NY to open student-loan forgiveness plan

ALBANY - A new state program that will cover up to two years of eligible student-loan costs will begin accepting applications Thursday.

The Get On Your Feet Loan Forgiveness Program will cover up to two years of monthly federal student-loan payments for state residents who graduated from a New York high school, received an undergraduate degree from a college or university located in the state and have an adjusted gross income of $50,000 or less.

The forgiveness plan only applies to those who graduated college in or after Dec. 2014 and are enrolled in the federal Income-Based Repayment or Pay As You Earn programs, which generally limit payments to 10 percent of a borrower's discretionary income. It applies to federal loans, such as Stafford loans.

"With this program, we are telling recent graduates: if you invest in New York's future, we will invest in yours," Gov. Andrew Cuomo said in a statement.

In all, the state program is expected to enroll 24,000 graduates and cost $41.7 million a year by the time it fully ramps up in 2019-20, according to Cuomo's budget division. About 7,100 are expected to enroll during the first year.

The program was created as part of the state's $142 billion budget approved by Cuomo and lawmakers in March.

Once the application period opens Thursday, entries into the program will be accepted year-round, according to Cuomo's office.

To apply or for more information, visit hesc.ny.gov/GetOnYourFeet or call 1-888-697-4372.