Maryland has unveiled a program that aims to help people with student loans purchase a home while also eliminating their debt.
The $10 million Maryland SmartBuy program will offer up to 15% of the purchase price toward outstanding student debt for buyers who can provide at least 5% toward a down payment for a home. Eligible buyers must have at least $1,000 in debt and their student loans must be in good standing. Buyers must also remain in a home owned by the state's housing department for five years or more to receive debt forgiveness.
"Traditionally, people in their 20s and 30s would account for a substantial share of Maryland's first-time homebuyers, but we’ve seen a little difference in that demographic over the years, and it's believed that student loan debt is a part of the challenge," says Lt. Gov. Boyd Rutherford (Douglas-Gabriel, "Grade Point," Washington Post, 11/24).
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