Student loan credit endorsed

By Sarah Cooke of The Associated Press - 03/24/2005

HELENA — The Senate on Wednesday endorsed a bill to provide $1.7 million in tax relief to college graduates with student loans who decide to stay in the state.

The bill by Sen. John Brueggeman, R-Polson, a University of Montana student, would give a state tax credit, beginning this year, to students who take out loans and graduate from colleges and universities in Montana. The credit would be based on the amount of loans repaid each year, up to a maximum of $500. The Senate supported it, 36-11, with a final vote expected Thursday.

Brueggeman said the bill is meant to ‘‘slow the ‘brain drain,' as we call it, of our best and brightest'' leaving the state.

Opponents said the bill discriminates against Montanans who attend out-of-state colleges because of sports scholarships or other reasons, and students who don't use loans to pay for their education.

‘‘In those cases, they're not going to get any benefit from this bill,'' Sen. Joe Balyeat, R-Bozeman, said.

Balyeat upset several lawmakers by suggesting the state's ‘‘best and brightest'' don't need loans to get through school because they can rely on scholarships and money from work instead.

‘‘There are many people who are very, very bright that just don't have the resources to get through school,'' Sen. Don Ryan, D-Great Falls, said in response.

The measure would restrict use of the tax credit to two years for graduates with associate's degrees and four years for those with bachelor's degrees. Students pursuing master's degrees could get another two years of relief, while law students would be eligible for an additional three years.