ALBANY — Gov. Cuomo on Friday unveiled set of measures meant to assist New Yorkers scuffling with “exploding” scholar mortgage debt.
The proposals, which will probably be a part of Cuomo’s State of the State Handle subsequent week, embrace new monetary disclosure necessities for faculties and universities, and new shopper safety requirements for the mortgage business.
Cuomo additionally plans to create a scholar mortgage ombudsman inside his administration to assist resolve complaints and enact new laws that prohibit state businesses from suspending any skilled license as a result of the holder is behind on scholar mortgage funds.
“With this proposal, we construct on the success of the Excelsior Scholarship and lay out a concrete roadmap to alleviate the burden of scholar debt in New York and equip our college students with the protections and the instruments they should succeed,” Cuomo stated, referring to the state program that provides free SUNY and CUNY tuitions to center class households.
Beneath Cuomo’s proposal, scholar mortgage servicers and debt consultants would want a license from the state’s Division of Monetary Providers to function in New York and can be required to offer “clear and conspicuous disclosures to debtors.” They’d even be barred from charging any upfront charges.
Faculties within the state would even be required to tell college students yearly concerning the standing of their loans.
The Cuomo administration estimates that the common scholar mortgage burden in New York is greater than $30,000. Nationally, scholar mortgage debt is the second highest debt class after mortgage debt, amounting to $1.48 trillion nationwide.
“At this time, a school training is a necessity for a center class life, but the crushing weight of scholar mortgage debt usually retains New Yorkers from shopping for houses, vehicles and finally limits their capacity to economize and spend money on their futures,” Cuomo stated.