Paterson embraces low-cost student loan program
More costly items in report put on hold
A state commission that has recommended dramatic changes to New York’s higher education system got a commitment from Gov. David A. Paterson on two proposals the panel submitted Monday.
Creating a low-cost student loan program and providing regulatory relief for the State University of New York system were the two ideas Paterson embraced Monday, when the commission turned over its final report.
But many of the more costly initiatives for overhauling the state’s higher education system will have to wait, Paterson said.
“Given the state’s fiscal situation, we will first seek to implement those recommendations which achieve high impact at little or no cost and, at the same time, pursue innovative ways to finance some of the recommendations which require state funding,” Paterson said.
The report — which details a wide array of reforms, from rebuilding the faculty ranks to changing tuition policy — expands on those ideas revealed eight months ago in a preliminary document released to then-Gov. Eliot L. Spitzer.
Spitzer convened the panel to start making New York’s higher education system more competitive.
Much has changed since then. The economic climate, along with the state’s fiscal situation, took a turn for the worse. Spitzer, who proposed leasing the state’s lottery system to fund a $4 billion endowment and viewed higher education as a way to rebuild the state economy, resigned.
Members of the commission, though, walked away from Monday’s meeting with Paterson more encouraged.
“I think the meeting went very well,” said UB President John B. Simpson, a member of the higher education commission. “It was a chance for the governor to react to the recommendations and give us a sense of what his fundamental views are.”
Simpson said that Paterson thanked the commission members and recognized the plethora of good ideas in the report. But he also acknowledged the state’s budget problems.
Paterson, however, spoke about the importance of higher education in terms of helping the future and prosperity of New York, Simpson said.
“That was very heartening,” Simpson said. “What he has to stop short of is making any kinds of commitment to any of the bold proposals that require substantial funding.”
The 105-page commission report expressed “grave concerns” about the public higher education institutions in New York.
“While making progress on many fronts, they face a chronic problem,” the report states, “too little revenue, too little investment, and too much regulation.”
The report lists 10 major recommendations, including establishing a $3 billion research fund and adding 2,000 full-time faculty over the next five years.
Paterson said he would introduce legislation for a low-cost student loan program in next year’s budget.
New York is one of the few states without a student-loan program, which would provide students lower interest rates than private loans. It could be a direct-loan program or one run by private lenders but backed by the state, Paterson said during a news conference Monday.
Paterson also said he would work on providing public colleges and universities more autonomy when it comes to the sale or lease of property, procurement and construction.
Paterson was vague during the news conference on one of the report’s more controversial recommendations — allowing SUNY schools to set their own tuition levels. The commission also supports regular, predictable increases in tuition, which supporters say help families and colleges plan better.
Paterson would say only that he would look at the idea.
News Albany Bureau reporter Tom Precious contributed to this report.
