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S05181 Summary:

S05181 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5181
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     March 10, 2017
                                       ___________
 
        Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Finance
 
        AN ACT to amend the education law, in relation to refinancing undergrad-
          uate student loans; and making an appropriation therefor
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The education law is amended by adding a new section 683-c
     2  to read as follows:
     3    § 683-c. Refinance of undergraduate student loans. 1.  Definitions. As
     4  used in this section, the following terms shall have the following mean-
     5  ings: (a) "Eligible borrower" shall mean an individual who has signed or
     6  co-signed a loan for undergraduate education.
     7    (b) "Corporation" shall be known  as  the  higher  education  services
     8  corporation.
     9    (c)  "Degree"  shall  mean  the granting of a post-secondary degree or
    10  diploma from a college or university.
    11    (d) "Undergraduate student loans" shall mean any combination of feder-
    12  al and private loans used for the  purpose  of  an  eligible  borrower's
    13  undergraduate education.
    14    2.  Refinance  of  undergraduate  student  loans  program. An eligible
    15  borrower shall apply to have their undergraduate education  loans  refi-
    16  nanced  by  the  corporation.  The maximum amount allowed per refinanced
    17  loan shall be seventy thousand dollars.
    18    3. Eligibility. An eligible borrower shall include a  New  York  state
    19  resident  who can provide proof to the corporation that they have gradu-
    20  ated from a college or university with an undergraduate degree  and  has
    21  at  least ten thousand dollars in outstanding student loan debt relating
    22  to such degree.
    23    4. Repayment terms. Repayment terms shall be determined based  on  the
    24  credit rating of the eligible borrower, the amount being refinanced, and
    25  whether  there  is  a co-signer to such loan. An eligible borrower shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08137-01-7
        S. 5181                             2
 
     1  choose either (a) variable repayment or (b) fixed repayment. The options
     2  for fixed repayment shall be (i) a five-year loan for no more than  four
     3  and  a quarter percent, (ii) a ten-year loan for no more than five and a
     4  half percent or (iii) a fifteen-year loan for no more than six and three
     5  quarters percent.
     6    5.  Rules and regulations. The corporation is authorized to promulgate
     7  rules and regulations necessary for the implementation of the provisions
     8  of this section.
     9    § 2. The sum of one hundred million dollars ($100,000,000), or so much
    10  thereof as may be necessary, is hereby appropriated to the department of
    11  education out of any moneys in the state treasury in the general fund to
    12  the credit of the state purposes account,  not  otherwise  appropriated,
    13  and  made  immediately  available,  for  the purpose of carrying out the
    14  provisions of this act. Such moneys shall be payable on  the  audit  and
    15  warrant  of  the  comptroller  on  vouchers certified or approved by the
    16  commissioner of education in the manner prescribed by law.
    17    § 3. This act shall take effect immediately.