What's happening
This bill requires colleges to track student withdrawals due to credit card debt, educate new students on credit ratings, and regulate campus credit card marketing.
Why it matters
Shines a spotlight on student financial distress. by requiring colleges to identify and report how many students leave school due to credit card debt, potentially revealing the scale and impact of financial pressure on college completion.
Makes financial literacy a core part of college orientation. , ensuring all new students receive formal education on the long-term consequences of poor credit management—an effort to prevent lifelong financial setbacks before students accumulate debt.
Restricts aggressive credit card marketing tactics on campuses. , banning incentives for student sign-ups and mandating that credit card companies provide educational materials, aiming to reduce predatory practices targeting financially inexperienced students.
Creates accountability. for both educational institutions and credit card issuers by imposing reporting requirements and campus solicitation controls, which could encourage changes in both institutional policy and industry behavior to better protect students.
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Who cares
Headline styles
Track Student Credit Card Dropouts
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to higher education
- Referred to higher education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7319
2017-2018 Regular Sessions
IN ASSEMBLY
April 24, 2017
Introduced by M. of A. ARROYO -- Multi-Sponsored by -- M. of A. BLAKE, COOK, CRESPO, DINOWITZ, HOOPER, HYNDMAN, MOSLEY, ORTIZ, SIMON -- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to requiring institutions of higher education to maintain and report information on students withdrawing from such institutions because of credit card debt, and to provide new students a course of instruction on the implications of establishing a bad credit rating, and authorizing such institutions to regulate the on campus activities of credit card issuers; and providing for the repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 6430 of the education law is amended by adding two new subdivisions 7 and 8 to read as follows:
7. a. The trustees or other governing body of every institution of higher education in this state shall adopt and implement rules and regulations requiring that every student who withdraws from such institution, for a reason other than death or graduation, be interviewed to determine whether such withdrawal was caused by credit card debt incurred by the student. Such rules and regulations shall require the maintenance of records of those students withdrawing as the result of credit card debt.
b. Each such institution shall annually submit a report, on or before the fifteenth day of October, to the governor, temporary president of the senate and speaker of the assembly on the number of students who have withdrawn from the institution during the immediately preceding academic year.
c. The trustees or other governing body of every institution of higher education in this state shall establish a course of instruction, to be administered during the orientation of all newly admitted students, on
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02380-01-7
A. 7319 2
the implications of establishing a bad credit rating. Such course of instruction shall constitute a credit course.
d. For the purposes of this subdivision, "credit card" shall have the same meaning as ascribed to such term by section five hundred eleven of the general business law.
8. a. The trustees or other governing body of every institution of higher education in this state shall adopt and implement rules and regulations:
(1) prohibiting issuers of credit cards, while on the campus of such institution, from offering any incentive to students who agree to apply for a credit card;
(2) requiring every issuer of credit cards to register with the institution prior to any solicitation upon the campus thereof; and
(3) requiring every issuer of credit cards to provide debt education materials at each on campus site for the solicitation of the issuance of a credit card.
b. The requirements of this subdivision shall be deemed to be in addition to the requirements applicable to issuers of credit cards pursuant to any other provision of law.
c. The terms "credit card" and "issuer" shall have the same meanings as are ascribed to such terms by section five hundred eleven of the general business law.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law, provided that paragraph b of subdivision 7 of section 6430 of the education law, as added by section one of this act, shall expire and be deemed repealed October 16, 2020.
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.