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Gov. Kathy Hochul signed a new law Thursday, Oct. 13, that prohibits state agencies from charging students an additional fee when collecting outstanding student debt.
Under a previous state law, borrowers were charged up to 22 percent in fees on top of the amounts they owed, the governor’s office said.
"When students across New York spoke up about the difficulties of digging out of debt, my administration listened," Hochul said in a statement.
"By signing this legislation, we are removing a barrier to higher education and ensuring that students can graduate without debilitating debt that has disproportionately hurt students least able to afford it.
"Every New Yorker deserves access to a quality education without fear of getting trapped in a cycle of debt."
According to the governor’s office, the previous law allowing for the 22-percent fee was meant to help the Attorney General’s office recover costs it incurred by trying to collect outstanding student debt
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