New York considering new regulation on student loan servicers
ALBANY, N.Y. (WENY) -- Governor Cuomo has announced a new proposed regulation aimed at protecting New York student loan borrowers.
The regulation would require companies that service student loans held by New Yorkers to meet new standards, as follows:
- Provide clear and complete information concerning fees, payments due, and terms and conditions of loans
- Apply payments in borrowers' best interest, rather than in ways that maximize servicer fees
- Inform borrowers of income-based repayment and loan forgiveness options
- Maintain and provide to consumers a detailed history of their account
- When a borrower's loan is transferred to a new servicer, ensure all necessary servicing information is transferred with the loan so the borrower's repayment is not disrupted
- Provide accurate information to credit reporting agencies
- Provide timely and substantive responses to consumer complaints
The proposed regulation is subject to a 60-day comment period following publication in the State Register on July 31, 2019. The Department of Financial Services will then review all received comments and issue a final regulation.