What's happening
This bill requires colleges to track and report student withdrawals due to credit card debt, provide credit education, and regulate on-campus credit card marketing.
Why it matters
Collecting data on student withdrawals due to credit card debt will shine a light on the scale and impact of financial stress among college students. , potentially influencing future policy decisions, resource allocation, and support services at higher education institutions.
Mandatory credit education during student orientation aims to equip students with practical knowledge about the dangers of poor credit and debt. , which could help them make more informed financial choices and avoid long-term financial harm.
Regulating on-campus credit card marketing—by banning incentives, requiring registration, and mandating educational materials—directly addresses aggressive or predatory tactics targeting financially inexperienced students. , making college environments less susceptible to exploitative credit practices.
Annual reporting of withdrawal statistics to state leaders increases institutional accountability and creates a feedback loop to lawmakers and the public about the real-world effects of student debt. , potentially leading to broader financial reform or additional protections for students.
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Track Student Debt Dropouts
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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
4960
2019-2020 Regular Sessions
IN ASSEMBLY
February 6, 2019
Introduced by M. of A. ARROYO -- 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 the implications of establishing a bad credit rating. Such course of instruction shall constitute a credit course.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09029-01-9
A. 4960 2
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, 2022.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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