The Empire State has launched the country's first income-based student loan repayment program. Find out how the program works and who can benefit.
Some recent college graduates in New York who are struggling to pay their student loan debt are getting some help from the Empire State itself.
New York recently launched “Get on Your Feet,” a loan forgiveness program that provides some grads with up to two years of federal student loan debt relief, CBS New York reports. The program does not help with loans from private lenders.
There are 12 eligibility requirements for the program, including these: you must be a resident of New York, a graduate of both a New York high school and university, enrolled in the federal income-driven repayment plan or pay-as-you-earn plan, work in New York, earn less than $50,000, and have earned a degree since Dec. 2014.
The state began accepting applications for the program on Dec. 31.
“Ensuring students are able pay for college and not saddled with debt is critical for both their individual success and the continued economic growth of New York State,” Cuomo said last week. “With this program, we are telling recent graduates: if you invest in New York’s future, we will invest in yours.”
According to CNN Money, the governor’s office estimates that about 7,100 recent New York grads will enroll this year with “Get on Your Feet.” By 2020, it’s estimated that 24,000 grads will take advantage of the program, resulting in $41.7 million in federal student loan debt relief.
Although New York is that first state with an income-based loan forgiveness program, CNN Money said there are “at least 35 other states” with loan forgiveness programs based on where you live and the industry you work in.
“They aim to encourage people to live and work in underserved communities and take public service-oriented jobs like teachers, social workers and health care workers,” CNN Money explains.
Overwhelmed by student loan debt? Click here to get help.
Check out “13 Ways to Pay Off Student Loans Faster.”
What do you think of New York’s income-based loan forgiveness program? Share your comments below or on our Facebook page.