Governor Andrew Cuomo has unveiled a set of measures intended to aid students with a massive student loan debt.
The proposals, which will be part of Cuomo’s State of the State Address next week, include some new financial disclosure requirements for colleges and universities and new consumer protection standards for the loan industry.
The governor also plans to create a student loan ombudsman within his administration to help resolve complaints and enact new regulations that prohibit state agencies from suspending any professional license because the holder is behind on student loan payments.
“With this proposal, we build on the success of the Excelsior Scholarship and lay out a concrete roadmap to alleviate the burden of student debt in New York and equip our students with the protections and the tools that they need to succeed,” Cuomo said.
Under the governor’s proposal, student loan services would need a license from the state’s Department of Financial Services to operate in New York and would be required to give “clear and conspicuous disclosures to borrowers.”
“Today, a college education is a necessity for a middle-class life, yet the crushing weight of student loan debt often keeps people from buying homes, cars and ultimately limits their ability to save some money and invest in their futures,” Cuomo said.