If our educated young adults must make a choice between securing a job in their field or taking a hit and starting in an entry-level position which pays more, many will be forced to leave their chosen field to pay off the debt.
Carrying this debt results in future impacts to the state’s economy. Not only might graduates leave their field, they could leave the state to find cheaper cost of living elsewhere. This abandonment will be one less New Yorker paying taxes, buying a home and or sending their children to New York schools.
If this is a graduate’s first loan, when a minimum payment comes through on the bill the first thing an untrained person will see is the minimum allowable payment. The minimum payment could be $50 or it could be hundreds. Either might feel more manageable for the student. Unfortunately, paying just the minimum debt does little to lower the principle. It could be 10 or even 20 years before the student is debt free.
And, the option of deferring students loans can only be accessible for so long.
Most college graduates go into fields still as entry level workers with minimum paychecks living in modest homes if not back in with their parents to pay back the student loans.
The question needs to be raised why is New York strapping people who are just starting out with debts that most simply cannot afford to pay back — at least in the foreseeable future.
In 2011, The New York State Legislature passed legislation which authorized the SUNY Board of Trustees to raise tuition for SUNY and CUNY campuses every year for the next five years.
SUNY schools will raise tuition $300 per year for in-state students through the 2015-2016 academic year, $940 per year for out-of-state students at SUNY colleges and $1,340 per year for out-of-state students at the SUNY University Centers located in Binghamton, Stony Brook, Buffalo and Albany.