The city of Hammond is looking to extend its College Bound Scholarship program. It provides scholarships for qualifying students who live in an owner-occupied home in the city.
Mayor Tom McDermott Jr. says it's unusual for a city to offer such a program. "This is a signature real estate development tool we use in our city," McDermott told the city council last week. "It's been successful. Thousands of kids have graduated from colleges all across our state under this program."
College Bound launched in 2006 and is currently authorized through the end of the 2025-2026 school year. Now, the city council is considering an ordinance to extend it for another 10 years beyond that.
McDermott said Hammond has spent $58 million on scholarships so far, but he thinks the program has paid for itself multiple times over with an improved housing market. "It's stopped the people from leaving. It's encouraged people to stay to fix up their home. Their kids are getting educated. Yeah, it's costing us around $3 million a year right now, but I think it pays itself off so much," McDermott told council members.
Still, the mayor said there's language in the ordinance allowing the city to end the program early, if Hammond encounters a financial crisis.
The extension could be up for final approval, as soon as Monday.
