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History
- Print number 4575a
- Amend and recommit to higher education
- Referred to higher education
- Referred to higher education
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4575A
Title of bill
An act to amend the education law and the state finance law, in relation to the student loan linked deposit act
Purpose
This bill would create the student loan linked deposit program to provide low-cost student loans by means of authorizing the comptroller to place state deposits with participating lenders at a decreased interest rate, in order to offer students reduced rate student loans at up to 3 points below market rates.
Summary of provisions
Section 1: Provides the Legislative findings and intent
Section 2: Amends paragraph c of subdivision 1 of section 680 of the education law to add a new paragraph d to authorize the Higher Education Services Corporation to administer the student loan linked deposit program pursuant to article fifteen-A of the state finance law.
Section 3. Amends subdivision 2 of section 98-a of the state finance law to allow the comptroller to invest funds in the student loan linked deposit program pursuant to article fifteen-A of the state finance law.
Section 4: Amends the state finance law by adding a new article fifteen-A to establish the student loan linked deposit act which further establishes the student loan linked deposit program.
Section 5. Sets forth the effective date.
Justification
This bill creates a new article fifteen-A in the state finance law to establish the student loan linked deposit program. Such program is modeled after a highly successful economic development linked deposit program and it would provide low-cost student loans by means of authorizing the comptroller to place state deposits with participating lenders at a decreased interest rate in order to offer students reduced rate student loans at up to 3 points below market rates.
Additionally, this bill would designate $100 million for the purposes of the program, with repaid loan amounts revolving back into available deposits and loans. Students who attend in state college could be eligible to receive such loans to cover qualified tuition expenses. These expenses include tuition, fees, books, supplies and room and board. A student could qualify for a maximum of $7,500 per academic year and a maximum total amount up to $30,000
With the cost of higher education increasing and the amount of student loan debt accumulated during the course of a college education growing at an alarming rate, this bill would lessen the amount of debt a student will have upon graduation by authorizing lenders to lend money to qualified students at a reduced interest rate thereby greatly reducing the student loan debt burden.
Legislative history
New bill.
Fiscal implications
This bill will require $100 million in state investments.
Effective date
This act shall take effect on the 180th day after it shall have become law, provided, however, that effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for implementation of the foregoing sections of this act on its effective date is authorized and directed to be made and completed on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.