Senate Bill S5298

2021-2022 Legislative Session

Relates to establishing student loan repayment accounts

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Higher Education 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

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

2021-S5298 (ACTIVE) - Details

Current Committee:
Senate Higher Education
Law Section:
Education Law
Laws Affected:
Add §682, Ed L; amd §§208 & 612, Tax L
Versions Introduced in Other Legislative Sessions:
2017-2018: S6240
2019-2020: S341
2023-2024: S5109

2021-S5298 (ACTIVE) - Summary

Relates to establishing student loan repayment accounts; authorizes employers to establish student loan repayment accounts and provide matching funds up to $5000 a year; establishes tax deductions for participating employers.

2021-S5298 (ACTIVE) - Sponsor Memo

2021-S5298 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5298
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Higher Education
 
 AN ACT to amend the education law and the tax law, in relation to estab-
   lishing student loan repayment accounts
 
   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 682 to
 read as follows:
   §  682.  STUDENT  LOAN  REPAYMENT  ACCOUNTS.  1. AN EMPLOYER IS HEREBY
 AUTHORIZED TO ESTABLISH STUDENT  LOAN  REPAYMENT  ACCOUNTS  WHICH  SHALL
 PERMIT  HIS  OR  HER  EMPLOYEES  TO  DEPOSIT  A PORTION OF THEIR PRE-TAX
 INCOME, UP TO FIVE THOUSAND DOLLARS ANNUALLY, INTO SUCH ACCOUNTS  SOLELY
 FOR  UNDERGRADUATE OR GRADUATE STUDENT LOAN REPAYMENTS. EMPLOYERS ELECT-
 ING TO ESTABLISH SUCH ACCOUNTS  MAY  CONTRIBUTE  MATCHING  FUNDS  TO  AN
 EMPLOYEE'S  STUDENT  LOAN  REPAYMENT  ACCOUNT  AND  SHALL  RECEIVE A TAX
 DEDUCTION FOR SUCH CONTRIBUTIONS. SUCH CONTRIBUTION MAY BE UP TO A MAXI-
 MUM OF ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT, UP TO  FIVE  THOU-
 SAND DOLLARS ANNUALLY, PER EMPLOYEE ACCOUNT.
   2.  FOR  THE  PURPOSES  OF THIS SECTION, "STUDENT LOAN" SHALL MEAN THE
 CUMULATIVE TOTAL OF THE  ANNUAL  STUDENT  LOANS  COVERING  THE  COST  OF
 ATTENDANCE  AT  AN  UNDERGRADUATE OR GRADUATE COLLEGE OR UNIVERSITY, AND
 ANY INTEREST THEREON.
   3. EMPLOYEE STUDENT LOAN REPAYMENT ACCOUNTS SHALL BE  ESTABLISHED  FOR
 THE  DEPOSIT OF FUNDS TO BE USED BY THE EMPLOYEE SOLELY FOR REPAYMENT OF
 STUDENT LOANS. SUCH ACCOUNTS SHALL BE MANAGED BY THE COMPTROLLER AND THE
 HIGHER EDUCATION SERVICES CORPORATION. ALL PARTICIPATING  EMPLOYERS  AND
 EMPLOYEES  SHALL  PROVIDE  THE  COMPTROLLER AND THE CORPORATION WITH ALL
 NECESSARY INFORMATION IN ORDER  TO  IMPLEMENT  THE  PROVISIONS  OF  THIS
 SECTION.
   4.  MONEYS IN A STUDENT LOAN REPAYMENT ACCOUNT SHALL BE AVAILABLE ONLY
 FOR REPAYMENTS OF STUDENT LOANS AS DEFINED IN THIS  SECTION.  ANY  WITH-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.