What's happening
This bill ensures that unpaid leave periods do not count toward student loan forgiveness service requirements, with exceptions for military, family, or injury leave.
Why it matters
Clarifies loan forgiveness timelines. The bill clarifies that if you take unpaid leave (except for military, family leave, or injury), that period won’t count toward meeting the service requirements for student loan forgiveness, potentially making it take longer to qualify.
Supports certain life events. It explicitly protects time away from work for military service, family/medical leave (including maternity/paternity and FMLA), and work-related injuries, so individuals won’t be penalized for these circumstances when working toward loan forgiveness.
Applies retroactively. The law would apply to any unpaid leave starting from January 1, 2010, which could affect both current and past applicants, potentially changing their expected loan forgiveness dates.
Adds administrative discretion. The bill gives the “president” (likely of the relevant educational institution or loan program) discretion to determine what types of absence are creditable, possibly introducing some subjectivity or case-by-case decision-making.
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History
- Referred to higher education
- Referred to higher education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Student Loan Forgiveness
In Senate Committee · Higher Education · Sponsor Rich Funke
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2263
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. BRONSON -- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to student financial aid programs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 9 of section 605 of the education law is amended by adding a new paragraph g to read as follows:
g. A period of leave without pay, or other periods which an eligible applicant is not in a pay status shall not count toward the completion of the required service period reemployment. The service completion date shall be extended by the total time spent in non-pay status. However, absence because of uniformed service with a recognized branch of the United States military, authorized maternity/paternity, FMLA, or due to compensable injury shall be considered creditable, within the sole discretion of the president, toward the required service period of reemployment.
§ 2. Subpart 4 of part 2 of article 14 of the education law is amended by adding a new section 679-h to read as follows:
§ 679-h. Loan forgiveness eligibility. For all loan forgiveness programs referenced in this subpart, a period of leave without pay, or other periods which an eligible applicant is not in a pay status shall not count toward the completion of the required service period reemployment. The service completion date shall be extended by the total time spent in non-pay status. However, absence because of uniformed service with a recognized branch of the United States military, authorized maternity/paternity, FMLA, or due to compensable injury shall be considered creditable, within the sole discretion of the president, toward the required service period of reemployment.
§ 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2010.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07876-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.