New York Adopts Free Tuition

[HeadedWest2029]

This should be interesting to follow.  I'm not a New Yorker, but in my city if you go to public school throughout, community college is free.  Plus the high school has a boatload of AP classes so gen-eds and the 1st two years should be cheap already.  If this push catches on, our 529 $$ might be limited to room & board, books, etc.  Not that I'd complain!

https://www.insidehighered.com/news/2017/04/10/new-york-state-reaches-deal-provide-free-tuition-suny-and-cuny-students

[h82goslw]

I'm a New Yorker...and this free tuition thing has made for some interesting times.  My kid has been trying to decide between Syracuse University and State University at Binghamton (a so called public ivy school). Scholarships and grants from Syracuse made the price within $2K of the state school (starting difference was $40K). Plus she's taken Syracuse University AP classes in high school.
Then governor signed the free tuition bill this week which saves another $5500 per year for state school.  She has her heart set on Syracuse but not sure what the final decision will be. She has 16 days to decide.....no pressure! 

[Peony]

https://en.wikipedia.org/wiki/Public_Ivy#Public_Ivy_list

[Peony]

I think this is really exciting. There are so many great schools in the SUNY system, including SUNY New Paltz, which is local to me. And we have a fabulous community college -- SUNY Ulster.  So great to see my son's lower-income friends have easier access to college! Very happy to see my tax dollars at work in this way.

[Pigeon]

It will be interesting to watch.  I think the SUNY schools are a very good value. I've got one kid at Geneseo and another in high school who is considering several SUNY schools.

The way this was done is weird.  It isn't phased in, in that the AGI is a go/no-go for the free tuition.  The AGI amount is phased in from $100K this fall, $110K the year after and $125K thereafter.

This won't help us for the older student.  It might for a couple of years for the younger one, if I can make it fly.  An elderly relative recently died and left us some money, although it hasn't been distributed yet.  I'm in a situation where we could possibly defer a very large amount of income (for us) because we both are eligible for a 403(b) and I am also eligible for a 457(b) and we are over 50.  I'm trying to figure out now if we could defer enough to get us under the $125K AGI limit for my younger daughter's last two years. 

[h82goslw]

It will be interesting to watch.  I think the SUNY schools are a very good value. I've got one kid at Geneseo and another in high school who is considering several SUNY schools.

The way this was done is weird.  It isn't phased in, in that the AGI is a go/no-go for the free tuition.  The AGI amount is phased in from $100K this fall, $110K the year after and $125K thereafter.

This won't help us for the older student.  It might for a couple of years for the younger one, if I can make it fly.  An elderly relative recently died and left us some money, although it hasn't been distributed yet.  I'm in a situation where we could possibly defer a very large amount of income (for us) because we both are eligible for a 403(b) and I am also eligible for a 457(b) and we are over 50.  I'm trying to figure out now if we could defer enough to get us under the $125K AGI limit for my younger daughter's last two years.

Don't forget to max out your HSA to reduce AGI.

The only other issue with this program is the residency requirement.    4 year requirement to stay in state after graduation.  Not sure how that would work when student decides to attend grad school immediately after. 

[Pigeon]

I'm not eligible for an HSA.

I agree it will be interesting to see how the residency requirement will play out.  For my younger child, it shouldn't be an issue as I doubt she will need to go to grad school, and if she does, she could easily stay in state.  But for people who want to be doctors or dentists, etc., they may have no choice but to go out of state, which kind of sucks.

[Proud Foot]

With regards to the residency issue:

The requirement may be deferred if recipients leave the state to complete their undergraduate education, to enroll in graduate school or because of "extreme hardship.

So it is completely possible to go out of state for medical or dental school and then return to NY upon completion to fulfill the residency requirements.

I honestly do not see the residency requirement as an issue, particularly as it is New York.  It would be harder to accept if this was implemented somewhere like Montana or Wyoming where there is less of a job market.

[Pigeon]

I had missed the part about graduate school.  That makes good sense. 

I was just wondering because a lot of applicants apply to lots of programs and only get into one med school or dental school, etc. and have to attend wherever they are accepted.  I don't have a problem with it either.  If you don't want to stay in NY, don't take the money.  I'd feel the same for any state implementing a program like this.

[Drifterrider]

Has anyone determined who is going to "pay" for all this "free" stuff?

[bacchi]

Has anyone determined who is going to "pay" for all this "free" stuff?

Golly! I bet New York's state accountants forgot about that!

[Huskie87]

Colleges are so wasteful already, this will only make them worse.  So when a school wants to build a new football stadium because the one they built 10 years ago isn't cool enough...who do they talk to?  Just raise 'tuition' and accept 1,000 more kids than the year before...wow, look at all that new money coming in.

Yeah...this will end well.

[h82goslw]

Has anyone determined who is going to "pay" for all this "free" stuff?

Golly! I bet New York's state accountants forgot about that!

No they didn't forget. They know they can just raise taxes to pay for it.  The "Millonaires tax" was extended so that more than pays for it.