Louisiana residents considering going out of state for graduate school should think again.
House Bill 1156, which establishes the Grants for Grads program, was signed July 6 by Gov. Bobby Jindal.
The grant will give graduates of two- and four-year colleges $10,000 as a down payment on a house, with qualifying couples will receive $15,000.
"I see our graduates as the future of our state," said Rep. Neil C. Abramson, D-New Orleans, author of the bill.
The grant can be awarded to any college graduate that is a Louisiana resident who lives and works in the state for five years after graduation.
"I would like to give as many [grants] as possible, but due to costs, we will only distribute 100 per year, and the program will be a pilot program," Abramson said. "Recipients will be determined with the use of a lottery."
Graduates will have 90 days to fill out the paperwork, which will essentially allow their state income tax to be escrowed for five years, according to Abramson.
Louisiana residents who go out of state for college but return for employment also qualify for the program.
"We are losing too many of our qualified young people to other places," Abramson said.
He said the money will be presented in a check as part of the real estate closure with the purchase of a house.
Though unsure of the percentage of natives that leave the state, Abramson said Louisiana is suffering from the "Brain Drain theory," which states the smartest graduates leave Louisiana to look for better opportunities.
"I have been looking at out-of-state grad schools," said Ronald Brooks, communication studies senior. "A down payment on a house sounds like a good incentive to reconsider."
Abramson said by staying here and supporting the state and community, graduates also contribute through their jobs, regardless of the position.
The Louisiana Housing Finance Agency will develop forms for anyone interested in signing up. It will also run the program.
Details on how to sign up will be released at a later date.
The bill was passed in the House 72-24 and was then passed in the Senate unanimously.
"Buying a home is part of the American Dream, and contributing to this is wonderful," Abramson said. "Louisiana residents show their commitment to the state, and we want to show our commitment to them."
---- Contact Aimee Effler at aeffler@lsureveille.com
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