ESC-31-13-00006-P New York Higher Education Loan Program (NYHELPs)

7/31/13 N.Y. St. Reg. ESC-31-13-00006-P

NEW YORK STATE REGISTER

VOLUME XXXV, ISSUE 31

July 31, 2013

RULE MAKING ACTIVITIES

HIGHER EDUCATION SERVICES CORPORATION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. ESC-31-13-00006-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 sections 2213.4(d), 2213.20 and 2213.28; addition of sections 2213.20(b)(6) and 2213.28(f); and repeal of section 2213.20(g)(2)(i) 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 proposed 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/content.nsf/SFC/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.

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, New York 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 subparagraph (i) of 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: (i) amend §§ 2213.4(d), 2213.20(b)(2), 2213.28, and 2213.28(e) of Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York (NYCRR); (ii) add §§ 2213.20(b)(6) and 2213.28(f) of Title 8 of the NYCRR; (iii) repeal § 2213.20(g)(2)(i) of Title 8 of the NYCRR; and (iv) renumber §§ 2213.20(g)(2)(ii) and 2213.20(g)(2)(iii) of Title 8 of the NYCRR.

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 because it is non-controversial. The New York Higher Education Loan Program (NYHELPs) 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. This rule: (i) establishes additional borrower benefits regarding economic hardship forbearance and modified payment plans, disaster relief, cosigner release, and the assessment of collection costs; (ii) corrects an erroneous citation and other technical errors; and (iii) provides the Corporation’s web address for public access of the NYHELPs regulations, including the manuals which are incorporated by reference.

Consistent with the definition of “consensus rule”, as set forth in section 102(11) of the State Administrative Procedure Act, HESC has determined that because this proposal benefits students and their families it 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 the New York State Higher Education Services Corporation’s (Corporation) Notice of Proposed Rulemaking seeking to: (i) amend §§ 2213.4(d), 2213.20(b)(2), 2213.28, and 2213.28(e) of Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York (NYCRR); (ii) add §§ 2213.20(b)(6) and 2213.28(f) of Title 8 of the NYCRR; (iii) repeal § 2213.20(g)(2)(i) of Title 8 of the NYCRR; and (iv) renumber §§ 2213.20(g)(2)(ii) and 2213.20(g)(2)(iii) of Title 8 of the NYCRR.

It is apparent from the nature and purpose of this rule that it has no impact on jobs and employment opportunities. The New York Higher Education Loan Program (NYHELPs) 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. This rule establishes additional borrower benefits, corrects technical errors, and provides the Corporation’s web address for public access of the NYHELPs regulations, including the manuals which are incorporated by reference.

The Corporation has determined that this rule will have no substantial adverse impact on any private or public sector jobs or employment opportunities and therefore a full Job Impact Statement is not necessary.