What we know about student loans and the Education Department
Will Education Department restructuring affect your student loans? Here’s what we know know.
New Yorkers will soon have stronger protections against deceptive student loan servicers, debt collectors and health insurance companies under a newly passed law.
The Fostering Affordability and Integrity through Reasonable Business Practices Act, or FAIR Business Practices Act, was introduced and sponsored by New York state Attorney General Letitia James, state Sen. Leroy Comrie, D-Queens, and Assembly member Micah Lasher, D-Manhattan, earlier this year. The bill was then passed by state legislation in June and signed into law by Gov. Kathy Hochul on Dec. 20.
“The FAIR Business Practices Act will help us tackle rising costs and protect working families and small businesses,” James said. “At a time when the federal government is abandoning working people and raising the cost of living, this law will help us stop companies from taking advantage of New Yorkers.”
Here’s what to know.
How will the FAIR Business Practices Act help New York consumers?
According to the AG’s Office, the FAIR Business Practices Act will allow the AG’s Office and individuals impacted by unfair, deceptive or abusive practices to bring a civil case seeking penalties and restitution against those who engage in them.
The new law protects New Yorkers from the following:
- Student loan servicers that steer borrowers into the most expensive repayment plans.
- Car dealers that refuse to return a customer’s photo ID until a deal is finalized and charge for add-on warranties that the customer did not actually purchase.
- Nursing homes that routinely sue relatives of deceased residents for their unpaid bills despite not having any basis for liability.
- Companies that take advantage of consumers with limited English proficiency and obscure pricing information and fees.
- Debt collectors that collect and refuse to return a senior’s Social Security benefits, even though they are exempt from debt collection.
- Health insurance companies that use long lists of in-network doctors who turn out not to accept the insurance.
When will the changes go into effect?
The FAIR Business Practices Act will go into effect in February 2026, 60 days after it was signed by Hochul.
Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at ebarnes@gannett.com.
