Prohibits private colleges from collecting financial information from a student's non-custodial parent; requires that private colleges use student financial aid formulas that are arrived at independently

2025 Regular Session Introduced by Linda Rosenthal

Protects student privacy by barring private colleges from obtaining a student's non-custodial parent's financial data.

REFERRED TO HIGHER EDUCATION

Summary: New York Assembly Bill A 786 (2025)

Quick facts

Bill number: A 786

Title/Subject: Prohibits private colleges from collecting financial information from a student’s non-custodial parent; requires private colleges to use student financial aid formulas that are arrived at independently

Status: REFERRED TO HIGHER EDUCATION

Introduced: January 8, 2025

Classification: Bill

Sponsor (primary): Linda Rosenthal

Purpose and intent

The bill seeks to enhance student privacy by prohibiting private colleges from collecting financial information from a student’s non-custodial parent.

It also requires that private colleges use student financial aid formulas that are arrived at independently, presumably to avoid external or non-consensus influences in the calculation of aid eligibility.

Key provisions

Privacy protection for non-custodial parents

Private colleges would be barred from requesting or obtaining financial information directly from a student’s non-custodial parent.

Independent financial aid formulas

Private colleges must rely on student financial aid formulas that are developed independently (i.e., not contingent on information provided by the non-custodial parent or influenced by external parties). Details on the exact methodology, criteria, or oversight are not provided in the summary.

Applicability

The provisions apply to private colleges (as defined by the bill) and their financial aid processes.

Affected parties

Private colleges: Entities would need to adjust data collection practices and ensure their aid formulas are independently developed.

Students: Particularly those with non-custodial parents may experience changes in how financial information is collected and used.

Non-custodial parents: Their information collection by private colleges would be restricted under this bill.

Families and households: Potential impact on how financial aid eligibility is determined.

Procedural and timeline aspects

Legislative actions to date:

2025-01-08: Referred to Higher Education (noted twice in the record).

Next steps (typical): If advanced, the bill would go through committee hearings in the Higher Education committee, followed by floor votes in the chamber, and potentially the other legislative chamber and the governor’s desk for signature. Specific committee timelines are not provided in the summary.

Potential implications and considerations

Privacy: Could reduce exposure of non-custodial parent financial information.

Consistency of aid formulas: Emphasizes formulas that are independently developed, which may affect how aid eligibility is calculated or compared across institutions.

Compliance burden: Private colleges may need to revise data collection practices and documentation to demonstrate independent formula development.

Notes

The information provided covers the bill’s announced purpose and status as of January 8, 2025. No detailed fiscal impact, specific definitions (e.g., what constitutes “independently” arrived-at formulas), or enforcement mechanisms are included in the available material.