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Michigan seeks to keep graduates in-state

July 8, 2013

In the wake of the July 1 student interest rate hike, which effectively doubled rates overnight from 3.4 to 6.8 percent because lawmakers were unable to find a compromise, legislatures in Washington, D.C., are scrambling for solutions.

Here in Michigan, the name of the game is keeping graduates in the state, which is where State Rep. Andy Schor’s Student Loan Tax Credit Bill, HB 4182, comes into play.

Introduced earlier this year, Schor said the bill is part of an effort to alleviate student concerns over incurred debt, and keep young professionals in the state.

“As federal officials work on interest rates on subsidized student loans, it’s important for us at the state level to do what we can to help students who face higher tuition costs every year and who graduate with considerable student loan debt,” Schor said in a July 3 press release.

Schor’s bill would offer an income tax credit for up to 50 percent of loan payments made by students, totalling up to 20 percent of average yearly tuition for public universities in Michigan, according to the release.

For Jared Merlo, an international relations senior, saving a few bucks is only part of the equation for whether or not he’ll stay in state.

“I plan on going wherever the opportunities are,” he said.

But for Merlo, the desire to stay in the state is more personal, as he mused on the steps of Berkey Hall, that leaving his friends behind for a job outside the state would be a tough decision. While he believes there are opportunities within the state, he said he thinks the jobs in the state are highly sought after and command a great deal of competition from prospective employees.

The effort to keep young graduates in the state is about combining employment opportunities with environments conducive to the lifestyles of young professionals, according to Garth Motschenbacher, director of Career Engagement and Employer Relations at MSU.

Factors such as living in exciting communities like downtown Detroit or Lansing, as well as opportunities to find employment in their chosen career field are in the forefront of students’ minds, Motschenbacher said. But he believes the states biggest problem isn’t a lack of jobs — it’s a lack of positive public relations.

“Folks aren’t aware of opportunities in the state, they still think of Michigan only for the automotive industry,” Motschenbacher said.

He maintained that after Michigan fell into recession long before the rest of the nation, the state has shifted into blossoming economic sectors including information technology, health care and life sciences. This move has helped to elevate several of Michigan’s major cities into prominence, despite horrendous headlines to the contrary.

Detroit, a tale of two cities. One story of a city, which in 2012, had the highest rate of violent crime in a major city, according to the FBI’s Uniform Crime Report and a city that in 2011 had over 2,000 instances of violent crime per 100,000 people. The other story is one of rebirth, a city with increasing opportunities for work and play, and a city Motschenbacher believes represents a place where young people want to live. And his message echoes that of a city in transition.

“If you want to be a part of it, go to Chicago, if you want to be it, go to Detroit,” he said.

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