Paterson supports loans for students

ALBANY — Students looking to attend classes at any of New York's public and private colleges and universities may get more help, beginning with next year's state budget.

Gov. David A. Paterson announced his support Monday for a low-cost, state-administered student loan program. Such a program is one of the key recommendations in a final report released in June by the state Commission on Higher Education.

At a Capitol press conference Monday, the governor said loans to students could take the form of either direct loans from the state or private loans guaranteed by the state.

"As credit markets tighten and fewer financial institutions participate in student lending, students and their families are faced with the prospect of paying higher and higher interest rates," Gov. Paterson said. "New York is one of the only states in the nation without a state-financed student loan program; it is time for that to change, which is why my administration will introduce legislation to include this critical program in next year's budget."

One member of the higher education commission said the proposal would keep post-secondary education in New York on par with other states while easing the financial burden on students and their families.

"As government and business leaders seek to retain talent, initiatives such as Gov. Paterson's loan program will keep more talent here," said Abraham M. Lackman, who is also president of the Commission on Independent Colleges and Universities, which represents the leaders of New York's private colleges. "By lowering loan debt, this initiative will enable college graduates to be better able to afford to contribute to the local economies in New York state following graduation. Gov. Paterson's new proposal will help to keep even more talent at home."

Officials at St. Lawrence County's four colleges said they think the goals set out by the state Commission of Higher Education report are admirable, but are waiting "with bated breath" to see what becomes of the measures.

"The devil's in the details, as they say," SUNY Potsdam President John F. Schwaller said. "From the onset, all the presidents within SUNY have been pleased to have the commission looking into these issues, and to recognize the great demands placed on SUNY and the great resource it plays in the state. We'll be watching with bated breath to see what happens."

Another administrator pointed out that most other states have programs similar to the governor's proposal.

"New York is the only major state that doesn't have its own student loan fund. Mostly we're very concerned with the subprime mortgage loan issue, and whether that would flow through to our students," said Anthony G. Collins, president of Clarkson University, Potsdam. "It's virtually a no-cost item to the state. It's a budget-neutral project, investing in students and having those students repay them."

The commission also recommended that the state establish a 10-year, $3 billion research program. The Empire State Innovation Fund would distribute $300 million to public and private institutions annually.

"I think in general, the sense of the report is absolutely in the right direction, that access to higher education is critical to the region, the state and the nation, period," Mr. Collins said. "Creating ideas and taking them to the marketplace — that's what built our economy for the last 100 years, and we aren't the only nation doing it. If we're to compete, we have to outcompete countries like India and China in investing in innovation."

The report also proposed rebuilding SUNY and CUNY faculties by hiring 2,000 full-time professors, including 250 eminent scholars, over the next five years.

"I'm very much in favor of hiring additional faculty. We're expecting record enrollment this fall and we're going to need more faculty to continue our growth," SUNY Canton President Joseph L. Kennedy wrote in an e-mail. "We'll need additional faculty to support our future four-year programs, while continuing to provide a high-value education."

The commission said significant deregulation would make it easier for individual public colleges and universities to raise tuition. Mr. Schwaller said that would help families budget for higher education.

"Being the father of a college student myself, knowing what the price increase is going to be — within the general 3 to 5 percent framework — is better than rolling the dice and having tuition go up 25 percent all of a sudden," he said.

"One of the major thrusts of the report, I think, is the recognition that higher education is important to the whole state of New York — important for economic reasons, important if we're competing as an entity against other states," said Macreena A. Doyle, spokeswoman for St. Lawrence University, Canton. "The report obviously has a lot to do with SUNY and CUNY schools, understandably, but private higher education is a big part of the state as well."

She pointed out that half of SLU students come from within the state, and would benefit from low-cost loans as part of their financial aid package.

College officials were quick to point out that the report doesn't provide details or propose sources of funding for its recommendations, and that some of its ideas are bound to die at budget time.

"The Commission on Higher Education report lays out an interesting road map for the future success of the State University of New York system. It's one that won't be completely realized given the current financial downturn," Mr. Kennedy said.

In the end, the report said that New York must become more innovative or risk being relegated to the back of the pack.

"New York's leaders must embrace a new reality of global connectedness and competition, of accelerating idea creation and dissemination," the report said. "New York has no choice: We must compete with many others on the cutting edge of ideas and innovation, or be left behind. We must meet the challenge of this new reality."

The complete report is available online.