Bill > A01244

This bill establishes the New York State Higher Education Debt Consolidation and Refinancing Program, which authorizes the state corporation to issue up to $500 million in bonds to help eligible borrowers consolidate and refinance their student loans at a lower interest rate. The program will cap interest rates at or below 5.5% and provides flexibility for borrowers experiencing financial hardship, allowing the corporation to modify loan payments if a borrower's financial circumstances change. If a borrower fails to make payments and the change is not due to financial hardship, the corporation can take legal action to enforce the loan terms. The program will be self-funded through application fees and interest rate surcharges, and the corporation is required to submit an annual report to the governor and legislature detailing key metrics such as the number of loans refinanced, refinancing rates, and a breakdown by gender, race, and ethnicity. The bill defines "eligible borrower" and "education loan" according to existing definitions in the education law, and the program will become operational 120 days after the bill becomes law.

Education

https://www.nysenate.gov/legislation/bills/2025/A1244