Bill > A04922

This bill enacts comprehensive protections for private education loan borrowers and cosigners in New York State. The bill defines a private education loan as a credit extension specifically for higher education expenses that is not federally guaranteed. It establishes extensive requirements for lenders regarding cosigner rights, including mandating that lenders provide clear information about cosigner release eligibility, annual notifications about release criteria, and a transparent process for cosigner release applications. The bill prohibits lenders from permanently barring borrowers from qualifying for cosigner release and requires lenders to notify borrowers and cosigners within specific timeframes about release eligibility and application status. Additionally, the bill restricts lenders from accelerating loan payments except in cases of payment default and requires detailed documentation and communication from creditors and debt collectors when collecting on private education loans. The legislation also empowers the superintendent of financial services to enforce these provisions and impose civil penalties up to $10,000 for violations, with the goal of protecting borrowers from unfair lending practices in the private education loan market.

Business and Industry, Housing and Urban Affairs

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