Senator Charles Schumer talked to students at Wagner College in Grymes Hill, Staten Island Friday about how they can save money.
Under the federal stimulus package, all families with an income of less than $180,000 will qualify for a $2,500 refundable tax credit for college or graduate school tuition.
The senator said education should be within reach for everyone.
"One of the great worries during the recession, with people losing their jobs and paychecks not stretching as far as they did, is that a lot of young people would either be forced to drop out of college or those who are applying to college would decide not to go, or not to go to the college they should go to based on their grades and extracurricular," said Schumer.
Schumer estimates this credit will help about 95 percent of families in New York.
The credit will go into effect later this year.