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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
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Sponsor's memo
Title of bill
An act to amend the tax law, in relation to allowing individuals utilizing financial aid in the form of student loans, to have a portion or all of their state income tax refunds to be paid over to the student's lending institution
Purpose
To establish a program of economic support to students enrolled in institutions of higher education. Whereby a student attending college and utilizing financial aid, and who is entitled to a state income tax refund, has the option to have a portion of or all of the refund to be distributed directly to the lender.
The student will elect participation in this program by selecting the option on the student's income tax return; the state will then pay over that amount directly to the student's lender. As an incentive for their participation, the student may be entitled to an additional contribution by the State, also to be paid directly to the student's loan provider.
Summary of provisions
Section 1 permits an individual to contribute a portion or the entire amount of their State income tax refund to be paid over to the lender of their federally backed student loan(s). The contribution shall be in any whole dollar amount and shall not reduce the amount of state tax owed by such individual. This section further details the optional incentive to the student by permitting the Governor to designate a percentage of the student's State income taxes paid to the student's loan lender, in addition to the student's contribution. The maximum contribution by the State shall be no more than five hundred dollars per student, per year. Also under this section the Governor also has the right to nullify the State's contribution in times where the State is under financial hardship.
Section 2: This act shall take effect immediately.
Justification
New York State does not currently have a state supported loan system to assist students with the various expenses associated with earning a college degree. This bill will enable those students who are employed, with the ability to offset federally subsidized and unsubsidized student loans incurred by the student. By doing so, the student frees themselves of some of the financial burdens associated with the repayment of the debts in order to fund their education.
Furthermore, the prospect of assisting qualified students with the funding of their education will attract more students to enroll in institutions of higher education, which will result in the abundance of educated individuals. The abundance of educated individuals is attractive to businesses making New York a more desirable location for their place of business. In addition, the freeing up of anticipated financial burdens allows the working student to focus more on current expenses and contribute more towards consumer spending.
Legislative history
2009 - New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.