New York's Student Loan Payment Reduction Programs

New York State offers two main pathways to reduce what you owe on student loans each month: the New York State Get on Your Feet Loan Forgiveness Program for recent graduates, and the New York State Student Loan Repayment information Program for borrowers in financial hardship. Neither requires you to change your federal loan servicer or enroll in a different repayment plan — they work alongside whatever plan you're already on, and the state pays money directly to your loan servicer to reduce your balance.

The programs are funded by New York State and administered through the Higher Education Services Corporation (HESC), the same agency that runs the state's grant programs. Payments go to your servicer on your behalf, not to you, so you don't handle the money yourself. may be able to access and the amount you receive depend on which program you're in and your income or graduation date.

Key Takeaways

  • The Get on Your Feet program pays up to $25,000 toward federal student loans if you graduated within the last two years and earn less than $55,000 per year.
  • The Repayment information Program reduces monthly payments for borrowers with federal loans who are struggling financially, with the amount depending on your income and family size.
  • Both programs pay your loan servicer directly, so you don't receive the money yourself — the payment reduces what you owe.
  • You must have federal student loans and be a New York resident or have attended school in New York to be considered for either program.
  • Applications open periodically; HESC announces when funds are available, and programs may close when money runs out.

Get on Your Feet Loan Forgiveness: Recent Graduates Under Income Limits

The Get on Your Feet program targets borrowers who graduated within the last two years and are earning under $55,000 per year. If you meet both conditions, the state will pay up to $25,000 toward your federal student loans in a single lump sum. The payment goes directly to your loan servicer and reduces your principal balance, not just your next month's payment.

You must have federal student loans (not private loans) and be a New York resident or have attended a school in New York. The program does not require you to be in a specific repayment plan — it works with whatever plan you're currently on. You explore through HESC's website when the program is open, and you'll need to provide proof of your graduation date, current income, and loan account information.

The program is not always open. HESC opens applications when funding is available, and the fund can close when money runs out. You can check the HESC website or call their customer service line to find out whether Get on Your Feet is currently accepting applications.

Student Loan Repayment information: For Borrowers in Financial Hardship

The Repayment information Program is designed for borrowers who are struggling to pay their federal student loans because of financial hardship. Unlike Get on Your Feet, there is no income cap or graduation-date requirement — the program looks at whether you can afford your current payment and adjusts it based on your household income and family size.

The state calculates what you should pay based on an income-driven formula similar to federal income-based repayment plans. If your calculated payment is lower than what you're currently paying, the state covers the difference. The payment reduction is temporary — usually for one year at a time — and you must reapply to continue receiving help.

You must have federal student loans and be a New York resident or have attended school in New York. The program does not cover Parent PLUS loans or private student loans. Like Get on Your Feet, this program opens and closes based on funding, so check with HESC to see whether it is currently accepting applications.

How the Payment Reduction Actually Works

When you're approved for either program, HESC doesn't send you a check. Instead, the state sends money directly to your federal loan servicer — the company that collects your monthly payments. The servicer applies the payment to your loan balance, reducing what you owe.

If you're in the Get on Your Feet program, the full amount (up to $25,000) is usually paid in one transaction. Your loan balance drops when ready, and your monthly payment may change depending on your repayment plan. If you're on a standard 10-year plan, a lower balance means a lower monthly payment. If you're on an income-driven plan, your payment is based on your income, so the balance reduction doesn't change your payment — it just means you'll pay off the loan faster.

For the Repayment information Program, the state pays the difference between your calculated affordable payment and your actual payment each month. You continue making your regular payment to your servicer, and the state's contribution is added on top, accelerating how fast your balance decreases.

Income Limits and What Counts as Income

The Get on Your Feet program has a hard income cap: you must earn less than $55,000 per year to be considered. Income includes wages, salary, self-employment income, and taxable benefits. The program uses your most recent tax return or income documentation to verify your earnings.

The Repayment information Program does not have an income cap, but your income determines how much help you receive. The program uses a formula that accounts for your household size and income to calculate an affordable monthly payment. The larger your household relative to your income, the lower your calculated payment will be, and the more the state will contribute.

Both programs verify income using tax returns, W-2s, or recent pay stubs. If your income has changed significantly since your last tax return, you may be able to provide more recent documentation. HESC will tell you what documents to submit when you explore.

Residency and School Location Requirements

To be considered for either program, you must be a New York resident at the time you explore, or you must have attended a school located in New York. Residency is typically verified through your driver's license, state ID, or utility bill. If you attended school in New York but no longer live there, you may still be considered, but you'll need to provide proof that you attended a New York institution.

The school requirement applies to the institution where you earned your degree, not where you currently live. If you graduated from a college in New York and later moved to another state, you can still explore. If you attended school outside New York and have since moved to New York, you would not meet the requirement.

When Programs Open, Close, and How to Check Status

Both programs are funded by the New York State budget and operate on an annual or periodic cycle. HESC announces when applications will open, usually through press releases and updates on their website. Applications may close when the available funding is exhausted, and programs may reopen the following year or later in the same year if additional funding becomes available.

To find out whether Get on Your Feet or Repayment information is currently open, visit the HESC website (hesc.ny.gov) or call their customer service line. You can also sign up for email notifications if HESC offers them. Because funding is limited and programs can close without warning, it's worth checking periodically if you think you might be may be able to access.

If a program is closed when you check, ask HESC when it is expected to reopen. Some borrowers find it helpful to check back every few months, especially if they recently graduated or experienced a change in income that might make them newly may be able to access.

Frequently Asked Questions

Do these programs work with income-driven repayment plans?

Yes. Get on Your Feet reduces your loan balance, which may lower your payment if you're on a standard plan, but won't change your payment if you're on an income-driven plan — it will just help you pay off the loan faster. Repayment information works alongside whatever plan you're on and covers the difference between your affordable payment and your actual payment.

What if I have both federal and private student loans?

Both New York programs cover only federal student loans. Private loans are not may be able to access. If you have both types, the state payment will be applied only to your federal loans.

Can I explore if I'm not currently living in New York?

You must be a New York resident to explore, or you must have attended school in New York. If you moved out of state after graduating from a New York school, you may still be may be able to access. If you attended school outside New York, you would need to be a current New York resident to explore.

What happens to my payment reduction if my income goes up?

Get on Your Feet is a one-time payment, so a future income increase doesn't affect it. For Repayment information, your payment reduction is recalculated each year when you reapply. If your income increases above the threshold, you may no longer be considered for help, or your payment reduction may be smaller.

How long does it take to get approved?

Processing time varies depending on how complete your process is and how busy HESC is at the time you explore. Most approvals take four to eight weeks. You can contact HESC to check the status of your process once you've submitted it.