ESC-31-13-00006-A New York Higher Education Loan Program (NYHELPs)
10/2/13 N.Y. St. Reg. ESC-31-13-00006-A
NEW YORK STATE REGISTER
VOLUME XXXV, ISSUE 40
October 02, 2013
RULE MAKING ACTIVITIES
HIGHER EDUCATION SERVICES CORPORATION
NOTICE OF ADOPTION
I.D No. ESC-31-13-00006-A
Filing No. 909
Filing Date. Sept. 17, 2013
Effective Date. Oct. 02, 2013
New York Higher Education Loan Program (NYHELPs)
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of Part 2213 of Title 8 NYCRR.
Statutory authority:
Education Law, sections 691(10) and 655(4)
Subject:
New York Higher Education Loan Program (NYHELPs).
Purpose:
To establish additional borrower benefits.
Text of final rule:
Subdivision (d) of section 2213.4 is amended as follows:
(d) Each of the Corporation and any public benefit corporation described in section [2200-a.1(r)] 2213.1(ad) may participate in the Program as a lender and, in such case, all references in this subchapter to the lender shall be deemed applicable to the Corporation or such public benefit corporation, as applicable, in such capacity, except to the extent that the Corporation or such public benefit corporation would be required thereby to provide the information to or enter into a contractual arrangement with itself.
Paragraph (2) of subdivision (b) of section 2213.20 is amended as follows:
(2) Economic hardship forbearance. Subject to paragraph (5) of this subdivision, a borrower who is not in default on the repayment of a program loan(s) and who is unable to make payments because of a temporary change in [the borrower’s, and any cosigner’s,] financial circumstances may apply to the corporation for a forbearance due to economic hardship in accordance with criteria set forth in the program’s default avoidance and claim manual. Economic hardship forbearance shall not extend the original repayment terms of the previously disbursed program loans.
Subdivision (b) of section 2213.20 is amended to add a new paragraph (6) as follows:
(6) Disaster relief. In a federally declared major disaster, as defined by 42 U.S.C. section 5122(2), the corporation may grant certain relief for borrowers and cosigners within a federally declared disaster area, including the cessation of due diligence and collection activities for up to three months and suspension of required payments under certain repayment plans. Prior to granting any relief under this paragraph, the corporation shall perform an impact assessment and with respect to program loans that are otherwise eligible for purchase by a public benefit corporation shall be subject to approval by such public benefit corporation.
Subparagraph (i) of paragraph (2) of subdivision (g) of section 2213.20 is repealed, and subparagraphs (ii) and (iii) are renumbered subparagraphs (i) and (ii).
Section 2213.28 is amended as follows:
For purposes of this Part, the following manuals referred to throughout are hereby incorporated by reference and are available at www.hesc.ny.gov/NYHELPs_Regulations:
Subdivision (e) of section 2213.28 is amended as follows:
(e) from and including March 6, 2013, until superseded, the program’s default avoidance and claim manual version number 5, dated March 6, 2013, and the program’s underwriting manual version number 5, dated March 6, 2013[.]; and
Section 2213.28 is amended to add a new subdivision (f) as follows:
(f) from and including October 2, 2013, until superseded, the program’s default avoidance and claim manual version number 6, dated October 2, 2013.
Final rule as compared with last published rule:
Nonsubstantive changes were made in section 2213.28.
Text of rule and any required statements and analyses may be obtained from:
Cheryl B. Fisher, NYS Higher Education Services Corporation, 99 Washington Avenue, Room 1315, Albany, New York 12255, (518) 474-5592, email: regcomments@hesc.ny.gov
Revised Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
This rule was proposed as a consensus rule as defined in section 102(11) of the State Administrative Procedure Act (SAPA). As such, an RIS, RFA and RAFA are not required. A Statement in Lieu of Job Impact Statement was attached to the proposed rule making. The change made to the proposed rule is a correction to the Corporation’s web address where the rule, together with materials incorporated by reference, can be found. This change does not necessitate a revision to these documents and therefore a revised RIS, RFA, RAFA, and JIS are not required.
