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

  • 8/31/16 N.Y. St. Reg. DFS-03-16-00003-E
    NEW YORK STATE REGISTER
    VOLUME XXXVIII, ISSUE 35
    August 31, 2016
    RULE MAKING ACTIVITIES
    DEPARTMENT OF FINANCIAL SERVICES
    EMERGENCY RULE MAKING
     
    I.D No. DFS-03-16-00003-E
    Filing No. 781
    Filing Date. Aug. 12, 2016
    Effective Date. Aug. 12, 2016
    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 action:
    Action taken:
    Addition of Part 421 to Title 3 NYCRR.
    Statutory authority:
    Banking Law, section 9-w
    Finding of necessity for emergency rule:
    Preservation of general welfare.
    Specific reasons underlying the finding of necessity:
    I, Maria T. Vullo, Superintendent of Financial Services, do hereby certify that the foregoing Part 421 of Title 3 of the Official Compilation of Codes, Rules and Regulations of the State of New York, entitled “Financial Aid Award Information Sheet” was duly adopted on an emergency basis on June 16, 2016 pursuant to the authority granted by Section 9-w of the New York Banking Law.
    I determined that it is necessary for the preservation of the general welfare that this regulation be adopted on an emergency basis as authorized by section 202(6) of the State Administrative Procedure Act, effective immediately upon filing with the Department of State.
    This regulation is adopted as an emergency measure because time is of the essence. Banking Law Section 9-w requires schools to use a standard financial aid information letter in responding to all financial aid applicants for the 2016-2017 academic year and thereafter. Schools are currently sending award packages and the regulations provide important clarity for schools using the model financial aid information letter. An April 2016 amendment to Banking Law Section 9-w, which took effect immediately, required amended emergency regulations. In order for schools to comply with Banking Law Section 9-w, these rules are being re-adopted on an emergency basis.
    No other publication or prior notice is required by statute.
    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 emergency 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
    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.
    § 421.3 Content and Delivery of Financial Aid Award Information Sheet On or After May 15, 2016
    (a) In responding to an incoming or prospective undergraduate student’s financial aid application on or after May 15, 2016, a college, vocational institution or other institution that offers an approved program as defined in section 601 of the Education Law shall provide the letter required in section 9-w of the Banking Law, hereby referred to as the “Financial Aid Award Information Sheet”, in the form available at www.dfs.ny.gov/studentprotection.
    (b) 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.
    § 421.4 Content and Delivery of Financial Aid Award Information Sheet Prior to May 15, 2016
    (a) In responding to an incoming or prospective undergraduate student’s financial aid application prior to May 15, 2016, a college, vocational institution or other institution that offers an approved program as defined in section 601 of the Education Law shall provide the Financial Aid Award Information Sheet in accordance with section 421.3 of this Part or satisfy the requirements in subsections 421.4(b) and 421.4(c) of this Part.
    (b) Beginning on or before February 1, 2016, and ending on or after September 1, 2016, a college, vocational institution or other institution that offers an approved program as defined in section 601 of the Education Law that offers financial aid to undergraduate students shall publish online an “Interim Period Financial Aid Award Information Sheet” in the form available at www.dfs.ny.gov/studentprotection.
    (c) In responding to an incoming or prospective undergraduate student’s financial aid application before May 15, 2016, a college, vocational institution or other institution that offers an approved program as defined in section 601 of the Education Law shall include in, or accompany with, the response a clear and conspicuous disclosure stating “Additional Information Including Estimated Cost of Attendance Can be Found On the Web Page Below” and setting forth the URL address of the webpage that includes a completed Interim Period Financial Aid Award Information Sheet. For responses to an incoming or prospective undergraduate student’s financial aid application between January 1, 2016 and February 1, 2016, this disclosure shall be provided by February 1, 2016.
    (d) For purposes of the Interim Period 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.
    This notice is intended
    to serve only as a notice of emergency adoption. This agency intends to adopt the provisions of this emergency rule as a permanent rule, having previously submitted to the Department of State a notice of proposed rule making, I.D. No. DFS-03-16-00003-EP, Issue of January 20, 2016. The emergency rule will expire October 10, 2016.
    Text of rule and any required statements and analyses may be obtained from:
    Max Dubin, Department of Financial Services, One State Street, New York, NY 10004, (212) 480-7232, email: max.dubin@dfs.ny.gov
    Regulatory Impact Statement
    1. Statutory Authority: The Superintendent of Financial Services’ (“Superintendent”) authority for the promulgation of this rule derives from New York Banking Law § 9-w, which calls on the Superintendent to promulgate regulations implementing that section.
    2. Legislative Objectives: The Legislature called on the Superintendent to issue this rule to implement New York Banking Law § 9-w, which requires all New York schools to use a uniform financial aid award letter. The Legislature mandated a uniform financial aid letter to give students a better understanding of the costs of a particular school and the options to pay for the education. The uniform letter will also help students to easily compare costs and financial aid options between schools.
    3. Needs and Benefits: DFS consulted the New York State Higher Education Services Corporation for thoughts and challenges associated with implementing the form required in Banking Law § 9-w. The rule is required by New York Banking Law § 9-w. The rule provides needed guidance to institutions of higher education, including when and to whom schools must provide the financial aid award letter.
    4. Costs: This rule does not create any additional costs to regulated parties or state and local governments. Any costs incurred by higher education institutions in implementing a standard financial aid award information sheet, including building any information technology infrastructure to generate and send the award sheets, were imposed by the Legislature by statute. No new costs are created by this rule, which simply implements New York Banking Law § 9-w.
    5. Local Government Mandates: The rule does not create any new local government mandates.
    6. Paperwork: There are no new paperwork requirements created by the rule.
    7. Duplication: Some institutions of higher education have volunteered to, and in some cases are required, to use a standard student shopping sheet developed by the U.S. Department of Education when responding to financial aid applications. DFS consulted with U.S. Department of Education and designed a model shopping sheet that would meet federal and state requirements. New York schools already committed to using the federal form can add a supplement to their existing form to meet both requirements and avoid duplicative financial aid award information sheets.
    8. Alternatives: No significant alternatives to the rule were considered.
    9. Federal Standards: The rule does not exceed any federal standards.
    10. Compliance Schedule: The rule should not take any time to implement. It has been previously proposed as a permanent rule and adopted on an emergency basis.
    Regulatory Flexibility Analysis
    The rule will not impose any new adverse economic impact or reporting, record keeping or other compliance requirements on small businesses and local governments. The rule implements Banking Law § 9-w. Some of the covered educational institutions may be small businesses. Any costs or compliance requirements were created statutorily by the Legislature and this rule does not create any additional costs or requirements.
    Rural Area Flexibility Analysis
    The rule will not impose any new adverse economic impact on rural areas or reporting, record keeping or other compliance requirements on public or private entities in rural areas. The rule implements Banking Law § 9-w. Some of the covered educational institutions are located in rural areas. However, the rule does not impose any new costs or compliance requirements. Any costs or compliance requirements were created statutorily by the Legislature.
    Job Impact Statement
    The rule should have no adverse impact on jobs and employment opportunities in New York. The rule implements Banking Law § 9-w. It does not create any new burden or costs to businesses that are not already required by statute.
    Assessment of Public Comment
    The agency received no public comment

Document Information

Effective Date:
8/12/2016
Publish Date:
08/31/2016