Bill > S05598

This bill enacts new protections for borrowers and cosigners of private education loans, which are loans not backed by the federal government and used for higher education expenses. It requires creditors and debt collectors to provide specific information to borrowers and cosigners, including details about the loan's ownership, transaction history, and original terms, and prohibits lenders from accelerating the entire loan balance except in cases of payment default. The bill also establishes detailed procedures and criteria for cosigner release, requiring lenders to inform cosigners of their rights and responsibilities, provide annual updates on release eligibility, and process release applications within specific timeframes, with provisions for appeals and release in cases of total and permanent disability. Additionally, it clarifies the definition of "original creditor" for private education loans in legal proceedings and sets penalties for violations, including fines and the possibility of lawsuits for damages.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5598