NY State Senate Bill 2017-S5181

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to finance
Mar 10, 2017	referred to finance

co-Sponsors

2017-S5181 (ACTIVE) - Details

See Assembly Version of this Bill:: A7268
Current Committee:: Senate Finance
Law Section:: Appropriations
Laws Affected:: Add §683-c, Ed L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2887
2021-2022: S6754

2017-S5181 (ACTIVE) - Summary

Relates to refinancing undergraduate student loans; and making an appropriation therefor.

2017-S5181 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5181

 TITLE OF BILL :  An act to amend the education law, in relation to
refinancing undergraduate student loans; and making an appropriation
therefor

 PURPOSE OR GENERAL IDEA OF BILL :

Allows resident with undergraduate federal and private student loans
to refinance such loans

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: Amends the education law by adding a new section 683-c to
which establishes the refinance of undergraduate student loans
program. Eligible borrowers, who are New York State residents, may
apply to have their undergraduate education loans refinanced by the
higher education service corporation between $10,000 and $70,000. The
repayment terms will be determined based on the credit rating of the
borrower the amount being refinanced and whether there is a co-signed
to such loan. The borrower may choose either variable repayment or
fixed repayment whereby the fixed repayment plan shall be a 5-year
loan for no more than 4.25%, a 10-year loan for no more than 5.5% or a
15-year loan for no more than 6.75%.

Section 2: Appropriates $1 million dollars for the purpose of carrying

out the provisions of section one of this bill.

 JUSTIFICATION :

The Office of the State Comptroller estimates that student loan debt
in New York State has reached an all-time high of $82 billion. This
student loan debt prevents our residents starting families, purchasing
homes, and becoming entrepreneurs, which all help spur economic
development. The average college graduate in New York State is
straddled with approximately $32,200 in student loan debt, and the
aggregate student loan debt in the state has grown by $43.3 billion in
the last 10 years from $38.8 billion in 2006 to $82 billion in 2015.
This heavy financial burden prevents residents from making investments
that keep the state economy prosperous. More college graduates are
delaying marriage, more are living at home with their parents or
renting property instead of pursuing home ownership, and less are able
to invest in personal business ventures. Not enough is being done to
address the issues associated with those already having accumulated
the heavy financial burden. This bill will ease this financial burden
for many New Yorkers as it allows for the refinancing of these
increasing student loans.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

100 Million

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S5181 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5181
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 10, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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
 WHETHER  THERE  IS  A CO-SIGNER TO SUCH LOAN. AN ELIGIBLE BORROWER SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08137-01-7

 S. 5181                             2
 
 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.

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Senate Bill S5181

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Archive: Last Bill Status - In Senate Committee Finance Committee

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co-Sponsors

2017-S5181 (ACTIVE) - Details

2017-S5181 (ACTIVE) - Summary

2017-S5181 (ACTIVE) - Sponsor Memo

2017-S5181 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jose Peralta

Archive: Last Bill Status - In Senate Committee Finance Committee

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co-Sponsors

Luis R. Sepúlveda

2017-S5181 (ACTIVE) - Details

2017-S5181 (ACTIVE) - Summary

2017-S5181 (ACTIVE) - Sponsor Memo

2017-S5181 (ACTIVE) - Bill Text download pdf

Comments