What's happening
This bill creates a student loan forgiveness program for New York state employees (excluding certain officials) to aid in retention.
Why it matters
Targets employee retention. by offering financial relief to long-serving New York state employees, aiming to reduce turnover and bolster workforce stability in government roles.
Excludes high-level officials. (such as elected officials, judges, agency heads, and appointed board/commission members) from eligibility, ensuring that benefits are focused on non-leadership staff who may face more significant financial burdens from student loans.
Limits and conditions the benefit. by capping the annual award at $5,000 (with a $10,000 lifetime maximum), only for employees with at least five years of service and remaining student loan debt, which may incentivize staying in state employment longer.
Prioritizes fiscal responsibility. by tying the program to available appropriations and the actual outstanding student debt, meaning the state can adjust the program based on budget and need, and preventing overpayment beyond an employee’s loan balance.
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Forgive State Worker Loans
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to higher education
- Print number 2471a
- Amend and recommit to higher education
- Referred to higher education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Forgive State Worker Student Loans
In Assembly Committee · Higher Education · Sponsor Taylor Darling
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2471--A
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the education law, in relation to establishing the New York state employee loan forgiveness program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 679-k to read as follows:
§ 679-k. New York state employee loan forgiveness program. 1. Purpose. The commissioner shall grant student loan forgiveness awards for the purpose of retaining individuals serving as employees of a state employer.
2. Definitions. (a) "State employer" means: (1) the executive branch of the state, (2) a cooperative extension association ("association"), (3) the unified court system, (4) the senate, (5) the assembly, and (6) joint legislative employers.
(b) "Student loan debt" means the total annual loan repayments required to be made by the eligible employee on the cumulative total of the employee's outstanding student loans covering the cost of attendance at an undergraduate institution and/or graduate school. Interest paid or due on such loans shall be considered eligible for reimbursement under this program. For purposes of this calculation, the amount of the student loan expense shall be reduced by any grants, loan forgiveness, or similar reductions to the employee's indebtedness that he or she has received or shall receive.
(c) "Year of qualified service" means the twelve-month period measured from the anniversary of the individual's employment with the state employer and adjusted for any interruption in employment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08740-02-9
S. 2471--A 2
3. Eligibility. (a) To be eligible for an award pursuant to this subdivision, applicants shall: (1) be employed by a state employer; (2) for five or more years of qualified service; and (3) have an outstanding student loan debt.
(b) Individuals employed by a state employer who are not eligible include:
(1) elected officials, judges or justices appointed to or serving in court of record;
(2) officers described in sections four, forty-one-a, forty-six, sixty-one, seventy, seventy-a, one hundred sixty-nine (including those officers whose salary is established pursuant to salary plans under subdivision three of section one hundred sixty-nine), section one hundred eighty and subdivision one of section forty-one of the executive law and any agency or department head appointed by the governor, comptroller or attorney general; and
(3) appointed members of boards or commissions any of whose members are appointed by the governor or by another state officer or body.
4. Awards. The commissioner shall grant awards in the amount of five thousand dollars to individuals who are eligible, pursuant to subdivision two of this section, in the year prior to such application, provided that no recipient shall receive an award that exceeds the total remaining balance of the student loan debt and that no recipient shall receive cumulative awards, pursuant to this section, in excess of ten thousand dollars. Awards shall be within the amounts appropriated for such purpose and based on availability of funds.
5. Rules and regulations. The commissioner is authorized to promulgate rules and regulations necessary for the implementation of the provisions of this section.
§ 2. This act shall take effect April 1, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to establishing the New York state employee loan forgiveness program
Purpose
To establish the New York State Employee Loan Forgiveness program to retain individuals serving as employees of a state employer.
Summary of provisions
Section 1 of the bill would amend the education law by adding a new section 679-h. Section 679h shall allow the commissioner of education to grant loan forgiveness awards to state employees who have a minimum of five (5) years of qualified service and have outstanding student loan debt. Not eligible are elected officials, judges or justices appointed to or serving in court of record. The awards may be granted in amounts ranging from $5,000 not to exceed $10,000. Awards will be based on availability of funds.
Section 2 of the bill provides that the act shall take effect immediate- ly.
Existing law
Currently Education Law Section 679 awards loan forgiveness to individ- uals who are licensed social workers, primary care practitioner s, nurs- ing faculty, district attorney, indigent legal services attorney, and young farmers.
Justification
The cost of higher education has skyrocketed in recent years. It has become so expensive to pay for one's higher education that decisions regarding career are being determined based on economics. Consequently, the public sector job market, specifically the state government, has suffered as .a result of the economic competition in the job market- place. Without being able to match the salaries of the newly graduated in the private sector, the state government suffers by having to forego many talented individuals. This bill is a means of investing in the individuals who are willing to invest in the state for a job. The return is not immediate, but the investment will be worthwhile.
Legislative history
2016S.6646 REFERRED TO HIGHER EDUCATION 2017-18 S.4674 REFERRED TO HIGHER EDUCATION
Fiscal implications
No state fiscal impact for SFY 2019-20.
Local fiscal implications
None
Effective date
This act shall take effect on April 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.