661 - Eligibility requirements and conditions governing awards and loans.

§ 661. Eligibility  requirements  and  conditions governing awards and  loans. 1. Applicability. The  eligibility  requirements  and  conditions  established  in this section shall apply to all general awards, academic  performance awards and student loans other  than  education  loans  made  pursuant to part V of this article.    2.  Application and recipient qualifications. At least annually and at  such  times  as  the  board  shall  establish,  a  student  and,   where  applicable,  the parents and spouse of such student seeking aid or loans  under the provisions of this article, shall submit to the corporation on  forms it shall establish such information as the board may require.    3. Citizenship. An applicant (a) must  be  a  citizen  of  the  United  States,  or  (b)  must  be  an  alien  lawfully  admitted  for permanent  residence in the United States, or (c) must be an individual of a  class  of  refugees  paroled by the attorney general of the United States under  his parole authority pertaining to the admission of aliens to the United  States.    4. Attendance in approved courses of study in  approved  institutions.  To be eligible to receive payments from the president a student:    a.  Must  be  matriculated  in  an  approved program as defined by the  commissioner pursuant to article thirteen in an institution situated  in  the  state,  which  has been approved and operating in this state for at  least one year, and has  been  approved  for  participation  in  federal  student  financial  aid  programs  authorized  by Title IV of the Higher  Education Act of 1965, as amended. Nothing  in  this  subdivision  shall  preclude  payment  of  an  award to a recipient who receives instruction  outside the state, which instruction  is  conducted  by  an  institution  situated  in the state, and is part of the student's program of study at  such institution; provided, however, that nothing  in  this  subdivision  shall  preclude  the  receipt  of a loan pursuant to section six hundred  eighty of this article; provided, further, that students  not  attending  institutions  eligible  for  participating in federal Title IV financial  aid programs on or before  July  first,  two  thousand  seven:  (i)  who  received  their  first  award under this article before the two thousand  six--two thousand seven academic year shall  be  eligible  for  payments  until  the end of the two thousand nine--two thousand ten academic year;  or (ii) who received their first award under this article  for  the  two  thousand six--two thousand seven academic year through and including the  two  thousand nine--two thousand ten academic year shall be eligible for  payments until the  end  of  the  two  thousand  fourteen--two  thousand  fifteen academic year.    b.  Must  be  in full-time attendance, as defined by the commissioner,  except as otherwise specifically provided in article fourteen, and,  for  a  student having completed his or her second academic year, must have a  cumulative C average or its equivalent.  The  president  may  waive  the  requirement  that  the  student  have  a  cumulative  C  average  or its  equivalent for undue hardship based on: (i) the death of a  relative  of  the  student;  (ii)  the  personal  injury or illness of the student; or  (iii) other extenuating circumstances; and    c. For students who first receive aid  pursuant  to  this  chapter  in  academic year nineteen hundred ninety-six--nineteen hundred ninety-seven  to  academic  year  two  thousand  six--two  thousand seven, must have a  certificate of graduation from a school providing  secondary  education,  or  the  recognized  equivalent  of such certificate; or have achieved a  passing  score,  as  determined  by  the  United  States  secretary   of  education,  on  a federally approved examination which demonstrates that  the student can benefit from the education being offered;    d. For students who first receive aid  pursuant  to  this  chapter  in  academic  year  two  thousand  six--two  thousand  seven,  must  have  acertificate of graduation from a recognized school  providing  secondary  education within the United States, or the recognized equivalent of such  certificate, or have been admitted to such institution after receiving a  passing  score  on a federally approved ability to benefit test that has  been independently  administered  and  evaluated,  as  provided  by  the  commissioner;    e.  For  students  who  first  receive aid pursuant to this chapter in  academic year two thousand seven--two thousand eight or thereafter, must  have (i) a certificate of graduation from a school  providing  secondary  education  from a state within the United States; or (ii) the recognized  equivalent of such certificate; or (iii) received a passing score  on  a  federally  approved  ability to benefit test that has been identified by  the board of regents as satisfying the eligibility requirements of  this  section and has been independently administered and evaluated as defined  by the commissioner.    f.  for  students  who  are  disabled as defined by the Americans With  Disability  Act  of  1990,  42  USC  12101,  the  full-time   attendance  requirement  is  eliminated.  Such disabled students may be in part-time  attendance, as defined by the commissioner in order to  be  eligible  to  receive payments from the president.    5.  Residence. a. Except as provided in subdivision two of section six  hundred seventy-four, an applicant for an  award  at  the  undergraduate  level  of  study must either (i) have been a legal resident of the state  for at least  one  year  immediately  preceding  the  beginning  of  the  semester,  quarter  or  term  of  attendance  for  which application for  assistance is made, or (ii) be a legal resident of the  state  and  have  been  a  legal  resident  during  his  last two semesters of high school  either prior to graduation, or prior to admission to  college.  Provided  further  that  persons shall be eligible to receive awards under section  six hundred sixty-eight  or  section  six  hundred  sixty-nine  who  are  currently legal residents of the state and are otherwise qualified.    b.  An  applicant  for  an  award  at the graduate level of study must  either (i) have been a legal resident of the state for at least one year  immediately preceding the beginning of the semester, quarter or term  of  attendance  for  which  application for assistance is made, or (ii) be a  legal resident of the state and have been a legal  resident  during  his  last  academic  year  of  undergraduate study and have continued to be a  legal resident until matriculation in the graduate program.    c. A student, during  any  period  for  which  he  receives  financial  support  or  assistance  from a parent or stepparent, or is claimed by a  parent or stepparent as a dependent for income tax purposes  shall,  for  the  purposes  of this article, be considered to reside at the residence  of such parent  or  stepparent,  unless  the  student  submits  evidence  satisfactory to the president that the student's residence is elsewhere.    d.  If  an  applicant for an award allocated on a geographic basis has  more than one residence in this state, his residence for the purpose  of  this  article  shall  be  his place of actual residence during the major  part  of  the  year  while  attending  school,  as  determined  by   the  commissioner.    e.  Notwithstanding  any  other  provision  of  this  article  to  the  contrary, the New  York  state  residency  eligibility  requirement  for  receipt  of awards is waived for a member, or the spouse or dependent of  a member, of the armed forces of the United States on  full-time  active  duty and stationed in this state.    6.  Restrictions. a. All general and academic performance awards shall  only be used in the manner prescribed by the  commissioner  pursuant  to  article thirteen of this chapter, for the specific purpose for which theawards are made, and no such awards shall be used to obtain professional  instruction in theology.    b. Any student who is in default in the repayment of any student loan,  the  payment of which has been guaranteed by the corporation pursuant to  the provisions of section six hundred eighty of  this  article,  or  any  student who has failed to comply with the terms of any service condition  imposed  by  an academic performance award made pursuant to this article  or any student who has failed to repay an award made under this  article  as  required  by  paragraph a of subdivision four of section six hundred  sixty-five of this article shall not be eligible for any general  award,  academic  performance  award  or  student  loan  so long as such default  status or failure to comply or repay continues, except  as  provided  in  paragraph c of this subdivision.    c.  A  student  who  has defaulted on a guaranteed student loan or has  failed to make a refund of an award may  notwithstanding  be  considered  eligible for a further guaranteed student loan under the federal student  aid programs or an award or both, provided:    (1) (i) the student, except for the default, shall be eligible for the  guaranteed  student  loan or the award; and (ii) the student has entered  into a plan of repayment of the amount outstanding on the defaulted loan  or refund satisfactory to the corporation,  and  has  made  satisfactory  payments  thereunder for a period of six months prior to the application  to the corporation for the guaranteed student loan  or  the  award;  and  (iii)  in  the  case of a default in the payment of a guaranteed student  loan, the student has demonstrated to the satisfaction of the president,  that at the time the default occurred the  student  was  entitled  to  a  deferment  or could have been granted forbearance of payment on the loan  by the lender if a request for forbearance had been made;    (2) application for the further loan or award as  authorized  by  this  paragraph  shall be on such forms and supported by such documentation as  shall  be  prescribed  by  the  president.  The  determination  on   the  application  by the president may be made without a hearing and shall be  deemed final administrative action;    (3) anything to the contrary herein  notwithstanding  the  corporation  may  offset  any  award to which the student shall be entitled against a  refund due for a previous award, as provided  under  the  provisions  of  subdivision four of section six hundred sixty-five of this article.    d. No student who is incarcerated in any federal, state or other penal  institution  shall  be  eligible for any general or academic performance  award made pursuant to this article.    7. Awards of student financial aid.  Whenever  the  corporation  gives  written notification to a student of the amount of student financial aid  such  student  will  receive  under the provisions of this article, such  written notification shall be accepted by the institution as a deferment  against tuition charges pending the  issuance  of  such  moneys  by  the  corporation,  unless:  (a)  the institution has more current or accurate  information on file indicating the  student  will  receive  a  different  amount  from  that  calculated  by  the  corporation, in which event the  institution's calculated amount shall be accepted as a deferment against  tuition charges pending the issuance of such moneys by the  corporation,  or    (b)  the institution is waiting for corrections of financial aid forms  or income verification which the  student  has  not  yet  completed,  or  supplied, in which case deferment will not take place until such time as  the student has completed his or her responsibilities.