Joint Legislative Public Hearings on Higher Education 2024-2025 Executive Budget Proposal
Empire Justice Center Co-Chairs the Student Loan Workgroup for New Yorkers for Responsible Lending (NYRL), a statewide coalition of more than 160 organizations across New York State that promotes economic justice. Empire Justice Center supports Governor Kathy Hochul’s inclusion in the Executive Budget of $3 million in funding for EDCAP, and we urge the legislature to uphold its commitment to EDCAP by maintaining its current allocation of $500,000.
The Need to Maintain EDCAP Funding
Nationally, forty-three million borrowers collectively owe approximately $1.7 trillion in student debt. In New York State the cumulative debt is a staggering $98.9 billion held by 2.4 million borrowers. The average client’s loan balance is $80,000, nearly twice the national average(1). Women, communities of color, low-income borrowers and seniors bear a particularly heavy burden when it comes to student debt. Women continue to face obstacles paying off their student debt. The data reflects these challenges. The majority of EDCAP clients, constituting 75% are women. 62% of EDCAP clients are people of color. A considerable proportion of clients, almost 50%, have a household income at or below $60,000.00. New York State has a 44% increase in the number of seniors grappling with student loan debt(2). EDCAP offers much-needed help to these vulnerable communities.
Defaulting on student loan debt can trigger significant financial consequences, including wage garnishment, lower credit scores, and there is a risk of potentially forfeiting a part of your tax refund or social security. Additionally, a borrower may not receive additional federal student aid until steps are taken to bring the loan out of default(3). EDCAP assists borrowers in avoiding the dire consequences of default…
Full written testimony is available: Higher Education Testimony
