STATE OF NEW YORK
________________________________________________________________________
664
2021-2022 Regular Sessions
IN SENATE(Prefiled)
January 6, 2021
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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:
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) campus-specific gradu-
18 ation, median borrowing, and loan default rates, [and] (e) the estimated
19 loan repayment impact using a standard ten year repayment term and
20 assumed interest rate on the current amount of outstanding loans includ-
21 ing total expected payoff amount inclusive of principal and interest,
22 and expected monthly payment, and (f) any other information as deter-
23 mined by the superintendent in consultation with the president. Such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05211-01-1
S. 664 2
1 standard letter shall include a glossary of standard terms and defi-
2 nitions used on such standard letter. The superintendent shall publish
3 and make available such standard letter by December thirty-first, two
4 thousand fifteen and thereafter. Each college, vocational institution,
5 and any other institution that offers an approved program as defined in
6 section six hundred one of the education law shall utilize the standard
7 letter issued by the department of financial services in responding to
8 all undergraduate financial aid applicants for the two thousand
9 sixteen--two thousand seventeen academic year and thereafter. The super-
10 intendent shall promulgate regulations implementing this section.
11 § 2. This act shall take effect immediately.
