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From the desk of Elsa Magee, Executive Vice President and Acting President,
New York State Higher Education Services Corporation
HESC is pleased to announce
its support of the 1% default fee for colleges.
In December 2008, the New York State Commission on Higher Education cited New York as the only large, urban state in the nation, and the only state in the northeast, that did not offer residents attending college in the State a low-cost student loan program. The Commission found that this limited students’ college financing options, potentially inhibiting access or contributing to the accumulation of high-interest debt.
In 2010-11, New York State resident students attending your institution will have their first major opportunity to finance their college costs remaining after receiving all available federal and state aid, using New York’s new state-sponsored loan program, NYHELPs.
Even in the best of economic times, it is vitally important that students and families use all available low-cost aid to finance their college education costs. In recognition of this, I am pleased to announce that the New York State Higher Education Services Corporation will be supporting the one percent college fee in 2010-11, to allow for the availability of $95 million in low-cost, fixed-rate NYHELPs loans for qualified students attending your institution.
Your college’s participation in NYHELPs will benefit your students now, as students and families look for affordable options to finance their remaining college costs, and as alumni, when these lower-cost fixed rate loans come into repayment. I encourage you to both make available and inform your students of this new college financing option, as families begin planning now for how to pay for their remaining college expenses in the 2010-11 academic year.
Not since the establishment of the Tuition Assistance Program 35 years ago has New York implemented a major new state student financial aid initiative. My staff and I look forward to working with you and your financial aid administrators to ensure that NYHELPs is available to New York State students attending your institution and who are seeking a better alternative to private education loans in 2010-11 and beyond.
For more information about NYHELPs please visit HESC.org.
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