Bill Text: NY S01137 | 2023-2024 | General Assembly | Amended

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Bill Title: Relates to including information concerning repayment of outstanding loans in the standard financial aid award letter.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed) 2024-03-20 - referred to banks [S01137 Detail]

Download: New_York-2023-S01137-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         1137--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 10, 2023
                                       ___________

        Introduced by Sens. SANDERS, LIU, MANNION, MAY -- read twice and ordered
          printed, and when printed to be committed to the Committee on Banks --
          recommitted  to  the Committee on Banks in accordance with Senate Rule
          6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
          amended and recommitted to said committee

        AN  ACT  to  amend the banking law, in relation to including information
          concerning repayment of outstanding loans in  the  standard  financial
          aid award letter

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 9-w of the banking law, as amended by section 1  of
     2  part  CC  of  chapter  54  of  the  laws  of 2016, is amended to read as
     3  follows:
     4    § 9-w. Standard financial aid award  letter.  The  superintendent  [of
     5  financial  services]  in  consultation  with the president of the higher
     6  education services corporation shall develop a  standard  financial  aid
     7  award  letter  which  shall  clearly delineate (a) the estimated cost of
     8  attendance, including but not limited to, the cost of tuition and  fees,
     9  room  and  board,  books, and transportation. Such standard letter shall
    10  provide the estimated cost of attendance for the current  academic  year
    11  as  well as estimates for each academic year that the student would need
    12  to attend to earn a degree at such institution with  a  disclaimer  that
    13  the  cost  of  attendance for years other than the current academic year
    14  are estimates and may be  subject  to  change,  (b)  all  financial  aid
    15  offered from the federal government, the state, and the institution with
    16  an  explanation  as  to which components will require repayment, (c) any
    17  expected student and/or family contribution, (d) campus-specific  gradu-
    18  ation, median borrowing, and loan default rates, [and] (e) the estimated
    19  loan  repayment  impact  using actual terms, expected repayment schedule
    20  and payoff amounts or, where such information is not available or  fixed
    21  in  the  loan  agreement, a standard ten year repayment term and assumed

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04743-02-4
        S. 1137--A                          2

     1  interest rate on the current amount of outstanding loans including total
     2  expected payoff amount inclusive of principal and interest, and expected
     3  monthly payment, and (f) any other  information  as  determined  by  the
     4  superintendent  in consultation with the president. Such standard letter
     5  shall include a glossary of standard terms and definitions used on  such
     6  standard  letter.  The  superintendent  shall publish and make available
     7  such standard letter by December thirty-first, two thousand fifteen  and
     8  thereafter. Each college, vocational institution, and any other institu-
     9  tion  that  offers an approved program as defined in section six hundred
    10  one of the education law shall utilize the standard letter issued by the
    11  department of financial services  in  responding  to  all  undergraduate
    12  financial  aid  applicants  for  the  two thousand sixteen--two thousand
    13  seventeen academic year and thereafter. The superintendent shall promul-
    14  gate regulations implementing this section.
    15    § 2. This act shall take effect immediately.