Bill Text: NY A05248 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to the get on your feet loan forgiveness program; provides that an applicant may be eligible for such program if they are currently employed at a program or service that is regulated, operated, funded or approved by the department of mental hygiene.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to higher education [A05248 Detail]

Download: New_York-2021-A05248-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5248

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 12, 2021
                                       ___________

        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Higher Education

        AN ACT to amend the education law, in relation to the get on  your  feet
          loan forgiveness program

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

     1    Section 1. Section 679-g of the education law, as added by  section  1
     2  of  part  C  of  chapter  56  of the laws of 2015, is amended to read as
     3  follows:
     4    § 679-g. New York state get on your feet loan forgiveness program.  1.
     5  Purpose.  The  president shall grant student loan forgiveness awards for
     6  the purpose of alleviating the burden of federal student loan  debt  for
     7  recent New York state college graduates.
     8    2.  Eligibility. To be eligible for an award pursuant to this section,
     9  an applicant shall: (a) have graduated from a high school located in New
    10  York state or attended an approved New York state program  for  a  state
    11  high school equivalency diploma and received such high school equivalen-
    12  cy diploma; (b) have graduated and obtained an undergraduate or graduate
    13  degree from a college or university with its headquarters located in New
    14  York state in or after the two thousand fourteen--fifteen academic year;
    15  (c)  apply  for this program within two years of obtaining [such] either
    16  an associates, undergraduate or graduate degree; (d) be a participant in
    17  a federal income-driven repayment plan whose payment amount is generally
    18  ten percent of discretionary  income;  (e)  have  income  of  less  than
    19  [fifty]  sixty  thousand dollars; (f) comply with subdivisions three and
    20  five of section six hundred sixty-one of this part; [and]  (g)  work  in
    21  New  York  state, if employed[.]; and (h) may be currently employed at a
    22  program or service that is regulated, operated, funded  or  approved  by
    23  the  department  of  mental  hygiene.  Further, for applicants currently
    24  employed at a program or service that is regulated, operated, funded  or
    25  approved by the department of mental hygiene such applicants shall agree
    26  to work on at least a part-time basis for the thirty-six month period of
    27  the repayment period of their income-driven repayment plan under federal
    28  law  and maintain residency in New York state for such period of employ-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02765-01-1

        A. 5248                             2

     1  ment. For purposes of this program, "income" shall be the total adjusted
     2  gross income of the applicant and the applicant's spouse, if applicable.
     3    3.  Awards.  (a)  An  applicant whose annual income is less than fifty
     4  thousand dollars shall be eligible to receive  an  award  equal  to  one
     5  hundred  percent  of  his or her monthly federal income-driven repayment
     6  plan payments for twenty-four months  of  repayment  under  the  federal
     7  program.   Provided, however, that the awards granted under this section
     8  shall be deferred for a recipient who has been granted  a  deferment  or
     9  forbearance   under  the  federal  income-driven  repayment  plan.  Upon
    10  completion of such deferment or forbearance period, such recipient shall
    11  be eligible to receive an award for the remaining time period under this
    12  subdivision. A recipient who is not a resident of New York state at  the
    13  time  any payment is made under this program shall be required to refund
    14  such payments to the state.  The  corporation  shall  be  authorized  to
    15  recover  such  payments in accordance with rules and regulations promul-
    16  gated by the corporation. A student who is delinquent or in default on a
    17  student loan made under any statutory New York state or  federal  educa-
    18  tion  loan  program  or has failed to comply with the terms of a service
    19  condition imposed by an award made  pursuant  to  this  article  or  has
    20  failed  to  repay an award shall be ineligible to receive an award under
    21  this program until such delinquency, default or failure is cured.
    22    (b) An applicant whose annual  income  is  less  than  sixty  thousand
    23  dollars  and  currently  employed  at a program or service that is regu-
    24  lated, operated, funded or approved by the department of mental  hygiene
    25  shall  be  eligible  to receive an award equal to one hundred percent of
    26  his or her monthly federal income-driven  repayment  plan  payments  for
    27  thirty-six  months  of  the  repayment period under the federal program.
    28  Provided, however, that the awards granted under this section  shall  be
    29  deferred for a recipient who has been granted a deferment or forbearance
    30  under  the federal income-driven repayment plan. Upon completion of such
    31  deferment or forbearance period, such recipient  shall  be  eligible  to
    32  receive an award for the remaining time period under this subdivision. A
    33  recipient  who  is  not  a  resident  of  New York state at the time any
    34  payment is made under this program shall  be  required  to  refund  such
    35  payments  to  the  state. The corporation shall be authorized to recover
    36  such payments in accordance with rules and  regulations  promulgated  by
    37  the  corporation. A student who is delinquent or in default on a student
    38  loan made under any statutory New York state or federal  education  loan
    39  program  or  has  failed to comply with the terms of a service condition
    40  imposed by an award made pursuant to this article or has failed to repay
    41  an award shall be ineligible to receive  an  award  under  this  program
    42  until such delinquency, default or failure is cured.
    43    4.  Rules and regulations. The corporation is authorized to promulgate
    44  rules and regulations, and may promulgate emergency  regulations  neces-
    45  sary  for  the implementation of the provisions of this section, includ-
    46  ing, but not limited to, limits on the award amounts to those applicants
    47  currently employed at a program or service that is regulated,  operated,
    48  funded  or  approved  by the department of mental hygiene based upon the
    49  applicants  attainment  of  either  an  associate's  degree,  bachelor's
    50  degree,  or  graduate  degree and a method of selecting recipients if in
    51  any given year there are insufficient funds to cover the needs of appli-
    52  cants currently employed at a program  or  service  that  is  regulated,
    53  operated,  funded  or  approved  by the department of mental hygiene and
    54  already employed recipients.
    55    § 2. This act shall take effect immediately.
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