Joined by local college presidents, officials and students, Senator Jeff Klein recently released a report analyzing the significant financial burden that post-secondary education has on New York families called, “Cutting College Costs: The IDC Plan to Make Higher Education Attainable by All.”
The report also unveiled a new comprehensive, seven-point legislative plan that will put more money back in the pockets of students and provide debt relief to graduates. The analysis drew from data obtained from a multiple-choice questionnaire that the Independent Democratic Conference administered to students throughout New York. Those surveyed were asked about household income, plans for paying for college tuition and concerns about debt repayment upon graduating. The findings from the survey were alarming but perhaps not surprising given the enormous and growing debt loads carried by students in New York and around the United States. According to the results, 67% of respondents and their families did not save any money for their college education, 57% cast doubt that they would be able to pay off their student loans within the given loan period, 65% feared they would not earn enough money upon graduating to afford their monthly loan payments and 64% said they have relatives or friends who have a student loan debt in their own name. As the price of a college education continues to skyrocket, families are increasingly relying on loans to make the payments. In order to blunt the upfront costs of tuition, Senator Klein and the Independent Democratic Conference are proposing an expansion of the Tuition Assistance Program by raising the income eligibility from $80,000 to $125,000 while raising the minimum award allotted from $500 to $2,000 and expanding the program to all New York high school graduates regardless of immigration status. The IDC’s College STAR Program would increase the refundable tax credit for allowable tuition expenses for resident taxpayers from the current 4% level to 25% up to the maximum allowable amount of $10,000. A Pre-Paid College Tuition Program will save families thousands by locking in current tuition rates at participating New York learning institutions by creating a savings fund and returns would pay the school at the time the beneficiary attends. By establishing new College Debt Freedom Accounts, employed residents will be able to set aside part of their pre-tax income into an account to be used for undergraduate loan payments and employers will be required to contribute at least half of the total monthly student loan payment due. Additionally, the IDC’s plan would create a task force to recommend ways lenders and the government can help students refinance their loans. The proposal has won the praise of Dr. Tim Hall, President of Mercy College; Dr. Victor G. Alicea, President of Boricua College; Brennan O’Donnell, President of Manhattan College; and Lesley A Massiah-Arthur, Associate Vice President for Government Relations and Urban Affairs at Fordham University.
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