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- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
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Sponsor's memo
Title of bill
An act to amend the public authorities law, the education law and the tax law, in relation to the I live New York student loan and loan forgiveness program
Purpose
This bill would create the I Live New York student loan and loan forgiveness program which would provide low interest loans to New York state residents who enroll full-time at a college or university in New York State.
Summary of provisions
Section one authorizes the Dormitory Authority of the State of New York (DASNY) to issue bonds for the purpose of providing student loans through the I Live New York student loan program. Students who are eligible to receive I Live New York loans must be enrolled full-time at an institution in New York State. The maximum amount of a loan for each year of study shall not exceed the cost of attendance for the period of time for which the loan is made, minus any federal or state financial aid and any additional scholarships or grants from government agencies, educational institutions or organizations. The maximum aggregate amount of the loan is not to exceed $30,000. Beginning with students entering their freshman year in the fall 2010 semester will be eligible to apply for the loans. The Higher Education Services Corporation will service and administer the loans.
Sections two and three create the I Live New York student loan forgiveness program and the I Live New York student loan forgiveness personal income tax credit. Such tax credit is equal to 10% of the cumulative I Live New York loan balance plus any interest for 10 consecutive years immediately following graduation to people who are residents of the New York State and employed in the state.
Justification
Three in four states currently provide college students with some form of a low-cost student loan program to help students borrow money at an interest rate substantially below the market rates offered by commercial lenders. New York is the only state in the northeast that does not offer students a low-cost loan program. Students from low- and moderate-income families still face a significant gap after available state and federal grants are deducted from cost of attendance at public and private colleges and universities. To fill that gap, students and families are forced to take out high cost loans. After those students graduate, the high cost loan payments prevent them from being able to purchase a home, a car and contribute to New York State's economy. The I Live New York program would provide students and families with access to low-cost debt to help close the gap between financial aid and the cost of attendance and allow college graduates to be able to afford to contribute to the local economies in New York State.
Legislative history
New bill.
Fiscal implications
There will be no fiscal impact to the State in SFY 2010-11. It is estimated that SFY 2014-15 will be the first year that there is a fiscal impact to the State, after the fall 2010 entering class graduates. That year, the fiscal impact will be $70 million; in SFY 2015-16 the fiscal impact will be $140 million.
Effective date
January 1, 2010.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.