senate Bill S4598

2013-2014 Legislative Session

Relates to the truth in lending clearinghouse program and the student lending transparency program

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 26, 2014 reported and committed to finance
Jan 08, 2014 referred to banks
returned to senate
died in assembly
Jun 17, 2013 referred to banks
delivered to assembly
passed senate
ordered to third reading cal.1383
committee discharged and committed to rules
Apr 23, 2013 reported and committed to higher education
Apr 12, 2013 referred to banks

Votes

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Mar 26, 2014 - Banks committee Vote

S4598
19
0
committee
19
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

Jun 17, 2013 - Rules committee Vote

S4598
24
0
committee
24
Aye
0
Nay
0
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Rules committee vote details

Apr 24, 2013 - Banks committee Vote

S4598
19
0
committee
19
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

S4598 - Bill Details

Current Committee:
Law Section:
Financial Services Law
Laws Affected:
Amd §301, add Art 6 §§601 - 603, Fin Serv L; amd §655, add Art 14-B §§697 - 699, Ed L

S4598 - Bill Texts

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Relates to the truth in lending clearinghouse program and the student lending transparency program.

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BILL NUMBER:S4598

TITLE OF BILL: 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

PURPOSE: To establish the Student Lending Transparency Program to
require the Department of Financial Services to compile data on
student loans and make certain information available to the public.

SUMMARY OF PROVISIONS:

Section 1. Amends paragraphs 6 and 7 of subsection (c) of section 301
of the financial services law to authorize the Superintendent to
establish and administer the "Student Lending Transparency Program.

Section 2. Amends the financial services law to create a new article 6
to establish the student lending transparency program.

Section 3. Amends section 655 of the education law to add a new
subdivision 13 to create a link on the Higher Education Services
Corporation's website to the Department of Financial Services'
website.

Section 4. Amends the education law to add a new article 14-b to
establish the student lending transparency program to ensure that
colleges provide the most accurate and transparent information with
regard to student loans.

Section 5. Sets forth the effective date.

JUSTIFICATION: This bill would add a new article 6 to the financial
services law, and a new article 14-b to the education law, to
establish a Student Lending Transparency Program. Pursuant to this
program, the Department of Financial Services would be required to
compile data on student loans for the purpose of comparing loan rates
and repayment plans. The superintendent would be required to take such
data and create a list of private lenders who provide the best loan
rates and repayment options on student loans and place such list on an
easily accessible website with links to the Higher Education Services
Corporation's website as well as the websites of other colleges and
universities. The list and the website maintained by the department
would be updated monthly.

Additionally, colleges and universities would be required to provide
prospective and newly enrolled students with clearly outlined and easy
to understand information pertaining to the total cost of attendance
at their institution. Such information would include the total amount
of debt the student would incur and the approximate monthly bill the
student would be required to pay upon graduation.

LEGISLATIVE HISTORY: This bill was included as part C of the college
affordability package, S.7449A of 2012.

FISCAL IMPLICATIONS: None.


EFFECTIVE DATE: This act shall take effect on the 180th day after it
shall have become law.

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                    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.

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