Your Guide to New York Student Loan Forgiveness and Repayment

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If you live in New York, you already know the high cost of, well, just about everything. But if you also studied there, then you have an even bigger battle to fight — paying off New York student loans.

The good news? You’re not alone in this struggle: You have options for student loan forgiveness in New York.

Over half of New York’s graduates are in debt, but there are many resources out there that can assist them — and you — in handling those New York state student loans.

Helpful New York resources available to you

With over half the state’s graduates in debt, there are quite a few opportunities for student loan forgiveness in NY. Just remember: Some forgiven student loan amounts may be subject to taxes — so you’ll need to be prepared for that when tax season rolls around.

Now, let’s take a look at your forgiveness and repayment options to help you with your New York student loans:

Free tuition New York State’s ‘Get on Your Feet’ Loan Forgiveness Program New York State District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program New York State Licensed Social Worker Loan Forgiveness Program New York State Nursing Faculty Loan Forgiveness Incentive Program New York State Young Farmers Loan Forgiveness Incentive Program Teach NYC Loan Forgiveness Program The Regents Physician Loan Forgiveness Award Program New York National Guard Loan Repayment Assistance Programs (LRAPs) from your college or university Plus: Statute of limitations on New York state student loans 1. Free tuition

If you’ve already graduated, skip this one. But if you’re in the middle of your education or just getting started, New York now offers free college tuition to eligible students attending State University of New York (SUNY) and City University of New York (CUNY) schools, as well as community colleges and statutory colleges at Cornell and Alfred University.

The program is called the Excelsior Scholarship, and you can apply for it here. Below are just a few of the eligibility requirements, according to the New York State Higher Education Services Corporation:

You must be a resident of New York for one year before the start of your first term. Your income must be less than $125,000 and you must not be in default on any student loans. Students must attend a SUNY or CUNY school full-time as an undergraduate. If you’re not attending a SUNY or CUNY school, you must attend community college or a statutory college at Cornell or Alfred University full-time as an undergraduate.

This program is designed to supplement the gap between what you need and what you actually receive from federal grants. Therefore, you must submit your Free Application for Federal Student Aid (FAFSA) first and include that in your application.

2. New York State’s ‘Get on Your Feet’ Loan Forgiveness Program

The “Get on Your Feet” Program was recently announced by Gov. Andrew Cuomo. It’s available to anyone with an undergraduate degree from a New York State institution and an adjusted gross income of $50,000.

To be eligible, you must already participate in an Income-Based Repayment (IBR) or Pay As You Earn (PAYE) plan and have earned your degree in or after December 2014.

You can apply for this program year-round. If approved, up to 24 full monthly payments will be paid toward your student loans. That’s two years of student loan debt relief available to you as you look for work (or pursue better work) and, as they say, get back on your feet. You can apply here.

3. New York State District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program

Now we’re getting to the career-based programs, and the first one is specifically for those in law: The New York State District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program.

You can apply for the program via the New York State Higher Education Services Corporation. Here are several of the requirements, according to their website:

You must have had a job as District Attorney, Assistant District Attorney or Indigent Legal Services Attorney for at least four years, but no more than nine years. Employment must be full-time, and you must be a resident of New York. You must not be in default on their student loans.

If selected for this award, you can receive as the maximum award the lesser of $20,400 or your full eligible student debt. The award is paid in annual amounts of up to $3,400 for each year of service (up to six) or the remaining loan debt.

4. New York State Licensed Social Worker Loan Forgiveness Program

If you’re a social worker, you know how it feels to devote yourself to your work while asking for little in return. Luckily, if you also have New York student loans, you could find the help you need via the New York State Licensed Social Worker Loan Forgiveness Program.

The New York State Higher Education Services Corporation outlines eligibility requirements here, but below are just a few you should know about:

You are ineligible if you have any defaulted student loans. You must be a resident of New York state who has lived in the state for at least one year before applying and licensed to practice in New York state as a social worker. Your work must be “in a critical human service area” for a minimum of 35 hours each week.

If this sounds like you, you can check to see if the county you work in renders you eligible for the program here.

Recipients of this award can receive up to the lesser of the $26,000 maximum or their eligible student debt; payments go up to $6,500 per year for up to four years of service, or the remaining debt. If your first or last year of the program is less than one year, you’ll receive a prorated disbursement based on the number of hours you worked.

5. New York State Nursing Faculty Loan Forgiveness Incentive Program

Nursing is another line of work that requires a lot of dedication without any expectation of significant financial rewards. But nurses with New York student loans can receive financial assistance, thanks to the New York State Nursing Faculty Loan Forgiveness Incentive Program.

Like many of the other programs listed here, you can find more information via the New York State Higher Education Services Corporation. Here are several of the eligibility requirements mentioned:

Be a registered nurse with a master’s degree in nursing or a doctoral degree (required for qualification as nursing or adjunct clinical faculty). Have a license to practice in New York state and be a New York state resident for one full year. You must have qualified service, defined as “employment as a nursing faculty member or as adjunct clinical faculty providing classroom or clinical instruction at a nursing school located in NYS for the equivalent of at least 12 credit hours during an annual period commencing July 1 and ending June 30.”

Nurses receiving this award qualify for the lesser of the following: a maximum of $40,000 (paid annually for up to $8,000, for up to five years of service), or their remaining debt.

6. New York State Young Farmers Loan Forgiveness Incentive Program

What about full-time farmers living in New York and paying off student loans? Believe it or not, the state has a program to help you.

The New York State Young Farmers Loan Forgiveness Incentive Program offers New York State student loan forgiveness for farmers who graduated from an in-state institution in the past two years.

If that’s you, you must also have been a New York resident for 12 months prior to applying and agree to operate a farm in New York on a full-time basis for at least five years.

Those who receive this award can receive the lesser of the $50,000 maximum or their loan debt at time of eligibility; it is paid out in annual disbursements of up to $10,000 (for up to five years), or the remaining debt.

7. Teach NYC Loan Forgiveness Program

Teaching is a hard job made even harder with the expense of a master’s degree. The Teach NYC Loan Forgiveness Program is currently not accepting applications at time of writing, but you can check the website for updates.

The program is a tax-free grant for the use of student loan repayment. Teach NYC lists many eligibility requirements, but below are some of the high-level requirements you need to know:

This grant is for new hires in New York City public schools. This grant is for teachers and some school-based clinicians (including pedagogic clinicians) in specific understaffed areas. You must have the appropriate certifications for your work. You must have served 10 months (12 months in year-round special education programs) of “satisfactory service” in a designated area of need.

The award is capped at $24,000 and has a disbursement period of six years. You can apply here.

8. The Regents Physician Loan Forgiveness Award Program

There are multiple student loan forgiveness programs for physician assistants, but what about physicians? Physicians with New York state student loans have their very own student loan assistance program: The Regents Physician Loan Forgiveness Award Program.

The New York State Education Department has quite a few requirements, some of which are listed below:

To qualify, you must be a resident of New York state who is licensed to practice there. You must have completed your residency within five years of the first award being granted. If you didn’t receive your residency by then, you must have completed your training in 2020 in either family practice, pediatrics, internal medicine, emergency medicine or obstetrics (psychiatry may also be considered in some facilities).

And if you get the award? Here are a few highlights:

You can get up to $10,000 per year for two years. The amount of the award is based on the amount of the school loans and loan interest incurred, for both undergraduate and medical school Available funds depend on the state funds available for this program that year. You must practice in a specific area or serve a specific population within the state during the year(s) you receive the award. No matter how much you receive, you must serve for a minimum of two years. 9. New York National Guard

For military members battling student loan debt, there are a variety of military-based federal repayment and forgiveness plans. Many of these plans can be seen on the New York State Higher Education Services Corporation’s “Military Corner.”

However, if you’re a member of the New York National Guard, you have your own student loan repayment program. And it qualifies you for up to $50,000 of student loan repayment assistance.

The annual disbursement is set to be the greater of either 15% of your original loan balance or $500. You can find more information on this program and apply here.

10. Loan Repayment Assistance Programs (LRAPs) from your college or university

Finally, if you’re not currently eligible for New York State student loan forgiveness, you might qualify for a loan repayment assistance program (LRAP) from your college.

To find out, simply go to the website of your alma mater and search for LRAP programs based on your major. You can also contact your school directly for more information.

For additional help on New York State student loan forgiveness, you can find a complete list of student loan forgiveness programs and another state-centric list here.

Statute of limitations on New York state student loans

If New York state student loan forgiveness programs don’t have anything to offer you and you’ve already defaulted on your New York student loans, there’s one more thing that might be able to help — the statute of limitations on debt.

Fun fact: There is a statute of limitations on most kinds of debt that prevents debt collectors from being able to successfully sue you for a judgment to collect on “old” debt.

However, what “old” means varies by debt type and state. Plus, the statute of limitations on debt doesn’t mean debt collectors can stop trying to collect from you — it simply means they can’t sue you for it. Or, more specifically, they can’t sue you for repayment of the debt and win if you show up to court and prove that the statute of limitations has caused your debt to expire.

Otherwise known as “time-barred” debt, you can see what the statute of limitations on your debt is by state using this guide.

The bad news for federal student loan holders is that these loans are exempt from ever being considered time-barred debt. Thus, they aren’t eligible to expire under the statute of limitations on debt. A rule in The Higher Education Act is the reason for this exemption.

However, private student loans aren’t mentioned in this rule, and, as written contracts, they can be considered time-barred debt in New York once they’ve been in default for six years or longer.

Note that the statute of limitations refers to debt that’s in default. Therefore, if you make a payment on your defaulted debt (or agree to do so), you’ll reset the clock on the statute of limitations for your debt.

You have options if you’re struggling with New York student loans

Battling New York state student loans isn’t easy. After all, you could already be dealing with the high cost of your New York school’s tuition, or even the high cost of living in New York City.

But that doesn’t mean you don’t have a chance to get ahead. Just remember that you can do the following:

Contact your state representatives to lobby for changes. You can find a list of them here and here. Take advantage of New York state student loan forgiveness programs, such as those listed above. Learn how to utilize the statute of limitations on debt.

Know your rights, research any and all student loan repayment strategies and assistance programs from the state or your school and stay on top of your student loan situation. You’ll be able to get ahead on your student loans and start spending time on the things you truly care about.

Christina Majaski contributed to this report.

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