half, Maine?s population has begun to drop, rather than grow. Maine is now the oldest state in the nation.
For Maine to become prosperous again, we need to make it easier for our graduates to stay in Maine and attract talented young people to our beautiful state. We can help by relieving the burden of student debt for those who want to stay in Maine or choose to relocate here and start their professional careers.
Maine?s recent college graduates have among the highest average student debt in the nation, as well as the highest delinquency rate in the Northeast. High student loan payments prevent our young people from buying a house or a car or spending their money at local businesses.
To help provide relief for new college graduates, there are three bills now before the legislature. These bills would give businesses a tax credit for every student loan payment they make for employees who choose to stay in Maine. They would also create a new low-interest student loan program through the Finance Authority of Maine to encourage new graduates to work in our great state. These efforts will be well worth the investment and will pay huge dividends for Maine by encouraging young people to come here and reverse our declining population.
If a student loan has a 6.5% interest rate over 10 years, the student would pay $450 a month and a total of $14,500 in interest. With the FAME loan, the student would pay $333 a month and no interest. If a business makes the loan payment for the student, the student would pay zero in principal and interest. The business gets a dollar-for-dollar tax credit, and the student gets more money to spend in the local economy.
In addition to these three bills, we must think outside the box. We must ask ourselves why the cost of education is so expensive. That?s why we have created a Blue Ribbon Commission to determine how to lower the cost of public education and improve student performance. The commission will analyze data from all public secondary and post-secondary schools that receive state funding. For too long, the Legislature has thrown money at education without asking any questions. The goal of this Commission will be to find some answers.
When a bill seeks an increase in education spending, I always ask if it puts our students first. If it?s yes, it?s good public policy and a worthy investment.
I believe we are on the right path to fixing education.
Thank you for listening.