Legislation soon to be introduced in the state House of Representatives would allow individuals living in a distressed zone to receive either student loan forgiveness or zero percent interest rate on their student loans.
Distressed zones are defined as municipalities experiencing population loss of more than 2 percent determined by the U.S. Census Bureau and are eligible for the Pennsylvania Industrial Development Authority Loan Program as designated by the Pennsylvania Higher Education Assistance Agency.
The Pennsylvania Retaining Educated Workers Incentive Program (PREWIP) Act would make residents of at least 606 local municipalities eligible for the program. Students would be required to live in a distressed area for 10 years to qualify for loan forgiveness. The zero percent interest rate would be for those who cannot commit to a 10-year residency.
The goal is to make distressed zones more attractive for young adults.
“While the official 2020 Census figures will be released later this year, it’s clear Pennsylvania’s population growth has been stagnant compared to other states resulting in the recent loss of a Congressional seat,” said state Rep. Nick Pisciottano (D-Allegheny County), who plans to introduce the bill. “To counter this population loss, the General Assembly needs to find ways to provide economic opportunities for young people across the state to stay in their communities while building a prosperous future.”