New York plan could cut college graduates’ debt
We’ve written a lot about the great, affordable colleges in our home state of New York.
And beginning this year, prospective college students and graduates may have another reason to consider making a move to the Empire State: free student loan payments for two years.
Free student loan payments for New York college grads
According to the New York Times, New York Governor Andrew Cuomo will announce a proposal this week to cover two years of loan payments for graduates of New York State colleges who make less than $50,000 a year, continue to live in the state and are enrolled in the federal Pay as You Earn student loan repayment program.
But if you graduated before 2015, you’re out of luck. Students would only be eligible for the program if they graduated from a New York state college in 2015 or later.
According to the article, the governor’s office projects that up to 7,100 graduates would benefit in the program’s first year, increasing to 24,000 by 2020, as more students hear about the program and enroll in Pay as You Earn to qualify. The state estimates it would pay an average of $3,500 toward each participant’s loans.
Program could help reduce New York student debt
In 2013, about 60 percent of students who graduated from public and nonprofit colleges in New York in 2013 took on debt, and the average amount was $26,381, according to a report by the Institute for College Access and Success. And this report didn’t even include graduates from for-profit colleges, who generally accumulate more debt.
For students already enrolled in a New York state college and graduating soon, this program would provide great relief as they graduate and look for jobs in a tough economy.
If graduates don’t make much money right out of college, they won’t have to worry about falling behind on their payments or defaulting on their loans.
The proposal also gives prospective college students another reason to consider attending a college in New York state.
As we’ve already discussed, the State University of New York (SUNY) system ranks among the best for college affordability and quality. This latest proposal could help make college even more affordable for students who attend school in New York state.
Help with student loan repayment and college costs
The biggest downside to the program, in our opinion, is that it doesn’t help college graduates who are already struggling to repay their student debt. For these borrowers, enrolling in an alternative student loan repayment program is key.
If you need help managing your student loans, we can help you find the right program for your situation and lower your payments.
And if you’re a prospective college student or parent of one, we can help you find affordable colleges that offer a great bang for your buck.
Call us at 1-888-234-3907 or contact us using this form.