senate Bill S3206

2019-2020 Legislative Session

Relates to establishing a student loan borrower bill of rights

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Higher Education 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 (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 04, 2019 referred to higher education

S3206 (ACTIVE) - Details

See Assembly Version of this Bill:
A3011
Current Committee:
Senate Higher Education
Law Section:
Education Law
Laws Affected:
Add §684, Ed L
Versions Introduced in 2017-2018 Legislative Session:
S8463, A8862

S3206 (ACTIVE) - Summary

Establishes the student loan borrower bill of rights to protect borrowers and ensure that student loan servicers act more as loan counselors than debt collectors.

S3206 (ACTIVE) - Sponsor Memo

S3206 (ACTIVE) - Bill Text download pdf


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

                                  3206

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 4, 2019
                               ___________

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

AN ACT to amend the education law, in relation  to  creating  a  student
  loan borrower bill of rights

  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 684 to
read as follows:
  § 684. STUDENT LOAN BORROWER BILL OF RIGHTS. 1. DEFINITIONS.  AS  USED
IN THIS SECTION:
  (A) "SERVICING" SHALL MEAN RECEIVING A SCHEDULED PERIODIC PAYMENT FROM
A BORROWER PURSUANT TO THE TERMS OF A LOAN, INCLUDING AMOUNTS FOR ESCROW
ACCOUNTS,  AND  MAKING  THE  PAYMENTS  TO THE OWNER OF THE LOAN OR OTHER
THIRD PARTY OF PRINCIPAL AND INTEREST AND OTHER PAYMENTS WITH RESPECT TO
THE AMOUNTS RECEIVED FROM THE BORROWER AS MAY BE  REQUIRED  PURSUANT  TO
THE  TERMS  OF THE SERVICING LOAN DOCUMENT OR SERVICING CONTRACT. IN THE
CASE OF A HOME EQUITY CONVERSION MORTGAGE OR REVERSE MORTGAGE AS  REFER-
ENCED IN THIS SECTION, SERVICING INCLUDES MAKING PAYMENTS TO THE BORROW-
ER.  IN  THE  CASE  OF  A  STUDENT  EDUCATION LOAN AS REFERENCED IN THIS
SECTION, SERVICING INCLUDES  APPLYING  THE  PAYMENTS  OF  PRINCIPAL  AND
INTEREST  AND  OTHER  SUCH PAYMENTS WITH RESPECT TO THE AMOUNTS RECEIVED
FROM A STUDENT LOAN BORROWER AS MAY BE REQUIRED PURSUANT TO THE TERMS OF
A STUDENT EDUCATION LOAN AND PERFORMING  OTHER  ADMINISTRATIVE  SERVICES
WITH RESPECT TO A STUDENT EDUCATION LOAN.
  (B)  "STUDENT  EDUCATION  LOAN"  SHALL MEAN ANY LOAN PRIMARILY USED TO
FINANCE EDUCATION OR OTHER SCHOOL-RELATED EXPENSES.
  (C) "STUDENT LOAN BORROWER" SHALL MEAN ANY RESIDENT OF  NEW  YORK  WHO
HAS  RECEIVED  OR  AGREED TO PAY A STUDENT EDUCATION LOAN, OR ANY PERSON
WHO SHARES RESPONSIBILITY WITH SUCH NEW YORK RESIDENT FOR  REPAYING  THE
STUDENT EDUCATION LOAN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01802-01-9

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