New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter XX - Higher Education Services Corporation
Subchapter D - The New York Higher Education Loan Program (nyhelps)
Part 2213 - The New York Higher Education Loan Program (nyhelps)
Section 2213.8 - Variable rate program loans

(a) The corporation shall, on an annual basis, determine whether variable rate program loans shall be offered for the upcoming academic period. For each academic period in which new variable rate program loans are offered, the corporation shall establish lender terms. Such variable rate program loan terms shall be set forth in the program underwriting manual and publicized on the corporation's website.

(b) Lenders shall make variable rate loans based on a borrower's credit score formula consistent with the program underwriting manual.

(c) Variable rate program loan rates shall be calculated using an index to be determined by the corporation on at least an annual basis with respect to program loans to be made for the following academic year plus an amount determined by the corporation and set forth in the program's underwriting manual. The index established shall be publicized. Lenders shall be required to use the index established, as part of the interest calculation, at the time of disbursement to determine the variable rate.

(d) Lenders may limit lending to certain borrowers based on their credit score consistent with the program underwriting manual.

(e) Lenders who elect to limit lending must be consistent with all borrowers having the same credit score criteria, school, and member eligibility.