New York Governor Andrew Cuomo and the New York legislature are providing student loan relief for New Yorkers. The program, called Get On Your Feet, pays the federal student loans of recent grads living in New York. Payments, provided by the taxpayers of New York, will last for up to 24 months.
How Does the Program work?
Get On Your Feet is designed to keep New York college graduates in New York. Eligible grads, who sign up for Pay As You Earn or Income Based Repayment, will be able to have their entire payments covered by the state. Once signed up, New York will make payments directly to the student loan servicers.
What is the catch?
There are a number of requirements that narrow down the potential recipients of the money.
Among the requirements, an applicant must:
- reside in New York State for 12 continuous months;
- have graduated from a New York State high school;
- have earned an undergraduate degree from a college or university located in New York State in or after the 2014-15 academic year;
- have earned no higher than a bachelor’s degree at the time of application;
- be enrolled in the federal Income Based Repayment plan or Pay as You Earn plan;
- have a primary work location in New York State, if employed;
- have an adjusted gross income of less than $50,000;
- be in compliance with the terms of any service condition imposed by a NYS award.
Notably, this program also limits the student loan repayment to federal loans. Borrowers with private loans will not receive any additional assistance.
While there are a number of major limitations to the program, it is one of the first of its kind and a very exciting development for many recent grads.