Student Lending, Accountability, and Transparency and Enforcement Act (SLATE) Legislation

On May 7th, both houses of the State Legislature passed the Student Lending, Accountability, and Transparency and Enforcement Act (SLATE) legislation. If signed by the Governor, the legislation will:

• Prohibit lenders from making gifts - including the practice of revenue sharing - to colleges and universities or their employees in exchange for advantages in loan activities.
  
  
• Ban colleges and universities from soliciting, accepting or receiving gifts - including those construed as part of a revenue sharing practice - from lenders in exchange for advantageous loan consideration.
  
  
• Bar college and university employees from receiving any advantage, reimbursement or benefit from serving as a member of a lender’s advisory board.
  
  
• Prohibit lender employees and agents from posing as college or university employees, including staffing the school’s financial aid offices with lender employees.
  
  
• Ban lenders and schools from agreeing to certain quid-pro-quo high-risk loans that prejudice other borrowers or potential borrowers.
  
  
• Prohibit schools from linking or directing potential borrowers to any electronic master promissory notes or other loan agreements that do not allow students to enter a lender code or name for any lender offering the relevant loan at that guarantee agency.

This legislation would directly impact the 270 colleges and universities in New York State, over 1.1 million students, and thousands of college financial aid officers. In 2004-05, New York colleges reported the disbursement of $4.618 billion in federal loans and $1.054 billion in nonfederal loans for a total of $5.672 billion in student loans. Making higher education affordable and protecting students’ and the public’s investment in higher education are important priorities for the Board of Regents and the State Education Department. We will share additional information on this important legislation as it becomes available.