HESC Colleague NewsletterFall 2009  

The New York Higher Education Loan Program (NYHELPs)

John Austin

HESC staff members have been working tirelessly toward the anticipated December launch of NYHELPs. We’re pleased to be able to provide New York students and families with this low-cost solution to their borrowing needs.


As you know, the Governor proposed and the Legislature enacted NYHELPs in April 2009 to help students and families fill the gap between college costs and available financial aid.

This unique public / private partnership will rely on lender capital to fund fixed rate loans on behalf of students attending eligible, participating New York colleges. New York will provide up to $350 million annually to support the fixed rate loans made by participating lenders.

Borrowers could receive an estimated fixed interest rate of between 7.5 and 9.0 percent on fixed rate NYHELPs loans up to $10,000 beginning with the spring 2010 semester.

To qualify for a NYHELPs loan, a student must, among other criteria:

  • Be enrolled, accepted for enrollment or previously enrolled at an eligible college at least half time
  • Be a NYS resident for the past 12 months
  • Be a U.S. Citizen, permanent resident alien holding an I-151 card or conditional entrant or member of a group of refugees paroled by the Attorney General of the United States
  • File for financial aid and exhaust all eligibility for State, federal (excluding PLUS) and institutional aid as certified by the college
  • Apply with an eligible cosigner who is at least 21 years of age and meets credit eligibility criteria

To be eligible to participate in NYHELPs, a college must, among other criteria:
  • Be located in NYS (both headquarters and main campus)
  • Offer approved degree programs or professional certificate programs
  • Contribute a fee of 1 percent of the principal amount of each loan*
  • Certify each student’s eligibility

Eligible non-student borrowers (parent or legal guardian) and eligible sponsors may borrow on behalf of an eligible student.

To educate potential borrowers and reduce default risk, HESC will provide a comprehensive financial literacy education program that all borrowers will be required to complete in order to be eligible for a NYHELPs loan. Element K, a learning management system, will support HESC in our launch of this online financial literacy program.

Borrowers will begin the NYHELPs process through the HESC Student Loan Marketplace, a dynamic, interactive Web site that educates students on best borrowing practices and provides students with a simple way to learn and compare multiple alternative loans should they require additional loan funds to meet the cost of college.

NYHELPs is a new loan opportunity for students and families, but it does not mean a lot of new work for colleges. The Program will rely on many of the same HESC platforms that are already familiar to you, such as HESC Student Loan Marketplace, HESCWeb and AltLoan Connection and should blend smoothly with your existing processes. In addition, FirstMark, a division of Nelnet, will provide the single point of origination and servicing for the Program.

For more detail and information on the latest developments with NYHELPs, please visit our College Administrator’s Web page.


* Colleges are expressly prohibited from passing this fee on to the student or other borrower.