N.Y. Education Law § 665: Payment

§ 665. Payment. 1. Semester payment. The annual award to each

recipient shall be paid in separate installments on a prorated basis,

for each semester, quarter, or other term of attendance during the

academic year. For an approved two-year program of study conducted on a

clock hour basis at a registered private business school, the award

shall be paid in installments by payment term as such period is defined

by the rules of the board. The board shall take into consideration in

promulgating such rules an appropriate proration of the regular program

of study provided during an academic year and the periods at which

student progress and academic standing are evaluated. In no event shall

there be less than two, nor more than four, payment terms in an academic

year, including when such year contains a semester, quarter or other

term of accelerated study, provided however, that up to thirty percent

of payments may be paid in the following academic year but no later than

August first.

2. Payment for accelerated study. a. If the student enrolls for a term

of study which shall be beyond the regular program of study for the

academic year, an additional award shall be made for each such term of

study on the basis of an equivalent full semester, quarter, or term of

attendance during the regular academic year.

b. If the student enrolls in a term of accelerated study as described

in paragraph a of this subdivision constituting less than the equivalent

of a full semester, quarter, or term of attendance, but at least half of

the minimum of such a full-time program, as defined by the commissioner

pursuant to article thirteen, the award for such term of study shall be

one-half of the award that would otherwise have been received for

full-time study. The total period of study for which payment may be made

shall not exceed the equivalent of the maximum period authorized for

that award. In the case of awards under subdivision four of section six

hundred sixty-seven, the base award shall be the lesser of (i) one-half

of the amount of the award provided for or (ii) the amount of tuition,

and the deduction shall be at one-half the rate that would otherwise

apply to full-time study.

c. A student shall qualify for accelerated study upon the completion

of twenty-four credit hours, or its equivalent, from such institution in

the preceding two semesters, or the equivalent, prior to the term of the

application provided however, that the equivalent of three credits per

semester may be remedial courses and therefore such student shall be

eligible for an accelerated award after having earned a total of

eighteen degree credits in the preceding two semesters.

3. Institutional certification, audit and payment procedure.

a. Each institution of post-secondary education shall certify to the

corporation that each student in attendance at that institution who has

applied for a general award or academic performance award under this

article is eligible for such award in accordance with all criteria

established for such award by statute and regulation. Such certification

shall be made on forms provided by the president within such time as

required by the president and shall state that, as of the date

established by the institution in accordance with its refund policy and

the regulations of the commissioner, the student (i) has incurred a full

tuition liability for that term of attendance, (ii) was no longer

eligible for a refund upon withdrawal from study, (iii) was in full-time

attendance and (iv) satisfied all other eligibility requirements for

such award. If any student does not satisfy the necessary eligibility

requirements on that date, it shall be the responsibility of the

institution to so state, to specify whether such student was eligible

prior to that date and the amount of tuition liability incurred.

b. The comptroller shall audit institutional adherence to the

statutes, rules and regulations governing general and academic

performance awards and shall be responsible for determining the amount,

if any, owed to the state by an institution which amount represents

overpayment to the institution on a student's behalf. The comptroller

shall report cases of suspected willful and knowing institutional

violation of such statutes, rules or regulations to the district

attorney in the county in which such institution is located.

c. (i) Payments under this article shall be made by the comptroller

upon the certificate of the president to or for the benefit of the

recipient of each award. Such certificate shall be given upon vouchers

or other evidence provided by the student and by the institution of

attendance showing that the person named therein is entitled to receive

the sum specified, either directly or for his benefit. Payments may be

made directly to the school attended by the person named in such

certificate, on behalf of and for the benefit of such person. The

president may establish such methods of payment, including prepayment,

of awards to students or to schools on behalf of students as may effect

the orderly administration of the program as he may deem appropriate.

Selection of the method of payment shall be at the option of the

institution, provided, however, that the president may limit

participation in such alternative methods of payment to schools

fulfilling criteria established by the president to assure the

appropriate receipt and handling of funds.

(ii) Notwithstanding any other provision of law, and in accordance

with rules adopted by the board for these purposes, the president may

suspend, limit or terminate an institution's participation in the

general, academic and other award programs administered by the

corporation in the event it shall be determined after a hearing

conducted in accordance with the state administrative procedure act that

the institution has violated any statute, rule or regulation applicable

to such award programs. If the president shall determine that immediate

action is necessary in order to prevent an unreasonable risk of

substantial loss of funds administered by the corporation, the president

may, in accordance with rules and regulations adopted by the board for

this purpose, withhold payments and prepayments of awards upon the

initiation of the suspension, limitation and termination proceeding as

an emergency measure. Upon receipt of a report or other information

indicating a violation by an institution of any law or rule applicable

to the award programs affecting the eligibility of a substantial number

of students attending the institution and receiving awards, or

indicating the institution may terminate its program prior to the

completion of the term or semester or may fail to repay refunds due, the

president, in accordance with rules adopted by the board for this

purpose, may make payments and prepayments to the institution in

installments, in trust, or under such other terms and conditions as the

president may deem necessary to assure such payments shall be expended

consistent with statutory and regulatory requirements or shall be

available for application to the payment of refunds due.

(iii) During the initial year a school shall offer approved programs,

the president may make payments and prepayments to the school in

installments, in trust, or under such other terms and conditions as the

president may deem necessary to assure such payments shall be expended

consistent with statutory and regulatory requirements or shall be

available for application to the payment of refunds due.

d. A registered business school shall submit to the president at such

time as the rules of the board may provide a statement of such school's

financial operations and condition as of the end of the school's most

recent fiscal period prepared by an independent public auditor in

conformity with generally accepted auditing standards. Submission of

such a statement may be made a condition of further participation in the

awards program.

4. a. Student refunds. If a student receives payment as a result of

administrative error by the institution or the corporation or a false or

erroneous statement on his application or financial form, or any other

act of omission or commission on the part of the student, his spouse, or

his parents, such that the recipient would otherwise have been

considered by the president ineligible to receive such payment, the

recipient shall be required to refund the improper payment to the state.

b. Institutional refunds. The president shall require institutions to

refund payment to the state, and the student shall not be required to

refund such payments, when (i) the president has determined that

inadequate administrative procedures or practices of the institution

resulted in the incorrect certification of the eligibility of a program

or student, or (ii) the commissioner has determined that the institution

failed to conduct an approved program in accordance with the regulations

of the commissioner in effect when such program was conducted.

c. The president shall be empowered to: (i) require such payment

immediately, (ii) accept a repayment schedule or installment payments

over a reasonable period of time, (iii) reduce any future award received

by such student by the amount of the refund due, or (iv) reduce any

future payments receivable by the institution on behalf of currently

eligible students by the amount of refund due with a direction to the

institution to consider each eligible student's account to have been

credited with the amount of his award eligibility for that term of

attendance. The board of trustees shall promulgate regulations governing

procedures for the assertion, appeal and recovery of a refund claimed by

the corporation against a student or an institution.

d. If the recipient or the institution, as the case may be, without

reasonable cause, fails to promptly comply with the president's demand

for such refund, the attorney general of the state shall, upon request

of the president, bring suit to obtain such refund.

5. Payment for prior study. If the recipient of an award under section

six hundred five of this chapter, except subdivision four thereof, has

enrolled in an approved program during the academic year prior to the

normal effective date of such aid, his scholarship shall become

effective at the time he began his regular college course and he shall

be entitled to receive payment of awards under such scholarship for such

prior study.

6. Loss of good academic standing. a. If the recipient of an award

fails to maintain good academic standing as defined by the commissioner

pursuant to article thirteen of this chapter, which definition shall

include direction to institutions to establish standards of reasonable

progress toward completion of the program in which a student is

enrolled, the president shall suspend further payments under the award

until and unless the student shall establish, to the satisfaction of the

commissioner, promise of successful completion of the program for which

the award is made, and the president may revoke the award if the

recipient is not reinstated in good academic standing within a

reasonable time to be set by the commissioner.

b. Students who receive their first state award during the nineteen

hundred eighty-one--nineteen hundred eighty-two academic year through

and including the two thousand five--two thousand six academic year,

shall maintain good academic standing as defined by the commissioner,

except that such standard shall not apply to students receiving aid

under section six hundred sixty-seven-a of this part.

c. Students who receive their first state award during the two

thousand six--two thousand seven academic year and thereafter shall make

satisfactory progress toward the completion of the program's academic

requirements as provided in this paragraph. For purposes of this

subdivision, "reasonable progress toward completion of the program"

shall mean a student must complete, at a minimum, the following

requirements at the time of certification; provided that nothing shall

prevent a college from developing stricter standards to measure

reasonable progress:

(i) For students first receiving aid in two thousand seven--two

thousand eight, through and including two thousand nine--two thousand

ten, and for students enrolled in a program of remedial study as defined

in paragraph d of this subdivision who first received aid in two

thousand seven--two thousand eight, and thereafter, and enrolled in

four-year or five-year undergraduate programs whose terms are organized

in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student Must 0 3 9 21 33 45 60 75 90 105

Have Accrued at

Least This

Many Credits

With At Least 0 1.1 1.2 1.3 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(ii) For students first receiving aid in two thousand seven--two

thousand eight, through and including two thousand nine--two thousand

ten, and for students enrolled in a program of remedial study as defined

in paragraph d of this subdivision who first received aid in two

thousand seven--two thousand eight, and thereafter, and enrolled in

two-year undergraduate programs whose terms are organized in semesters:

Before Being 1 2 3 4 5 6

Certified

for This

Payment

A Student 0 3 9 18 30 45

Must Have

Accrued at

Least This

Many Credits

With at Least 0 .5 .75 1.3 2.0 2.0

This Grade

Point Average

(iii) For students first receiving aid in two thousand seven--two

thousand eight, through and including two thousand nine--two thousand

ten, and for students enrolled in a program of remedial study as defined

in paragraph d of this subdivision who first received aid in two

thousand seven--two thousand eight, and thereafter, and enrolled in

four-year or five-year undergraduate programs whose terms are organized

on a trimester basis:

Before Being 1 2 3 4 5 6 7 8

Certified

for This

Payment

A Student 0 2 4 9 17 25 33 40

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.1 1.2 1.2 1.3 2.0 2.0

This Grade

Point Average

and,

Before Being 9 10 11 12 13 14 15

Certified

for This

Payment

A Student 50 60 70 80 90 100 110

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(iv) For students first receiving aid in two thousand seven--two

thousand eight, through and including two thousand nine--two thousand

ten, and for students enrolled in a program of remedial study as defined

in paragraph d of this subdivision who first received aid in two

thousand seven--two thousand eight, and thereafter, and enrolled in

two-year undergraduate programs whose terms are organized on a trimester

basis:

Before Being 1 2 3 4 5 6 7 8 9

Certified

for This

Payment

A Student 0 2 4 9 15 21 30 37 45

Must Have

Accrued at

Least This

Many Credits

With At Least 0 .5 .5 .75 .75 1.3 2.0 2.0 2.0

This Grade

Point Average

(v) For students first receiving aid in two thousand ten--two thousand

eleven and thereafter, who do not meet the definition of a student

enrolled in a program of remedial study as defined in paragraph d of

this subdivision, and are enrolled in a four-year or five-year

undergraduate program whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student 0 6 15 27 39 51 66 81 96 111

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.5 1.8 1.8 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(vi) For students first receiving aid in two thousand ten--two

thousand eleven and thereafter, who do not meet the definition of a

student enrolled in a program of remedial study as defined in paragraph

d of this subdivision, and are enrolled in a two-year undergraduate

program whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th

Certified

for This

Payment

A Student 0 6 15 27 39 51

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.3 1.5 1.8 2.0 2.0

This Grade

Point Average

(vii) For students first receiving aid in two thousand ten--two

thousand eleven and thereafter, who do not meet the definition of a

student enrolled in a program of remedial study as defined in paragraph

d of this subdivision, and are enrolled in a four-year or five-year

undergraduate program whose terms are organized on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 4 8 14 22 30 38 46

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average

and,

Before Being 9th 10th 11th 12th 13th 14th 15th

Certified

for This

Payment

A Student 56 66 76 86 96 106 116

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(viii) For students first receiving aid in two thousand ten--two

thousand eleven and thereafter, who do not meet the definition of a

student enrolled in a program of remedial study as defined in paragraph

d of this subdivision, and are enrolled in a two-year undergraduate

program whose terms are organized on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th

Certified

for This

Payment

A Student 0 2 6 14 22 30 38 46 54

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.0 1.3 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average

d. For purposes of paragraph c of this subdivision, a student enrolled

in a program of remedial study shall mean a student: (a) whose scores on

a recognized college placement exam or nationally recognized

standardized exam indicated the need for remediation for at least two

semesters, as certified by the appropriate college official and approved

by the commissioner; or (b) who was enrolled in at least six semester

hours of non-credit remedial courses, as approved by the commissioner,

in the first term they received a tuition assistance program award in an

approved program; or (c) who is or was enrolled in the higher education

opportunity program (HEOP), the educational opportunity program (EOP),

the search for education, elevation and knowledge (SEEK) program, or the

college discovery (CD) program.

e. Notwithstanding the provisions of paragraph c of this subdivision,

for students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101, and who receive their first

state award during the two thousand ten--two thousand eleven academic

year and thereafter shall make satisfactory progress toward completion

of the program's academic requirements as provided in this paragraph.

For purposes of this subdivision, "reasonable progress toward the

completion of the program" shall mean a student must complete, at a

minimum, the following requirements at the time of certification;

provided that nothing shall prevent a college from developing stricter

standards to measure reasonable progress:

(i) For students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101, first receiving aid in two

thousand ten--two thousand eleven and thereafter, and enrolled in

four-year or five-year undergraduate programs whose terms are organized

in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student Must 0 3 9 21 33 45 60 75 90 105

Have Accrued

at Least This

Many Credits

With At Least 0 1.5 1.8 1.8 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(ii) For students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101, first receiving aid in two

thousand ten--two thousand eleven and thereafter, and enrolled in

two-year undergraduate programs whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 3 9 18 30 42 51 60

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.3 1.5 1.8 2.0 2.0 2.0 2.0

This Grade

Point Average

(iii) For students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101, first receiving aid in two

thousand ten--two thousand eleven and thereafter, and enrolled in

four-year or five-year undergraduate programs whose terms are organized

on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 2 4 9 17 25 33 40

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average

and,

Before Being 9th 10th 11th 12th 13th 14th 15th

Certified

for This

Payment

A Student 50 60 70 80 90 100 110

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(iv) For students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101, first receiving aid in two

thousand ten--two thousand eleven and thereafter, and enrolled in

two-year undergraduate programs whose terms are organized on a trimester

basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 2 4 9 15 21 30 37

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.0 1.3 1.5 1.5 1.8 2.0 2.0

This Grade

Point Average

and,

Before Being 9th 10th 11th 12th

Certified

for This

Payment

A Student 45 50 55 60

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0

This Grade

Point Average

(v) Notwithstanding any other provision of law or regulation to the

contrary, upon each certification, payment eligibility shall be

determined and measured proportionally in equivalence with full time

study for students who are disabled as defined by the Americans with

Disabilities Act of 1990, 42 USC 12101.

7. Availability of academic performance awards. Except as provided

herein, payment of academic awards may be made for a period of seven

years beginning with the academic year in which payment is first

available. In the event that a person entitled to such an award is

engaged in active service in the armed forces of the United States or

active service in the national welfare in a program such as the peace

corps, an extension of the seven year period equivalent to the period of

such active service but not in excess of three years may be granted upon

application to the corporation. A recipient who is ineligible for

payment of an award in the first academic year of eligibility due to

attendance in an ineligible out of state school shall not be thereafter

eligible for any other payments of such award. Recipients of an award

which may be reawarded who are temporarily unable to avail themselves of

the benefits of the award due to illness or other cause established by

the board of regents prior to receipt and utilization of the first

payment of such award, may apply for a temporary leave of absence

pursuant to the regulations of the corporation. The provisions of this

subdivision shall not be considered to increase or in any way alter the

number, amount or methods of payments made under an academic performance

award.