SYRACUSE, N.Y. – Starting Thursday, recent New York college grads who stay in-state and earn less than $50, 000 can apply for two years' worth of federal student loan payments.
"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 in a news release. "With this program, we are telling recent graduates: if you invest in New York's future, we will invest in yours."
This program is only for undergraduate degrees. It is only for students who also graduated from a high school in New York state. You must apply within two years of receiving your college degree.
Here are some of the main requirements needed to qualify:
- Earn 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.
- Already be enrolled in the federal Income Based Repayment plan or Pay as You Earn plan.
- Be current on all your student loan debts.
Here's what you can get:
- A maximum of 24 payments, equal to a monthly student loan repayment amount, paid directly to the lender.
About 2, 500 college graduates from the class of 2015 have already registered through the state's Higher Education Services Corporation. Cuomo expects that as many as 24, 000 graduates will participate by 2020.
Cuomo's budget office estimates assume the program to cost $5 million in its first year, and as much as $42 million when fully implemented. The money will come from the state's general fund, which means income taxes will pay for a large portion of the program.