Hannon Announces Student Loan Program

Senator Kemp Hannon (R-Garden City) announced the State Senate passed legislation (S.7624), to create the "I Live New York" student loan program which would provide low interest loans to New York State residents who enroll full-time at a college or university in New York State.

"I know the costs associated with college tuition, which is why this legislation is important. I urge the Assembly to move this bill to the floor for a vote so we can get some relief for our young people instead of suffocating them in debt," said Senator Hannon.

Three out of four states currently provide college students with some form of a low-cost student loan program to help students borrow money at an interest rate substantially below the market rates offered by commercial lenders. New York is the only state in the northeast that does not offer students a low-cost loan program.

Students from low and moderate income families face a significant gap after available state and federal grants are deducted from cost of attendance at public and private colleges and universities. To fill that gap, students and families are forced to take out high cost loans. After those students graduate, the high cost loan payments prevent them from being able to purchase a home, a car and contribute to New York State's economy.

The "I Live New York" program would provide students and families with access to low-cost loans to help close the gap between financial aid and the cost of attendance and allow college graduates to be able to afford to contribute to the local economies in New York State.

The Dormitory Authority of the State of New York (DASNY) would issue bonds for the purpose of providing student loans through the "I Live New York" program. The Higher Education Services Corporation would assist DASNY in pre-qualifying borrowers, servicing and administering the loans.