New York Will Offer Free College Tuition -- With a Caveat

In what proponents are calling a historic move, New York Governor Andrew Cuomo and state legislative leaders announced a deal Saturday that will make tuition free at the City University of New York and State University of New York Systems -- for both community colleges and four-year colleges and universities -- for families with annual incomes up to $125,000. The plan will be phased in over three years, starting this fall with new enrollees from families with incomes up to $100,000.

The governor's office estimates that nearly 940,000 families in New York State will be eligible for free public college tuition when the plan is fully phased in.

The announcement from the governor also noted a "generous maintenance of effort" provision to protect SUNY and CUNY budgets. The provision is designed to address the fear of some educators that free tuition could reduce the pressure to provide adequate budgets to public higher education.

At the same time, a last-minute addition to the bill is alarming some student aid experts, including advocates for free public college tuition. The agreement requires those who receive free tuition to live and work in the state for the same number of years that they receive the awards. If they do not, the scholarships would convert to student loans. 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."