What's happening
This bill requires financial aid award letters to include estimated loan repayment amounts, including total payoff and monthly payment details.
Why it matters
Improves transparency for students and families. By requiring colleges to provide estimated total repayment and monthly payment information for student loans, the bill helps families better understand the long-term financial commitment before accepting aid.
Supports more informed decision-making. Including clear repayment estimates enables students to compare financial aid offers more accurately and potentially avoid over-borrowing, as they can see the real future costs of different loan packages.
Highlights the true cost of borrowing. Presenting both principal and interest in payoff estimates exposes the full expense of student loans—helping borrowers recognize how interest accumulates and affects total repayment over time.
May encourage financial planning and literacy. The new requirement, along with the glossary of terms, could prompt students to seek more information about loan terms and repayment strategies, promoting better financial habits early on.
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Who cares
Headline styles
Show Loan Repayment on Letters
Plain English, a few words. Used as the page title.
Sponsors
12 Co-sponsors
3 Multi-sponsors
History
- Referred to banks
- Referred to banks
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8450
2017-2018 Regular Sessions
IN ASSEMBLY
June 16, 2017
Introduced by M. of A. ZEBROWSKI, ORTIZ, JAFFEE, JEAN-PIERRE, GUNTHER, SIMON, RAIA, MOSLEY, CRESPO, VANEL, SIMANOWITZ, GJONAJ, BLAKE, GALEF -- Multi-Sponsored by -- M. of A. COOK, LUPARDO, MAGEE -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to including information concerning repayment of outstanding loans in the standard financial aid award letter
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 9-w of the banking law, as amended by section 1 of part CC of chapter 54 of the laws of 2016, is amended to read as follows:
§ 9-w. Standard financial aid award letter. The superintendent [of financial services] in consultation with the president of the higher education services corporation shall develop a standard financial aid award letter which shall clearly delineate (a) the estimated cost of attendance, including but not limited to, the cost of tuition and fees, room and board, books, and transportation. Such standard letter shall provide the estimated cost of attendance for the current academic year as well as estimates for each academic year that the student would need to attend to earn a degree at such institution with a disclaimer that the cost of attendance for years other than the current academic year are estimates and may be subject to change, (b) all financial aid offered from the federal government, the state, and the institution with an explanation as to which components will require repayment, (c) any expected student and/or family contribution, (d) campus-specific graduation, median borrowing, and loan default rates, [and] (e) the estimated loan repayment impact using a standard ten year repayment term and assumed interest rate on the current amount of outstanding loans including total expected payoff amount inclusive of principal and interest, and expected monthly payment, and (f) any other information as deter-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13073-01-7
A. 8450 2
mined by the superintendent in consultation with the president. Such standard letter shall include a glossary of standard terms and definitions used on such standard letter. The superintendent shall publish and make available such standard letter by December thirty-first, two thousand fifteen and thereafter. Each college, vocational institution, and any other institution that offers an approved program as defined in section six hundred one of the education law shall utilize the standard letter issued by the department of financial services in responding to all undergraduate financial aid applicants for the two thousand sixteen--two thousand seventeen academic year and thereafter. The superintendent shall promulgate regulations implementing this section.
§ 2. This act shall take effect immediately.
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.