S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7268
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 17, 2017
                                ___________
 
 Introduced  by  M.  of  A. CRESPO, SEPULVEDA, DE LA ROSA, ARROYO, RAMOS,
   RODRIGUEZ, RIVERA, PICHARDO, DAVILA, DILAN, ROZIC  --  read  once  and
   referred to the Committee on Higher Education
 
 AN ACT to amend the education law, in relation to refinancing undergrad-
   uate student loans; and making an appropriation therefor

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The education law is amended by adding a new section  683-c
 to read as follows:
   § 683-C. REFINANCE OF UNDERGRADUATE STUDENT LOANS. 1.  DEFINITIONS. AS
 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS: (A) "ELIGIBLE BORROWER" SHALL MEAN AN INDIVIDUAL WHO HAS SIGNED OR
 CO-SIGNED A LOAN FOR UNDERGRADUATE EDUCATION.
   (B)  "CORPORATION"  SHALL  BE  KNOWN  AS THE HIGHER EDUCATION SERVICES
 CORPORATION.
   (C) "DEGREE" SHALL MEAN THE GRANTING OF  A  POST-SECONDARY  DEGREE  OR
 DIPLOMA FROM A COLLEGE OR UNIVERSITY.
   (D) "UNDERGRADUATE STUDENT LOANS" SHALL MEAN ANY COMBINATION OF FEDER-
 AL  AND  PRIVATE  LOANS  USED  FOR THE PURPOSE OF AN ELIGIBLE BORROWER'S
 UNDERGRADUATE EDUCATION.
   2. REFINANCE OF  UNDERGRADUATE  STUDENT  LOANS  PROGRAM.  AN  ELIGIBLE
 BORROWER  SHALL  APPLY TO HAVE THEIR UNDERGRADUATE EDUCATION LOANS REFI-
 NANCED BY THE CORPORATION. THE MAXIMUM  AMOUNT  ALLOWED  PER  REFINANCED
 LOAN SHALL BE SEVENTY THOUSAND DOLLARS.
   3.  ELIGIBILITY.  AN  ELIGIBLE BORROWER SHALL INCLUDE A NEW YORK STATE
 RESIDENT WHO CAN PROVIDE PROOF TO THE CORPORATION THAT THEY HAVE  GRADU-
 ATED  FROM  A COLLEGE OR UNIVERSITY WITH AN UNDERGRADUATE DEGREE AND HAS
 AT LEAST TEN THOUSAND DOLLARS IN OUTSTANDING STUDENT LOAN DEBT  RELATING
 TO SUCH DEGREE.
   4.  REPAYMENT  TERMS. REPAYMENT TERMS SHALL BE DETERMINED BASED ON THE
 CREDIT RATING OF THE ELIGIBLE BORROWER, THE AMOUNT BEING REFINANCED, AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08137-01-7

 A. 7268                             2
 
 WHETHER THERE IS A CO-SIGNER TO SUCH LOAN. AN  ELIGIBLE  BORROWER  SHALL
 CHOOSE EITHER (A) VARIABLE REPAYMENT OR (B) FIXED REPAYMENT. THE OPTIONS
 FOR  FIXED REPAYMENT SHALL BE (I) A FIVE-YEAR LOAN FOR NO MORE THAN FOUR
 AND  A QUARTER PERCENT, (II) A TEN-YEAR LOAN FOR NO MORE THAN FIVE AND A
 HALF PERCENT OR (III) A FIFTEEN-YEAR LOAN FOR NO MORE THAN SIX AND THREE
 QUARTERS PERCENT.
   5. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO  PROMULGATE
 RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THE PROVISIONS
 OF THIS SECTION.
   § 2. The sum of one hundred million dollars ($100,000,000), or so much
 thereof as may be necessary, is hereby appropriated to the department of
 education out of any moneys in the state treasury in the general fund to
 the  credit  of  the state purposes account, not otherwise appropriated,
 and made immediately available, for the  purpose  of  carrying  out  the
 provisions  of  this  act. Such moneys shall be payable on the audit and
 warrant of the comptroller on vouchers  certified  or  approved  by  the
 commissioner of education in the manner prescribed by law.
   § 3. This act shall take effect immediately.