DFS-03-16-00003-RP Standard Financial Aid Award Information Sheet for Institutions of Higher Education

7/13/16 N.Y. St. Reg. DFS-03-16-00003-RP

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 28

July 13, 2016

RULE MAKING ACTIVITIES

DEPARTMENT OF FINANCIAL SERVICES

REVISED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. DFS-03-16-00003-RP

Standard Financial Aid Award Information Sheet for Institutions of Higher Education

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

Proposed Action:

Addition of Part 421 to Title 3 NYCRR.

Statutory authority:

Banking Law, section 9-w

Subject:

Standard financial aid award information sheet for institutions of higher education.

Purpose:

Provides guidance to institutions of higher education for the implementation of a financial aid award information sheet.

Text of revised rule:

PART 421 FINANCIAL AID AWARD INFORMATION SHEET

§ 421.1 Scope and application of this Part

Section 9-w of the Banking Law authorizes the superintendent to adopt rules and regulations for the implementation of a standard financial aid award letter.

§ 421.2 Definitions

(a) For purposes of this Part, unless otherwise stated herein, terms shall have the same meaning as set forth in section 601 of New York State Education Law.

(b) “Financial Aid Award Information Sheet” means standard financial aid award letter required by section 9-w of the Banking Law.

§ 421.3 Content and Delivery of Financial Aid Award Information Sheet

(a) In responding to an incoming or prospective undergraduate student’s financial aid application, a college, vocational institution or other institution that offers an approved program as defined in section 601 of the Education Law shall provide a Financial Aid Award Information Sheet. The Financial Aid Award Information Sheet shall be delivered in the same manner in which the school responds to a financial aid award application.

(b) The Financial Aid Award Information Sheet shall be in the form available at www.dfs.ny.gov/studentprotection. Colleges, vocational institutions or other institutions that offer an approved program as defined in section 601 of the Education Law may make reasonable changes to the language or design of the Financial Aid Award Information Sheet if necessary to more accurately reflect a student’s cost of education or financial aid award, provided that the information in the Financial Aid Award Information Sheet is of such size, color, and contrast and is so presented as to be readily noticed, read and understood by the recipient.

(c) For purposes of the Financial Aid Award Information Sheet, the term “Campus” shall mean an institution affiliated with a single U.S. Department of Education Office of Postsecondary Education Identification code.

Revised rule compared with proposed rule:

Substantial revisions were made in sections 421.3 and 421.4.

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

Max Dubin, Department of Financial Services, One State Street, New York, NY 10004, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

30 days after publication of this notice.

Revised Regulatory Impact Statement

The revised rule does no change the regulatory impact of the rule. The rule implements Banking Law § 9-w and the revisions clarify the content and delivery requirements of the financial aid information sheet.

Revised Regulatory Flexibility Analysis

The revised rule will not impose any new adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses and local governments. The rule implements Banking Law § 9-w and the revisions clarify the content and delivery requirements of the financial aid information sheet.

Revised Rural Area Flexibility Analysis

The revised rule will not impose any new adverse economic impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas. The rule implements Banking Law § 9-w and the revisions clarify the content and delivery requirements of the financial aid information sheet.

Revised Job Impact Statement

The revised rule should have no adverse impact on jobs and employment opportunities in New York. The rule implements Banking Law § 9-w and the revisions clarify the content and delivery requirements of the financial aid information sheet.

Assessment of Public Comment

The following is a summary of comments the Department received regarding proposed rule 3 NYCRR 421. The comments are from New York universities as well as associations representing New York colleges and universities.

Some comments objected to the state adopting a uniform information sheet. They pointed out that undergraduate, graduate and other types of higher education are structured differently and information relevant to one audience is not necessarily relevant to another. For example, some types of financial aid on the proposed form are only available to undergraduate students. The final rule allows for some additional flexibility however the Banking Law § 9-w mandates that the letter contain certain information.

Commenters suggested limiting the required recipients of the Financial Aid Information Sheet. Recommendations included limiting recipients to undergraduate students or to admitted students, instead of all financial aid applicants. The final rule incorporates changes to Banking Law § 9-w that only requires the letter for undergraduates.

Commenters requested that schools using the federal Student Shopping Sheet should not be required to adopt any changes to their financial aid award letters. They believe using the federal form should be sufficient to meet their requirements under Banking Law § 9-w. Banking Law § 9-w requires schools to provide information that is not included on the federal Student Shopping Sheet.

Commenters asked for assistance in automating any required forms including encouraging education software vendors to incorporate the required form into their software so schools do not need to develop their own systems.

Finally, some commenters suggested that including estimates of the cost of attendance for all years needed to obtain a degree, instead of the cost of one year, will alarm students and families regarding the cost of their education. This information is required by statute.