New York seeks to reduce student loan debt burden, and other current student loan news for the week of Jan. 10, 2022

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New York’s State of the State report for 2022 lays out several proposals for decreasing student loan debt for New York students. Here’s what to know about these proposals and what they could mean for your higher education costs.

1 current trend within student loans for the week of Jan. 10, 2022

1. New York governor announces plans to make higher education more affordable

New York Gov. Kathy Hochul released New York’s State of the State for 2022 last week, outlining her plans to protect student loan borrowers and make higher education more accessible. “With this investment, Governor Hochul will help ensure even more New Yorkers can finally say, ‘I am student debt free,'” the report reads.

The report includes a few key proposals from Gov. Hochul that are aimed at alleviating debt for borrowers:

  1. Create free- or reduced-tuition teacher residency programs in New York.
  2. Expand tuition assistance programs for part-time students.
  3. Provide tuition-free programs at community colleges for high-demand fields.
  4. Streamline financial aid applications at SUNY.
  5. Make student loan forgiveness by the New York State Higher Education Services Corporation exempt from state income tax.
  6. Collaborate with the federal government to automate the application process for Public Service Loan Forgiveness.
  7. Stop transcript withholding as a debt-collection tactic for students attending SUNY/ CUNY schools.
  8. Provide future health care workers with tuition-free college, stipends for income loss while in school and child care and transportation services.
  9. Provide $120,000 in loan forgiveness for doctors who work in underserved areas for three years.

How this affects student loans

The plans outlined in the State of the State report focus primarily on keeping students out of debt in the first place — with subsidized tuition and tuition-free training programs at the forefront — and public servants like teachers and health care workers stand to benefit the most.

Gov. Hochul’s proposals have not been signed into law, but major change could be coming. Many other states and colleges have implemented similar laws, and the federal government has already started focusing on revisions to programs like Public Service Loan Forgiveness.

Key takeaway
Gov. Kathy Hochul hopes to alleviate the debt burden for students in New York.

Here’s how you can get prepared

Whether you’re new to student loans or well into repayment, it’s wise to stay informed about how your student loan rates could change. During 2022, more opportunities for cheaper loans or loan forgiveness could open up; keep an eye on the Bankrate student loans news hub for the latest trends.

Learn more:

Written by
Hanneh Bareham
Student loans reporter
Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand.
Edited by
Student loans editor