SFN Blog

New York’s Approach to Student Loan Debt Relief

Student debt is substantial and continues to grow. Total outstanding student loan debt in the U.S. was approximately $1.6 trillion as of the end of 2024. Roughly 43 million people hold federal student loans. Most borrowers owe relatively modest amounts: the median outstanding balance in 2024 was between $20,000 and $24,999. 

These national numbers matter for New York. State leaders see debt as a household and economic problem. The rest of this article explains New York’s mix of programs, how they help people, what still limits relief, and clear steps borrowers in New York can take.

Why New York focuses on student loan relief

New York has a large number of people with student loans. Local research estimates that approximately 2.4 million New Yorkers owe more than $98 billion in student debt, with around one million borrowers residing in New York City alone. That makes state-level help important for low- and middle-income households.

Because housing and living costs in New York are high, monthly loan payments can quickly strain budgets. State leaders attempt to alleviate that pressure by offering programs that either reduce future borrowing or make existing loans more manageable.

Main state tools: what New York offers now

New York targets relief in three main ways: (1) loan-forgiveness programs for certain workers, (2) help to lower future debt through scholarships, and (3) counseling and navigation help.

Key programs to know:

  • Get On Your Feet Loan Forgiveness — offers up to 24 months of federal loan relief for recent New York graduates who enroll in an income-driven repayment plan. It’s run by the New York State Higher Education Services Corporation (HESC). Eligibility rules apply (residency, school attended, income-driven plan rules).
  • Targeted forgiveness and incentive programs — HESC runs smaller, job-tied programs (for nursing faculty, child welfare workers, young farmers, etc.) that forgive loans if the borrower works in certain jobs for a set years. These programs are narrow, but helpful to people in those fields.
  • Excelsior Scholarship — not loan forgiveness, but it lowers tuition for eligible students at SUNY/CUNY, which cuts how much future students must borrow. Lower borrowing reduces future debt burdens.

How New York helps people use federal programs

Most student loans are federal. That means big changes (like income-driven plans or major forgiveness) come from the U.S. Department of Education. New York’s role is to guide residents to those federal options and to provide local supports that fit federal rules.

Important federal tools New Yorkers use:

  • Income-driven repayment (IDR) plans and the SAVE plan — designed to lower monthly payments based on income. The federal SAVE plan changed rules to reduce monthly payments for many borrowers. New Yorkers are encouraged to enroll when eligible. 
  • Public Service Loan Forgiveness (PSLF) — forgives remaining federal loan balances after 120 qualifying payments while working in public service. New York has numerous public-sector employers, and state and city offices assist employees with applying and certifying their service.

To connect borrowers to these federal options, New York supports counseling groups and hotlines (see EDCAP), and employers and unions offer guidance to help staff enroll correctly. It reduces mistakes that can block forgiveness later. 

Community and city-level supports

In New York City and across the state, local groups and unions offer counseling, workshops, and help with paperwork. Here  are examples:

  • EDCAP (Education Debt Consumer Assistance Program) — free, unbiased counseling for New Yorkers who need help with loan paperwork and repayment choices. 
  • Employer and union clinics — many large public employers (school systems, city agencies) and unions provide repayment help and PSLF certification to members.

These hands-on services matter because federal forgiveness and IDR rules are complex. A small help from a counselor can mean the difference between success and wasted payments.

Strengths and limits of New York’s approach

The state does meaningful work, but limits remain.

Strengths

  • Practical help: State programs target individuals in public-service jobs and recent graduates, offering real dollars or months of relief. 
  • Prevention: scholarships like Excelsior reduce future borrowing. 
  • Local counseling: Nonprofits and city agencies assist borrowers in applying correctly. 

Limits:

  • Scope: Many programs help narrow groups. Not every borrower qualifies.
  • Depends on federal rules: major relief often needs federal action (for example, IDR rules or mass cancellation). State help can’t erase federal rules or big balances alone. 
  • Administrative complexity: paperwork, proofs of employment, and changing federal policy create delays and confusion for borrowers.

Clear action steps for New York borrowers

Check these simple, practical steps that most people can follow today:

  • Check your loan types and servicer at the federal portal (studentaid.gov). Know whether your loans are federal or private. (If federal, you have more forgiveness options.) 
  • Enroll in income-driven repayment (IDR) or SAVE if you qualify—this can cut monthly payments now. 
  • If you work in public service, start PSLF paperwork. Get your employer to certify your employment annually. It preserves your path to forgiveness. 
  • Use New York counseling: book a session with EDCAP or HESC counselors to check program eligibility and to avoid paperwork mistakes. 
  • Explore job-tied state programs (nursing faculty, child welfare, farming) if you work in those fields—these can erase parts of your balance after required service. 

Bottom Line

New York combines targeted loan forgiveness, scholarships that cut future borrowing, and hands-on counseling to ease student debt. The state can’t fix every case, federal policy and program rules matter a lot, but New York’s approach gives many residents real tools to lower payments and find forgiveness. If you live in New York and owe student loans, check federal portals, talk to a local counselor, and look at the HESC programs that might fit your job or situation.