There's more bad news for student loan borrowers in New York State. The so-called 'Big Beautiful Bill' affects New Yorkers in many different ways, including student loan borrowers. With the bill signed, New Yorkers with outstanding federal student loans only have two options for repayment plans. Options such as SAVE, Pay As You Earn, and Income-Contingent Repayment are being eliminated by the administration, forcing borrowers to choose between two plans.
The offerings include a standard plan or the Repayment Assistance Plan, which requires 30 years of payments before the loan becomes eligible for forgiveness. Student Debt Crisis Center President Natalia Abrams told News Nation Now,
“This reconciliation bill will be catastrophic for millions of Americans by restricting access to higher education and exacerbating the student debt crisis for both federal and private student loans. While it is difficult to imagine how much worse the student debt crisis can become, this reconciliation bill does exactly that.”
But that's not it. There's more bad news!
KEEP READING: Massive Change Coming To Social Security For New Yorkers
Trump directed the Department of Education to restart collection efforts. Approximately 10 million Americans are in default on their student loans. The Department of Education is permitted to garnish up to 15 percent of a borrower's disposable income.
But that's not it. There's more bad news!
Beginning on August 1, 2025, borrowers will be subjected to interest on their loans again. The change affects 8 million borrowers, who had been granted an interest-free forbearance period on their loans under the Biden administration's Saving on a Valuable Education (SAVE) Plan. Borrowers will now be forced to pay up regardless of their ability to pay. Trump and Republicans have to find money somewhere to pay for tax cuts for billionaires, and college graduates will pay the price. Over the next 12 months, borrowers will pony up $27 billion in interest, per Newsweek.
KEEP READING: Big Beautiful Bill: The Good And Bad For New Yorkers
Do Trickle-Down Economics Work?
Here's to hoping billionaires will pass their hefty tax breaks on to working- and middle-class New Yorkers 🙄 If you can't read emoji, I am being very, very, very, sarcastic. Per The Balance,
"The International Monetary Fund (IMF) also rejects the trickle-down theory. In its report authored by five economists, it argues that 'increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20% results in lower growth—that is, when the rich get richer, benefits do not trickle down.'”
But I'm sure the uneducated supporters of student loan reform will find some excuse to justify giving ultra-rich guys tax breaks, while forcing a librarian to choose between paying her rent or her student loans.
Study Finds Worst Paying College Majors In New York State
More From 93.7 WBLK
