What's happening
This bill creates a pilot program allowing selected SUNY students to attend tuition-free in exchange for future income-based payments.
Why it matters
Shifts financial risk from students to the state. By replacing upfront tuition with future income-based payments, the program reduces the immediate financial burden and risk for students, but could shift financial uncertainty to the state and institutions if graduates earn less than expected.
Selective and limited pilot. Only students at four selected SUNY institutions (two four-year and two community colleges) can participate, meaning the impact and lessons learned will be limited to a small group before any potential expansion.
Strict eligibility and completion requirements. Students must be New York residents for at least a year, complete their degree within a specific timeframe (2–4 years), and maintain compliance throughout; otherwise, their obligation reverts to a traditional loan with interest, which could be a significant penalty.
Revolving fund sustainability. The program requires a dedicated funding source and the creation of a revolving fund, dependent on future graduates’ payments to sustain tuition-free access for subsequent cohorts, raising questions about long-term financial viability and administrative complexity.
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Who cares
New York students admitted to participating SUNY campuses
Eligible students could attend without upfront tuition payments in exchange for paying a share of annual adjusted gross income for a set number of years, while remaining responsible for housing, fees and other non-tuition costs.
SUNY Board of Trustees
The board would select two four-year institutions and two community colleges, set repayment and degree-completion terms, administer applications and establish an immediate funding source and revolving fund.
Participating SUNY institutions
Students would contract to pay their institution a percentage of their annual adjusted gross income, with Pell grants and Tuition Assistance Program awards applied to tuition before program support.
Students who fail to meet program requirements
They would face conversion of their full covered tuition into a student loan with interest, and repayment could also be required for failing to provide information needed to administer the program or verify eligibility.
Headline styles
Tuition-Free College, Pay Later
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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
4133
2017-2018 Regular Sessions
IN SENATE
February 3, 2017
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education
AN ACT in relation to enacting the "pay it forward, pay it back program"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "pay it forward, pay it back program".
§ 2. 1. The board of trustees of the state university shall implement a program to permit any student who has been admitted to certain stateoperated institutions of the state university to attend without the payment of tuition if such student fulfills the requirements of such program pursuant to the provisions of this act. Such trustees shall identify two four-year institutions of the state university and two community colleges to participate in the "pay it forward, pay it back program".
2. Such trustees shall provide an application process and administer the program according to the following criteria:
(a) A student shall have been a resident of New York state for a period of one year prior to application.
(b) A student shall be required to sign a contract to pay the institution a certain percentage of the student's annual adjusted gross income for a specified number of years. The trustees shall determine such percentage and number of years based on the institution.
(c) Students shall be required to complete their degree program within a minimum period of time to be set by the trustees which shall be no less than two years and no more than four years.
(d) If a student or former student fails to fulfill any of the requirements set forth in this subdivision, the trustees shall convert to a student loan the full amount of the tuition which would have been paid by such student, as determined by the trustees, plus interest, according to a schedule to be determined by the trustees. Such repay-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09654-01-7
S. 4133 2
ment may also be required if a recipient fails to respond to requests for information necessary to determine continued eligibility or for administration of the program.
(e) Any student who elects to participate in the program under this act shall be required to apply for federal Pell grant funding and tuition assistance program funding. Funds awarded under either or both such programs shall be applied towards the cost of tuition prior to an award under this subparagraph.
(f) Students shall be responsible for all other costs including housing, fees and other non-tuition related charges.
§ 3. The board of trustees of the state university shall establish an immediate funding source for the "pay it forward, pay it back program" and include the establishment of a revolving fund to deposit payments made under such program.
§ 4. This act shall take effect on the first of July next succeeding the date on which it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act in relation to enacting the "pay it forward, pay it back program"
Purpose
To allow the board of trustees of the State University of New York to identify two 4-year institutions of the State University and two community colleges where a "Pay it Forward, Pay it Back Program" shall be implemented.
Summary of provisions
Section 1. This act shall be known and may be cited as the "Pay it Forward, Pay it Back Program".
Read the full memo (617 words)
Section 2. Requires the Board of Trustees of the State University of New York to identify two 4-year institutions of the State University and two community colleges where the "Pay it forward, Pay it Back Program' shall be implemented. The program will permit any student who has been admitted to certain state-operated institutions of the State University to attend without the payment of tuition if such student fulfills the requirements set forth in this act: (A) New York State resident for a period of one year prior to application; (b) Student must sign a contract to pay the institution of certain percentage of the student's annual adjusted gross income for a set amount of years; (c) Student must complete their degree program within a minimum period of time to be set by the trustees which shall be no less than two years and no more than four years; (d) failure to fulfill any requirement set forth in this act will result in the conversion from the "Pay it Forward, Pay it Back Program" to a student loan for the full amount of the tuition which would have otherwise been paid; (c) Students electing to participate in this program shall be required to apply for federal Pell grant funding and tuition assistance funding. Funds awarded these financial aid programs will not be included in the payback amount under the "Pay it Forward, Pay it Back Program"; (1) Students are responsible for all other costs including, housing, fees and other non-tuition related charges.
Section 3. The Board of Trustees of the State University of New York shall establish an immediate funding source for the "Pay it Forward, Pay it Back Program' and also a revolving fund to deposit made under the "pay it Forward, Pay it Back Program".
Section 4. Effective Date.
Justification
Higher education is the key to success in an increasingly competitive global economy, yet it is becoming more and more unaffordable for the middle class. The only type of household debt that grew during the recession is student loan debt. Student loan debt in America exceeds $1 trillion. Americans owe more on student loans than credit cards. That $1 trillion debt amounts to an aggregate wealth loss of about $4 trillion over the lifetime of the borrowers. The average student loan debt for a family headed by two people with 4-year degrees is $53,000. Young Americans are starting adult life deeper in debt. The number of students in default continues to increase. This legislation can help create an alternative model for funding higher education where students can get their education, contribute to the economy, not be saddled with crushing debt and help the next generation of students to get their education.
Legislative history
2015-16 S.1873/A.2022; 2014 S.6420/A.8562.
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first day of July next succeeding the date on which it shall have become law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and competed 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.