NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8372
SPONSOR: Kassay TITLE OF BILL:
An act to amend the education law, in relation to establishing the New
York state veteran student loan forgiveness program
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to establish the New York State veteran
student loan forgiveness program.
SUMMARY OF PROVISIONS:
Section 1. The education law is amended by adding a new section '679-k
which would establish The New York State Veteran Student Loan Forgive-
ness Program.
To be eligible for an award pursuant to this section, applicant shall:
(a) have graduated and obtained a degree from an approved New York state
college or university; (b) have an outstanding student loan debt from
obtaining such degree; (c) be employed full-time in New York State at
the time of application; (d) agree to reside in New York State for no
less than five years; (f) not receive or have received student loan
forgiveness or discharge from the federal government; and (f) comply
with subdivisions three and five of section six hundred sixty-one of
this part.
Awards shall be granted to qualified applicants for ten thousand dollars
per year, per applicant, not to exceed a duration of five years and not
to exceed the total amount of such applicant's student loan debt. The
corporation shall grant such awards within amounts appropriated for such
purposes and based on the availability of funds. No one applicant shall
receive more than a total of fifty thousand dollars upon the end of a
five-year period.
First priority shall be given to applicants who have received payment of
an award pursuant to this section in a prior year and remain eligible.
Second priority shall be given to an applicant who can demonstrate
economic need and applicants having been awarded a disability rating of
forty percent or higher from the federal veteran's administration or
from the United States Department of Defense, where that disability was
incurred in the,line of duty in the active military, naval or air
service, as documented. If larger numbers of applicants are eligible
pursuant to this subdivision than funds available, applicants shall be
chosen pursuant to rules and regulation promulgated by the corporation.
Provided, however, that each applicant chosen shall receive an award of
up to ten thousand dollars in each year such applicant is accepted into
the program.
Section 2. Establishes the enacting clause.
JUSTIFICATION:
Service members often face financial barriers upon completing their
military service, including student loan debt. While federal deferments
and forbearances may assist during active duty, there remains a need
for. long-term relief once service has ended. This legislation creates a
targeted student loan forgiveness program for veterans who have gradu-
ated from an approved New York State college or university, maintain
full-time employment in New York at the time of application, and commit
to residing in the state for a minimum of five years. Eligibility is
limited to individuals who were honorably discharged or released under
conditions other than dishonorable discharge, and have not previously
received federal student loan forgiveness or discharge.
The bill authorizes awards to be granted on a competitive basis through
the Higher Education Services Corporation in consultation with the Divi-
sion of Military and Naval Affairs. Particular consideration will be
given to applicants who demonstrate economic disadvantage, ensuring that
those most in need are prioritized for relief. By offering this benefit,
New York acknowledges the continued contributions of veterans and
provides them with the opportunity to achieve financial stability while
remaining engaged in the state's workforce.
This legislation supports veterans' successful reintegration into civil-
ian life and promotes long-term residency and employment in New York. It
recognizes the sacrifices made by those who served and seeks to reduce
the burden of student loan debt in a way that strengthens both individ-
ual well-being and the broader state economy.
PRIOR LEGISLATIVE HISTORY:.
2023-24: S7301
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
8372
2025-2026 Regular Sessions
IN ASSEMBLY
May 13, 2025
___________
Introduced by M. of A. KASSAY -- read once and referred to the Committee
on Higher Education
AN ACT to amend the education law, in relation to establishing the New
York state veteran student loan forgiveness program
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 679-k
2 to read as follows:
3 § 679-k. New York state veteran student loan forgiveness program. 1.
4 Definition. For the purposes of this section, "veteran" shall be a
5 member of the armed forces of the United States who served and was
6 honorably discharged or released under conditions other than dishonor-
7 able from such service, and presents an authorized veteran identifica-
8 tion card, and who is a resident of the state of New York.
9 2. Purpose. The president shall grant student loan forgiveness awards
10 for the purpose of alleviating the burden of student loan debt for
11 veterans. Such awards shall be made on a competitive basis, in accord-
12 ance with rules and regulations promulgated by the corporation in
13 consultation with the division of military and naval affairs, for such
14 purposes, to applicants who meet the eligibility criteria. Such rules
15 and regulations shall include provisions for the consideration of appli-
16 cants who are economically disadvantaged.
17 3. Eligibility. To be eligible for an award pursuant to this section,
18 applicants shall: (a) have graduated and obtained a degree from an
19 approved New York state college or university; (b) have an outstanding
20 student loan debt from obtaining such degree; (c) be employed full-time
21 in New York state at the time of application; (d) agree to reside in New
22 York state for no less than five years; (e) not receive or have received
23 student loan forgiveness or discharge from the federal government; and
24 (f) comply with subdivision five of section six hundred sixty-one of
25 this part.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08332-01-5
A. 8372 2
1 4. Awards. Awards shall be granted to qualified applicants in the
2 amount of up to ten thousand dollars per year, per applicant, not to
3 exceed a duration of five years and not to exceed the total amount of
4 such applicant's student loan debt. The corporation shall grant such
5 awards within amounts appropriated for such purposes and based on the
6 availability of funds. No one applicant shall receive more than a total
7 of fifty thousand dollars upon the end of a five-year period.
8 5. Priority. First priority shall be given to applicants who have
9 received payment of an award pursuant to this section in a prior year
10 and remain eligible. Second priority shall be given to an applicant who
11 can demonstrate economic need and applicants having been awarded a disa-
12 bility rating of forty percent or higher from the federal department of
13 veteran's affairs or from the United States department of defense, where
14 that disability was incurred in the line of duty in the active military,
15 naval or air service, as documented by the corporation. If larger
16 numbers of applicants are eligible pursuant to this subdivision than
17 funds available, applicants shall be chosen pursuant to rules and regu-
18 lations promulgated by the corporation. Provided, however, that each
19 applicant chosen shall receive an award of up to ten thousand dollars in
20 each year such applicant is accepted into the program.
21 6. Rules and regulations. The corporation is authorized to promulgate
22 rules and regulations, and may promulgate emergency regulations, neces-
23 sary for the implementation of the provisions of this section.
24 § 2. This act shall take effect on the ninetieth day after it shall
25 have become a law.
