New York: Cuomo Proposes Reforms to Aid Students Taking Out Loans
"Gov. Andrew M. Cuomo has announced a series of reforms aimed at helping students navigate loans for college. Cuomo also vowed to put new protections in place to ensure that those who take out student loans are treated fairly by banking institutions," according to The Buffalo News.
"... The proposal to deal with student loans is the 16th of Cuomo's 2018 State of the State agenda aimed at addressing the crushing burden of student loan debt. At a time where a college education is more important than ever, the governor said the new reforms are vital. His proposal builds off of the Governor's Excelsior Scholarship, a program that is unique to New York State, which makes public universities tuition-free for middle class families.
'Today, a college education is a necessity for a middle class life, yet the crushing weight of student loan debt often keeps New Yorkers from buying homes, cars and ultimately limits their ability to save money and invest in their futures,' Cuomo said in a prepared statement.
Nationally, student loan debt is the second highest debt category in the United States after mortgage debt, accounting for 10 percent of debt balance and amounting to $1.48 trillion nationwide. In New York, the average student loan burden is more than $30,000, according to the governor's office.
Cuomo is proposing to create a Student Loan Ombudsman at the state Department of Financial Services to help resolve student complaints, mediate disputes and educate borrowers about student loans. The ombudsman will also offer free financial counseling and assistance for students in default.
The governor is also proposing to require that all colleges annually provide students with the estimated amounts incurred for student loans. The proposal expands on the Governor's Financial Aid Award Information Sheet that helps inform students of their college costs prior to going to college."
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Publication Date: 1/3/2018