Press Center

SENATOR LAVALLE WORKS TO PROVIDE LOW-COST STUDENT LOANS

FROM THE OFFICE OF SENATOR KENNETH P. LAVALLE

6/10/2008

Senator Kenneth P. LaValle, Chairman of the Senate Higher Education Committee, today announced that legislation he sponsored to provide low interest loans to college students has passed the Senate. The measure would create the “I Live New York” student loan program, which would be available to New York State residents enrolled at a college or university in New York State.

Senator LaValle noted that New York is the only state in the northeast that does not offer students a low-cost student loan program to cover the cost of tuition once financial assistance is deducted. The “I Live New York” program would help students fund the balance that remains after state and federal aid and any other scholarships or grants are deducted from tuition costs. The maximum amount of the loan would not exceed the cost of attendance minus deductions for the period of time for which the loan is made.

“As the cost of a college education increases, more and more people are finding it difficult to pursue their educational goals,” said Senator LaValle. “The ‘I Live New York’ program would improve and expand the accessibility and affordability of a college education for thousands of students and families, as well as bring New York in line with other states that offer this type of financial assistance.”

“I Live New York” builds on Senator LaValle’s success in restoring the TAP and HEOP higher education assistance programs. It also complements the Student Initiative for Valued Education (STRIVE) initiative Senator LaValle proposed earlier this year, which would cap a family’s contribution for tuition and fees at 10 percent of their net taxable income. Under the measure, families with annual incomes less than $150,000 would be eligible to receive this benefit. Students would be able to attend a state or city university or a community college, or a private university that agrees to limit annual tuition increases.

“The programs I am proposing will help ease the burden of student loans and give college graduates the greater financial freedom to make purchases that would, in turn, improve the local economies of the state,” concluded Senator LaValle.