An interesting proposal was introduced in the Ohio Senate today that would help people buy a home in Ohio and at the same time forgive student debt.

State Senator Joe Schiavoni is behind a bill that would give some financial help to first-time homebuyers with student loan debt.  

The bill would help to keep graduates in Ohio while also helping with outstanding debt.  

The program would aim to help low to middle-income home buyers.

Senator Schiavoni released the following statement in a press release:

"Too many Ohioans who are saddled with student loan debt aren't buying homes and that is hurting their future financial prospects, contributing to brain drain and stifling our housing market," said Senator Schiavoni. "The plan will incentivize new graduates to stay here in Ohio and will stabilize neighborhoods at the same time."

The press release continued by stating that homebuyers would be eligible to have 20 percent of the home's cost forgiven at closing. 

So, as long as the homebuyer makes their mortgage payments on time, they would no longer be required to pay on their student loans and the debt would be wiped clean after five years in the home. 

If the homebuyer's debt exceeds 20 percent of the home's cost, they would be required to pay the remaining debt at closing.

The program will be administered by the Ohio Housing Finance Agency, working in conjunction with their already existing first-time homebuyer program. It is estimated that the new program could help up to 400 Ohioans per year.