Bill Text: NY A04515 | 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 8-0)

Status: (Introduced) 2024-07-15 - enacting clause stricken [A04515 Detail]

Download: New_York-2023-A04515-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4515--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 16, 2023
                                       ___________

        Introduced  by  M.  of A. ZEBROWSKI, JEAN-PIERRE, GUNTHER, SIMON, VANEL,
          EACHUS -- Multi-Sponsored by -- M. of A. COOK, LUPARDO  --  read  once
          and referred to the Committee on Banks -- recommitted to the Committee
          on  Banks  in  accordance  with  Assembly  Rule 3, sec. 2 -- 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04743-03-4
        A. 4515--A                          2

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