Paterson favors low-cost student loan plan

Gov. David Paterson backed a state Higher Education Commission proposal this week to create a low-cost student loan program that would be financed through tax-exempt bonds.

New York is the only state in the Northeast that does not offer low-cost loans to residents who attend college in the state.

It is unclear what interest rate students would pay, but the state's Higher Education Commission expects it to be much lower than what many students and their parents pay by borrowing from private lenders.

"This is the kind of remedy we are going to need during this crisis," Paterson said, referring to the economic downturn.

Source: http://www.bizjournals.com/albany/stories/2008/07/28/story6.html?ana=from_rss