S T A T E O F N E W Y O R K
________________________________________________________________________
5248
2021-2022 Regular Sessions
I N A S S E M B L Y
February 12, 2021
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Higher Education
AN ACT to amend the education law, in relation to the get on your feet
loan forgiveness program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 679-g of the education law, as added by section 1
of part C of chapter 56 of the laws of 2015, is amended to read as
follows:
§ 679-g. New York state get on your feet loan forgiveness program. 1.
Purpose. The president shall grant student loan forgiveness awards for
the purpose of alleviating the burden of federal student loan debt for
recent New York state college graduates.
2. Eligibility. To be eligible for an award pursuant to this section,
an applicant shall: (a) have graduated from a high school located in New
York state or attended an approved New York state program for a state
high school equivalency diploma and received such high school equivalen-
cy diploma; (b) have graduated and obtained an undergraduate OR GRADUATE
degree from a college or university with its headquarters located in New
York state in or after the two thousand fourteen--fifteen academic year;
(c) apply for this program within two years of obtaining [such] EITHER
AN ASSOCIATES, UNDERGRADUATE OR GRADUATE degree; (d) be a participant in
a federal income-driven repayment plan whose payment amount is generally
ten percent of discretionary income; (e) have income of less than
[fifty] SIXTY thousand dollars; (f) comply with subdivisions three and
five of section six hundred sixty-one of this part; [and] (g) work in
New York state, if employed[.]; AND (H) MAY BE CURRENTLY EMPLOYED AT A
PROGRAM OR SERVICE THAT IS REGULATED, OPERATED, FUNDED OR APPROVED BY
THE DEPARTMENT OF MENTAL HYGIENE. FURTHER, FOR APPLICANTS CURRENTLY
EMPLOYED AT A PROGRAM OR SERVICE THAT IS REGULATED, OPERATED, FUNDED OR
APPROVED BY THE DEPARTMENT OF MENTAL HYGIENE SUCH APPLICANTS SHALL AGREE
TO WORK ON AT LEAST A PART-TIME BASIS FOR THE THIRTY-SIX MONTH PERIOD OF
THE REPAYMENT PERIOD OF THEIR INCOME-DRIVEN REPAYMENT PLAN UNDER FEDERAL
LAW AND MAINTAIN RESIDENCY IN NEW YORK STATE FOR SUCH PERIOD OF EMPLOY-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02765-01-1
A. 5248 2
MENT. For purposes of this program, "income" shall be the total adjusted
gross income of the applicant and the applicant's spouse, if applicable.
3. Awards. (A) An applicant whose annual income is less than fifty
thousand dollars shall be eligible to receive an award equal to one
hundred percent of his or her monthly federal income-driven repayment
plan payments for twenty-four months of repayment under the federal
program. Provided, however, that the awards granted under this section
shall be deferred for a recipient who has been granted a deferment or
forbearance under the federal income-driven repayment plan. Upon
completion of such deferment or forbearance period, such recipient shall
be eligible to receive an award for the remaining time period under this
subdivision. A recipient who is not a resident of New York state at the
time any payment is made under this program shall be required to refund
such payments to the state. The corporation shall be authorized to
recover such payments in accordance with rules and regulations promul-
gated by the corporation. A student who is delinquent or in default on a
student loan made under any statutory New York state or federal educa-
tion loan program or has failed to comply with the terms of a service
condition imposed by an award made pursuant to this article or has
failed to repay an award shall be ineligible to receive an award under
this program until such delinquency, default or failure is cured.
(B) AN APPLICANT WHOSE ANNUAL INCOME IS LESS THAN SIXTY THOUSAND
DOLLARS AND CURRENTLY EMPLOYED AT A PROGRAM OR SERVICE THAT IS REGU-
LATED, OPERATED, FUNDED OR APPROVED BY THE DEPARTMENT OF MENTAL HYGIENE
SHALL BE ELIGIBLE TO RECEIVE AN AWARD EQUAL TO ONE HUNDRED PERCENT OF
HIS OR HER MONTHLY FEDERAL INCOME-DRIVEN REPAYMENT PLAN PAYMENTS FOR
THIRTY-SIX MONTHS OF THE REPAYMENT PERIOD UNDER THE FEDERAL PROGRAM.
PROVIDED, HOWEVER, THAT THE AWARDS GRANTED UNDER THIS SECTION SHALL BE
DEFERRED FOR A RECIPIENT WHO HAS BEEN GRANTED A DEFERMENT OR FORBEARANCE
UNDER THE FEDERAL INCOME-DRIVEN REPAYMENT PLAN. UPON COMPLETION OF SUCH
DEFERMENT OR FORBEARANCE PERIOD, SUCH RECIPIENT SHALL BE ELIGIBLE TO
RECEIVE AN AWARD FOR THE REMAINING TIME PERIOD UNDER THIS SUBDIVISION. A
RECIPIENT WHO IS NOT A RESIDENT OF NEW YORK STATE AT THE TIME ANY
PAYMENT IS MADE UNDER THIS PROGRAM SHALL BE REQUIRED TO REFUND SUCH
PAYMENTS TO THE STATE. THE CORPORATION SHALL BE AUTHORIZED TO RECOVER
SUCH PAYMENTS IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED BY
THE CORPORATION. A STUDENT WHO IS DELINQUENT OR IN DEFAULT ON A STUDENT
LOAN MADE UNDER ANY STATUTORY NEW YORK STATE OR FEDERAL EDUCATION LOAN
PROGRAM OR HAS FAILED TO COMPLY WITH THE TERMS OF A SERVICE CONDITION
IMPOSED BY AN AWARD MADE PURSUANT TO THIS ARTICLE OR HAS FAILED TO REPAY
AN AWARD SHALL BE INELIGIBLE TO RECEIVE AN AWARD UNDER THIS PROGRAM
UNTIL SUCH DELINQUENCY, DEFAULT OR FAILURE IS CURED.
4. Rules and regulations. The corporation is authorized to promulgate
rules and regulations, and may promulgate emergency regulations neces-
sary for the implementation of the provisions of this section, INCLUD-
ING, BUT NOT LIMITED TO, LIMITS ON THE AWARD AMOUNTS TO THOSE APPLICANTS
CURRENTLY EMPLOYED AT A PROGRAM OR SERVICE THAT IS REGULATED, OPERATED,
FUNDED OR APPROVED BY THE DEPARTMENT OF MENTAL HYGIENE BASED UPON THE
APPLICANTS ATTAINMENT OF EITHER AN ASSOCIATE'S DEGREE, BACHELOR'S
DEGREE, OR GRADUATE DEGREE AND A METHOD OF SELECTING RECIPIENTS IF IN
ANY GIVEN YEAR THERE ARE INSUFFICIENT FUNDS TO COVER THE NEEDS OF APPLI-
CANTS CURRENTLY EMPLOYED AT A PROGRAM OR SERVICE THAT IS REGULATED,
OPERATED, FUNDED OR APPROVED BY THE DEPARTMENT OF MENTAL HYGIENE AND
ALREADY EMPLOYED RECIPIENTS.
§ 2. This act shall take effect immediately.