New York State Higher Education Services Corporation 99 Washington Avenue Albany, NY 12255 Phone: (518) 473-7087 Toll-Free: (888) 697-4372 Fax: (518) 474-2839 TTY: (800) 445-5234 Website: http://www.hesc.org/
New York State will start providing what they call "state college loans" in the spring semester of the 2009-10 school year.
On April 4, 2009, New York's Governor announced that a new state student loan program (NYHELPs) was enacted. $350 million will be lent annually (minimum) to 45,000 New York students.
These loans will be administered by New York State Higher Education Services Corporation, but they are private student loans. Students will get them through banks, much the same as FFELP loans. The state will guarantee them. Some features are:
$10,000 per year limit
7.55% interest rate if interest and principal payments begin immediately
8.25% interest rate if interest payments begin immediately
8.75% interest rate if interest and principal is deferred until 6 months after graduation
Some requirements are:
state and federal aid must be applied for first
credit check required
web-based financial literacy education program
There is no provision for any rate reductions for fulfilling additional requirements. (such as on-time graduation with a minimum GPA) There are also no loan forgiveness provisions.
The best that can be said for this program is that it will help to make up tuition gaps.
If you are looking for a higher amount or a better interest rate, you can compare terms from competing private lenders:
New York State Higher Education has one major grant program: the Tuition Assistance Program (TAP). It is a need-based program with annual awards up to $5,000.
The most important thing to know about TAP is that (unlike most state grants) it is not entirely based on the
FAFSA
. You must fill out an additional
NYS TAP form
.
Your federal information and your combined family NYS net taxable income will determine your TAP amount. So even if you are not eligible for a federal grant, you will probably get some TAP money.
A minor New York State Higher Education grant program is The Aid for Part Time Study (APTS). It provides up to $2,000 per year for part-time undergraduate study at participating institutions in New York State.
For this program, New York State NET taxable income may not exceed $50,550 if you are a dependent, or $34,250 if you are independent.
New York state has two kinds of scholarships:
Scholarships that do not ever need to be repaid:
Flight 587 Memorial Scholarship
Military Service Recognition Scholarship (MSRS)
New York Lottery – Leaders of Tomorrow Scholarship
The NYS Memorial Scholarship
NYS Scholarships for Academic Excellence
NYS Volunteer Recruitment Service Scholarship
NYS World Trade Center Memorial Scholarship
and
Scholarships that can turn into loans and need to be repaid with interest:
NYS Math & Science Teaching Incentive Scholarship- award amount is equal to tuition at a SUNY college for 5 years- but all award money received will convert to a 10-year student loan plus interest if the recipient fails to teach math or science full time for five years in a New York State secondary school
NYS Regents Health Care Scholarships in Medicine & Dentistry- award amount is $10,000 a year for 4 years- but repayment at twice the amount of all money received plus interest if recipient does not work for 1 year for each award (minimum 2 years) in a physician shortage area of New York
NYS Regents Professional Opportunity Scholarship- award amount is $1,000 to $5,000 per year for up to 5 years- but will be required to repay twice the amount of all money received plus interest if recipient does not work as a licensed professional in New York at the rate of 1 year for each award starting within 1 year of graduation
The Senator Patricia K. McGee Nursing Faculty Scholarship- award amount is up to up to $20,000 per year for 3 years- but must repay the amounts disbursed plus interest if they do not practice as nursing faculty in New York State for four years within 3 years of graduation
These college loans or grants have academic eligibility obligations as well as the service obligations after graduation. A FAFSA must be filed on time each year for your eligibility to be maintained. Check your New York state FAFSA deadline.
The New York Higher Education Services Corporation oversees several state loan forgiveness programs:
The District Attorney Loan Forgiveness Program
for New York attorneys that have been employed as a district attorney or assistant district attorney by a district attorney's office in New York State for at least four years
no PLUS loans or any loans which can be canceled under another program
maximum lifetime total award under this program is $20,400 ($3,400 per year for 6 years)
NYS Licensed Social Worker Loan Forgiveness Program
for New York State social workers who have been employed for 1 year in a critical human service area
no PLUS loans or any loans which can be cancelled under another program
maximum lifetime total award under this program is $26,000 ($6,500 per year for 4 years)
Nursing Faculty Loan Forgiveness Incentive Program
for licensed registered nurses holding graduate degrees and who have taught in the field of nursing
no PLUS loans or any loans which can be cancelled under another program
maximum lifetime total award under this program is $40,000 ($8,000 per year for 5 years)
With the end of the FFELP program, the New York State Higher Education Services Corporation no longer acts as a go-between for federal loans. All federal student loans are now federal Direct student loans. (New York FFELP borrowers may use Direct loans consolidation for their FFELP loans this year, while they are still in school.)
On June 5, 2009, New York State Higher Education Services Corp. announced a new service- a "student loan marketplace"- on their website. Students and their families interested in private student loans can fill out a profile and immediately compare pre-approved loan terms and conditions based on their credit rating. There are at least 15 different loan options provided.
This is the sort of information that lenders have never voluntarily disclosed, before.
New York now has a "state loan program" for its students, but it is not that much better than using private loans for college.
The New York State Higher Education Tuition Assistance Program has not kept pace with tuition hikes in a state with many high-priced colleges.
New York now has a "state loan program" for its students, but it is not that much better than using private loans for college. 
