New York Gov. Andrew Cuomo (D) proposed new regulations on student loan servicing in the Empire State. Under the proposal, servicers would be barred from defrauding or misleading borrowers, engaging in any unfair, deceptive, abusive, or predatory act or practice, or misapplying borrowers’ payments. Specific mandates would include, among several things, requirements that servicers provide clear and complete information concerning fees, payments, and terms and conditions of loans, and inform borrowers of income-based repayment and loan forgiveness options.
The proposal is now in a 60-day period for public comments. That input will be reviewed by the state Department of Finance before any regulations are finalized. (NEW YORK GOVERNOR’S OFFICE, NEWSDAY)