Student Debt Relief Helps Kansas Boost Rural Population

Relief from school debt helps repopulate the prairie
Megan Horinek will pay off her student loans within five yearsPhotograph by Christopher Wurzbach for Bloomberg Businessweek

When Megan Horinek graduated from Fort Hays State University in Kansas in 2010 with a marketing degree and $20,000 in student loan debt, she dreamed of returning to her hometown 140 miles away.

She moved back this year to Atwood, a hamlet of only 1,194 that calls itself the “Pride of the Prairie.” After working for Kraft Foods in Wichita, Horinek accepted a lower-paying job in nearby Cheyenne County partly because of a new state program that offers as much as $15,000 toward student loan repayment for people who relocate to areas hurt by population declines. “To know that I will be able to have my loans paid off within five years is even better than just finding a job,” says Horinek, 24, who works as a consultant for the Kansas Small Business Development Center. “If I do choose to get married or start a family, then I won’t have this hanging over my head.”