New York S 861: Establishes the New York college debt repayment program

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S00861 Summary:

BILL NOS00861 

&nbsp

SAME ASSAME AS A10476

&nbsp

SPONSORBAILEY

&nbsp

COSPNSRHINCHEY, SEPULVEDA

&nbsp

MLTSPNSR

&nbsp

Add §355-f, Ed L

&nbsp

Establishes the New York college debt repayment program.

Go to top S00861 Actions:

BILL NOS00861 

&nbsp

01/08/2025REFERRED TO HIGHER EDUCATION

01/07/2026REFERRED TO HIGHER EDUCATION

Go to topS00861 Committee&nbspVotes:

Go to topS00861 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00861 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 861

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. BAILEY, HINCHEY, SEPULVEDA -- read twice and ordered
 printed, and when printed to be committed to the Committee on Higher
 Education

 AN ACT to amend the education law, in relation to establishing the New
 York college debt repayment program

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The education law is amended by adding a new section 355-f
 2 to read as follows:
 3 § 355-f. New York college debt repayment program. 1. A college debt
 4 repayment program may be established by any resident of this state. The
 5 earnings from the program shall grow federally and state tax-deferred
 6 and withdrawals for qualified expenses shall not be subject to state or
 7 federal income tax.
 8 2. For purposes of this section:
 9 (a) The term "college debt repayment program" means a program estab-
 10 lished and maintained by this state or agency or instrumentality thereof
 11 or by one or more eligible educational institutions under which a
 12 person:
 13 i. may pay off debt incurred by tuition credits or certificates on
 14 behalf of a designated beneficiary which entitle the beneficiary to the
 15 waiver or payment of debt incurred from higher education expenses of the
 16 beneficiary, or
 17 ii. in the case of a program established and maintained by this state
 18 or agency or instrumentality thereof, may make contributions to an
 19 account which is established for the purpose of meeting the debt
 20 incurred by qualified higher education expenses of the designated bene-
 21 ficiary of the account.
 22 (b) The term "member of the family" means any spouse, child, grand-
 23 child or first degree cousin of any designated beneficiary.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02072-01-5

 S. 861 2

 1 (c) The term "designated beneficiary" means:
 2 i. the individual designated at the commencement of participation in
 3 the college debt repayment program as the beneficiary of amounts paid
 4 (or to be paid) to the program; or
 5 ii. in the case of a change in beneficiaries, the individual who is
 6 the new beneficiary.
 7 (d) The term "qualified higher education expenses" means:
 8 i. tuition, room and board, fees, books, supplies, and equipment
 9 required for the enrollment or attendance of a designated beneficiary at
 10 an eligible educational institution;
 11 ii. expenses for special needs services in the case of a special needs
 12 beneficiary which are incurred in connection with such enrollment or
 13 attendance; or
 14 iii. expenses paid or incurred in two thousand nine or two thousand
 15 ten for the purchase of any computer technology or Internet access and
 16 related services, if such technology, equipment, or services are to be
 17 used by the beneficiary and the beneficiary's family during any of the
 18 years the beneficiary is enrolled at an eligible educational institu-
 19 tion.
 20 (e) The term "eligible educational institution" means an institution
 21 which is described in section 481 of the higher education act of 1965
 22 (20 U.S.C. 1088), as in effect on the effective date of this paragraph.
 23 (f) A program shall not be treated as a college debt repayment program
 24 unless it provides that purchases or contributions may only be made in
 25 cash.
 26 (g) A program shall not be treated as a college debt repayment program
 27 unless it provides separate accounting for each designated beneficiary.
 28 (h) A program shall not be treated as a college debt repayment program
 29 unless it provides that any c