New York State Governor Kathy Hochul signed legislation that ended the practice of charging those with student loans an additional fee when collecting outstanding debts.
The legislation (S.7862B/A.10261) ends the 22% fee which was added by states in addition to the total amount of debt due. Before this law, state law said that the Attorney General’s Civil Recoveries Bureau recover its costs of pursuing collections of education-related debt by means of the additional fee.
