OPINION: On the road to student loan forgiveness, New Yorkers need assistance

Our country is facing a growing student loan crisis. As of February 2026, total student loan debt has reached $1.833 trillion, with the average borrower owing $39,547.

Repayment difficulties are also rising: some 5.5 million borrowers are in default. As more Americans struggle under the crushing weight of this debt, the effects ripple across the economy. One in six American adults carries student debt, reducing disposable income, limiting consumer spending, and slowing the path to homeownership or starting new businesses.

At the same time, this crisis is being exacerbated by a punitive Trump Administration that is choosing to squeeze borrowers. By limiting forgiveness eligibility for graduates who work at nonprofits or whose work the administration deems to have a “substantial illegal purpose” – including work with immigrants or transgender youth – the prospect of a trustworthy and equitable federal loan forgiveness system has become increasingly untenable. 

In light of these realities, we must focus on strengthening services at the city level and opening every possible avenue to give graduates a path to forgiveness. Int. 177 would do exactly that.

This bill would establish a program within the Department of Consumer and Worker Protection to provide personalized counseling for individuals seeking federal or state loan forgiveness. Developed in consultation with the Department of Citywide Administrative Services, the program would support student loan borrowers who are eligible for forgiveness under state or federal programs. This includes assisting teachers, people with disabilities, and government or nonprofit workers, by helping them navigate complex eligibility and application requirements.

The Community Service Society’s own research shows that borrowers overwhelmingly trust government agencies and nonprofit organizations when seeking student loan guidance. This bill recognizes that reality and invests in the credible, public‑interest support New Yorkers are already turning to. Through the Education Debt Consumer Assistance Program, or EDCAP, CSS has built one of the most trusted, evidence‑based counseling programs around. The first-in-the-nation program, which receives state funding, supports the intent of Int. 177 by offering New York’s student loan holders high quality, unbiased guidance to effectively manage all of their student loan debt needs for free.

Applying for loan forgiveness can be extraordinarily challenging. A 2019 federal study found that up to 99% of applications were denied, often due to technical paperwork errors, poor loan servicing, deceptive practices by servicers and predatory scams that block borrowers from receiving promised relief. New Yorkers spend years making career and financial decisions in reliance on the promise of student loan forgiveness, only to be denied at the five yard line.

Given the many hurdles in this process, it is imperative that New Yorkers have access to high quality, individualized assistance to help them secure the relief they are entitled to and reduce their debt as quickly as possible. By implementing this program at the city level, we could support more than two million New Yorkers with student debt, the majority of whom are Black and Latino borrowers under the age of 45. Student loan assistance programs are essential to helping countless individuals regain financial stability and move forward with their lives.

Student loan debt should not be a life sentence. When borrowers play by the rules, and make payments year after year, they deserve a system that works for them, not against them. This legislation is about restoring fairness, accountability, and opportunity. Amid an affordability crisis, our government must employ every tool at our disposal to support our communities and meet this moment. By investing in personalized, city-level support, we can cut through red tape, protect borrowers from abuse, and ensure that promised relief is actually delivered. If we are serious about economic mobility, racial equity, and a stronger local economy, we must act now to give New Yorkers a clear, reliable path out of student debt and toward a more secure financial future.