Student Loan Delinquency News

The New York Federal Reserve reports that while general consumer credit quality has improved since the financial crisis, student loan delinquencies has increased to near record levels.  Ninety-day delinquencies on student loans first hit double digits in the third quarter of 2013 and have hovered between 10.7% and 11.8% in every quarter since. They ended 2018 at 11.42%.




Legislative Watch

Legislative Watch

Two recent Senate proposals to ease/improve student loan repayment have been introduced/re-introduced.

  • Lamar Alexander’s re-authorization proposal to include ‘borrower option to automatically deduct loan payments as a share of borrowers’ paychecks and,
  • Mark Warner’s proposal* allow employers to provide tax-free student loan assistance for their employees.

* The Employer Participation in Repayment Act

A bill introduced by Senators Warner and Thune to allow employers to provide tax-free student loan assistance for their employees.

 What the Bill Does:

As currently constructed, the Employer Education Assistance Program only provides assistance for workers who are seeking additional education, but does not benefit individuals who already have incurred student loan debt in the course of their undergraduate or graduate careers.  Their inclusion in the program would help individuals pay down their loans and serve as a recruitment and retention tool for younger employees who are typically not large consumers ofhealth care, retirement and insurance benefits.


Young Americans have increasingly turned to student loans to finance their post-secondary education. Of the more than $1.3 trillion in national student loan debt, more than $600 billion has been borrowed by families whose head of household is under 35 years of age. For younger workers, this debt threatens their long-term financial security, including their ability to make asset purchases such as homes and vehicles.  Our current employer tuition assistance program as outlined in section 127 of the Internal Revenue Code allows employers to provide up to $5,250 per year in tax-free employer education assistance benefits for undergraduate or graduate courses. Though recipients are not required to be degree-seeking, they are required to be currently enrolled in courses. This provision excludes students who have already accumulated student loan debt, and offers them no relief.  Employer sponsored benefit plans are taken advantage of primarily by older, more experienced workers. Younger workers are typically not large consumers of health care, retirement and insurance benefits, at least not in their early career. Assistance in paying down student loans is an employer sponsored benefit that would attract and assist younger employees.

Treking The Capital in the Snow

Hello from Snowy Albany

On Monday your Executive Council met from 8:30 – 4:30 discussing numerous things. Do you want to know exactly what? Then listen to the upcoming Podcast. We invited you all to join us. WE MEANT IT!! We had one special guest come – Kerry Cooper – NYSFAAA Past Past President. Thank you Kerry.

After the EC meeting your investment meeting spent another hour reviewing the finances. Looking okay.

Today we all went to the Capital, as is our annual trek, for Advocacy Day. It is something we prepare for months ahead. With the help of the Government Relations Committee, as Edited by Executive Council we went prepared with our 2019 talking points. You will find it attached to this communication and I hope you share it with your Assemblymen and Senators whom you can visit in their home offices. Share it with your College Presidents and Government Relations folks. Get the word out there.

These are the things that NYSFAAA is asking for to be included in the Governor’s upcoming budget and future legislation.

If you have any questions do not hesitate to contact me at or Chris Barto, Chair of the Government Relations Committee at

The Government relations Committee is one of several committees you can join. NYSFAAA is all about YOU and the work you do for our students and communities. We are always looking for new and more people to pitch in and MAKE A DIFFERENCE. Today we made a difference – so can you.

Special thanks to Donna Gurnett of the APC for being instrumental in organizing today’s activities and getting us a private room to hang in (with refreshments)!

Others that joined me in meeting with the lawmakers today, in addition to the above, were

Darrin Rooker – Immediate Past President Adrienne King – First Vice President Patti Donahue – Region III Rep Randi Moore – Region IV Rep Evan. K. Udowitch – Representing Region VII Clem LaPietra – Government Relations Committee

A special shout out to Lisa Simpson who just knows how to organize us.

We all met for breakfast at 99 Washington Ave – trucked off and tackled the lawmakers. It wasn’t snowing when we started but sure enough it was when we finished. It was fun times and we know we did it for the right reasons. Want to know more? – listen to the upcoming Podcast.


Click the link to view the attachment

Attachment 1:

Student loan Debt- Senior Citizens

Student Loan Debt – Senior Citizens

 Older Americans are struggling under the burden of student loans—their children’s and their own.

A generation of Americans owe nearly $90 billion in student loan debt and their 60 or more years of age.

Many seniors took out loans to help pay for their children’s college tuition and are still paying them off.  Others took out student loans for themselves in the wake of the last recession, as they went back to school to boost their own employment prospects.  Some are having funds garnished from their Social Security checks.  The federal government, which is the largest student loan lender in the country, garnished the Social Security benefits, tax refunds or other federal payments of more than 40,000 people aged 65 and older in fiscal year 2015 because they defaulted on student or parent loan debt.

Debt Highlights:

  • On average, student loan borrowers in their 60s owed $33,800 in 2017, up 44% from 2010.
  • Total student loan debt rose 161% for people aged 60+ from 2010 to 2017
  • ED disbursed $12.7 billion in new “Parent Plus” loans during the 2017-18 academic year, up from $7.7 billion a decade prior.

WSJ article is available and can be accessed (subscription may be required) at;

Some related articles can be found at:

You Guess: What’s the Debt Burden for Americans Entering Retirement?

A Generation of Americans Is Entering Old Age the Least Prepared in Decades

The Cost of Supporting Parents and Adult Children