Protects "grace period" for borrowers of student loans called to active duty who resume education program

BILL NUMBER:S4848

Title of bill

An act to amend the education law, in relation to student loans for persons in military service

Purpose or general idea of the bill

To ensure members of the military reserves called to active service are the same six month "grace period" for student loans as all other students.

Summary of provisions

Members of the National Guard or other reserve components of the armed forces called to active duty and forced to with draw from school will receive the full six month "grace period" upon return from service and the completion of their college or vocational program.

Justification

Presently, when a member of New York's military reserve components are called to active duty, they are normally forced to withdraw from their college or vocational program. This withdrawal starts the "grace period" clock for their student loan lending institutions. These brave men and women who are sacrificing so much already, lose the six month "grace period" granted to them by law, as a result. Once these troops return from their military obligation and finish their education they discover that they must immediately begin to repay their student loans because their "grace period" was exhausted while they answered the nation's call. This bill corrects an oversight by the legislature and guarantees that the men and women who give up their time to protect us all and are forced to delay their graduation, entry into the workforce and future earnings, are treated equally to their classmates who remain in school and finish on time. The current law actually punishes troops for seeking an education and serving their country in time of need.

Legislative history

2009-10 A7346 referred to higher education

Fiscal implications

None.

Effective date

This act shall take effect immediately.