A proposal introduced in the state Legislature last week aims to keep college students in Wisconsin after graduation and attract recent graduates to the state through a tax break on student loans.
Rep. Kim Hixon, D-Whitewater, is gaining support on both sides of the aisle for his bill that would create a tax credit for payments on loans used for educational expenses including tuition, fees, books, and room and board.
?We are falling behind surrounding states, Minnesota in particular, in the percentage of adults who have college degrees,? Hixon said. ?Obviously, the higher that percentage is, generally speaking, the better the state economy is.?
Hixon added this issue hits close to home, as he is still paying back student loans for his master?s degree and Ph.D.
?I know what a burden that can be on people just starting out and starting a family,? he said.
Nate Williams, spokesperson for Rep. Jeff Smith, D-Eau Claire, said the bill could tip the scale in Wisconsin?s favor in terms of keeping graduates in the state.
?We?re trying to find ways to keep more college graduates here so we can tap into their entrepreneurial energy and spirit,? Williams said.
University of Wisconsin System spokesperson David Giroux said the bill sounds like a good idea, but the state should look to create greater incentives for people with degrees to come to Wisconsin.
?People don?t move across state lines for a tax credit; they move across state lines for job opportunities and cultural enrichment,? Giroux said. ?The tax issue is just part of what makes our state attractive or not.?
Giroux added, however, he thinks the legislation would be useful in attracting students to attend the UW System in the first place.
?The issue of affordability is equally important. We know more and more students are graduating with bigger student loan debt, and that?s just a fact of life,? Giroux said. ?[The proposal] really helps take down the true long-term cost of attending college.?
The bill has yet to be taken up by a committee, and Williams said the proposal?s late introduction, Republican control of the Assembly and the relatively light schedule for the rest of the session could mean the bill?s future is cloudy.
?It?s going to be a challenge to get it through the Assembly,? Williams said. ?We?re hoping that if we can?t get it done this session that we can bring it back a year from now and try and get it done then.?
Eighty percent of Wisconsin residents who attend schools in the UW System currently stay in Wisconsin after graduation, according to Giroux and Williams.
