S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4598

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 12, 2013
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the financial services law, in relation to the truth  in
  student  lending  clearinghouse  program;  and  to amend the financial
  services law and the education law, in relation to the student lending
  transparency program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraphs 6 and 7 of subsection (c) of section 301 of the
financial services law are amended and a new paragraph  8  is  added  to
read as follows:
  (6)  providing  technical assistance to local governments and not-for-
profits in the development of consumer protection measures with  respect
to financial products and services; [and]
  (7)   continuing   and  expanding  the  detection,  investigation  and
prevention of insurance fraud[.]; AND
  (8) ESTABLISHING AND ADMINISTERING THE "STUDENT  LENDING  TRANSPARENCY
PROGRAM" PURSUANT TO ARTICLE SIX OF THIS CHAPTER.
  S  2.  The financial services law is amended by adding a new article 6
to read as follows:
                                ARTICLE 6
                  STUDENT LENDING TRANSPARENCY PROGRAM
SECTION 601. DEFINITIONS.
        602. STUDENT LENDING TRANSPARENCY PROGRAM.
        603. RULES AND REGULATIONS.
  S 601. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS WHEN USED IN THIS ARTICLE:
  A. "PRIVATE STUDENT LOANS" SHALL MEAN  A  PRIVATE  LOAN  ISSUED  BY  A
PRIVATE  LENDING INSTITUTION FOR THE PURPOSES OF PAYING FOR OR FINANCING
HIGHER EDUCATION EXPENSES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09564-01-3

              

S. 4598                             2

  B. "PRIVATE LENDING INSTITUTIONS" OR "PRIVATE LENDERS" SHALL MEAN  ANY
PRIVATE  ENTITY  THAT  ITSELF  OR  THROUGH  AN AFFILIATE MAKES AVAILABLE
STUDENT LOANS TO PAY FOR OR FINANCE HIGHER EDUCATION EXPENSES.
  C. "STUDENT BORROWER" SHALL MEAN ANY INDIVIDUAL WHO BORROWS MONEY FROM
A PRIVATE LENDING INSTITUTION TO FINANCE HIGHER EDUCATION EXPENSES.
  D. "HIGHER EDUCATION EXPENSES" SHALL INCLUDE THE FOLLOWING:
  (I) TUITION AND FEES;
  (II) BOOKS AND SUPPLIES; AND
  (III) ROOM AND BOARD.
  S  602.  STUDENT  LENDING  TRANSPARENCY PROGRAM. 1. THE SUPERINTENDENT
SHALL ESTABLISH A PROGRAM TO COMPILE DATA  RELATED  TO  PRIVATE  STUDENT
LOANS FOR THE PURPOSE OF COMPARING PRIVATE LENDING INSTITUTION'S STUDENT
LOAN  INTEREST RATES AND REPAYMENT PLANS, INCLUDING POLICIES RELATING TO
DEFERMENT AND FORBEARANCE, DEFAULT POLICIES AND PENALTIES, AND ANY OTHER
INFORMATION THAT THE SUPERINTENDENT DEEMS RELEVANT FOR  THE  PURPOSE  OF
CREATING A LIST OF PRIVATE LENDERS WHO PROVIDE THE LOWEST RATES AND BEST
REPAYMENT OPTIONS ON STUDENT LOANS. SUCH LIST SHALL BE CREATED AND MAIN-
TAINED  BY  THE SUPERINTENDENT OR HIS DESIGNEE AND SHALL BE PLACED ON AN
EASILY ACCESSIBLE WEBSITE THAT SHALL BE MADE AVAILABLE TO BE  LINKED  TO
THE  WEBSITE  OF  THE  HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO
SUBDIVISION THIRTEEN OF SECTION SIX HUNDRED FIFTY-FIVE OF THE  EDUCATION
LAW  AND TO COLLEGES AND UNIVERSITIES WEBSITES PURSUANT TO ARTICLE FOUR-
TEEN-B OF THE EDUCATION LAW.
  2. SUCH WEBSITE SHALL BE UPDATED ON A MONTHLY BASIS TO ENSURE THAT THE
STUDENT LOAN INFORMATION IS CURRENT AND ACCURATE. THE SUPERINTENDENT  OR
HIS  OR  HER  DESIGNEE  SHALL COMPILE A LIST OF THE TOP TEN BEST PRIVATE
LENDING INSTITUTIONS BASED UPON RATES AND POLICIES THAT ARE MOST FAVORA-
BLE TO THE STUDENT BORROWER. THE SUPERINTENDENT MAY  ALSO  CONSIDER  THE
PRIVATE LENDING INSTITUTIONS POLICIES FOR ALLOWING A STUDENT BORROWER TO
BORROW  MORE THAN TEN PERCENT OVER SUCH STUDENT BORROWER'S TOTAL COST OF
HIGHER EDUCATION EXPENSES WHEN DETERMINING IF A PRIVATE LENDING INSTITU-
TION SHOULD BE PLACED ON SUCH LIST. INFORMATION  PERTAINING  TO  LENDING
INSTITUTIONS  THAT  DO NOT MAKE THE TOP TEN LIST SHALL ALSO BE POSTED ON
SUCH WEBSITE AND THOSE LENDING INSTITUTIONS THAT PROVIDE THE WORST RATES
AND STRICTEST REPAYMENT OPTIONS SHALL BE CLEARLY INDICATED.
  S 603. RULES AND REGULATIONS. THE SUPERINTENDENT SHALL PROMULGATE  ALL
RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS ARTICLE.
  S  3.  Section  655  of  the  education law is amended by adding a new
subdivision 13 to read as follows:
  13. TO CREATE A LINK ON THE CORPORATION'S WEBSITE TO THE DEPARTMENT OF
FINANCIAL SERVICES WEBSITE PURSUANT TO SUBDIVISION ONE  OF  SECTION  SIX
HUNDRED TWO OF THE FINANCIAL SERVICES LAW.
  S 4. The education law is amended by adding a new article 14-B to read
as follows:
                              ARTICLE 14-B
                  STUDENT LENDING TRANSPARENCY PROGRAM
SECTION 697. CREATION OF PROGRAM.
        698. ACCESS TO INFORMATION.
        699. LINKS TO DEPARTMENT OF FINANCIAL SERVICES.
  S  697.  CREATION OF PROGRAM. THE STUDENT LENDING TRANSPARENCY PROGRAM
IS HEREBY ESTABLISHED TO ENSURE THAT NEW YORK STATE COLLEGES PROVIDE THE
MOST ACCURATE AND TRANSPARENT INFORMATION WITH REGARD TO STUDENT LOANS.
  S 698. ACCESS TO INFORMATION. NOTWITHSTANDING ANY OTHER LAW,  RULE  OR
REGULATION  TO  THE  CONTRARY,  NEW  YORK  STATE  COLLEGES AS DEFINED IN
SECTION SIX HUNDRED ONE OF ARTICLE THIRTEEN OF THE EDUCATION LAW,  SHALL
BE  REQUIRED  THROUGH THEIR FINANCIAL AID OFFICES TO PROVIDE TO PROSPEC-

S. 4598                             3

TIVE OR NEWLY ACCEPTED STUDENTS AND PARENTS CLEARLY OUTLINED AND EASY TO
UNDERSTAND INFORMATION PERTAINING TO THE TOTAL  COST  OF  ATTENDANCE  AT
THEIR  INSTITUTION,  THE APPROXIMATE OR ACTUAL TOTAL AMOUNT OF FINANCIAL
AID  THEY  WOULD  RECEIVE  FROM  SUCH INSTITUTION AND THE APPROXIMATE OR
ACTUAL TOTAL AMOUNT OF STUDENT LOAN DEBT THEY WOULD ACCUMULATE OVER  THE
COURSE  OF  FOUR  YEARS  IF  THEY ATTENDED SUCH COLLEGE. THE INFORMATION
PROVIDED MUST ALSO INCLUDE STUDENT LOAN RATES, INFORMATION ON  REPAYMENT
PLANS  AND  DEFAULT  RATES  AND  THE  ACTUAL COST OF THE AVERAGE MONTHLY
PAYMENT THAT WOULD BE REQUIRED UPON GRADUATION  WHEN  SUCH  LOANS  WOULD
BECOME DUE.
  S  699.  LINKS  TO  DEPARTMENT  OF  FINANCIAL SERVICES. NEW YORK STATE
COLLEGES THAT  MAINTAIN  AN  OFFICIAL  COLLEGE  WEBSITE  SHALL  ALSO  BE
REQUIRED  TO  ADD  A LINK ON EACH OF THEIR WEBSITES TO THE DEPARTMENT OF
FINANCIAL SERVICES  WEBSITE  ON  STUDENT  LENDING  TRANSPARENCY  CREATED
PURSUANT TO ARTICLE SIX OF THE FINANCIAL SERVICES LAW.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.