Forgiveness of Higher Education Student Loans as a Means to Promote Migration Home: Myth or Reality

Forgiveness of Higher Education Student Loans as a Means to Promote Migration Home: Myth or Reality

Rita Kaša This article focuses on the use of forgiveness of student loans as a means to promote return migration among international students from Latvia. Latvian graduates of foreign universities who have borrowed from the governmentally subsidized student loans program in Latvia can have their loan forgiven if they pursue a career or a profession in demand in Latvia after graduation. This paper examines how Latvians who have received higher education abroad evaluate this approach in promoting return migration. The paper is based on 19 qualitative semi-structured interviews with students of higher education and graduates of foreign universities. Results show that forgiveness of student loans in Latvia does not have an impact on return migration of Latvians who receive higher education abroad. They do, however, help to retain these graduates in fields where expertise is required after they have returned to Latvia. Student loan forgiveness, however, does not cancel out workplace related issues generated by the employment as a whole. Thus professionally related culture and conditions of employment are considered more significant than loan forgiveness in influencing return migration decisions among international students from Latvia. Participants in the study pointed out shortcomings that need to be addressed both in the public and private sectors of economy. International students also place high value on further professional learning in the workplace and growth opportunities, which many see as better abroad than in Latvia. Although the overall evaluation of student loan forgiveness in promoting return of international students is assessed as “a good idea”, it is not valued as an optimal solution for fostering return migration among international graduates and students from Latvia. Solutions for encouraging return migration also require improvements in economy.