New York S 6051: Relates to the get on your feet loan forgiveness program

Bill Text

STATE OF NEW YORK
________________________________________________________________________
6051
2021-2022 Regular Sessions
IN SENATE
March 31, 2021
___________
Introduced by Sen. REICHLIN-MELNICK -- 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 the get on your feet
loan forgiveness program
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 679-g of the education law, as added by section 1
2 of part C of chapter 56 of the laws of 2015, is amended to read as
3 follows:
4 § 679-g. New York state get on your feet loan forgiveness program. 1.
5 Purpose. The president shall grant student loan forgiveness awards for
6 the purpose of alleviating the burden of federal student loan debt for
7 recent New York state college graduates.
8 2. Eligibility. To be eligible for an award pursuant to this section,
9 an applicant shall: (a) have graduated from a high school located in New
10 York state or attended an approved New York state program for a state
11 high school equivalency diploma and received such high school equivalen-
12 cy diploma; (b) have graduated and obtained an undergraduate or graduate
13 degree from a college or university with its headquarters located in New
14 York state in or after the two thousand fourteen--fifteen academic year;
15 (c) apply for this program within two years of obtaining [ ] such either
16 degree; (d) be a participant inan associates, undergraduate or graduate
17 a federal income-driven repayment plan whose payment amount is generally
18 ten percent of discretionary income; (e) have income of less than
19 [ ] thousand dollars; (f) comply with subdivisions three andfifty sixty
20 five of section six hundred sixty-one of this part; [ ] (g) work inand
21 New York state, if employed[ ]. ; and (h) may be currently employed at a
22 program or service that is regulated, operated, funded or approved by
23 the department of mental hygiene. Further, for applicants currently
24 employed at a program or service that is regulated, operated, funded or
25 approved by the department of mental hygiene such applicants shall agree
26 to work on at least a part-time basis for the thirty-six month period of
27 the repayment period of their income-driven repayment plan under federal
28 law and maintain residency in New York state for such period of employ-
EXPLANATION--Matter in (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD02765-01-1

S. 6051 2
1 For purposes of this program, "income" shall be the total adjustedment.
2 gross income of the applicant and the applicant's spouse, if applicable.
3 3. Awards. An applicant whose annual income is less than fifty(a)
4 thousand dollars shall be eligible to receive an award equal to one
5 hundred percent of his or her monthly federal income-driven repayment
6 plan payments for twenty-four months of repayment under the federal
7 program. Provided, however, that the awards granted under this section
8 shall be deferred for a recipient who has been granted a deferment or
9 forbearance under the federal income-driven repayment plan. Upon
10 completion of such deferment or forbearance period, such recipient shall
11 be eligible to receive an award for the remaining time period under this
12 subdivision. A recipient who is not a resident of New York state at the
13 time any payment is made under this program shall be required to refund
14 such payments to the state. The corporation shall be authorized to
15 recover such payments in accordance with rules and regulations promul-
16 gated by the corporation. A student who is delinquent or in default on a
17 student loan made under any statutory New York state or federal educa-
18 tion loan program or has failed to comply with the terms of a service
19 condition imposed by an award made pursuant to this article or has
20 failed to repay an award shall be ineligible to receive an award under
21 this program until such delinquency, default or failure is cured.
22 (b) An applicant whose annual income is less than sixty thousand
23 dollars and currently employed at a program or service that is regu-
24 lated, operated, funded or approved by the department of mental hygiene
25 shall be eligible to receive an award equal to one hundred percent of
26 his or her monthly federal income-driven repayment plan payments for
27 thirty-six months of the repayment period under the federal program.
28 Provided, however, that the awards granted under this section shall be
29 deferred for a recipient who has been granted a deferment or forbearance
30 under the federal income-driven repayment plan. Upon completion of such
31 deferment or forbearance period, such recipient shall be eligible to
32 receive an award for the remaining time period under this subdivision. A
33 recipient who is not a resident of New York state at the time any
34 pa