Idaho on Tuesday launched a grant program that could help thousands pay for post-high school education at a time of debate in the U.S. over ways to relieve the burden of student debt from millions of Americans. They’re one of several states to enact such a program.
The $75 million program will cover 80 percent of tuition and costs of up to $8,000 for high school seniors who want to pursue what the state describes as in-demand careers, such as in the healthcare and technology industries.
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Idaho’s program points to a new effort where states are looking for ways to offer financial pathways for those who want to pursue higher education but struggle to find ways to pay for them.
More than 43 million people in America owe an average of about $38,000 of federal student debt. In total, student loans are close to $1.8 trillion in the United States.
“The debt accumulation rate is slowing, and recent analytics indicate that most consumers manage their student loan debt responsibly,” according to the Education Data Initiative.
The Biden administration tried to cancel up to $20,000 of student debt, but the Supreme Court struck down that effort in June. On Friday, the Department of Education said it was looking for new ways to help borrowers with the most need of assistance with their loans. Beginning in October, student debt payments resumed after a pause over the last three years as part of government support to Americans during the COVID-induced economic crisis.
Which States Offer Education Assistance?
The Idaho post-education grant joins efforts by other states to offer support for students seeking higher education. About 17 states offer little or interest rates loans for students, according to the personal finance platform The College Investor, who wish to pursue careers in fields that include those considered public services, such as education or healthcare. Additionally, some states offer loan forgiveness programs for their residents who work in rural areas.
In Pennsylvania, for example, healthcare workers interested in working in underserved parts of the state for at least two years can secure thousands for their student loans, according to the lender LendingTree.
Meanwhile, in New York, those who want to run a farm could get $10,000 a year towards their debt.
Alaska offers a variety of support to students, including a scholarship giving up to $5,000 for those going for a four-year higher-education program, College Investor shows.
While student loan debt slowed to an increase of about 1.2 percent in the second quarter of 2023 compared to 1.5 percent the previous quarter, it has now become the second-highest consumer debt after mortgage loans, according to the Education Data Initiative.