Hey every resident of New York with crushing student debt! We have some stellar news.
According to CNN, if you’re a New York State resident, and you’re struggling to make it in this pricey town while paying off your student loans, survival in New York City just got a whole lot easier.
New York State will now pay up to two years of student loan bills thanks to the Cuomo administration’s new loan forgiveness program called “Get on Your Feet.”
We’re really excited about this new legislation because it proves our policymakers are paying attention to the staggering trend of student debt, and the way its weight impacts New York’s economy.
“Ensuring students are able to pay for college and not saddled with debt is critical for both their individual success and the continued economic growth of New York State,” Governor Cuomo said.
How do you become eligible for “Get on Your Feet”?
You just have to earn less than $50,000 a year and live in the state of New York.
Another slightly stricter requirement: you also have to have graduated after December of 2014 from a college or university in New York. You also must be enrolled in an income-based repayment plan with the federal government.
These kinds of plans are very welcome news as they usually cap your monthly student loan bills at 10% or 15% of your income, but they’re only available for people with a lot of debt and little income to combat it.
New York will only cover your monthly payments on federal loans. If you borrowed from a private lender, we hate to break it to you, but you’ll stay have to pay those loans back yourself.
If all of the above qualifications sounded exactly like your student loans, then apply for this incredible new program here.
Want even more great news? Once again, New York is ahead of the curve. We’re the first state to offer loan forgiveness on the basis of income.
However, at least 35 other states have developed similar programs that curb loan debt based on industry and where you live.
These programs help people who live in underserved communities and work public service jobs like teachers, social workers, and health care workers.
The Cuomo administration expects this program to help 7,100 recent grads this year, and projects 24,000 grads will be enrolled by 2020. At that time, they’re expecting the program to cost $41.7 million.
College debt is now a bleak reality for the majority of New York’s college grads: in 2014, 61% of New York’s college graduates left in debt, which averaged $27,822.
Why? Well, the answer to that is simple. College tuition has risen at a much faster rate than inflation. In fact, college tuition costs have increased by 538% since 1985.
We’re glad the state isn’t leaving graduates alone to fend for themselves with this problem. We’re validated that they’ve acknowledged the weight of student debt, and that they’ve taken it on as a statewide issue.
New York, you’ve amazed us again.[via CNN] [Feature Image Courtesy Instagram]