Nearly 45 million Americans have student loans, and many look for alternative ways to lower their debt. One way you can do this is by moving to a different state. This will not affect how much you owe, but it can help you pay off debt faster depending on where you relocate.
Lower Cost of Living in Some States
Where you live affects the cost of your lifestyle and recurring expenses, such as rent and utilities. For example, San Francisco, New York City, and Boston have the highest rent prices in the country. The average for a one-bedroom apartment in these cities exceeds $2,000. Other living expenses are also above average, such as the cost of eating out.
If you’re planning to move but still want life as a city dweller, consider relocating to a more affordable city, such as Dallas, Texas or Pittsburgh, Pennsylvania. There are still plenty of activities to do, all at a more reasonable price. Average rent prices in Dallas and Pittsburgh are about $1,250 for a one-bedroom. However, if you don’t want to leave your current area, consider moving outside the city. While it will still be expensive, it won’t be as much as living within city limits.
Remember that lowering your living costs won’t save you money if you limit your job prospects. Before moving, do your research on careers in the area. You’ll still need to reach your financial goals. If you choose a location with a well-paying market or find a job that lets you work from home, you can completely transform your living cost. You can put that additional money toward paying off your student loans.
Move to a State with No Income Tax
In addition to lowering your living expenses, you could save thousands of dollars a year by moving to a state that does not have an income tax. There are seven of these states:
- South Dakota
You can also consider Tennessee or New Hampshire. Neither of these states tax wages, but they do tax interest and dividends. Moving to a state with no income tax can save you thousands of dollars a year. You can use that extra money to pay off your student loans.
Moving Might Make You Eligible for Repayment Assistance
Several states also have a program for residents in specific fields. For example, Arizona pharmacists could earn up to $100,000 in loan assistance through the State Loan Repayment Program. STEM professionals who live in Maine could receive up to $60,000 through the Alfond Lenders Program. Some other careers that benefit from these programs include teachers, doctors, nurses, and healthcare professionals. The full amount will vary depending on the state.
Some states will pay you for living in a particular area. Kansas offers up to $15,000 in loan assistance to anyone who establishes residency in a rural opportunity area for at least five years. With the rise in popularity of virtual careers, consider moving to a location that will pay you to live there. For example, Vermont offers some professionals up to $10,000 in stipends to live in the state.
Contact the Debt Settlement Attorneys at McCarthy Law Today
If you have significant student loan debt, moving to a new state might be what you need. With some states offering tax incentives or stipends, moving might alleviate some of your debt. However, you might be in a situation where moving won’t even make a significant difference. If this is the case, reach out to the student loan lawyers at McCarthy Law.
An attorney will negotiate with your lender through our settlement program to lower the interest rate and amount you owe. At the end of a successful loan negotiation, the borrower pays only a portion of the amount. To learn more about our services, call (855) 976-5777 or complete our contact form.
Garrett F. Charity
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