If a graduate of a New York State school continues to live in New York—and makes less than $50,000 annually—the state will pay 100 percent of the graduate’s loan for the first two years.
Potential beneficiaries are also required to participate in the federal Pay As You Earn (PAYE) income-based loan repayment program.
“Student loans are one of the greatest challenges that today’s recent college graduates face when starting their careers,” Cuomo said in a statement. “We must do more to give them a full opportunity to succeed.”
Because of towering student loan debts, graduates often take on high interest debt. That makes it more difficult for young people to purchase a home, a car, or start a business.
The state estimates that 7,100 graduates will enroll in the program in the first year.
The state expects to have more than 24,000 participants a year by 2019–20.
The program is expected to cost approximately $41.7 million.