ALBANY, N.Y., Dec. 30 (UPI) — New York state will begin accepting applications for its “Get On Your Feet” federal student loan relief program to give recent graduates living in the state a financial boost.
Gov. Andrew Cuomo, a Democrat, announced the program that gives a free pass on two years of federal student loan payments to college graduates who are legal New York residents.
Some 2,500 graduates from the class of 2015 have registered to apply for the program, the governor’s office said. Once fully implemented in 2020, more than 24,000 recent graduates are expected to participate.
As part of the program, recipients must have graduated from or received a high school equivalency diploma from a New York high school. They must have earned an undergraduate degree from a New York college or university beginning the 2014-15 academic year and have an income of less than $50,000. Recipients must also be in a federal Income Based Repayment plan or Pay as You Earn plan.
“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,” Cuomo said in a written statement. “With this program, we are telling recent graduates: If you invest in New York’s future, we will invest in yours.”
Announced almost a year ago, the program is a way to encourage graduates to live and work in the state and boost the economy.
Across the United States, outstanding student loan debt has hit $1.2 trillion, with some $103 billion in default. According to The Institute for College Access & Success, the average student loan debt in New York state is $27,822.
Borrowers and lawmakers say the overwhelming debt is putting a damper on the economy and stopping young professionals from moving ahead.
“Studies show that students who graduate with debt are less likely to start small businesses or to purchase a home, and the consequences of defaulting on student loans can prevent a person from ever realizing their goals,” Cuomo said. “Helping students pay for college is critical to ensuring their success after graduation. “
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