Bill Text: NY A05280 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Strong Partisan Bill (Democrat 35-3)

Status: (Introduced - Dead) 2020-07-06 - enacting clause stricken [A05280 Detail]

Download: New_York-2019-A05280-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5280
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 8, 2019
                                       ___________
        Introduced  by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. ARROYO,
          BARNWELL, BICHOTTE, BLAKE, BLANKENBUSH,  CAHILL,  COLTON,  CYMBROWITZ,
          DE LA ROSA,  DILAN,  ENGLEBRIGHT,  FINCH,  GOTTFRIED, GUNTHER, JOYNER,
          LAVINE,  LIFTON,  McDONOUGH,  M. G. MILLER,  MOSLEY,   PEOPLES-STOKES,
          PICHARDO,  PRETLOW, RAMOS, RIVERA, RODRIGUEZ, SIMON, THIELE, WILLIAMS,
          ZEBROWSKI -- read once and referred to the Committee on Higher  Educa-
          tion
        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 6 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08864-01-9
        A. 5280                             2
     1  shall  accrue only during the period over which the eligible borrower is
     2  required to make such repayment.
     3    3. Should an eligible borrower fail to pay to the division any amounts
     4  owed  under  this section within thirty days of the due date, the corpo-
     5  ration shall review the eligible borrower's financial  circumstances  in
     6  order  to  determine  whether the delinquency is a result of a change in
     7  the eligible borrower's financial circumstances. If such a determination
     8  is made, the corporation may modify  the  eligible  borrower's  required
     9  payments.  If  failure  to pay is not determined to be due to a material
    10  deterioration in the eligible borrower's  financial  circumstances,  the
    11  corporation  shall  terminate  and  take  any  legal action necessary to
    12  enforce the terms of the loan.
    13    4. The program's operating and administrative costs shall  be  covered
    14  by  the  fees charged to apply for the refinancing and the interest rate
    15  surcharge.
    16    5. The corporation shall submit an annual report on the program to the
    17  governor and the legislature and the report shall be  published  on  the
    18  corporation's  website.  The  report shall include but not be limited to
    19  the following:
    20    (a) The amount of bonds floated to cover the student debt refinancing;
    21    (b) The number of loans refinanced;
    22    (c) The breakdown of the refinancing rates charged to refinance;
    23    (d) The gender, race and ethnicity of the person refinancing;
    24    (e) The total debt load refinanced by each racial or ethnic group; and
    25    (f) The total  administrative  costs  for  operating  the  refinancing
    26  program  and the projected total refinancing costs incurred till debt is
    27  paid for each racial and ethnic group.
    28    6. The corporation is authorized to promulgate rules  and  regulations
    29  necessary for the implementation of the provisions of this section.
    30    7.  Under  this section "eligible borrower" and "education loan" shall
    31  mean as defined under section six hundred ninety of this article.
    32    § 2. This act shall take effect on the one hundred twentieth day after
    33  it shall have become a law.