Amd Art 9 Art Head, §§901, 902 & 904, Fin Serv L (as proposed in S.8197 & A.8913)
Provides that each student loan servicer shall submit an annual report containing a list of all private education creditors associated with the private education debts serviced by the student loan servicer that are owed by persons who resided in New York during the prior calendar year and containing additional information for each private education creditor reported.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A431
SPONSOR: Epstein TITLE OF BILL:
An act to amend the financial services law, in relation to private
education debt reporting
PURPOSE GENERAL IDEA OF BILL:
The purpose of this bill is to effectuate chapter 627 of the laws of
2024 (approval memo 67), to direct the superintendent of financial
services to create a website which shall contain information and
documentation from student loan servicers, relating to loans issued by
their affiliated private education creditors and providers of higher
education that originate student loans.
SUMMARY OF PROVISIONS:
Section 1: Amends the financial services law by adding a new Article 9
to require licensed student loan servicers to annually submit data to
DFS regarding associated private education creditors and providers of
higher education that originate student loans.
Each licensed student loan servicer shall provide a list of all associ-
ated private education creditors for debts owed by New Yorkers serviced
in the prior calendar year, and for each such private education credi-
tor, provide the following data:
i.A list of the providers of higher education associated with the
private education debts serviced by the student loan servicer.
ii.The total outstanding dollar amount and number of student loans and
the number of consumers who owe such private education debts;
iii The total dollar amount and number of student loans made in the
prior calendar year;
iv.The number of student loans that experienced a default and the number
of loans expressed as a percentage of the total number of outstanding
loans associated with each provider of higher education;
v.The total dollar amount and number of student loans that defaulted for
reasons other than non-payment; vi.The total dollar amount and number of
student loans made with a cosigner; vii. The total dollar amount and
number of student loans made to refinance other student loans or federal
student loans; and
viii. The total dollar amount: and number of student loans for which the
private education loan servicer commenced a lawsuit; and
ix.Additional information as may in the judgment of the Superintendent
be necessary and appropriate to assess the total size and status of the
private education debt market and to assess borrower well-being.
DFS shall publish the above data online within two years.
DFS is authorized to promulgate rules and regulations. An intentional
violation of this article may result in a civil penalty up to $10,000
for each violation or being barred from acting as a student loan servi-
cer creditor for up to ten years.
Section 2: Effective date.
JUSTIFICATION:
This chapter makes amendments to effectuate chapter 627 of the laws of
2024.
PRIOR LEGISLATIVE HISTORY:
This chapter makes amendments to chapter 627 of the laws of 2024.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2024 amending the financial services law relating
to creating a private education debt registry, as proposed in legisla-
tive bills numbers S. 8197 and A. 8913, takes effect.
