ESC-13-10-00007-P New York Higher Education Loan Program (NYHELPs)

3/31/10 N.Y. St. Reg. ESC-13-10-00007-P

NEW YORK STATE REGISTER

VOLUME XXXII, ISSUE 13

March 31, 2010

RULE MAKING ACTIVITIES

HIGHER EDUCATION SERVICES CORPORATION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. ESC-13-10-00007-P

New York Higher Education Loan Program (NYHELPs)

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend section 2213.9 of Title 8 NYCRR.

Statutory authority:

Education Law, sections 691(10) and 692(3)

Subject:

The New York Higher Education Loan Program (NYHELPs).

Purpose:

Amend the provision of the regulation relating to loan limits.

Text of proposed rule:

Section 2213.9 of Title 8 of the NYCRR is amended to read as follows:

TITLE 8. EDUCATION DEPARTMENT

PART 2213. THE NEW YORK HIGHER EDUCATION LOAN PROGRAM (NYHELPs)

Section 2213.9 Minimum/Maximum program loan limits.

[(a) Maximum program loan amounts available to eligible borrowers shall be as follows:

(1) $10,000 annually;

(2) $20,000 aggregate for undergraduates attending a two year institution;

(3) $50,000 aggregate for undergraduates attending a four year institution; and

(4) $70,000 aggregate total for undergraduate and graduate study.]

(a) The minimum and maximum individual program loan amounts available to eligible borrowers on an annual basis shall be approved by the corporation, and with respect to program loans that are otherwise eligible for purchase by a public benefit corporation, shall be subject to further approval by such public benefit corporation, on at least an annual basis with respect to program loans to be made for the applicable academic year, or portion thereof, after taking into account applicable financial and/or other relevant market conditions. Such amounts shall be published on the corporation's website.

(b) The maximum aggregate program loan amounts available to eligible borrowers shall be as follows:

(1) $20,000 aggregate for undergraduates attending a two year institution;

(2) $50,000 aggregate for undergraduates attending a four year institution; and

(3) $70,000 aggregate total for undergraduate and graduate study.

[(b)] (c) The amount of the program loan shall not exceed the difference between the cost of attendance less all other New York State aid, title IV aid (excluding Federal PLUS loans), other Federal aid, institutional aid, and private aid, as certified by the eligible college.

[(c) The minimum original principal amount of an education loan shall be determined by the corporation, and with respect to education loans that are otherwise eligible for purchase by a public benefit corporation, shall be subject to approval by such public benefit corporation, on at least an annual basis with respect to education loans to be made for the applicable academic year, or portion thereof, after taking into account applicable financial market conditions.]

(d) The maximum interest rate under this program shall not exceed 16.5 percent per annum, or its equivalent rate for a longer or shorter period.

Text of proposed 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, NY 12255, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

This statement is being submitted pursuant to paragraph (b) of subdivision (1) of section 202 of the State Administrative Procedure Act and in support of New York State Higher Education Services Corporation's ("HESC") Notice of Proposed Rule Making seeking to amend section 2213.9 of 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 no person is likely to object to the adoption of the rule as written. The New York Higher Education Loan Program ("NYHELPs" or "Program") was enacted to provide students and their families with low cost loans to fill the gap between the cost of college and available financial aid. HESC's data reflects that the current annual maximum loan limit of $10,000 per student for all class years is insufficient and does not meet the needs of many students. The purpose of the proposal is to provide a process for the adjustment of the maximum annual loan limit per student to equal the average borrowing amount needed for private student loans, using actual Program loan data. The average borrowing amount needed is based on both economic conditions and the cost of higher education. Since the aggregate loan limits remain unchanged, the proposal avoids any unintended consequence of over-borrowing. The proposal also requires that the individual annual maximum loan amount, as well as the annual minimum loan amount, established be published on HESC's web site providing clear, transparent information to all Program participants. As a result of the proposal, NYHELPs' availability will be expanded to serve more students, benefitting more New Yorkers.

To accomplish this goal, the proposal contains one change, which is to have the annual maximum Program loan amount be established by the corporation, subject to approval by a public benefit corporation in connection with Program loans that are eligible for purchase by such public benefit corporation, and that such amount, and the annual minimum loan amount, be published on HESC's web site. The established aggregate limits, as well as all other provisions, remain unchanged.

Consistent with the definition of "consensus rule", as set forth in section 102(11) of the State Administrative Procedure Act, and inasmuch as the proposed consensus rule will benefit more students and their families without the concern of over-borrowing, HESC has determined that this proposal is non-controversial and, therefore, no person is likely to object to its adoption.

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 Proposed Rule Making seeking to amend section 2213.9 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 have any negative impact on jobs or employment opportunities. The proposal would result in an expansion of the availability of the New York Higher Education Loan Program (NYHELPs) to serve more students, benefitting New Yorkers without the concern of over-borrowing.