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Maine Senate passes bill to forgive up to $40K in student debt for some home buyers

The state might make the program available to income-qualified buyers who agree to live in the home for at least five years.

AUGUSTA, Maine — Editor's note; The video above aired Jan. 13, 2022.

Maine is close to approving a proposal to forgive up to $40,000 in student loan debt for some first-time home buyers.

The Maine Senate voted in favor of the proposal on Tuesday. The state might make the program available to income-qualified buyers who agree to live in the home for at least five years, the Portland Press Herald reported.

The proposal does not require the home buyers to have graduated. Supporters said it's based on a similar program in Maryland.

The average Maine student graduates with $33,500 in student debt. Meanwhile, the statewide median sales price of a home is creeping toward $300,000.

Democratic Senate President Troy Jackson said the bill is important because with "student loans, car payments, rent, utilities and other basic expenses, it is hard enough to make ends meet, let alone purchase a home.”

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