senate Bill S4575A

2013-2014 Legislative Session

Amends the student loan linked deposit act

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 24, 2014 print number 4575a
amend and recommit to higher education
Jan 08, 2014 referred to higher education
Apr 11, 2013 referred to higher education

S4575 - Details

Current Committee:
Law Section:
Education Law
Laws Affected:
Amd §680, Ed L; amd §98-a, add Art 15-A §§225 - 234-c, St Fin L

S4575 - Summary

Enacts the student loan linked deposit act.

S4575 - Sponsor Memo

S4575 - Bill Text download pdf

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

                                  4575

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 11, 2013
                               ___________

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

AN ACT to amend the education law and the state finance law, in relation
  to the student loan linked deposit act

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

  Section 1. Legislative findings and declaration of purpose. The legis-
lature  hereby  finds  that the costs of completing higher education for
residents of the state of New York are increasing at a rate significant-
ly faster than the rate of inflation. Paying out of  pocket  has  become
increasingly  difficult  for  families  and  students seeking to improve
their educational and economic prospects. An affordable  college  educa-
tion  has  become  increasingly  inaccessible to large numbers of middle
class families in the state, for  whom  financial  resources,  including
state  grants  and scholarships, are either limited or unavailable. Many
families and students have no choice but to turn to the private  lending
market in order to finance their higher education.
  Compounding  the  problem  is the fact that typical interest rates for
student loans offered through the private lending market are  relatively
high when compared to interest rates for other purposes, such as a mort-
gage  or  automobile.  Additionally,  the average student loan debt upon
graduation is more than $26,000 per student in the state.  Reducing  the
debt  burden  that  students endure upon graduating college has become a
critical public policy goal.
  As increasing the share of the state's population that undertakes  and
completes  higher  education is also a desirable public policy goal, and
an individual's decision to complete a program of  postsecondary  educa-
tion  typically reaps economic and social rewards to the individual, the
legislature hereby declares that it is in the best interest of the state
to create a student loan linked deposit program whereby the  state  will
subsidize private lenders to provide reduced-rate loans to students.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09566-01-3

S4575A (ACTIVE) - Details

Current Committee:
Law Section:
Education Law
Laws Affected:
Amd §680, Ed L; amd §98-a, add Art 15-A §§225 - 234-c, St Fin L

S4575A (ACTIVE) - Summary

Enacts the student loan linked deposit act.

S4575A (ACTIVE) - Sponsor Memo

S4575A (ACTIVE) - Bill Text download pdf

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

                                 4575--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 11, 2013
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Higher Education -- recom-
  mitted to the Committee on Higher Education in accordance with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the education law and the state finance law, in relation
  to the student loan linked deposit act

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

  Section 1. Legislative findings and declaration of purpose. The legis-
lature  hereby  finds  that the costs of completing higher education for
residents of the state of New York are increasing at a rate significant-
ly faster than the rate of inflation. Paying out of  pocket  has  become
increasingly  difficult  for  families  and  students seeking to improve
their educational and economic prospects. An affordable  college  educa-
tion  has  become  increasingly  inaccessible to large numbers of middle
class families in the state, for  whom  financial  resources,  including
state  grants  and scholarships, are either limited or unavailable. Many
families and students have no choice but to turn to the private  lending
market in order to finance their higher education.
  Compounding  the  problem  is the fact that typical interest rates for
student loans offered through the private lending market are  relatively
high when compared to interest rates for other purposes, such as a mort-
gage  or  automobile.  Additionally,  the average student loan debt upon
graduation is more than $26,000 per student in the state.  Reducing  the
debt  burden  that  students endure upon graduating college has become a
critical public policy goal.
  As increasing the share of the state's population that undertakes  and
completes  higher  education is also a desirable public policy goal, and
an individual's decision to complete a program of  postsecondary  educa-
tion  typically reaps economic and social rewards to the individual, the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09566-02-4

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