What's happening
This bill ensures that periods of unpaid leave do not count toward required service for student loan forgiveness, with exceptions for military service, family leave, or injury.
Why it matters
Clarifies which types of unpaid leave “pause the clock” for loan forgiveness. The bill specifically distinguishes between unpaid leave that does not count toward required service for student loan forgiveness and certain protected absences (military service, parental leave, FMLA, or compensable injury), which may still count at the program's discretion. This provides clearer guidance for borrowers on how life events affect eligibility.
Gives decision-making power to the program president. For absences due to military service, family, or injury, the president of the loan forgiveness program has sole discretion to determine if the time can count toward service requirements. This introduces a potential case-by-case element, rather than a blanket rule.
Applies retroactively, affecting past and current borrowers. By making the law effective from January 1, 2010, the bill could impact individuals who have taken unpaid leave in the past, possibly extending service periods for those borrowers unless their leave falls under the specified exceptions.
Aims to standardize treatment across all loan forgiveness programs. By adding similar language in multiple sections of education law, the bill seeks consistency in how unpaid leave is counted for all state-run loan forgiveness programs, reducing ambiguity for borrowers and administrators.
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Who cares
Headline styles
Protect Student Loan Forgiveness
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to higher education
- Referred to higher education
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1178
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
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-k to read as follows:
§ 679-k. 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.
LBD04624-01-9
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.