By Dave Dyer

Staff Writer

College students who attend Maine universities will have a chance to receive a tax credit to help ease the burden of their student loans thanks to the new “Opportunity Maine” program signed by Maine Gov. John Baldacci in January.

Opportunity Maine Executive Director Rob Brown said the program helps students with loans and helps the state economy with keeping college grads in Maine.

“Anyone who gets an associate or bachelor’s degree in a Maine college, and gets a job in Maine after graduation and lives in the state and pays Maine state taxes every year for the duration of the student loans, is eligible for the program.” Brown said.

He said the program is a tax credit and not a refund. 

“You take out a certain amount in loans,” he said. “Then you start paying back your student loans at the end of your time in college. At the end of the year, the amount that you paid in student loans is looked at, and what happens is the state will take out your income tax for the year from the student loans you pay. You would then get a check from the state for the amount left over after the state income taxes are taken out.”

Brown said people of all ages can take advantage of the tax credit.

“The tax credit is available for people of any age. If someone who lives in the state wants to go back to school and learn a new trade, they too are eligible for the program,” he said.

Brown said there is a cap for the amount for loans taken out every year that can  come back to the student.

“We look at the average cost of school for the year right now at about $20,000 right now. That would mean the highest loan repayment would be about $5,500 per year. With the cost of school changing every year, the cap number will rise with the average cost of school,” he said.

Freshmen students for this school year will be the first ones to enjoy the full four years of the program, Brown said, but older students can still take advantage of the program. 

“Starting from this year forward they can use the program,” Brown said. “But it wouldn’t work for loans before January of 2008.”

Brown said part time students are eligible for the tax credit as well, but in order to receive the credit all students must obtain either their associate or bachelor’s degrees.

Dick Campbell, the chief financial officer at the University of Southern Maine, said the program was built around the hope of helping the state economy.

“Opportunity Maine should help retain students in Maine,” Campbell said. “It provides them with a very attractive option that is not available to them out of state. It should help the economic development in the state and also help college grads to receive assistance.”

Saint Joseph’s College Financial Aid Coordinator Andrea Cross said the program is still in its early stages.

“It’s a brand new program, it just started in January,” she said. “I’m certainly hopeful that the program is a success. Students who are graduating and are unsure whether they will live in or out of the state are at least filling out paperwork for the program, so it’s a good sign.”

Brown said it should also help people from dropping out of college.

“There’s no excuse to drop out of school anymore, you can get a credit for your loans afterward,” he said.

Campbell said the program should work for future Maine students.

“I think it will definitely have a positive effect for graduates,” Campbell said.

For more information about the tax credit, visit the Opportunity Maine Web site at www.opportunitymaine.org.