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The fate of the Biden administration’s comprehensive student loan forgiveness plan is uncertain, went to the Supreme CourtNew York borrowers may have another option for relief.
‘Get On Your Feet’ Loan Forgiveness Program,roll out 2015aims to “invest in people who are recent college graduates with student loan debt and who choose to invest in New York futures.” Angela LiottaPublic Relations Officer and Director of Communications, New York State Higher Education Services Corp.
Under this program, certain state residents may be eligible for student loan forgiveness with payments up to 24 months.
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How student loan forgiveness plans work and when to apply
About 2.5 million people in New York have federal student loan debt, totaling about $100 billion, according to higher education expert Mark Kantrowitz.
Here’s what borrowers should know about the program:
You must live in New York and attend school
State relief is available to legal residents who have lived in New York State for 12 or more consecutive months. If you are employed, you must also work in that state.
among other requirementsApplicants must have graduated from a New York high school or have a diploma equivalent to a New York State high school, attended a college in the state, and earned a bachelor’s degree after December 2014. I have.
Also, you must apply within two years of graduation.
You need a repayment plan according to your income
To be eligible for the program, borrowers must be enrolled in the following programs: Income-based repayment plantheir payments are usually limited to 10% of their discretionary income, such as Pay as You Earn (PAYE) plans, Revised Pay As You Earn (REPAYE) plans and Income Based Repayment (IBR) plans.
Eligibility is limited by income and type of loan
This program excludes individuals with adjusted gross income greater than $50,000 annually.
Not all student loans qualify for national salvation.
The Direct Loan Program includes subsidized and non-subsidized loans. Federal Family Education Loans (FFELs) may not be eligible, but you may be able to integrate these loans directly into your program. Private student loans are not covered.
On the other hand, graduate school loans are also typically exempt from state waivers. To be eligible for the program, you must have a bachelor’s degree at the time of application.
Not sure about the types of student loans?In can be confirmed studentaid.gov.
Up to 24 months of student loan payments available
Under the Get On Your Feet Loan Forgiveness Program, New York State may cover the full amount of student loans for up to 24 months based on an eligible income-driven repayment plan.
The state makes payments directly to student loan servicers.
Loan forgiveness may have tax implications. Recipients receive 1099 forms from the state. For more information, we recommend contacting your tax professional, the IRS, or the New York State Department of Taxation and Finance.
Federal student loan payments are suspended After March 2020due to pandemic-era policies, will remain suspended until litigation over the Biden administration’s student loan forgiveness plan is resolved or by the end of August — whichever comes first.
You can apply for the Get on Your Feet Loan Forgiveness Program now, but your eligibility will be reviewed once federal student payments resume, Liotta said. Still, if you think you’re eligible, we recommend you apply for relief now, as you must apply within two years of graduation.
Not eligible for this program? list of other state and federal student loan forgiveness programs.
