Bill > A04922

This bill enacts new protections for borrowers and cosigners of private education loans, which are defined as loans not backed by the federal government, used for higher education expenses, and not secured by real property. Key provisions include requiring lenders to provide detailed information to cosigners about their rights and responsibilities, including how they will be notified of delinquencies and their eligibility for cosigner release, which is the process of removing the cosigner's liability from the loan. The bill also prohibits lenders from accelerating the entire loan balance except in cases of payment default, and it mandates that creditors and debt collectors provide specific documentation and information to borrowers and cosigners, such as the current owner of the debt and a history of transactions. Furthermore, the bill establishes enforcement mechanisms, allowing borrowers and cosigners to sue for damages and granting the Attorney General the power to take action against violations, and it also amends the civil practice law and rules to clarify the definition of "original creditor" for private education loans.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A4922