New York has launched a new program that can help graduates with federal student loans ease into repayment. The Get On Your Feet program has many specific requirements to enroll, but it could still help thousands of borrowers and serve as a template for other states looking to help struggling graduates. Under this program, New York will pay up to two years of federal student loans for borrowers if they meet the requirements.
To enroll in the program, borrowers must have graduated from a college or university in New York after December 2014, be a legal resident of the state, a U.S. citizen, make less than $50,000 annually, and be enrolled in a federal income-based repayment program. These are just a few of the requirements listed by the New York Higher Education Services Corporation.
State officials expect 7,100 college graduates to enroll in the Get On Your Feet program in 2016. This number is expected to increase to 24,000 by 2019 or 2020.
The Get On Your Feet program can help graduates in several ways. In New York, the cost of living is much higher than other areas of the country. Many recent graduates might be overwhelmed with rent payments, student loan bills and other cost-of-living expenses. Payment assistance would allow these graduates to experience other life economic milestones, such as homeownership. In addition, payment assistance could help New York’s economy, as consumers with student loan debt would have more purchasing power.
Does Missouri or Kansas Have Student Loan Repayment Programs?
Both Missouri and Kansas have similar but more narrowly focused student loan repayment programs. In Missouri, graduates with careers in health care services or nursing can receive payments from the state for working in areas with shortages. Kansas graduates can take advantage of similar programs. Depending on the success of Get On Your Feet, similar programs could spread to other states, diversifying the types of borrowers that qualify for payment assistance.
The Sader Law Firm is a Kansas City-based bankruptcy law office serving clients in Missouri and Kansas.