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A08372 Summary:

BILL NOA08372
 
SAME ASSAME AS S06279
 
SPONSORKassay
 
COSPNSR
 
MLTSPNSR
 
Add §679-k, Ed L
 
Establishes the New York state veteran student loan forgiveness program; awards up to $10,000 per year for five years, for eligible applicants.
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A08372 Memo:

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.
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A08372 Text:



 
                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.
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