New York City Introduces Student Loan Counseling Program to Aid Borrowers Struggling with Debt

New York City’s recent Council meeting highlighted the urgent need to assist borrowers in managing their student loan debt through the introduction of a new counseling program. Spearheaded by Council Member Harvey Epstein, the proposed legislation, Intro 177, aims to enhance consumer protections by providing tailored guidance on navigating federal and state student loan forgiveness options. As New Yorkers grapple with nearly $2 billion in student loan debt, this initiative seeks to empower individuals with the necessary information to avoid default and improve financial stability.

# What’s happening
– Intro 177 establishes a student loan counseling program.
– Council Member Harvey Epstein sponsors the bill through the Department of Consumer and Worker Protection.
– The program will take effect upon passage and signing into law.

# Why it matters
– The program will support approximately 2.4 million student loan borrowers in NYC.
– It aims to reduce financial distress and the risk of default among borrowers.

# Key details
– The NYC Council meeting took place on March 26, 2026.
– The proposed counseling program is part of the Department of Consumer and Worker Protection’s services.
– NYC borrowers collectively owe nearly $100 million in student loans.
– Approximately 25% of borrowers are at risk of defaulting on their loans.
– The counseling program focuses on individualized advice for loan forgiveness options.

The discussion during the meeting underscored the critical financial challenges faced by student loan borrowers in New York City. Council Member Epstein emphasized that the average borrower owes around $40,000, and one in six residents carries student debt (Source: https://youtu.be/UDv95rhn3lY&t=3057). As national policies shift and repayment options become more limited, many borrowers find themselves confused and vulnerable to misinformation (Source: https://youtu.be/TZPg3fz5e2A&t=7109).

The proposed Intro 177 would enhance existing services the Department of Consumer and Worker Protection (DCWP) offers, specifically aiming to provide one-on-one counseling in public service loan forgiveness and income-driven repayment plans. The initiative aligns with the Council’s ongoing efforts to address affordability issues among New Yorkers grappling with financial burdens (Source: https://youtu.be/UDv95rhn3lY&t=2633).

**[Department of Consumer and Worker Protection (DCWP)]**
– Responsible for enforcing consumer protection laws in NYC.
– Aims to provide support for vulnerable populations, including student loan borrowers.
– Oversees programs related to financial education and counseling.

The urgency of this legislative initiative stems from testimony highlighting that many student loan borrowers remain unaware of available resources, which are vital to reducing the risk of default. Ensuring effective outreach and guidance through the proposed counseling program is seen as essential to support New Yorkers in achieving long-term financial health (Source: https://youtu.be/TZPg3fz5e2A&t=4330). As the City Council moves to advance this legislation, it is expected that the counseling program will significantly aid those struggling with student debt in navigating available options.