NEW YORK – New York is ending the practice of charging additional dues to those who owe the state outstanding due to education expenses, Governor Kathy Hochul said Thursday. This is thanks to the signatory legislation of the Democrats S.7862B / A.10261.
Prior to the signing of this law, the state added a 22% charge in addition to the total debt owed.
“When New York students talked about the hardships of getting out of debt, my administration listened,” Governor Hochul said. “By signing this legislation, we are removing a barrier to higher education and ensuring that students can graduate without debilitating the debt that has disproportionately damaged students least able to afford it. All New Yorkers deserve access to education. quality without fear of being trapped in a cycle of not being able to pay the price of education.
The legislation adds a provision to the state finance law that prohibits state agencies from charging a 22% commission when enforcing the collection of educational debts. Various state agencies collect education debts owed to the state, and when they cannot be collected by traditional means, these debts can be referred to the Civil Collections Office at the Attorney General’s Office.
Prior to the signing of this legislation, state law required the Attorney General to recover his costs in an attempt to collect this educational debt through an additional fee of up to 22% of the residual debt. That fee was then added to the total debt owed, significantly increasing the amount owed by students owed money.
