Recently, New York State signed into law A8913 to create a “private education debt registry” aimed at increasing transparency and allowing policymakers and consumers a complete and accurate view of student debt in New York State. The law mandates that “private education creditors,” defined as entities involved in securing, making, or extending private education debt, register with the state superintendent. Creditors must include specific details in their annual reports about their debt portfolios. This information should cover the total outstanding debt, default rates, and the number of debts that cosigners have, among other things. Federally chartered banks, savings banks, savings and loan associations, and credit unions are exempt from these requirements.

Penalties for non-compliance may involve a civil fine of up to $10,000 for each instance where a creditor fails to register or report accurately. Additionally, the superintendent has the authority to prohibit violators from operating as private education creditors for up to ten years if their actions cause financial harm to consumers. The act also requires the creation of a publicly accessible website to provide information about registered creditors and their debt portfolios.