Student loan program a good investment for New Yorkers
The following was submitted by the presidents of the Association Colleges of St. Lawrence Valley: Anthony G. Collins, Clarkson University; Joseph L. Kennedy, SUNY Canton; John F. Schwaller, SUNY Potsdam, and Daniel F. Sullivan, St. Lawrence University.
In the state executive budget presented to New Yorkers before the holiday break, Gov. David Paterson proposed the New York Higher Education Loan Program (NYHELPs) that will assist New Yorkers thinking about undergraduate and graduate study at one of New York's 270 higher education institutions.
If adopted by the Legislature, tax-exempt deferred loans of up to $10,000 per year would be available to bridge a critical financial aid gap for many families in the north country and across the state who otherwise cannot afford college.
While the repercussions of Gov. Paterson's proposed budget cuts on higher education are complex, we applaud Gov. Paterson for recognizing the need for new programs during a time of fiscal crisis. With this long-term cost-neutral program, he truly presents a win-win for New York.
Students will have access to an affordable loan program to make their own immediate education investment in New York's healthy mix of private and public institutions in every corner of the state. The four institutions of the Associated Colleges of St. Lawrence Valley educate 11,370 students in our region. with more than a majority of them New York state residents.
More importantly, NYHELPs underpins the governor's plans to put New York on a path to take control of its economic future by investing in its human capital — the people who infuse intellectual talents, steady income and spending power into the tax base. According to the Bureau of Labor Statistics, 40 percent of the jobs to be created in the coming decade will require a college degree. Consider that men and women with a college degree hold careers that on average pay them twice the annual income of someone with a high school diploma. Furthermore, their lifetime earnings will be nearly $1 million over someone with a high school diploma.
Thirty-eight states currently provide their college students with some form of affordable student loan program. New York is the only state in the Northeast without this low-cost capital alternative for families. Implementation will help encourage New Yorkers to stay in New York and give them the choice to attend any college or university in the state.
It is important that the governor and the Legislature take all steps necessary to remedy the budget deficit without penalizing students working toward advancing their education. We encourage you to join us in urging members of the Legislature to pass the governor's NYHELPs proposal and truly benefit the students from across the state, and particularly in our region, who are needed to drive our shared economic future.
