ALBANY - Members of the Senate Majority Conference today outlined a plan to help middle-class families and students afford the rapidly increasing cost of a college education.  The Senate’s 2012 College Affordability Plan would help parents save for higher education for their children and give students and families access to low interest student loans, as well as clear information about the size of the loan debt they are taking on.

In addition, the plan would encourage young New Yorkers to stay in the Empire State to begin their careers by creating a new “Stay-In-New York” tax credit.  This would provide up to $12,000 in tax relief over four years for students who graduate on time or early from a college in New York, perform community service work and stay and work in New York for at least four years.

"This plan makes an investment in our students so that they can remain in New York and have the ability to make greater investments in their future and the economy," said Senator Kenneth P. LaValle, Chair of the Senate Higher Education Committee.

“We are proposing a way to help parents and their children cope with the sticker shock that comes with the cost of a college education,” Senate Majority Leader Dean Skelos said.  “Our proposal would double existing tuition tax breaks that have not kept pace with rising tuition.  We will create a pre-payment plan to help parents save money at SUNY and CUNY schools.  And, the Senate Republican plan would give students access to low interest student loans.”

Highlights of the College Affordability Plan include:

• Doubling the existing tuition tax deduction from $10,000 to $20,000;
• Doubling the maximum tuition tax credit from $400 to $800;
• Creating a four-year, $12,000 “Stay-in-New-York” tax credit for people who graduate from a college in New York  in four years or less; perform volunteer community service and stay and work in New York for four years.  Combined with existing credits, graduates could get up to $15,200 in total tax relief;
• Establish a new $100 million Linked Deposit Student Loan program to make low interest student loans available to middle class families. Loan interest rates could be cut in half;
• Enabling parents could pre-pay current tuition for a SUNY or CUNY school;
• Designate the Department of Financial Services to serve as a “truth-in-lending” clearinghouse for reliable information on college loans and interest rates.