Governor David Paterson agreed Monday to introduce a bill in next year's budget that will create a low-cost student loan program for students across the New York State.

The Governor stated New York is the only state in the Northeast that doesn’t offer advantageous programs for students inhabiting there. With the economic depression, "this is the kind of remedy that we're going to need during this crisis," he said.
The program would be funded by tax-exempt bonds, and could be used by public or private universities. Resident students registered in a degree program at any university or college from NY could apply to the publicly financed, low-interest student loan program.

Designed to be funded by tax-exempt bonds, the loan program is a version of the one that was officially accepted by the State Senate previous month. New York State Commission on Higher Education recommended it in order to help students. In the report which highlights the state’s university system, 9 other proposals have been made. Investing in research, as well as and employing thousands of new teachers are among them.

The program will definitely help students’ families, making them save a large amount of money. If it is approved, Lackman, president of the Commission on Independent Colleges and Universities, intends to lobby the state to forgive loans for students who labor and reside in New York for at least five years after they graduate. Gov. Peterson said he would introduce legislation for the aforementioned loans as part of the priorities of coming year’s budget plan.