NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8067A
SPONSOR: Epstein TITLE OF BILL:
An act to amend the banking law, in relation to an exemption from the
licensing requirements for servicers of student loans
PURPOSE OR GENERAL IDEA OF BILL:
Requires exempt student loan servicers to comply with the student loan
servicer reporting requirements under article 9 of the financial
services law.
SUMMARY OF PROVISIONS:
Section 1:Amends subdivision 2 of section 711 of the banking law to
include a cross reference to article 9 of the•financial services law,
which establishes student loan servicer reporting requirements.
Section 2: Effective Date.
JUSTIFICATION:
Although certain student loan servicers are exempt from licensing under
article 14-A of the banking law, they are still required to comply with
certain student loan servicer laws and regulations. To promote greater
transparency in the student loan market, this bill clarifies that such
exempt student loan servicers are required to comply with article 9 of
the financial services law, which establishes student loan reporting
requirements.
Such student loan reporting requirements include, without limitation,
information on trends in loan origination, terms and conditions, differ-
ences in financing costs across demographic groups, and default rates.
No identifying information on student loan borrowers is required to be
reported.
PRIOR LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8067--A
Cal. No. 118
2025-2026 Regular Sessions
IN ASSEMBLY
April 23, 2025
___________
Introduced by M. of A. EPSTEIN, DE LOS SANTOS -- read once and referred
to the Committee on Banks -- reported from committee, advanced to a
third reading, amended and ordered reprinted, retaining its place on
the order of third reading
AN ACT to amend the banking law, in relation to an exemption from the
licensing requirements for servicers of student loans
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 711 of the banking law, as
2 amended by section 1 of part L of chapter 58 of the laws of 2019, is
3 amended to read as follows:
4 2. The licensing provisions of this article shall not apply to any
5 exempt organization that is a student loan servicer; provided that,
6 unless preempted by federal law, such exempt organization [notifies]
7 shall notify the superintendent that it is servicing student loans in
8 this state and complies with sections seven hundred seventeen, seven
9 hundred nineteen, seven hundred twenty-one, seven hundred twenty-three
10 and seven hundred twenty-five of this article and article nine of the
11 financial services law and any regulation applicable to student loan
12 servicers promulgated by the superintendent.
13 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11792-02-5
