BILL NUMBER: S3772
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the education law, in relation to creating a student
loan borrower bill of rights
 
PURPOSE OR GENERAL IDEA OF BILL:
An act to amend the education law in relation to the creating of a
student loan borrower bill of rights.
 
SUMMARY OF SPECIFIC PROVISIONS:
The education law is amended by adding a new section to § 684 Student
Loan Borrower Bill of Rights
 
JUSTIFICATION:
In the wake of the recently rolled back federal laws regarding student
loan protections it is important that the state set clear understandable
guidelines outlining student loan purchaser's protections. With the
rising cost of higher education it is important that consumers under-
stand the implications of student loan debt. Creating a bill of rights
will protect student loan borrowers who are consumers of a loan product
along the same lines as those protections which already exist for
private sector borrowing. Enshrining consumer protections for borrowers
and requiring that student loan servicer's act more like loan counselors
will help with a clearer understanding of what type of contract student
borrowers are entering into and improve the individual's comprehension
of their loan repayment options and rights of consumption to better
protect them in the event of bad faith contracts.
 
PRIOR LEGISLATIVE HISTORY:
2024: S2638 Comrie/ A2275 Simon
2022: S5794
Senate Bill 8463 of 2018.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act will take effect on the one hundred twentieth day after it
shall have become a law.