Skip to content
S5601Senate2019-2020 Session

Forgive Seniors' Student Loans

Official title

“Establishes a New York state senior citizens loan forgiveness program”

Sponsor Rachel MaySD-53Affects Education
Status
In Senate Committee
Higher Education
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Higher Education

What's happening

This bill creates a student loan forgiveness program for New York residents age 65 and older with low incomes.

Why it matters

  1. Targets an often-overlooked group. The bill recognizes that some New Yorkers are still managing student loan debt well into retirement age, providing targeted relief to seniors who may be on fixed or limited incomes.

  2. Strict eligibility requirements. Only those aged 65 or older, with at least ten years of employment in New York and an adjusted gross income under $30,000, are eligible—focusing the benefit on long-term residents in significant financial need.

  3. Modest but meaningful financial assistance. The program caps total loan repayment assistance at $3,150 over up to 18 months, which may not clear all debt but can significantly reduce monthly burdens for low-income seniors.

  4. Potential to improve senior well-being. By reducing loan payments, the bill can help seniors better afford essentials like housing, food, and healthcare in retirement, potentially reducing poverty and financial stress among older adults.

The daily · weekday mornings

Albany, before your first meeting.

Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.

Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.

Who cares

  • New York student loan borrowers age 65 and older

    Those with at least 10 years of employment in the state and adjusted gross income of $30,000 or less could qualify for up to $3,150 in monthly repayment assistance over no more than 18 months, subject to additional eligibility requirements.

  • Senior citizen advocates

    The bill would create a state program specifically aimed at easing seniors’ student loan debt, with income, employment and age limits on eligibility.

  • State student aid administrators

    They would establish the program, could set additional eligibility requirements and would be authorized to issue implementation rules.

Headline styles

Forgive Seniors' Student Loans

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Rachel May

Senator · Senate District 53

Chair, Aging

No co-sponsors yet.

History

  1. Referred to higher education
  2. Referred to higher education

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

5601

2019-2020 Regular Sessions

IN SENATE

May 8, 2019

Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education

AN ACT to amend the education law, in relation to establishing a New York state senior citizens 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 senior citizens loan forgiveness program. 1. Purpose. The president shall establish a student loan forgiveness program for the purpose of alleviating the burden of student loan debt for senior citizens of this state.

2. Eligibility. To be eligible for loan payment assistance pursuant to this section, an applicant shall: (a) be sixty-five years of age or older; (b) have been employed within the state for ten or more years; (c) have an adjusted gross income of not more than thirty thousand dollars; and (d) meet any other requirements the president deems appropriate.

3. Payments. Eligible applicants shall receive student loan repayment assistance from the state in the form of monthly payments. Such payments shall be provided to such applicants for a period of not greater than eighteen months. The maximum total amount of all payments made to the applicant shall not exceed three thousand one hundred fifty dollars.

4. Rules and regulations. The corporation is authorized to promulgate rules and regulations necessary for the implementation of the provisions of this section.

§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. 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 to be made and completed on or before such date.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11536-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the education law, in relation to establishing a New York state senior citizens loan forgiveness program

Purpose or general idea of bill

This bill establishes a student loan forgiveness program for New York residents over the age of 65 who meet certain eligibility requirements. This program would provide necessary relief for seniors burdened by student loan debt.

Summary of specific provisions

Section 1: Adds a new section 679-k to the education law. This new section establishes a loan forgiveness program.

Section 1.1: Describes the purpose of the program, to provide student loan relief for New York seniors.

Section 1.2: Establishes eligibility for the program, including that those seniors must be 65 or above, must have worked in NYS for 10 or more years, have an income of less than $30,000, and other requirements as necessary.

Section 1.3: Loan repayments may be made under this program for a period of up to 18 months and to a maximum of $3,150 (up to $175 a month).

Section 1.4: The president of the Higher Education Services Corporation may develop rules and regulations necessary to implement this program.

Section 2: Effective date.

Justification

It is an unfortunate side effect of the rising cost of higher education that some people will continue to owe student loan debt later in life. Unable to discharge student loan debt through bankruptcy, older adults living on limited incomes can find it very difficult to maintain regular payments for student loan debt. Social Security payments that have successfully kept generations of older Americans free of the worst poverty can be held back to pay off student debt, leaving seniors even more exposed and vulnerable. Recent reporting by the Wall Street Jour- nal and other outlets describes the unique paradox by the 3 million seniors who have some level of student loan debt. By establishing a new senior citizen loan forgiveness program for the most vulnerable New York elders, the state will be able to provide a small degree of security and comfort for seniors and their families struggling to make payments on time while also balancing other demands.

Prior legislative history

New bill

Fiscal implications

Cost to the state for the program will be subject to appropriation

Effective date

120 days after becoming law

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.