Current through Register Vol. 46, No. 39, September 25, 2024
(a) Student borrower. To be eligible for a
program loan, a student borrower shall:
(1)
provide all information requested on an application form prescribed by the
corporation;
(2) apply for a
program loan with an eligible cosigner as defined in section
2213.1 of this Part;
(3) be enrolled or accepted for enrollment in
an eligible program at an eligible college on at least a half time basis, as
defined herein, and otherwise meet the requirements of a student and a borrower
as each term is defined in section
2213.1 of this Part;
(4) successfully complete the program's
web-based financial literacy course, completion of which will be tracked and
confirmed by the corporation; and
(5) meet the requirements concerning adverse
credit, defaults and overpayments, and all other eligibility requirements as
set forth in the program's underwriting manual and subdivisions (e), (f) and
(g) of this section.
(b)
Non-student borrower. To be eligible for a program loan, a non-student borrower
shall:
(1) be a parent, legal guardian or
sponsor, as defined in section
2213.1 of this Part;
(2) apply for a program loan for the higher
education expenses of a student as defined in section
2213.1 of this Part;
(3) provide all information requested on an
application form prescribed by the corporation;
(4) be a New York State resident, and
otherwise meet the requirements of a borrower, as defined in section
2213.1 of this Part;
(5) meet the requirements pertaining to
citizenship as defined in section
2213.1 of this Part;
(6) meet the requirements concerning adverse
credit, defaults and overpayments, and all other eligibility requirements as
set forth in the program's underwriting manual and subdivisions (e), (f) and
(g) of this section; and
(7)
successfully complete the program's web-based financial literacy course,
completion of which will be tracked and confirmed by the corporation.
(c) Aggregate program loan limits.
Program loans on behalf of a student, in aggregate, shall not exceed the annual
loan limit for any academic year in which such loans are made.
(d) Sponsor program loan limits. A
non-student borrower may sponsor one student for whom no family relation exists
in any academic year, and up to three students who are members of such
sponsor's family, as defined in subdivision (6) of section
695-b of the
Education Law.
(e) Adverse credit.
A borrower shall not be eligible for a program loan if such borrower or any
cosigner, if applicable, has an adverse credit history as defined in the
program's underwriting manual.
(f)
Renewed eligibility. To the extent permitted by statute, and with respect to
program loans that are otherwise eligible for purchase by a public benefit
corporation, subject to 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 market conditions:
(1)
Title IV funds. A borrower or cosigner in default of a loan made under title IV
of the Higher Education Act of 1965, as amended, shall be ineligible for a
program loan. Notwithstanding, if a borrower or cosigner establishes renewed
eligibility for title IV loans in accordance with Federal regulations then such
borrower or cosigner shall be eligible for a program loan. Such renewed
eligibility shall only be granted once. The borrower or cosigner must provide
satisfactory documentation evidencing his or her renewed eligibility for title
IV loans in order to be granted renewed eligibility for a program loan. Upon
establishing renewed eligibility, a borrower must re-apply for a program loan
unless otherwise directed by the corporation.
(2) State funds. A borrower or cosigner in
default on a program loan, or who has failed upon demand to make a refund of an
overpayment of a State grant or award, or otherwise failed to meet the
requirements of a State award, shall be ineligible for a program loan. In
addition, a borrower or cosigner who is in default on an education loan made
under this program shall be ineligible for any other State student aid while in
default on a program loan. Notwithstanding, a borrower or cosigner who has made
satisfactory repayment arrangements consistent with section
2008.1 of this Title may be granted
renewed eligibility by the corporation for a program loan, except such renewed
eligibility shall only be granted once. Upon establishing renewed eligibility,
a borrower must re-apply for a program loan unless otherwise directed by the
corporation.
(g) Other
eligibility criteria.
(1) To qualify to
receive a program loan, a borrower shall meet all other eligibility
requirements as set forth in the program's underwriting manual.
(2) No borrower shall qualify to receive a
program loan unless the borrower, or an eligible cosigner, satisfies applicable
credit criteria approved by the corporation, and with respect to education
loans that are otherwise eligible for purchase by a public benefit corporation
approved 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.
