S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2315
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2023
                                ___________
 
 Introduced  by M. of A. SIMON, SEAWRIGHT, GONZALEZ-ROJAS, GUNTHER, JACK-
   SON -- read once and referred to the Committee on Higher Education
 
 AN ACT to amend the education law, in relation to establishing  the  New
   York state higher education debt consolidation and refinancing program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 14 of the education law is amended by adding a  new
 part 6 to read as follows:
                                  PART VI
          NEW YORK STATE HIGHER EDUCATION DEBT CONSOLIDATION AND
                            REFINANCING PROGRAM
 SECTION 694-J. NEW  YORK  STATE  HIGHER EDUCATION DEBT CONSOLIDATION AND
                  REFINANCING PROGRAM.
   § 694-J. NEW YORK STATE HIGHER EDUCATION DEBT CONSOLIDATION AND  REFI-
 NANCING  PROGRAM. 1.   THE CORPORATION SHALL HAVE THE AUTHORITY TO ISSUE
 UP TO FIVE HUNDRED MILLION DOLLARS IN BONDS, TO  CONSOLIDATE  AND  REFI-
 NANCE  THE  EDUCATION  LOANS  OF  ELIGIBLE BORROWERS AT A LOWER INTEREST
 RATE, PROVIDED, HOWEVER IF THE CORPORATION DETERMINES IT NEEDS TO  ISSUE
 MORE  THAN  FIVE HUNDRED MILLION DOLLARS IN BONDS TO OPERATE THE PROGRAM
 EFFECTIVELY, THE CORPORATION SHALL MAKE  THE  DETERMINATION  BY  JANUARY
 FIFTEEN OF THE YEAR SUBSEQUENT TO WHEN THE PROGRAM GOES INTO EFFECT.
   2. THE CORPORATION SHALL CONSOLIDATE AND REFINANCE THE EDUCATION LOANS
 OF  ELIGIBLE  BORROWERS  AND INTEREST SHALL ACCRUE UPON ALL STUDENT LOAN
 PAYMENTS MADE BY ELIGIBLE BORROWERS TO THE CORPORATION  AT  A  RATE  PER
 ANNUM THAT IS EQUAL TO OR LESS THAN 5.5%. INTEREST SHALL ACCRUE FROM THE
 TIME  THE  ELIGIBLE BORROWER COMMENCES REPAYMENT UNDER THIS SECTION, AND
 SHALL ACCRUE ONLY DURING THE PERIOD OVER WHICH THE ELIGIBLE BORROWER  IS
 REQUIRED TO MAKE SUCH REPAYMENT.
   3. SHOULD AN ELIGIBLE BORROWER FAIL TO PAY TO THE DIVISION ANY AMOUNTS
 OWED  UNDER  THIS SECTION WITHIN THIRTY DAYS OF THE DUE DATE, THE CORPO-
 RATION SHALL REVIEW THE ELIGIBLE BORROWER'S FINANCIAL  CIRCUMSTANCES  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03435-01-3
              

 A. 2315                             2
 
 ORDER  TO  DETERMINE  WHETHER THE DELINQUENCY IS A RESULT OF A CHANGE IN
 THE ELIGIBLE BORROWER'S FINANCIAL CIRCUMSTANCES. IF SUCH A DETERMINATION
 IS MADE, THE CORPORATION MAY MODIFY  THE  ELIGIBLE  BORROWER'S  REQUIRED
 PAYMENTS.  IF  FAILURE  TO PAY IS NOT DETERMINED TO BE DUE TO A MATERIAL
 DETERIORATION IN THE ELIGIBLE BORROWER'S  FINANCIAL  CIRCUMSTANCES,  THE
 CORPORATION  SHALL  TERMINATE  AND  TAKE  ANY  LEGAL ACTION NECESSARY TO
 ENFORCE THE TERMS OF THE LOAN.
   4. THE PROGRAM'S OPERATING AND ADMINISTRATIVE COSTS SHALL  BE  COVERED
 BY  THE  FEES CHARGED TO APPLY FOR THE REFINANCING AND THE INTEREST RATE
 SURCHARGE.
   5. THE CORPORATION SHALL SUBMIT AN ANNUAL REPORT ON THE PROGRAM TO THE
 GOVERNOR AND THE LEGISLATURE AND THE REPORT SHALL BE  PUBLISHED  ON  THE
 CORPORATION'S  WEBSITE.  THE  REPORT SHALL INCLUDE BUT NOT BE LIMITED TO
 THE FOLLOWING:
   (A) THE AMOUNT OF BONDS FLOATED TO COVER THE STUDENT DEBT REFINANCING;
   (B) THE NUMBER OF LOANS REFINANCED;
   (C) THE BREAKDOWN OF THE REFINANCING RATES CHARGED TO REFINANCE;
   (D) THE GENDER, RACE AND ETHNICITY OF THE PERSON REFINANCING;
   (E) THE TOTAL DEBT LOAD REFINANCED BY EACH RACIAL OR ETHNIC GROUP; AND
   (F) THE TOTAL  ADMINISTRATIVE  COSTS  FOR  OPERATING  THE  REFINANCING
 PROGRAM  AND THE PROJECTED TOTAL REFINANCING COSTS INCURRED TILL DEBT IS
 PAID FOR EACH RACIAL AND ETHNIC GROUP.
   6. THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES  AND  REGULATIONS
 NECESSARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION.
   7.  UNDER  THIS SECTION "ELIGIBLE BORROWER" AND "EDUCATION LOAN" SHALL
 MEAN AS DEFINED UNDER SECTION SIX HUNDRED NINETY OF THIS ARTICLE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.