Nearly three million New Yorkers currently owe more than $86 billion in student loans. 

Today the State Assembly held a hearing to see if legislative action is needed to tackle the rising debt problem. 

NewsChannel 34’s Morgan McKay explains how it’s affecting our economy. 

Seth: There is no white knight riding in to save New Yorkers

Seth Frotman is a former student loan ombudsman who resigned from his federal position a few months ago in protest of the White House’s stance on student loan debt. Frotman came before two Assembly committees today to say that rising student loan debt is a national crisis that needs to be addressed. 

Frotman: New Yorkers are hurting. The student loan borrowers in this state are teachers, nurses, service members and veterans, young and old, urban and rural and black and white

Americans owe more than 1.5 trillion dollars in student loan debt. This is more than all credit cards combined or auto loans combined. And out of those 8 and a half million borrowers are in default and can’t make payments. And this is starting to take its toll on the economy.

Ken: It prevents them from getting into housing, to rent apartments, to buy a first home and to be able to participate in our modern economy without having this enormous burden.

Assembly members today pointed to a lack of inaction on the federal side, as a reason to come together  to talk about legislative ways they can combat student debt. For example, much of the discussion was over ways the state can have more oversight on the student loan industry, to make sure no mistakes are made and to make it easier if students have questions about the process. 

Maria: Services often forget to correctly apply or allocate payments to borrowers accounts which of course is the most fundamental task of the servicer

Any action would have to be taken up this next legislative year. 

Reporting from the Capitol I’m Morgan Mckay.