NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7269
SPONSOR: Malliotakis TITLE OF BILL:
An act to amend the education law, in relation to TAP awards
PURPOSE:
To increase the maximum TAP award to $6,470 by the 2019-20 fiscal year,
increase all awards by $500 in the 2017-18 fiscal year, increase the net
taxable income eligibility threshold to $125,000 by the 2019-20 fiscal
year, and reinstate TAP awards for graduate students.
SUMMARY OF PROVISIONS:
Section 1. Amends the education law to make graduate students eligible
to receive Tuition Assistance Program (TAP) awards. Provides that gradu-
ate students shall be eligible for more than four academic years, but no
more than eight years of combined undergraduate and graduate study.
Provides that no graduate student shall be eligible for more than one
degree at the master's, professional, or doctorate level.
Section 2. Increases the maximum TAP award from $5,165 to $5,665 in
2017-18; $5,665 to $6,068 in 2018-19; and $6,068 to $6,470 in 2019-20.
In the first year, the increase of the maximum award from $5,165 to
$5,665 in combination with increasing the minimum award (as seen in
Section 4-a) and other adjustments, will result in an across the board
$500 award increase.
Section 3. Increases the maximum TAP award from $3,025 to $3,525 for
single, independent students with no dependents and independent students
with a spouse, but no dependents.
Section 4. Increases the net taxable income eligibility threshold from
$80,000 to $100,000 in 2017-18; $100,000 to $110,000 in 2018-19;
$110,000 to $125,000 in 2019-20.
Section 4-a. Increases the minimum TAP award to $1,000.
Section 5. Increases the net taxable income eligibility threshold from
$80,000 to $100,000 in 2017-18; $100,000 to $110,000 in 2018-19;
$110,000 to $125,000 in 2019-20.
Section 6. Increases awards for students enrolled in two-year programs
offered at certain registered private business schools from $800 to
$1,300.
Section 7. Reinstates TAP awards for graduate students.
Section 8. Includes graduate students in language relating to income
eligibility for general financial aid awards.
Section 9. The effective date.
JUSTIFICATION:
A recent report from the Office of the New York State Comptroller paint-
ed a dire picture of New York State's student debt issues. The report
stated that: "In New York, student loan debt more than doubled during
the last decade, growing to $82 billion, an increase of 112 percent.
The number of student loan borrowers also rose sharply in New York and
nationally over the last ten years - with increases of more than 41
percent in the State, to 2.8 million, and nearly 60 percent in the
nation, to 43.7 million."
This finding highlights how critical it is to provide increased support
to students and families who are struggling to pay for higher education.
This bill seeks to provide this increased support by modernizing the
Tuition Assistance Program (TAP). TAP is a highly successful financial
aid program that has provided countless New Yorkers with needed finan-
cial assistance to help pay for college.
This bill would modernize TAP by increasing the maximum and minimum
award amounts and expanding the net taxable income eligibility thresh-
old. Increasing the award amounts will not only provide students with
more aid, but increasing the maximum award to the level of SUNY tuition
($6,470) will also close the "TAP Gap". When the state passed rational
tuition in 2011, part of the deal required institutions to cover the
"TAP Gap," which is the difference between the TAP award and the full
tuition rate. Increasing the maximum TAP award would take this burden
off of the actual institutions, and continue to help alleviate the cost
of tuition for students. Expanding the net taxable income eligibility
threshold would allow more middle-class families to qualify for TAP
awards that can be used to defray tuition costs at any of New York
State's exceptional private or public higher education institutions.
This bill would once again allow graduate students to qualify for TAP
awards. Funding for TAP awards for graduate students was eliminated in
2010-11. This bill seeks to provide graduate students with the financial
support they need to receive the education and training critical for
them to be competitive in the 21st Century.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
For the first year, the cost will be approximately $111 million. When
fully implemented, the cost will be approximately $256 million annually.
EFFECTIVE DATE:
Immediately.
