Requires student financial aid award letters to contain information on net costs, defined as an estimate of the costs of attendance after financial aid which does not require repayment and options for loans which do require repayment.
STATE OF NEW YORK
________________________________________________________________________
9649
IN ASSEMBLY
March 27, 2024
___________
Introduced by M. of A. RAGA -- read once and referred to the Committee
on Banks
AN ACT to amend the banking law, in relation to information included in
student financial aid award letters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 9-w of the banking law, as amended by section 1 of
2 part CC of chapter 54 of the laws of 2016, is amended to read as
3 follows:
4 § 9-w. Standard financial aid award letter. The superintendent of
5 financial services in consultation with the president of the higher
6 education services corporation shall develop a standard financial aid
7 award letter which shall clearly delineate (a) the estimated cost of
8 attendance, including but not limited to, the cost of tuition and fees,
9 room and board, books, and transportation. Such standard letter shall
10 provide the estimated cost of attendance for the current academic year
11 as well as estimates for each academic year that the student would need
12 to attend to earn a degree at such institution with a disclaimer that
13 the cost of attendance for years other than the current academic year
14 are estimates and may be subject to change, (b) all financial aid
15 offered from the federal government, the state, and the institution with
16 an explanation as to which components will require repayment, (c) any
17 expected student and/or family contribution, (d) net costs, defined as
18 an estimate of the costs of attendance after financial aid which does
19 not require repayment, (e) campus-specific graduation, median borrowing,
20 and loan default rates, (f) options for loans which do require repay-
21 ment, and [(e)] (g) any other information as determined by the super-
22 intendent in consultation with the president. Such standard letter shall
23 include a glossary of standard terms and definitions used on such stand-
24 ard letter. The superintendent shall publish and make available such
25 standard letter by December thirty-first, two thousand fifteen and ther-
26 eafter. Each college, vocational institution, and any other institution
27 that offers an approved program as defined in section six hundred one of
28 the education law shall utilize the standard letter issued by the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13228-02-3
A. 9649 2
1 department of financial services in responding to all undergraduate
2 financial aid applicants for the two thousand sixteen--two thousand
3 seventeen academic year and thereafter. The superintendent shall promul-
4 gate regulations implementing this section.
5 § 2. This act shall take effect on the thirtieth day after it shall
6 have become a law.
