Current through Register Vol. 46, No. 39, September 25, 2024
(a) Subject to paragraph b of subdivision 4
of section
661 of the
Education Law, an educational institution shall:
(1) be exempt from Federal taxation under
section 501(c)(3) of the Internal
Revenue Code;
(2) have its
headquarters and main campus located within the State;
(3) be eligible for funds under title IV of
the Higher Education Act of 1965, as amended;
(4) be accredited by an accrediting agency as
defined in section
2400.2 of this Title;
(5) certify that its students are eligible to
receive Federal pell grants in accordance with section 1,070 of title 20 of the
United States code, et. seq. and the regulations promulgated
thereunder;
(6) provide a
postsecondary program of instruction in an approved program lasting at least
three years, in which the student is enrolled; and
(7) enter into a participation agreement with
the corporation consistent with subdivision (f) of this section.
(b) Educational institutions shall
be responsible for the accuracy of information provided the corporation
concerning an applicant's fulfillment of the following eligibility criteria:
(1) that the applicant is enrolled for that
term as a full-time student pursuant to section
2407.1 and as defined in sections
2400.2 and
2408.6 of this Title;
(2) that the applicant is matriculated at
that institution;
(3) that the
applicant is enrolled in a program of study for which the award may be made,
and that such program is conducted in accordance with its approval or
registration as determined by, or on behalf of, the corporation; and
(4) that the applicant has satisfied the
standards established pursuant to section
2408.7 of this Title, or has been
granted a waiver of such standards pursuant to section
2408.7(d) of this
Title.
(c) Institutions
shall also be responsible for the accuracy of information reported to the
corporation concerning the term structure of the institution, tuition and
educational fees charged the applicant and reported to the corporation, and for
reporting to the corporation the failure of an applicant, at the time of
application or at any time thereafter, to satisfy any other eligibility
requirement for an award, where the institution has knowledge of such
circumstances.
(d) Institutions
shall certify, on forms and in the manner prescribed by the president, each
recipient's eligibility to receive an award made pursuant to this Subchapter.
Such certification shall be made as of the date that the student incurred or
would have incurred a full tuition liability for that term of attendance, and
shall state that the applicant fulfilled all criteria of subdivision (a) of
this section and shall state the tuition liability actually incurred.
Institutional certification of student eligibility for any term for which
payment is requested must be completed and returned to the corporation no later
than 30 days after the end of such payment term as assigned to an institution
by the corporation for the purposes of payment, or 60 days after receipt of the
payment roster on which a student appears, whichever is later. Institutional
changes to student certification must be made on forms provided by the
corporation no later than 90 days after the end of the term for which a student
is being certified, or 90 days after the date of the remittance advice on which
the student whose record is to be changed appears, whichever is later. The date
of issuance of any document from the corporation and the postmark on any
document submitted by an educational institution shall be
determinative.
(e) Whenever the
corporation gives written notification to a student of the amount of an award
of student financial aid such student will receive under the provisions of this
Subchapter, such written notification shall be accepted by the educational
institution as a deferment against tuition charges pending the issuance of such
moneys by the corporation, unless:
(1) the
educational institution has more current or accurate information on file
indicating the student will receive a different amount from that calculated by
the corporation, in which event the educational institution's calculated amount
shall be accepted as a deferment against tuition charges pending the issuance
of such moneys by the corporation; or
(2) the educational institution is waiting
for the student to complete correction of financial aid forms or supply
information for income verification, in which case, deferment shall not be
required until such time as the student has completed his or her
responsibilities.
(f)
(1) No educational institution providing
approved programs as defined in this Chapter may participate in the award
program described in this Chapter unless it has entered into written awards
participation agreement with the corporation. The effective period of the
agreement shall be fixed by the president; however, a new agreement must be
executed upon a change of ownership of the educational institution, which shall
mean a transfer of the majority of shares in the case of a corporation. This
agreement shall set forth the educational institution's obligation to comply
with all laws and regulations governing the award program and, in addition,
shall set forth such educational institution's obligation to:
(i) make payment of refunds created due to
receipt of prepayment pursuant to section
2411.3(b) of this
Title upon the request of or within a time period established by the
president;
(ii) comply with the
procedures set forth in the programs policy and procedures manual issued
periodically by the corporation and revisions thereto;
(iii) credit each student's account with
financial aid award payments received within seven days from the date the
applicant incurred a full tuition liability for that semester or term of
attendance, or within seven days from the receipt, by the educational
institution of payments or prepayments associated with such student's award,
whichever is later;
(iv) not
certify any award recipient in the event the educational institution has
information indicating that the award recipient is not eligible for an award.
In the event such educational institution is uncertain with regard to the
eligibility of an award recipient, the educational institution shall report the
information to the corporation, and the corporation will work with the
educational institution to determine the recipient's eligibility;
(v) provide information, upon the request of
the president, regarding the ownership of the educational institution;
and
(vi) provide the corporation
notice of any disciplinary action brought against it by any state or Federal
agency.
(2) Failure on
the part of the educational institution to comply with the terms of the
participation agreement established pursuant to this subdivision shall be
grounds for the suspension, limitation or termination of such school's
participation in the award program administered by the corporation, pursuant to
Part 2404 of this Title; provided, however, that no such action shall be taken
except after a hearing conducted in accordance with the State Administrative
Procedure Act.
(g)
(1) Each educational institution
participating in the award program administered by the corporation shall report
to the corporation, in such form and at such times as prescribed by the
president:
(i) the records which it maintains
demonstrating the eligibility of award recipients attending such educational
institution;
(ii) the manner in
which it maintains such records;
(iii) the location of such records;
and
(iv) the length of time the
educational institution intends to maintain such records.
(2) In the event there is a substantial
change in any of the information provided to the corporation pursuant to
paragraph (1) of this subdivision, subsequent to the last report but prior to
the submission of the next report, the educational institution shall promptly
report such change to the corporation if the president shall so
prescribe.
(3) The president may
suspend, limit or terminate an educational institution's participation in the
award program administered by the corporation in the event it shall be
determined, after a hearing conducted in accordance with the State
Administrative Procedure Act and pursuant to the provisions set forth in Part
2404 of this Title, that the institution has failed or refused to submit such
report after written demand therefore or shall have willfully submitted a
materially false report.
