Thursday, October 1, 2026
For generations, the American dream has represented something tangible: the ability to build a stable life through hard work. But for millions in the United States who are burdened by student debt, the dream remains just that: a dream. Nowhere is that more evident than on Long Island, where the average resident carries more than $35,000 in student loan debt and the median home price has surpassed $750,000.
According to the Pew Research Center, one in four Americans under 40 has student debt. Between high interest rates and wages that haven’t kept pace with the cost of living, many borrowers spend decades trying to pay off an education that was supposed to create opportunity, not limit it.
Student debt makes the American dream unattainable, or, at best, greatly deferred. Gallup reports that 71 percent of student borrowers delay major life milestones — homeownership, parenthood, starting a business, retirement — because of their debt. On Long Island, those delays have a geographic consequence: 22 percent of residents between ages 25 and 34 have left the region over the past eight years. Student debt and housing costs are inseparable drivers of that exodus.
Recent federal policy changes are deepening the problem. The elimination of the Saving on a Valuable Education Plan will push millions into significantly higher monthly payments, a serious hardship for families already stretched thin. For many, even a modest increase in monthly loan obligations can push financial stability out of reach.
The answer is not to discourage higher education. A college degree remains one of the strongest predictors of lifetime earnings, and Georgetown University’s Center on Education and the Workforce projects that nearly 72 percent of jobs will require some form of postsecondary education by 2031. Low entry-level wages and high monthly loan payments, however, mean that too many Americans will face decades of financial strain.
We can’t keep asking young adults to choose between building a career and building a life.
That trade-off reshapes the labor market in ways that affect us all. Gallup reports that 51 percent of employees with student debt are seeking new employment, and more than half of job seekers say their loan obligations significantly influence which offers they’ll accept. New graduates feel compelled to chase the highest-paying jobs rather than the professions they’re best suited to, creating workforce shortages in the fields our communities need most.
For Long Island employers, student debt is both a challenge and an opportunity. One of the few constructive developments in federal legislation is the permanent extension of tax-free employer contributions to employee student loans. Employers can contribute up to $5,250 annually toward an employee’s student debt with no federal tax burden for either party. Employers of all sizes can implement this support quickly and cost-effectively, strengthening recruitment, retention, and the financial well-being of their workforce.
New York is positioned to build on that progress. Paidly, a platform that empowers employers, borrowers, students and their families to make education affordable, has been working with state legislators to allow tax-free payroll deductions for student loans and education savings plans. Combined with the existing federal benefit, New Yorkers could direct up to $8,750 annually in tax-advantaged student loan relief — a real and immediate impact for borrowers trying to pay down debt, save for a home or simply stay on Long Island.
These solutions are practical, affordable and achievable. Being highly educated and highly skilled should not come with a lifetime sentence of debt. And the 22-year-old who graduates from Hofstra or Stony Brook or Nassau Community College should be able to imagine a future here instead of being forced to leave the moment the loans come due.
New York has an opportunity to lead the nation in supporting our workers. By expanding tax-advantaged student loan assistance to the state level and encouraging employers to become part of the solution, we can restore financial stability for working families and make the American dream attainable for Long Islanders.
John Scully is the CEO of Paidly, and Samantha Park is the platform’s content specialist.
