Requires the higher education services corporation to make a determination of financial eligibility of a student for financial aid, awards and loans within 60 days from the day of the receipt of the financial aid application; where the higher education services corporation fails to make a timely determination the applicant shall be deemed eligible for such aid for the semester for which the application was made; allows for a 30-day extension if notice is given to the educational institution within the initial 60-day period.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3135
SPONSOR: Pretlow
 
TITLE OF BILL:
An act to amend the education law, in relation to general and academic
performance awards, student loans and tuition assistance program awards
 
PURPOSE:
To require HESC to respond within a certain time period re student
awards
 
SUMMARY OF PROVISIONS:
Adds a new subdivision 8 to S665 of the education law.
 
JUSTIFICATION:
The Higher Education Services Corporation (HESC) was established by the
Legislature to have central responsibility for the proper administration
and oversight of financial aid. While HESC is empowered to determine the
initial eligibility of a student for financial assistance, it does not
always make timely eligibility determinations. This creates unnecessary
'delays and uncertainty for both students and the institutions they are
scheduled to attend. Furthermore, HESC has in the past retroactively
disallowed financial aid it has already certified, thereby obliging
students or, more likely, institutions, to repay financial awards. This
practice results in hardships for the student and/or the institutions.
This bill directs HESC to make an initial determination of financial
eligibility within sixty days of the receipt of the financial aid appli-
cation from the student. If HESC fails to make its determination within
the allotted time, the student shall be deemed eligible to receive aid
for the semester for which the application was made; provided, however,
that HESC is allowed a 30 day extension to make its determination if it
notifies the institution in writing that it needs additional time to
examine the case of a particular student. Such notification must be
made before the expiration of the original 60 day time period.
 
LEGISLATIVE HISTORY:
2021-2022 A1712 referred Ways & Means
2019-2020 A3589 referred to higher education
03/19/18 A3532 referred to higher education
01/30/13 referred to higher education
01/08/14 referred to higher education
06/03/14 reported referred to ways and means
06/10/14 reported referred to rules
06/11/14 reported
06/11/14 rules report cal.127
06/11/14 ordered to third reading rules cal.127
06/11/14 passed assembly
06/11/14 delivered to senate
06/11/14 REFERRED TO HIGHER EDUCATION
01/20/15 A2915 referred to higher education
01/06/16 A2915 referred to higher education
05/25/16 A2915 reported referred to ways and means
05/25/16 A2915 reported
05/26/16 A2915 advanced to third reading cal.752
06/01/16 A2915 passed assembly
06/01/16 A2915 delivered to senate
06/01/16 A2915 REFERRED TO HIGHER EDUCATION
 
FISCAL IMPLICATIONS:
 
EFFECTIVE DATE:
The first of July in the second year next succeeding the year in which
it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
3135
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Higher Education
AN ACT to amend the education law, in relation to general and academic
performance awards, student loans and tuition assistance program
awards
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 665 of the education law is amended by adding a new
2 subdivision 8 to read as follows:
3 8. Timeliness of financial aid determinations. Notwithstanding any
4 other provision of law, the corporation shall make its determination of
5 financial aid eligibility within sixty days from the day of the receipt
6 of the completed financial aid application from the student. In the
7 event that such financial aid determination is not made by the corpo-
8 ration within sixty days after receipt of the completed financial aid
9 application from the student, such student shall be deemed eligible to
10 receive financial aid for the semester for which the completed financial
11 aid application is made; provided, however, that the corporation may
12 obtain an additional thirty day extension to make its eligibility deter-
13 mination upon written notification to the institution within sixty days
14 that additional time is necessary to examine and review the completed
15 financial aid application of such student.
16 § 2. This act shall take effect on the first of July in the second
17 year next succeeding the year in which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05594-01-3