Bill Text: NY S04652 | 2019-2020 | General Assembly | Introduced

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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 2-0)

Status: (Engrossed - Dead) 2020-07-22 - referred to banks [S04652 Detail]

Download: New_York-2019-S04652-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4652
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 19, 2019
                                       ___________
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks
        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 a  standard  ten  year  repayment  term  and
    20  assumed interest rate on the current amount of outstanding loans includ-
    21  ing  total  expected  payoff amount inclusive of principal and interest,
    22  and expected monthly payment, and (f) any other  information  as  deter-
    23  mined  by  the  superintendent  in consultation with the president. Such
    24  standard letter shall include a glossary of  standard  terms  and  defi-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01463-01-9
        S. 4652                             2
     1  nitions  used  on such standard letter. The superintendent shall publish
     2  and make available such standard letter by  December  thirty-first,  two
     3  thousand  fifteen  and thereafter. Each college, vocational institution,
     4  and  any other institution that offers an approved program as defined in
     5  section six hundred one of the education law shall utilize the  standard
     6  letter  issued  by the department of financial services in responding to
     7  all  undergraduate  financial  aid  applicants  for  the  two   thousand
     8  sixteen--two thousand seventeen academic year and thereafter. The super-
     9  intendent shall promulgate regulations implementing this section.
    10    § 2. This act shall take effect immediately.