What's happening
This bill requires New York employers to give new hires information about student loan repayment options and resources.
Why it matters
Empowers new hires to make informed financial decisions. by ensuring they receive clear, state-approved information about student loan repayment options, including federal income-driven plans and loan consolidation.
Standardizes the information provided across all employers. in New York, reducing misinformation or gaps in knowledge that could otherwise disadvantage borrowers navigating complex student loan systems.
Connects employees with trusted resources. , specifically directing them to the New York Department of Financial Services’ student lending resource center, which may help prevent scams or reliance on predatory loan servicers.
May increase employer responsibility and administrative tasks. , as every employer will be required to provide these materials to all new hires, potentially affecting onboarding processes and compliance obligations.
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Headline styles
Inform New Hires on Loans
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
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.
Inform New Hires on Student Loans
In Assembly Committee · Banks · Sponsor Ron Kim
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5048
2019-2020 Regular Sessions
IN SENATE
April 4, 2019
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to student loan repayment information
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The labor law is amended by adding a new section 217-a to read as follows:
§ 217-a. Student loan repayment information to be provided. 1. The commissioner, in consultation with the commissioner of education and the superintendent of financial services, shall develop a notice, pamphlet or other written materials regarding responsibilities and repayment options for student loans. Such materials shall include information about consolidation and alternative federal student loan repayment plans, including income-based programs, that do not require consolidating existing federal student loans, that may be available to borrowers. Such materials shall also provide direction to additional resources including the website for the department of financial services' student lending resource center at www.dfs.ny.gov/studentprotection.
2. Every employer in the state shall provide to any person hired on or after the effective date of this section a notice with regard to repayment of student loans developed in accordance with this section.
3. (a) "Student loan" means any loan to a borrower to finance postsecondary education or expenses related to post-secondary education.
(b) "Borrower" means any resident of this state who has received a student loan or agreed in writing to pay a student loan or any person who shares a legal obligation with such resident for repaying a student loan.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, any rules and regulations necessary for the timely implementation of this act on its effective date shall be promulgated on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11013-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to student loan repayment information
Purpose or general idea of bill
To require employers to provide newly hired employees with a notice detailing student loan repayment options that may be available to borrowers.
Summary of provisions
Section one amends section 217-a of the Labor Law to require the Commis- sioner of Labor, the !Commissioner of Education, and the Superintendent of Financial Services, to develop a notice outlining student loan repay- ment options, including ways to consolidate federal loans and income- based repayment options and the website for the Department of Financial Services' Student Lending Resource Center. The section stipulates that every new employer shall be required to provide this notice to any employee hired on or after the effective date.
Section two states that the act shall take effect on the 180th day after it shall have become law.
Justification
The American student loan crisis is one of epic proportions. According to a 2019 NYC Department of Consumer Affairs' report "Student Loan Debt Distress Across NYC Neighborhoods," total student loan debt in the US has reached a staggering $1.5 trillion. The debt load for 2016 college graduates nationally averaged more than $30,000, and in New York, the problem is even worse: the State Comptroller estimates that between 2006 and 2015, the delinquency rate among New York borrowers rose more than a third, with debt averaging more than $32,0000 per borrower. The inabili- ty to repay student loans and build future assets carries many conse- quences, forcing the borrower to forego other purchases such as a car or a home, or interfering with the decision to get married and start a family. Additionally, defaulting on a loan can cause an enormous amount of stress, anxiety, and depression for a borrower that sees no way out of the financial hole they're in.
It is long past time the state devised creative and effective solutions to help residents begin to dig themselves out of that hole. This bill serves that purpose by requiring all employers to provide new employees with a brief summary of the various student loan repayment options available to them, including consolidation of federal loans and income- driven plans. Providing this briefing at the onset of employment, when employees are already opting into a number of other programs such as health insurance, health savings accounts, transit benefits, and retire- ment plans, is an opportune way to ensure that student loan repayment plans are seriously examined by a potential borrower and naturally fold- ed into his/her financial planning. This bill represents a thoughtful and feasible approach to addressing the student loan debt crisis.
Prior legislative history
New bill.
Fiscal implications
None
Effective date
This act shall take effect on the 180th day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.