NY State Senate Bill 2025-S1991

Senate Bill S1991

2025-2026 Legislative Session

Relates to including information concerning repayment of outstanding loans in the standard financial aid award letter

download bill text pdf

Current Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2025	referred to banks

2025-S1991 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §9-w, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4652
2021-2022: S664
2023-2024: S1137

2025-S1991 (ACTIVE) - Summary

Relates to including information concerning repayment of outstanding loans in the standard financial aid award letter.

2025-S1991 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1991

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to including information
concerning repayment of outstanding loans in the standard financial aid
award letter

 
PURPOSE OR GENERAL IDEA OF THE BILL:

This bill will require standard financial aid award letters to include
the estimated cost of repayment of all outstanding loans including
expected monthly payments.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 9-W of the banking law as it
relates to including additional information in the standard financial
aid award letter. The standard financial aid award letter will include
the estimated loan repayment for the student's outstanding loans using a
standard ten year repayment term.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

Debt from student loans has continued to grow over the last two decades
with an estimated $1.3 trillion in outstanding debt. The enhancements to
annual financial aid award letter will provide students with detailed
information on their repayment including the estimated monthly payment
amount. The goal is to. better educate students so they are prepared for
the debt burden after they graduate. A similar program was started in
Indiana University and resulted in a decrease in student borrowing of
16t in the first two years of implementation. This additional informa-
tion will help students make informed decisions on their borrowing
behavior by estimating their repayment options.

 
LEGISLATIVE HISTORY:

2023 referred to assembly banks PASSED SENATE

2022 referred to assembly banks2021PASSED SENATE

2021 referred to assembly banks2020PASSED SENATE

2020 referred to assembly banks2019PASSED SENATE

2019 referred to assembly banks A8450of 2017-18

 
FISCAL IMPLICATIONS TO STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S1991 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1991
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2025
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation  to  including  information
   concerning  repayment  of  outstanding loans in the standard financial
   aid award letter

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 9-w of the banking law, as amended by section 1 of
 part CC of chapter 54 of the  laws  of  2016,  is  amended  to  read  as
 follows:
   §  9-w.  Standard  financial  aid award letter. The superintendent [of
 financial services] in consultation with the  president  of  the  higher
 education  services  corporation  shall develop a standard financial aid
 award letter which shall clearly delineate (a)  the  estimated  cost  of
 attendance,  including but not limited to, the cost of tuition and fees,
 room and board, books, and transportation. Such  standard  letter  shall
 provide  the  estimated cost of attendance for the current academic year
 as well as estimates for each academic year that the student would  need
 to  attend  to  earn a degree at such institution with a disclaimer that
 the cost of attendance for years other than the  current  academic  year
 are  estimates  and  may  be  subject  to  change, (b) all financial aid
 offered from the federal government, the state, and the institution with
 an explanation as to which components will require  repayment,  (c)  any
 expected  student and/or family contribution, (d) campus-specific gradu-
 ation, median borrowing, and loan default rates, [and] (e) THE ESTIMATED
 LOAN REPAYMENT IMPACT USING ACTUAL TERMS,  EXPECTED  REPAYMENT  SCHEDULE
 AND  PAYOFF AMOUNTS OR, WHERE SUCH INFORMATION IS NOT AVAILABLE OR FIXED
 IN THE LOAN AGREEMENT, A STANDARD TEN YEAR REPAYMENT  TERM  AND  ASSUMED
 INTEREST RATE ON THE CURRENT AMOUNT OF OUTSTANDING LOANS INCLUDING TOTAL
 EXPECTED PAYOFF AMOUNT INCLUSIVE OF PRINCIPAL AND INTEREST, AND EXPECTED
 MONTHLY  PAYMENT,  AND  (F)  any  other information as determined by the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03008-01-5

 S. 1991                             2
 
 superintendent in consultation with the president. Such standard  letter
 shall  include a glossary of standard terms and definitions used on such
 standard letter. The superintendent shall  publish  and  make  available
 such  standard letter by December thirty-first, two thousand fifteen and
 thereafter. Each college, vocational institution, and any other institu-
 tion that offers an approved program as defined in section  six  hundred
 one of the education law shall utilize the standard letter issued by the
 department  of  financial  services  in  responding to all undergraduate
 financial aid applicants for  the  two  thousand  sixteen--two  thousand
 seventeen academic year and thereafter. The superintendent shall promul-
 gate regulations implementing this section.
   § 2. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.