(c) Allocation of fixed
rate program loans.
(1) Available amounts.
The corporation, in consultation with the agency, shall determine, on an annual
basis, the amount of funding that will be available for fixed rate program
loans eligible for sale to the agency based on the agency's determination as to
available bond proceeds and based on projected statewide demand for fixed rate
program loans. Such amount shall be publicly available on the corporation's
website.
(2) Funding pools. Upon
the determination of the available amounts of fixed rate program loans as set
forth above, the corporation shall establish multiple fixed rate program loan
funding pools to promote equitable distribution of fixed rate program loan
funds to students throughout the state (region-based pools) and to ensure the
availability of fixed rate program loan funds to students demonstrating
financial need (income-based pool):
(i) in
establishing the income-based pool for the initial academic year, the
corporation shall project demand for fixed rate program loans using tuition
assistance program (TAP) data from the prior academic year and other available
data that would reasonably demonstrate financial need;
(ii) for subsequent academic years, the
corporation shall project demand for the income-based pool using actual program
loan experience and any other available data that would reasonably demonstrate
financial need;
(iii) the available
amounts of funding, based on projected demand, for the income-based pool shall
be subtracted from the total available amounts of fixed rate program loan
funding for the academic year;
(iv)
the remainder of available amounts of funding for the region-based pool shall
be allocated based on a formula to be determined by the corporation, in
consultation with the agency. Such allocation shall ensure, to the extent
practicable, distribution among students statewide based on factors including
college type and level of study. The corporation may consider other factors as
necessary to ensure equitable distribution of fixed rate program
loans;
(v) during each application
period, the corporation may adjust initial pool allocations based on fixed rate
program loan application approvals within the region-based and income-based
pools as necessary to maximize the use of total available amounts for fixed
rate program loans for the academic year. Otherwise qualifying borrowers
demonstrating financial need, as defined by the corporation in subdivision (c)
of this section, shall receive fixed rate program loans from the income-based
pool. If actual demand for loans from the income-based pool exceeds the
allocated amount, such otherwise qualifying borrowers shall be eligible to
receive fixed rate program loans from any remaining available funds in the
borrower's region-based pool. A borrower's eligibility for available amounts
from a region-based pool shall be based on the borrower's place of residence
within New York State. If actual demand for fixed rate program loans from the
income-based pool is less than the available amounts allocated to or for such
pool, the corporation may reallocate fixed rate program loan funds for the
academic year to one or more region-based pools to maximize the use of total
funds available for fixed rate program loans. If actual demand for fixed rate
program loans in a region-based pool is less than the available amounts
allocated for that region, the corporation may reallocate fixed rate program
loan funds for the academic year to the income-based pool or another
region-based pool to maximize the use of total funds available for fixed rate
program loans.
