Establishes the New York college debt repayment program for tax-deferred earnings and tax-free withdrawals for qualified higher education expenses.

The New York college debt repayment program allows residents to establish accounts for paying off higher education expenses. Earnings grow tax-deferred and withdrawals for qualified expenses are exempt from state and federal income tax. Contributions are limited to $375,000 per beneficiary. Withdrawals for non-qualified expenses incur a 10% penalty tax plus federal and state income tax. The program requires separate accounting for each beneficiary and prohibits using contributions as security for loans.

Establishes the New York college debt repayment program for tax-deferred earnings and tax-free withdrawals for qualified higher education expenses.

The New York college debt repayment program allows residents to establish accounts for paying off higher education expenses. Earnings grow tax-deferred and withdrawals for qualified expenses are exempt from state and federal income tax. Contributions are limited to $375,000 per beneficiary. Withdrawals for non-qualified expenses incur a 10% penalty tax plus federal and state income tax. The program requires separate accounting for each beneficiary and prohibits using contributions as security for loans.