N.Y. Financial Services Law § 902

§ 902. Private education debt registry. 1. Beginning on or after the\none hundred eightieth day after the effective date of this article, no\nperson shall engage in business as a private education creditor in this\nstate without first satisfying the following requirements set forth in\nsubdivisions two and three of this section.\n 2. (a) A private education creditor operating in this state shall\nregister with the superintendent pursuant to any registration procedures\nset forth by the superintendent by rule or regulation, which may include\nregistration through the Nationwide Multistate Licensing System and\nRegistry, and shall pay a fee set by the superintendent. The\nsuperintendent may prescribe an alternative registration process and fee\nstructure for a provider of higher education. Registration shall\ninclude, at a minimum, the name and address of the private education\ncreditor and any officer, director, partner, or owner of a controlling\ninterest of the private education creditor. A private education creditor\nshall annually renew its registration and pay a renewal fee pursuant to\na procedure and on or before a date to be determined by the\nsuperintendent.\n (b) This subdivision shall not apply to regulated persons, as such\nterm is defined in section one hundred four of this chapter, engaged in\nbusiness as a private education creditor in this state, to the extent\nsuch regulation relates to its business as a private education creditor\nand such persons are required to furnish data or reports annually to the\nsuperintendent.\n 3. A private education creditor operating in this state shall\nannually, on or before a date to be determined by the superintendent and\nnot to exceed six months following the effective date of this article,\nprovide the superintendent with the following documents and information\nabout such creditor's private education debt portfolio related to\nconsumers that reside in this state pursuant to any procedure set forth\nby the superintendent, which may include reporting through the\nNationwide Multistate Licensing System and Registry, and which may\nfurther include different procedures for regulated persons, as that term\nis defined in section one hundred four of this chapter, and\nnon-regulated persons:\n (a) For private education creditors that secure, make, or extend\nprivate education debts, other than those private education debts\nreported pursuant to paragraph (c) of this subdivision, relating to such\ndebts owed by a consumer residing in this state as of the end of the\nprior fiscal year:\n (i) a list of all schools for which such private education debts were\nused to finance higher education, including, in the case of a\nrefinancing loan, the school that the consumer attended using the\nprivate education debt that was refinanced;\n (ii) the total outstanding dollar amount and number of such private\neducation debts and the number of consumers who owe such private\neducation debts;\n (iii) the total dollar amount and number of such private education\ndebts associated with each school identified under subparagraph (i) of\nthis paragraph;\n (iv) the total dollar amount and number of private education debts\nsecured, made, or extended in the prior fiscal year;\n (v) the total dollar amount and number of private education debts\nsecured, made, or extended in the prior fiscal year associated with each\nschool identified under subparagraph (i) of this paragraph;\n (vi) the range of starting interest rates for private education debts\nsecured, made, or extended to consumers in the prior fiscal year and\npercentage of consumers who receive those rates;\n (vii) the overall default rate, as well as the overall default for\nsuch debts associated with each school listed under subparagraph (i) of\nthis paragraph;\n (viii) the total dollar amount and number of private education debts\nthat defaulted for reasons other than non-payment in the prior fiscal\nyear, as applicable;\n (ix) the total dollar amount and number of private education debts\nwith a cosigner, as applicable;\n (x) the total dollar amount and number of private education debts\nsecured, made, or extended with a cosigner in the prior fiscal year, as\napplicable;\n (xi) the total dollar amount and number of private education debts\nsecured, made, or extended to refinance other private education debts or\nfederal student loans, respectively, as applicable;\n (xii) the total dollar amount and number of private education debts\nsecured, made, or extended to refinance other private education debts or\nfederal student loans, respectively, in the prior fiscal year, as\napplicable;\n (xiii) the total dollar amount and number of private education debts\nfor which the private education creditor has sued to collect in the\nprior fiscal year, as applicable;\n (xiv) additional information as may in the judgment of the\nsuperintendent be necessary and appropriate in order to assess the total\nsize and status of the private education debt market and to assess\nborrower well-being; and\n (xv) A copy of any model promissory note, agreement, contract or other\ninstrument used by a private education creditor during the previous\nfiscal year to substantiate that a new private education debt has been\nextended to the consumer or that a consumer owes a debt or obligation to\nthe private education creditor.\n (b) For private education creditors that acquire or assume private\neducation debts owed by a consumer residing in this state, relating to\nsuch debts as of the end of the prior fiscal year:\n (i) a list of all schools for which such private education debts were\nused to finance higher education, including, in the case of a\nrefinancing loan, the school that the consumer attended using the\nprivate education debt that was refinanced;\n (ii) the total outstanding dollar amount and number of such private\neducation debts and number of consumers who owe such private education\ndebts;\n (iii) the total dollar amount and number of private education debts\nassociated with each school identified under subparagraph (i) of this\nparagraph;\n (iv) the total dollar amount and number of private education debts\nacquired or assumed in the prior fiscal year;\n (v) the total dollar amount and number of private education debts\nacquired or assumed in the prior fiscal year associated with each school\nidentified under subparagraph (i) of this paragraph;\n (vi) the overall default rate, as well as the overall default for such\ndebts associated with each school listed under subparagraph (i) of this\nparagraph;\n (vii) the total dollar amount and number of private education debts\nthat defaulted for reasons other than nonpayment in the prior fiscal\nyear, as applicable;\n (viii) the total dollar amount and number of private education debts\nwith a cosigner, as applicable;\n (ix) the total dollar amount and number of private education debts\nthat were used to refinance other private education debts, as\napplicable;\n (x) the total dollar amount and number of private education debts for\nwhich the private education creditor has sued to collect in the prior\nfiscal year, as applicable; and\n (xi) additional information as may in the judgment of the\nsuperintendent be necessary and appropriate in order to assess the total\nsize and status of the private education debt market and to assess\nborrower well-being.\n (c) For private education creditors that are providers of higher\neducation and whose private education debts result from unpaid debts or\nobligations that were not extensions of credit and that result from\nhigher education provided in this state, relating to such debts as of\nthe end of the prior fiscal year, reported by race and gender:\n (i) the total outstanding dollar amount and number of private\neducation debts and number of consumers who owe those debts;\n (ii) the total dollar amount and number of private education debts\naccrued and number of consumers who owe those debts in the prior fiscal\nyear;\n (iii) the total number and balance of student accounts with an\nacademic or administrative hold resulting from a private education debt;\n (iv) the total number and balance of student accounts with an academic\nor administrative hold resulting from a private education debt for which\na payment was made in the prior fiscal year and average payment made;\n (v) the total number of student accounts for which federal financial\naid was returned to the federal government upon the student's withdrawal\nfrom the provider of higher education in the prior fiscal year, and the\ntotal dollar amount of any private education debt accrued as a result;\n (vi) the number of consumers who owe a private education debt who\nreceived a federal pell grant and the average debt owed;\n (vii) the number of consumers who owe a private education debt who are\nconsidered in-state and out-of-state students, and the total debt owed\nby each group;\n (viii) the total dollar amount, number of private education debts, and\nnumber of consumers for which the private education creditor has in the\nprior fiscal year (A) charged off the debt, (B) sent the debt to a third\nparty collection agency, (C) initiated a collection lawsuit, (D)\nreported the debt to a consumer credit reporting agency, and (E) sold\nthe debt;\n (ix) the total dollar amount, number of private education debts, and\nnumber of consumers for which the private education creditor has, in the\nprior fiscal year, collected on a private education debt in the\nfollowing instances: (A) payment arrangements wherein the payment was\nnot considered past due, such as tuition installment agreements; (B)\npayments made on past due debts during the same academic term or billing\ncycle in which the debt accrued and before such debts were sent to a\ncollection agency; (C) payments made on past due debts before they were\nsent to a collection agency, excluding those payments made during the\nsame academic term or billing cycle in which the debt accrued; (D) a\nthird party collection agency, prior to initiating a lawsuit; and (E) a\ncollection lawsuit, including payments made by settlement or pursuant to\na judgment;\n (x) additional information as may in the judgment of the\nsuperintendent be necessary and appropriate in order to assess the total\nsize and status of the private education debt market and to assess\nborrower well-being; and\n (xi) a copy of any model written instrument used by a provider of\nhigher education in the prior fiscal year to substantiate a private\neducation debt, including but not limited to a promissory note,\nenrollment agreement, or contract.\n 4. Not later than one year following the effective date of this\nsection, the superintendent shall create a publicly accessible website\nthat includes at least the following information about private education\ncreditors registered in this state:\n (a) The name, address, telephone number and website for all private\neducation creditors;\n (b) A summary of the information required by subdivision three of this\nsection; and\n (c) Copies of all documents provided under subparagraph (xv) of\nparagraph (a) of subdivision three of this section and subparagraph (xi)\nof paragraph (c) of subdivision three of this section.\n