Bill Text: NY A03498 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes the New York state higher education debt consolidation and refinancing program.

Spectrum: Moderate Partisan Bill (Democrat 32-5)

Status: (Introduced - Dead) 2018-01-03 - referred to higher education [A03498 Detail]

Download: New_York-2017-A03498-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3498
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 27, 2017
                                       ___________
        Introduced  by  M.  of  A.  CRESPO,  SEPULVEDA, PICHARDO, RAMOS, RIVERA,
          ARROYO, DILAN, RODRIGUEZ, MOYA, DE LA ROSA -- read once  and  referred
          to the Committee on Higher Education
        AN  ACT  to amend the education law, in relation to establishing the New
          York state higher education debt consolidation and refinancing program
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Article 14 of the education law is amended by adding a new
     2  part VI to read as follows:
     3                                   PART VI
     4           NEW YORK STATE HIGHER EDUCATION DEBT CONSOLIDATION AND
     5                             REFINANCING PROGRAM
     6  Section 694-j. New York state higher education  debt  consolidation  and
     7                   refinancing program.
     8    §  694-j. New York state higher education debt consolidation and refi-
     9  nancing program. 1.  The corporation shall have the authority  to  issue
    10  up  to  five  hundred million dollars in bonds, to consolidate and refi-
    11  nance the education loans of eligible  borrowers  at  a  lower  interest
    12  rate,  provided, however if the corporation determines it needs to issue
    13  more than five hundred million dollars in bonds to operate  the  program
    14  effectively,  the  corporation  shall  make the determination by January
    15  fifteen of the year subsequent to when the program goes into effect.
    16    2. The corporation shall consolidate and refinance the education loans
    17  of eligible borrowers and interest shall accrue upon  all  student  loan
    18  payments  made  by  eligible  borrowers to the corporation at a rate per
    19  annum that is equal to or less than 5.5%. Interest shall accrue from the
    20  time the eligible borrower commences repayment under this  section,  and
    21  shall  accrue only during the period over which the eligible borrower is
    22  required to make such repayment.
    23    3. Should an eligible borrower fail to pay to the division any amounts
    24  owed under this section within thirty days of the due date,  the  corpo-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08267-01-7
        A. 3498                             2
     1  ration  shall  review the eligible borrower's financial circumstances in
     2  order to determine whether the delinquency is a result of  a  change  in
     3  the eligible borrower's financial circumstances. If such a determination
     4  is  made,  the  corporation  may modify the eligible borrower's required
     5  payments. If failure to pay is not determined to be due  to  a  material
     6  deterioration  in  the  eligible borrower's financial circumstances, the
     7  corporation shall terminate and  take  any  legal  action  necessary  to
     8  enforce the terms of the loan.
     9    4.  The  program's operating and administrative costs shall be covered
    10  by the fees charged to apply for the refinancing and the  interest  rate
    11  surcharge.
    12    5. The corporation shall submit an annual report on the program to the
    13  governor  and  the  legislature and the report shall be published on the
    14  corporation's website. The report shall include but not  be  limited  to
    15  the following:
    16    (a) The amount of bonds floated to cover the student debt refinancing;
    17    (b) The number of loans refinanced;
    18    (c) The breakdown of the refinancing rates charged to refinance;
    19    (d) The gender, race and ethnicity of the person refinancing;
    20    (e) The total debt load refinanced by each racial or ethnic group; and
    21    (f)  The  total  administrative  costs  for  operating the refinancing
    22  program and the projected total refinancing costs incurred till debt  is
    23  paid for each racial and ethnic group.
    24    6.  The  corporation is authorized to promulgate rules and regulations
    25  necessary for the implementation of the provisions of this section.
    26    7. Under this section "eligible borrower" and "education  loan"  shall
    27  mean as defined under section six hundred ninety of this article.
    28    § 2. This act shall take effect on the one hundred twentieth day after
    29  it shall have become a law.