ROCHESTER, N.Y. — Changes in federal student loan rules are causing some students in New York to reconsider how they pay for college.
Not just for me but for my dad
“Not only for me but for my dad and many other families trying to figure out how to finance a college education,” Lucas Pastwik, SUNY Geneseo student and vice president of the SUNY Student Assembly, said.
The changes, part of the so-called Big Beautiful Bill, cap the amount of federal loans below what it actually costs to earn a degree in New York and reduce loan amounts if the job tied to the degree does not pay enough. News10NBC chief investigative reporter Berkeley Brean watched as students and state officials discussed the impact of the new rules.
“As a student I am working towards a career I wish to spend the rest of my life in,” Pastwik said.
Pastwik testified to lawmakers about the changes, especially for graduate school.
“For a student planning to be a teacher, a health care worker, graduate school is not optional,” Pastwik said.
Hon. Clyde Vanel of Queens County asked if students are paying attention to these changes in the law.
“Absolutely. Yes. Yes,” Aisha Adam Bechir, president of the SUNY Student Assembly, said.
The new rules
The new rules set a yearly $50,000 cap on federal loans for professional degrees, but medical school in New York costs $80,000 to $100,000 a year. There is a $20,000 cap for non-professional degrees like teaching and social work. Assemblywoman Sarah Clark of Fairport asked the head of the state agency that helps pay for college if New York can use Tuition Assistance Program (TAP) funds for graduate school.
“Do you think this is a moment that that could help fill a hole?” Clark said.
“We’re willing to discuss more,” Doris B. González, acting president of the Higher Education Services Corporation, said.
The earnings test
The new rules also put an earnings test on federal student loans, requiring that the degree profession earns graduates at least as much as the average high school graduate. Most SUNY programs meet that standard.
“A small number of programs preparing students for traditionally lower paying professions… such as social work and early childhood education, may be particularly vulnerable,” Mary Lawyer, assistant vice chancellor for financial aid at SUNY, said.
Clark asked what Lawyer foresees happening.
“Students could be forced to take on additional work to fund their educational expenses, or turn to private loans which could have higher or variable interest rates,” Lawyer said.
Republican lawmakers at the hearing discussed affordability and return on investment.
“New York State is on the wrong track when it comes to higher education,” Hon. Robert Smullen of the 118th District said.
“Decreasing costs is imperative as well,” Hon. John Lemondes of the 126th District said.
SUNY tuition is just over $7,000, making it the 11th lowest in the country and lower than states like Mississippi, Pennsylvania and Texas. SUNY says most of its students do not take federal loans, but for those who do, the average debt at graduation is $29,000. The average debt after attending a private university in New York is about $34,000.
The changes are prompting students, families and state officials to look for new ways to pay for college.
The post Heads-up students: New federal loan rules could mean more work to pay for grad school appeared first on WHEC.com.
