The New York State Senate has passed Senate Bill S.1673, a critical piece of legislation aimed at addressing the student loan debt crisis affecting many New Yorkers.
The bill mandates that all new employees be provided with essential information regarding student loan repayment options, empowering them to make informed financial decisions as they begin their careers.
Sponsored by Brooklyn Senator Andrew Gounardes and co-sponsored by Senator Joseph Addabbo, the bill seeks to alleviate the financial burden of student loan debt, which continues to weigh heavily on young professionals and recent graduates. As of 2023, the total student loan debt in the United States has surpassed $1.5 trillion, impacting millions of Americans. The legislation ensures that new employees have access to vital information about repayment programs, loan forgiveness opportunities, and other financial resources to help ease their debt obligations.
“The weight of student loan debt impacts countless individuals and families across our state,” Addabbo stated. “By equipping new employees with the necessary tools and information to understand their repayment options, we empower them to take control of their financial future.”
Addabbo represents Senate District 15, which includes neighborhoods such as Glendale, Middle Village, Ridgewood, and Woodhaven. The district has many young professionals, recent graduates, and working families who would benefit from it if passed.
A 2019 report from the NYC Department of Consumer Affairs highlighted the crisis of student loan debt, with the average debt for 2016 college graduates exceeding $30,000. In New York State, the delinquency rate among borrowers increased by more than 30% between 2006 and 2015, with the average debt load rising to over $32,000 per borrower, according to the State Comptroller’s Office.
Under the new legislation, employers will be required to provide new hires with an overview of student loan repayment options, including income-driven repayment plans, loan forgiveness programs, and other financial resources. This will help individuals avoid common pitfalls, such as falling behind on payments, accruing additional interest, and defaulting on their loans.
“I remain committed to advocating for policies that support New York workers, students, and families,” said Addabbo. “The inability to repay student loans and build future assets has many consequences, forcing borrowers to forego important purchases, such as a car or home, or even delaying life milestones like marriage or starting a family.”
The financial strain of student loan debt also contributes to increased levels of anxiety, depression, and mental health challenges.
“The passage of S.1673 represents an important step toward addressing the student debt crisis and ensuring a more financially informed workforce across the state,” Addabbo added.
Having passed the Senate, the bill has now been delivered to the Assembly Banks Committee for review and consideration. If approved, the legislation is expected to have a profound impact on the financial well-being of young professionals, recent graduates, and working families across the state.
