EDU-26-11-00003-P Student Eligibility for the Higher Education Opportunity Program

6/29/11 N.Y. St. Reg. EDU-26-11-00003-P

NEW YORK STATE REGISTER

VOLUME XXXIII, ISSUE 26

June 29, 2011

RULE MAKING ACTIVITIES

EDUCATION DEPARTMENT

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. EDU-26-11-00003-P

Student Eligibility for the Higher Education Opportunity Program

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

Proposed Action:

Amendment of section 27-1.1 of Title 8 NYCRR.

Statutory authority:

Education Law, sections 207 and 6451(1)

Subject:

Student eligibility for the Higher Education Opportunity Program.

Purpose:

Update current criteria for determining student economic eligibility for Higher Education Opportunity Program.

Text of proposed rule:

Subdivision (b) of section 27-1.1 of the Rules of the Board of Regents is amended, effective October 5, 2011, as follows:

(b) Economically disadvantaged.

(1) For students first entering college between July 1, 2005 and June 30, 2012. A student is economically disadvantaged if he or she is a member of a household supported by one member thereof with a total annual income which does not exceed the applicable amount set forth in the following tables; or of a household supported solely by one member thereof who is employed by two or more employers at the same time, if the total annual income of such household does not exceed the applicable amount set forth in the following tables for the number of members in the household plus the second job allowance; or of a household supported by more than one worker thereof, or a household in which one worker is the sole support of a one-parent family, if the total annual income of such household does not exceed the applicable amount set forth in the following tables for the number of members in the household plus the employment allowance. For the purposes of this subdivision, the number of members of a household shall be determined by ascertaining the number of individuals living in the student's residence who are economically dependent on the income, as defined in subdivision (c) of this section, supporting the student.

[Table I

For students first entering college between July 1, 2005 and June 30, 2008

Number of members in household (including head of household)	Total annual income in preceding calendar year
1	$14,100
2	19,600
3	22,350
4	27,800
5	32,850
6	38,550
7 or more	42,900 plus $4,350 for each family member in excess of 7
Second Job Allowance	$1,800
Employment Allowance	$4,800

Table II

For students first entering college between July 1, 2008 and June 30, 2009

Number of members in household (including head of household)	Total annual income in preceding calendar year
1	$15,140
2	20,390
3	25,650
4	30,900
5	36,150
6	41,410
7 or more	46,660 plus $5,250 for each family member in excess of 7
Second Job Allowance	$2,630
Employment Allowance	$5,250

Table III

For students first entering college between July 1, 2009 and June 30, 2010

Number of members in household (including head of household)	Total annual income in preceding calendar year
1	$15,590
2	21,000
3	26,420
4	31,830
5	37,240
6	42,650
7 or more	48,060 plus $5,410 for each family member in excess of 7
Second Job Allowance	$2,710
Employment Allowance	$5,410]

Table [IV] I

For students first entering college [on or after] between July 1, 2010 and June 30, 2012

Number of members in household (including head of household)	Total annual income in preceding calendar year
1	$16,060
2	21,630
3	27,210
4	32,790
5	38,360
6	43,960
7 or more	49,500 plus $5,570 for each family member in excess of 7
Second Job Allowance	$2,790
Employment Allowance	$5,570

The income figures in [Tables I, II, III, and IV] Table I of this paragraph apply to the student applicant's income only when he or she is an independent student. For purposes of this Part, an independent student means a student who:

(i) is 24 years of age or older by December 31st of the program year; or

(ii) is an orphan or ward of the court (A student is considered independent if he or she is a ward of the court or was a ward of the court until the individual reached the age of eighteen); or

(iii) is a veteran of the Armed Forces of the United States who has engaged in the active duty in the United States Army, Navy, Air Force, Marines, or Coast Guard and was released under a condition other than dishonorable; or

(iv) is a married individual; or

(v) has legal dependents other than a spouse; or

(vi) is a student for whom an opportunity program and financial aid administrator has made a satisfactory documented determination of independence by reason of other extraordinary circumstances.

(2) For students first entering college on or after July 1, 2012, a student is economically disadvantaged if he or she is a member of a household where the total annual income of such household is equal to or less than 185 percent of the amount under the annual United States Department of Health and Human Services poverty guidelines for the applicant's family size. Federal poverty guidelines are published annually by the Department of Health and Human Services in the Federal Register. The income guidelines in this paragraph apply to the student applicant's income only when he or she is an independent student. For purposes of this Part, an independent student means a student who:

(i) is 24 years of age or older by December 31st of the program year; or

(ii) is an orphan or ward of the court (A student is considered independent if he or she is a ward of the court or was a ward of the court until the individual reached the age of eighteen); or

(iii) is a veteran of the U.S. Armed Forces; or

(iv) is currently an emancipated minor as determined by a court; or

(v) is currently in legal guardianship as determined by a court; or

(vi) is a married individual; or

(vii) has legal dependents other than a spouse; or

(viii) is a student for whom an opportunity program and financial aid administrator has made a satisfactory documented determination of independence by reason of other extraordinary circumstances;

[(2)] (3). . .

[(3)] (4). . .

[(4)] (5). . .

[(5)] (6). . .

Text of proposed rule and any required statements and analyses may be obtained from:

Christine Moore, NYS Education Department, Office of Counsel, 89 Washington Avenue, Room 112, Albany, NY 12234, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Peg Rivers, New York State Education Department, 89 Washington Avenue, Albany, New York 12234, [phone], email: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. STATUTORY AUTHORITY:

Section 207 of the Education Law grants general rule-making authority to the Board of Regents to carry into effect the law and policies of the State relating to education.

Subdivision (1) of section 6451 of the Education Law establishes the Higher Education Opportunity Program to advance the cause of educational opportunity in nonpublic institutions of higher education for State residents who are "economically and educationally disadvantaged" as defined by the Board of Regents.

2. LEGISLATIVE OBJECTIVES:

The proposed amendment carries out the legislative objectives set forth in the aforementioned statutes in that it will revise the current criteria for determining student economic eligibility for the Higher Education Opportunity Program.

3. NEEDS AND BENEFITS:

The proposed rule is needed in order to update the current criteria for determining student economic eligibility for the Higher Education Opportunity Program by: (1) taking into account inflationary conditions and changes in annual income; (2) accounting for New York State and local taxes and regional maintenance costs; (3) assuring consistency across the State-supported postsecondary opportunity programs; and (4) maintaining the continuing linkage of these eligibility criteria with federally approved methods of needs analysis.

The amendment will update the existing definition of "economically disadvantaged," which has become outdated because of inflationary factors. It will prevent a reduction in the pool of eligible students due to inflation and other factors. The amendment will ensure that the appropriate pool of students will be eligible for the program.

The proposed changes in the economic income guidelines will apply to students first entering college on or after July 2012. The income level for the household of one was determined based on 185 percent of an income at poverty level as established by U.S. Department of Health and Human Services poverty guidelines. These guidelines are based on poverty measures issued by the U.S. Census Bureau.

The proposed amendment is also needed to update the definition of an independent student, to be more consistent with the federal definition of independent student for purposes of the needs analysis for federal student financial aid programs.

The proposed amendment was developed by a statewide task force of representatives from the City University of New York, the State University of New York, independent colleges and universities and the State Education Department's Office of Higher Education. This task force met and reached a consensus on the proposed amendment.

4. COSTS:

a. Costs to the State government. The proposed amendment will not impose additional costs on State government. The amendment simply updates the income criteria for determining student eligibility for participation in the Higher Education Opportunity Program. State funding for this program is determined by an annual legislative appropriation, which determines the number of students that may participate.

b. Costs to local government. None.

c. Costs to private regulatory parties. The proposed amendment will not impose any capital costs on the nonpublic colleges and universities that operate a Higher Education Opportunity Program. It will impose minimal costs on them to update information brochures concerning the Higher Education Opportunity Program.

d. Costs to the regulatory agency. None. The proposed amendment, which simply updates the criteria for determining economic eligibility for participation in the Higher Education Opportunity Program, will not add any new responsibilities for the State Education Department to administer. The Department will administer the program using existing staff and resources.

5. LOCAL GOVERNMENT MANDATES:

The proposed amendment will not impose any new mandates on local governments.

6. PAPERWORK:

The proposed amendment does not include any new reporting requirements for regulated parties. The paperwork requirements for nonpublic institutions of higher education that participate in the program will not change. In addition, the amendment will not increase the paperwork requirements for students who apply to participate in the Higher Education Opportunity Program at nonpublic colleges and universities.

7. DUPLICATION:

The proposed amendment does not duplicate any other existing State or Federal requirements.

8. ALTERNATIVES:

There are no viable alternatives to the proposed amendment at this time. The Task Force group that developed the economic eligibility levels in the proposed amendment discussed using U.S. Department of Health and Human Services poverty guidelines to determine eligibility for all household sizes at 200% of an income at poverty level. However, the task force determined that it needed to do additional research before recommending such an alternative approach.

9. FEDERAL STANDARDS:

The proposed amendment concerns the criteria for a State student aid program. While Federal standards are inapplicable, the Department considered and incorporated elements of the methodology approved by the U.S. Department of Education for needs analysis used for Federal student financial aid programs.

10. COMPLIANCE SCHEDULE:

Students first entering college on or after July 1, 2012 will be subject to the amended economic criteria. Nonpublic institutions of higher education must comply with the regulation on its effective date. No additional period of time is necessary to permit regulated parties to meet the requirements of the proposed amendment.

Regulatory Flexibility Analysis

The proposed amendment concerns income criteria for determining student eligibility to participate in the Higher Education Opportunity Program at nonpublic institutions of higher education. It will affect students who want to participate in this program and nonpublic colleges and universities that administer the programs. It is evident from the subject matter of the amendment that it will have no effect on local governments.

The amendment will also have no effect on small businesses. All of institutions that participate in the program, except one, are not-for-profit colleges and universities. Accordingly, they are not small businesses. The one for-profit institution that participates in the program employs more than 100 individuals. Therefore, it is not a small business, as defined in section 102(8) of the State Administrative Procedure Act.

The amendment will not impose any adverse economic impact, recordkeeping, reporting, or other compliance requirements on small businesses or local governments. Because it is evident from the nature of the proposed amendment that it will not affect small businesses or local governments, no further steps were needed to ascertain that fact and none were taken. Accordingly, a regulatory flexibility analysis is not required and one has not been prepared.

Rural Area Flexibility Analysis

1. TYPES AND ESTIMATED NUMBER OF RURAL AREAS:

The proposed amendment applies to nonpublic colleges and universities in New York State that contract with the State Education Department to operate Higher Education Opportunity Programs and students that apply to participate in the Higher Education Opportunity Programs. In the 2005-2006 academic year, 12 such colleges and universities were located in rural areas, defined as the 44 rural counties with less than 200,000 inhabitants and the 71 towns in urban counties with a population density of 150 per square mile or less. In that same year, 696 students participated in the Higher Education Opportunity Program at these colleges and universities.

2. REPORTING, RECORDKEEPING AND OTHER COMPLIANCE REQUIREMENTS, AND PROFESSIONAL SERVICES:

The proposed amendment updates the existing definition of "economically disadvantaged," which has become outdated because of inflationary factors. It also changes the economic income guidelines that will apply to students first entering college on or after July 2012. The income level is based on 185 percent of an income at poverty level as established by U.S. Department of Health and Human Services poverty guidelines. These guidelines are based on poverty measures issued by the U.S. Census Bureau.

The proposed amendment is also needed to update the definition of an independent student, to be more consistent with the federal definition of independent student for purposes of the needs analysis for federal student financial aid programs.

The amendment does not add or alter reporting or recordkeeping requirements for nonpublic colleges and universities that administer Higher Education Opportunity Programs, including those located in rural areas, or impose reporting or recordkeeping requirements for students that participate in such programs. In addition, the amendment will not require regulated parties to acquire professional services.

3. COSTS:

The proposed amendment will not impose any capital costs on the colleges and universities located in rural areas. It will only impose minimal costs on them to update informational brochures concerning the Higher Education Opportunity Program and the income guidelines.

4. MINIMIZING ADVERSE IMPACT:

The proposed amendment updates economic criteria for student eligibility to participate in the Higher Education Opportunity Program. The amendment does not make any differentiation in eligibility based upon the geographic location of the student. In the interests of equity, uniform economic criteria are established for all students across the State.

5. RURAL AREA PARTICIPATION:

A copy of the proposed amendment was shared with each of the nonpublic colleges and universities that operated Higher Education Opportunity Programs in 2005-2006, including the 12 located in rural areas. These institutions were asked to comment on the amendment.

In addition, comments on the proposed amendment were solicited from the Rural Education Advisory Committee, whose membership includes, among others, representatives of school districts, BOCES, business interests, and government entities located in rural areas.

Job Impact Statement

The proposed amendment concerns income criteria for determining student eligibility to participate in the Higher Education Opportunity Program, a program of student assistance administered by nonpublic colleges and universities. The amendment will not affect jobs and employment opportunities in New York State. Because it is evident from the nature of this amendment that it will not affect job and employment opportunities, no affirmative steps were needed to ascertain that fact and none were taken. Accordingly, a job impact statement is not required, and one has not been prepared.