New York’s new student loan forgiveness program
Finding a job right after graduating can be tough. And for graduates with student debt, there’s added pressure to find a job and make enough money to afford student loan payments once their grace period has ended.
Luckily for college graduates in New York state, there’s a new student loan forgiveness program that makes it easier for them to adjust to life after college–without having to repay their student loans.
Eligibility for student loan forgiveness
As of 2016, borrowers who apply and are selected for New York’s new ‘Get On Your Feet’ Loan Forgiveness Program can have their federal student loans paid for up to 24 months just for living in the state.
According to Gov. Andrew Cuomo’s website and the Higher Education Services Corporation of New York, to qualify for the ‘Get On Your Feet’ program, applicants must:
- be a U.S. citizen or eligible non-citizen;
- be a legal resident of NYS and have resided in NYS for 12 continuous months;
- have graduated from a NYS high school or received a NYS high school equivalency diploma;
- have earned an undergraduate degree from a college or university located in New York state in or after December 2014;
- have an adjusted gross income of less than $50,000;
- be current on all federal or NYS student loans;
- and be enrolled in the federal Income Based Repayment plan or Pay as You Earn plan.
Applicants must also apply within two years of receiving an undergraduate degree and are ineligible if they have completed a graduate degree.
Apply for the Get On Your Feet student loan program
Applications for the Get On Your Feet Loan Forgiveness Program are accepted year round. For borrowers who quality, New York state will make a maximum of 24 monthly payments toward their student loans.
According to the Governor, more than 2,500 graduates from the class of 2015 have registered to apply for the program so far, and 7,100 are expected to do so by the end of the year.
The state expects that more than 24,000 recent graduates are expected to participate by the time the program is fully implemented in 2020.
Borrowers can apply for New York’s Get On Your Feet Loan Forgiveness Program here.
Program will help with post-college transition
Considering this is happening in our home state of New York and will affect many of our current and future clients, we’re excited that the state is taking steps to help the thousands of New Yorkers with student debt.
According to CNN Money, New York is the first state to offer loan forgiveness on the basis of income. However, at least 35 other states have a similar program based on the type of industry you work in and where you live, according to the National Conference of State Legislatures.
Studies show that students who graduate with debt are more likely to put off making major life purchases like buying a home, and defaulting on student loans can have devastating effects on a borrower’s credit and well-being.
In 2014, 61% of New York college graduates left school in debt, averaging an amount of $27,822, according to the Institute for College Access and Success.
We’re hoping that this new program will make it easier for student loan borrowers in New York to transition into post-college life, save up some money and avoid falling behind on their student loan payments.
Alternative student loan repayment plans
Unfortunately for borrowers with older student loans (those who graduated from college before December 2014), they are not eligible to have their loans forgiven through this program.
Borrowers who are having difficulty repaying their student loans and are ineligible should consider an alternative student loan repayment plan, such as the new Revised Pay As You Earn Plan (REPAYE), or an Income-Based Repayment plan.
They should also look into whether they may be eligible for student loan forgiveness based on their occupation or other factors.
No matter when you graduated, if you’re struggling to repay your student loans, we can help you get on the best repayment plan for your situation and help you avoid falling behind on your student loans.
To find out how we can help, call Rick & Andy at 1-888-234-3907 for a free consultation or contact us here and we’ll get back to you right away.
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