A bill to increase the retention rate of graduate students in Ohio after graduation will be proposed to the House Monday. Graduate students at accredited Ohio universities may have an opportunity to receive forgivable loans.
This program enables 500 students – working on their master’s or doctorate degrees in fields related to the Third Frontier – to receive $8,000 per year for up to five years. The Third Frontier is an area of study that includes fields such as engineering, chemistry, physics, computer sciences and biomedical technologies. The graduate students would not have to repay the loan if he or she finds employment related to the Third Frontier within six months after graduation, said Ryan Clark, the graduate student who originally created the bill.
Clark said he saw a great need to rebuild Ohio’s economy, especially after the disappearance of the steel industry and the evolution of statewide budget cuts. He said he also noticed that Ohio universities were providing a good education to graduate students, but then losing potential employees to other states due to Ohio’s weak job market.
“In order to really get Ohio’s economy going forward, we really need to have innovative technology here,” Clark said. “We need to encourage, specifically, more Ohio students to get graduate degrees because they’re the folks that have a tie to stay in Ohio – their families are here.”
“Even if we are going to encourage other folks to come to Ohio and get graduate degrees, that’s a wonderful thing. We just hope that they stay in Ohio afterward,” he said.
Clark said he sought assistance and fellowship from Rep. Larry Wolpert, R-Hilliard, in the fall of 2002. With the political guidance, eagerness and support of Wolpert, both he and Clark were able to construct the final proposal on Oct. 4, 2002.
“I had a great interest in slowing the ‘brain drain’ in Ohio,” Wolpert said. “If this bill is passed Ohio universities will be able to attract the brightest minds and keep them in Ohio with the incentives, and [we will] try to make progress.”
Wolpert said once the House, Senate and governor approve the bill, Ohioans can expect to see the bill go into effect by either the end of 2004 or beginning of 2005. If passed, Clark claimed Ohio’s economy would begin to see the effects of the bill in approximately five years.
The bill would draw additional graduate students from both Ohio and the Midwest, causing an improvement in the graduate programs at the state’s universities, Clark said.
Because of the increased retention rate of graduate students in Ohio after graduation, both personal and business tax revenues will increase, as well as “blue and white collared” jobs. The escalated economic growth will cause a demand for support staff and administration for those who have received a doctorate degree, Clark said.
“It’s very hard to do innovative work without some applied technology behind it all the way down to the lower level jobs,” Clark said. “My personal belief is that if we really focus on getting the industry up, we will actually bring in the secondary and third order of the work field.”
Graduate students who participate in the program can receive a total loan of $40,000 over five years. The loans are forgiven at a rate of $4,000 annually or $1,000 for every consecutive three months of employment in Ohio. Participants who are not employed within the state must repay the loan at a 6 percent interest rate from the date of the loan over a five-year period. Candidates who initially find employment within the state and then relocate also must pay the balance of the loan at a 6 percent interest rate.
In order to continually receive the loan, the student must apply annually, maintain good standing with at least a 3.0 grade point average and be involved in research that is related to the area of the Third Frontier.
The forgivable loan program, which has not been attempted by any other state, will cost $4 million annually. Wolpert said the money would be drawn from the Third Frontier Fund, and Clark further clarified Ohio residents would not see an increase in taxes.
The bill has received support from several interested parties, such as the Inter-University Council of Ohio, which is comprised of 13 public universities and two medical colleges. OSU President Karen Holbrook, the OSU community and Omeris, a group dedicated to accelerating biological science in Ohio, E3 Corp. and the Ohio Chamber of Commerce have been supportive, Wolpert said,
Elizabeth Conlisk, an OSU spokeswoman, said the bill should create a positive effect on the state’s economy.
“It is necessary to invest into higher education to translate knowledge into jobs,” Conlisk said. “This is definitely a step in the right direction. First, (Ohio) can provide a good education for graduate students, and then the loan program really ‘seals the deal.’ “
Clark said he wrote the bill with vagueness in hope that in time it would be able to expand to areas of study outside of the Third Frontier.
“I think it is essential to have diverse people of diverse academic studies,” Clark said. “I believe that once this bill is approved, which I feel is very likely, it may take on a life of its own.”
