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A07245 Summary:

BILL NOA07245A
 
SAME ASSAME AS S02565-A
 
SPONSORKelles
 
COSPNSR
 
MLTSPNSR
 
Amd §663, Ed L
 
Allows the higher education services corporation to consider an applicant's change in income due to the loss of employment in determining eligibility and award amount for the tuition assistance program.
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A07245 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7245A
 
SPONSOR: Kelles
  TITLE OF BILL: An act to amend the education law, in relation to allowing the higher education services corporation to consider an applicant's change in income due to the loss of employment in determining eligibility and award amount for the tuition assistance program   PURPOSE OR GENERAL IDEA OF BILL: To allow the higher education services corporation(HESC), which adminis- ters the state's tuition assistance program (TAP), to consider a TAP applicant's more recent income in making adjustments to eligibility and award amounts if the applicant's change in income is due to loss of employment.   SUMMARY OF PROVISIONS: Section one of the bill amends subdivision 5 of section 663 of education law adding a new paragraph b. allowing HESC to consider an applicant's change in income due to the loss of employment in determining eligibil- ity and award amount for TAP. Section 2 is the effective date.   JUSTIFICATION: NYS Tuition Assistance Program (TAP) is one of several state funded programs supporting students in their pursuit of higher education and since its establishment in 1974, TAP has provided aid to over 6 million students. The Higher Education Services Corporation (HESC) administers TAP and the program's application process which requires applicants to provide income tax information for the previous two years as part of determining eligibility and calculating award amounts. Under TAP's certification and eligibility guidelines, income adjustments will only be made under "limited situations" including divorce of parents or from spouse, death of wage-earning parent or spouse or total, permanent disability of wage-earning parent, student or spouse. The program does .not allow for adjustments to be made in the event of unem- ployment regardless of whether a student, parent, or spouse becomes unemployed prior to or during an academic year. Changes in income or employment can occur for various reasons, such as sudden changes in mental health or physical health of a student, wage-earning parent, or spouse. This bill will allow HESC to consider an applicant's change in income due to the loss of employment of the applicant or parent of the appli- cant and utilize the applicant's income reported in the New York state income tax returns for the prior calendar year in making adjustments to eligibility and the amount of the award for such academic year. As Governor Hochul announced in October of 2024, expanded eligibility for TAP and increased TAP award amounts have resulted in thousands more students applying for and receiving financial aid. Many of these students and their families may experience a change in income during the year and the state should be flexible enough to recognize a need for an adjustment to the TAP award to compensate for that lost income. Doing so will enable more students to stay on track with their education - a goal we should do all we can to support.   PRIOR LEGISLATIVE HISTORY: 2023/24: A9641 (Zebrowski) - referred to higher education 2021/22: A7050 (Zebrowski) - higher education reported to ways & means   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A07245 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7245--A
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 21, 2025
                                       ___________
 
        Introduced by M. of A. KELLES -- read once and referred to the Committee
          on  Higher  Education  --  committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the education law, in relation to  allowing  the  higher
          education  services  corporation  to consider an applicant's change in
          income due to the loss of employment in  determining  eligibility  and
          award amount for the tuition assistance program
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 5 of section  663  of  the  education  law,  as
     2  amended  by  section  3  of part J of chapter 58 of the laws of 2011, is
     3  amended to read as follows:
     4    5. a. Adjustments of  income.  In  the  determination  of  income  for
     5  purposes  of  paragraphs  a  and  b  of subdivision three of section six
     6  hundred sixty-seven of this part if, during the academic year  in  which
     7  the  applicant  will  receive an award, one of either the parents of the
     8  applicant or other dependent child of such parents, the  spouse  of  the
     9  applicant,  or one or more dependent children of the applicant, in addi-
    10  tion to the applicant, will be in full-time attendance  in  an  approved
    11  program,  the  combined  net taxable income determined under subdivision
    12  one of this section shall be reduced by three thousand  dollars  and  an
    13  additional two thousand dollars for each other such person additional to
    14  the  aforesaid  persons  (including  the  applicant) who will be in such
    15  attendance, and the resulting amount  shall  be  deemed  the  applicable
    16  income in determining the applicant's award for the academic year.
    17    b.  The corporation, pursuant to rules and regulations, shall consider
    18  an applicant's change in income due to the loss  of  employment  of  the
    19  applicant  or parent of the applicant and utilize the applicant's income
    20  reported in New York state income tax returns  for  the  prior  calendar
    21  year  in  making  adjustments to eligibility and the amount of the award
    22  for the current academic year. The corporation may require such documen-
    23  tary evidence, testimony or affidavits as it deems sufficient in  grant-
    24  ing such an adjustment of an award.
    25    § 2. This act shall take effect immediately.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04951-02-5
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