The State of New York State Report for 2022 has several proposals to reduce student debt for New York students. Here’s what you need to know about these proposals and what they could mean for your graduate fees.
1 current trend in student loans for the week of January 10, 2022
1. New York Governor Announces Plans to Make Higher Education More Affordable
New York Governor Kathy Hochul last week released New York State for 2022, outlining her plans to protect student loan borrowers and make higher education more accessible. “With this investment, Governor Hochul will help ensure that more New Yorkers can finally say, ‘I’m out of student debt,'” the report read.
The report includes some key proposals from Governor Hochul that aim to provide debt relief for borrowers:
- Create free or reduced tuition residency programs for teachers in New York City.
- Expand tuition assistance programs for part-time students.
- Offer tuition-free programs at community colleges for high demand areas.
- Streamline financial aid applications at SUNY.
- Exempt from state income tax the cancellation of the student loan by the New York State Higher Education Services Corporation.
- Work with the federal government to automate the public service loan forgiveness application process.
- Stop withholding transcripts as a debt collection tactic for students attending SUNY / CUNY schools.
- Provide future healthcare workers with tuition-free college, lost income while in school, and child care and transportation services.
- Provide a $ 120,000 loan forgiveness to physicians who work in underserved areas for three years.
How it affects student loans
The plans outlined in the state of state report are primarily aimed at preventing students from going into debt in the first place – with subsidized tuition fees and tuition-free training programs in the foreground – and civil servants as teachers and health workers will benefit the most. .
Governor Hochul’s proposals have not been enacted, but a major change could be ahead. Many other states and colleges have implemented similar laws, and the federal government has already begun to focus on revisions to programs such as public service loan forgiveness.
Key to take away
Governor Kathy Hochul hopes to ease the burden of student debt in New York.
Here’s how to prepare
Whether you’re new to the area of student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. During 2022, more opportunities for cheaper loans or loan cancellations may open up; Keep an eye on the Bankrate student loan news center for the latest trends.