ESC-05-07-00009-E New York State District Attorney Loan Forgiveness Program
1/31/07 N.Y. St. Reg. ESC-05-07-00009-E
NEW YORK STATE REGISTER
VOLUME XXIX, ISSUE 5
January 31, 2007
RULE MAKING ACTIVITIES
HIGHER EDUCATION SERVICES CORPORATION
EMERGENCY RULE MAKING
I.D No. ESC-05-07-00009-E
Filing No. 50
Filing Date. Jan. 12, 2007
Effective Date. Jan. 12, 2007
New York State District Attorney Loan Forgiveness Program
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Addition of section 2201.9 to Title 8 NYCRR.
Statutory authority:
Education Law, sections 653 and 655
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
The emergency rule is necessary because compliance with the normal proposal process will delay loan forgiveness to eligible recipients.
Subject:
New York State District Attorney Loan Forgiveness Program.
Purpose:
To implement the program.
Text of emergency rule:
New section 2201.9 is added to Title 8 of the New York Code, Rules and Regulations to read as follows:
Section 2201.9 New York State District Attorney Loan Forgiveness Program
(a) Purpose. New York State District Attorney Loan Forgiveness Program awards are being offered to retain experienced attorneys employed in District Attorney Offices throughout New York State.
(b) Eligibility. An applicant shall be a legal resident of New York State for at least one year and maintain such residency; a U.S. citizen or eligible non-citizen; an eligible attorney; and have eligible student loan expenses.
(c) Definitions.
(1) “Corporation” shall mean the New York State Higher Education Services Corporation.
(2) “Eligible attorney” shall mean a District Attorney or Assistant District Attorney, admitted to practice law in New York State, who is employed on a full-time basis throughout the year of qualified service immediately preceding application in a District Attorney's office in New York State and has been a New York State resident for at least one year.
(3) “Eligible period” shall mean the six-year period after completion of the third year, measured from the date the eligible attorney began such employment, and before the commencement of the tenth year of employment as an eligible attorney and adjusted for any temporary leave.
(4) “Eligible student loan expenses” shall mean the total cumulative loan balance, at the time of the attorney's first successful application for reimbursement under this Program, required to be paid by the eligible attorney for student loans, including any accrued interest, covering the cost of attendance at his or her undergraduate institution(s) and/or law school(s). Student loan expenses shall include New York State student loans, federal government loans, and loans made by commercial entities subject to governmental examination. Student loan expenses shall not include: Parent PLUS loans; loans cancelled under any program; private loans given by family or personal acquaintances; or student loan debt paid by credit card. Student loan expenses shall be reduced by any grants, loan forgiveness, public service scholarships or other reductions to student loan expenses that a student has received or shall receive, including, but not limited to law school loan forgiveness and public service scholarships.
(5) “Full-time” shall mean thirty-five hours per week.
(6) “Program” shall mean the New York State District Attorney Loan Forgiveness Program.
(7) “Temporary leave” shall, for purposes of the Program, be considered any extended period of leave from full-time service allowed by law, regulation or pursuant to the policies of the office of the district attorney employing the eligible attorney. Periods of temporary leave shall not be considered in calculating the year of qualified service. The calculation of the year of qualified service shall recommence when the eligible attorney returns to full-time service as a district attorney or assistant district attorney. The taking of temporary leave, by itself, shall not adversely impact the duration and award amounts set forth herein.
(8) “Year of qualified service” shall mean each of the fourth through ninth years (365 calendar days per year) of full-time employment in a District Attorney's Office in New York State as an eligible attorney. In calculating a year of qualified service, periods of temporary leave shall be considered an interruption in employment and shall not be considered in the calculation of qualified service. The calculation of the time period of qualified service shall recommence when the eligible attorney returns to full-time service. For purposes of this section, all periods of time during which an admitted attorney was employed as an eligible attorney and all periods of time during which the attorney was a law school graduate who, while awaiting admission to the New York State bar, was employed by a prosecuting or criminal defense agency may be combined.
(d) Administration. In addition to the requirements of § 661 of the Education Law, applicants for this Program shall:
(1) File applications annually on forms prescribed by the Corporation;
(2) Postmark or electronically transmit applications to the Corporation on or before October 1st of each year, provided that this deadline may be extended at the discretion of the Corporation;
(3) Apply upon the conclusion of each year of qualified service, beginning no earlier than the conclusion of the fourth year of qualified service and ending no later than the due date immediately following the conclusion of the ninth year of qualified service; and;
(4) Provide an attestation on the Program application as to full-time qualified service for the year of qualified service immediately preceding their application.
(e) Duration and award amounts.
(1) Award disbursements under this Program are available for up to a maximum of six years of qualified service, provided Program funding is available.
(2) Upon the conclusion of each year of qualified service during the eligible period, eligible attorneys may receive awards for student loan expenses in an amount up to three thousand four hundred dollars ($3,400).
(3) The maximum lifetime amount of awards for student loan expenses shall not exceed an eligible attorney's student loan expense documented on their first successful application for reimbursement under this Program or twenty thousand four hundred dollars ($20,400), whichever is less.
(4) The maximum lifetime awards for student loan expenses shall be limited by the number of remaining years of qualified service available to an eligible attorney.
(5) The Corporation may offset any award given if the recipient is in default on a student loan guaranteed by the Corporation. As used herein, offset is a collection method whereby the payment for the Program from the Corporation is withheld in whole or in part to satisfy a debt owed to the Corporation.
(f) Priority of award. In any year for which there are more eligible attorneys than funds available, the Corporation shall notify the President Pro Tem and Majority Leader of the New York State Senate and indicate that the Corporation shall be using the following method of award distribution:
(1) Eligible attorneys who received an award for forgiveness of student loan expenses for the preceding year of qualified service shall receive first priority. If funding is insufficient to make awards to this group, recipients will be chosen by random selection.
(2) Distribution of any remaining funds to remaining eligible attorneys shall be done by random selection.
(g) Disqualification. An eligible attorney shall be disqualified from receiving an award for forgiveness of student loan expenses if:
(1) The applicant owes a service obligation for any State or Federal program;
(2) The applicant is in default on a federally guaranteed student loan, unless the loan is guaranteed by the Corporation.
(3) The applicant has loans for which documentation is not available;
(4) The applicant has loans without a promissory note; or
(5) The applicant's loans are paid in full.
This notice is intended
to serve only as a notice of emergency adoption. This agency does not intend to adopt the provisions of this emergency rule as a permanent rule. The rule will expire April 11, 2007.
Text of emergency rule and any required statements and analyses may be obtained from:
Cheryl B. Fisher, Associate Attorney, Higher Education Services Corporation, 99 Washington Ave., Rm. 1350, Albany, NY 12255, (518) 473-1581, e-mail:CFisher@HESC.com
Regulatory Impact Statement
Statutory authority:
The New York State Higher Education Services Corporation's (HESC) statutory authority to promulgate regulations and administer the New York State District Attorney Loan Forgiveness Program is codified within Article 14 of the Education Law. In addition, Chapter 50 of the Laws of 2005 and a Memorandum of Agreement entered into between HESC and the New York State Division of Criminal Justice Services (“DCJS”), dated March 2, 2006, provides HESC with the authority to promulgate this regulation.
Pursuant to Education Law § 652(2), HESC was established for the purpose of improving the post-secondary educational opportunities of eligible students through the centralized administration of New York State financial aid programs and coordinating the State's administrative effort in student financial aid programs with those of other levels of government.
In addition, Education Law § 653(9) empowers HESC's Board of Trustees to perform such other acts as may be necessary or appropriate to carry out the objects and purposes of the corporation including the promulgation of rules and regulations.
HESC's President is authorized, under Education Law § 655(4), to propose rules and regulations, subject to approval by the Board of Trustees, governing, among other things, the application for and the granting and administration of student aid and loan programs, the repayment of loans or the guarantee of loans made by the corporation; and administrative functions in support of state student aid programs. Also, consistent with Education Law § 655(9), HESC's President is authorized to receive assistance from any Division, Department or Agency of the State in order to properly carry out his powers, duties and functions. Finally, Education Law § 655(12) provides HESC's President with the authority to perform such other acts as may be necessary or appropriate to carry out effectively the general objects and purposes of HESC.
Legislative objectives:
The District Attorney Loan Forgiveness Program (the “Program”) has been established pursuant to two Memoranda of Understanding between the Governor and the Legislature of the State of New York, as well as, Chapter 50 of the Laws of 2005, in order to provide loan forgiveness for qualified attorneys who have dedicated themselves to public service in district attorneys offices throughout New York State. The New York State Legislature established the Program to encourage experienced district attorneys to remain in service.
The Governor of the State of New York and the President Pro Tem and Majority Leader of the Senate entered into a Memorandum of Understanding dated June, 2005 and amended on January 25, 2006 providing for the creation of the Program with funding through the Legal Services Assistance Fund. Additionally, the Governor, the President Pro Tem and Majority Leader of the Senate and the Speaker of the Assembly entered into an agreement dated September 2005 and amended on January 25, 2006. On October 18, 2006, the Senate amended these agreements.
Both agreements require DCJS to enter into an agreement with HESC for the administration of the program. In a Memorandum of Agreement, dated March 2, 2006, HESC and DCJS agreed that HESC would administer the Program and will promulgate rules and regulations.
Needs and benefits:
A statewide survey done of District Attorneys offices in 2002, by the New York State District Attorneys Association, revealed that experienced and skilled district attorneys were leaving their careers in public service for more lucrative employment due to high student loan debt. As a result, the Legislature established the Program to address this need and entice experienced district attorneys to remain in employment. This Program offers qualified applicants $3,400.00 for each year of qualified service up to a cumulative amount of $20,400.00, or documented student loan expense, whichever is less.
Costs:
i. There are no application fees, processing fees, or other costs to the applicants of this Program.
ii. It is anticipated that there will be no costs to HESC or other state agencies for the implementation of, or continuing compliance with, this rule except for programmatic administration costs. There will be no cost to local governments for the implementation of, or continuing compliance with, this rule.
iii. The cost of this Program to the State in the first year, FY 2005–06, shall not exceed $4.8 million. Costs to the State shall not exceed available New York State budget appropriations for the Program.
Paperwork:
This proposal will require Program applicants to submit an annual application and supporting documentation to establish their eligibility for this Program. No additional paperwork will be required.
Local government mandates:
No program, service, duty, or responsibility will be imposed by this rule upon any county, city, town, village, school district, fire district or other special district.
Duplication:
No relevant rules or other legal requirements duplicating, overlapping, or conflicting with this rule were identified.
Alternatives:
This Program was developed and advocated for by the New York State District Attorneys Association, based upon the results of their survey of District Attorney offices. In consideration of data supplied by this group, this rule has been constructed to most effectively target the issue at hand. No other alternatives were considered.
Federal standards:
This proposal does not exceed any minimum standards of the Federal Government.
Compliance schedule:
The agency will comply with this rule immediately upon its adoption.
Regulatory Flexibility Analysis
This statement is being submitted pursuant to subdivision (3) of section 202-b of the State Administrative Procedure Act and in support of New York State Higher Education Services Corporation's Notice of Emergency Adoption seeking to add a new section 2201.9 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.
It is apparent from the nature and purpose of this rule that it will not impose an adverse economic impact on small businesses or local governments. This agency finds that this rule will not impose reporting, recordkeeping or compliance requirements on small businesses or local governments. This proposal implements a student loan forgiveness program for post-secondary education, funded by New York State and administered by a State agency.
Rural Area Flexibility Analysis
This statement is being submitted pursuant to subdivision (4) of section 202-bb of the State Administrative Procedure Act and in support of New York State Higher Education Services Corporation's Notice of Emergency Adoption seeking to add a new section 2201.9 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.
It is apparent from the nature and purpose of this rule that it will not impose an adverse impact on rural areas. This agency finds that this rule will not impose any reporting, recordkeeping or other compliance requirements on public or private entities in rural areas. The proposal implements a student loan forgiveness program for post-secondary education, funded by New York State and administered by a state agency.
Job Impact Statement
This statement is being submitted pursuant to subdivision (2) of section 201-a of the State Administrative Procedure Act and in support of New York State Higher Education Services Corporation's Notice of Emergency Adoption seeking to add a new section 2201.9 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.
It is apparent from the nature and purpose of this rule that it could only have a positive impact or no impact on jobs and employment opportunities. The proposal implements a student loan forgiveness program for post-secondary education, funded by New York State and administered by a State agency.
