Protects six month "grace period" for borrowers of student loans called to active duty who resume education program.
Ayes (63): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
TITLE OF BILL: An act to amend the education law, in relation to student loans for persons in military service
PURPOSE OR GENERAL IDEA OF THE BILL: To ensure members of the military reserves called to active service are the same six month "grace period" for student loans as all other students.
SUMMARY OF PROVISIONS: Members of the National Guard or other reserve components of the armed forces called to active duty and forced to with draw from school will receive the full six month "grace period" upon return from service and the completion of their college or vocational program.
JUSTIFICATION: Presently, when a member of New York's military reserve components are called to active duty, they are normally forced to withdraw from their college or vocational program. This withdrawal starts the "grace period" clock for their student loan lending institutions. These brave men and women who are sacrificing so much already, lose the six month "grace period" granted to them by law, as a result. Once these troops return from their military obligation and finish their education they discover that they must immediately begin to repay their student loans because their "grace period" was exhausted while they answered the nation's call. This bill corrects an oversight by the legislature and guarantees that the men and women who give up their time to protect us all and are forced to delay their graduation, entry into the workforce and future earnings, are treated equally to their classmates who remain in school and finish on time. The current law actually punishes troops for seeking an education and serving their country in time of need.
LEGISLATIVE HISTORY: 2009-10 A7346 referred to higher education
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4848 2013-2014 Regular Sessions IN SENATE April 26, 2013 ___________Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend the education law, in relation to student loans for persons in military service THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 693 of the education law is amended by adding a new subdivision 17 to read as follows: 17. THE "GRACE PERIOD" FOR REPAYMENT OF A LOAN ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL NOT APPLY TO A BORROWER WHO IS: (A) A MEMBER OF THE NATIONAL GUARD OR OTHER RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED STATES AND IS CALLED OR ORDERED TO ACTIVE DUTY, AS DEFINED IN 10 USC S 101(D)(1), OR (B) A MEMBER OF THE STATE ORGANIZED MILITIA, AND IS CALLED OR ORDERED TO ACTIVE DUTY FOR THE STATE, AS DEFINED IN SUBDIVISION ONE OF SECTION SIX OF THE MILITARY LAW, AND AS A RESULT IS COMPELLED TO TERMINATE HIS COLLEGE OR VOCATIONAL INSTITUTION PROGRAM. SHOULD THE BORROWER RETURN TO A COLLEGE OR VOCA- TIONAL INSTITUTION UPON TERMINATION OF HIS MILITARY SERVICE, THE "GRACE PERIOD" ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL THEN BE AVAILABLE TO THE BORROWER UPON COMPLETION OF HIS COLLEGE OR VOCATIONAL INSTITUTION PROGRAM. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09479-01-3