NYS Higher Education Services
Corporation
• 2014-15 Budget Update
• Avoiding Audit Disallowances
NYSFAAA 2014
2014-15
NYS Budget Changes
2014-15 Budget Changes
 Increase in maximum TAP award
– Dependent student
 Change in Award Schedule
– A, D and E
 Science, Technology, Engineering
and Mathematics Incentive Program
(STEM)
 NYS Young Farmers Loan
Forgiveness Incentive Program
Increased Maximum TAP
Award
Increased maximum TAP award for
undergraduate dependent students by
$165 annually
Must be:
 Attending degree-granting institution or
a registered not-for profit business
school
 Schedules A, D and E
Change in Award Schedule
New Petition Status and change in award
schedule for students who qualify as an
orphan, foster child or ward of the court
 Currently: TAP award calculated using
independent schedules
 Change: TAP award calculated using
dependent schedules A, D and E for
increased award amount
STEM Awards
Students must:
 Be in the top 10 percent of their high
school graduating class
 Be matriculated in an approved
undergraduate program leading to a
degree in Science, Technology,
Engineering or Mathematics at a SUNY
or CUNY college
 Execute a Service Contract agreeing to
reside and work in a STEM field in New
York State for five years
STEM Awards
 Equal the SUNY resident tuition rate
or actual tuition, whichever is less
 Reduced by the amount of any
duplicative (tuition only) assistance
 Paid directly to the student’s SUNY
or CUNY college on behalf of the
recipient
STEM Certification
 Separate payment roster
 TAP award will be included on the
roster
 Must report additional tuition only
assistance
STEM Certification (cont.)
 Use certification code = 1 (eligible)
to certify students meeting all
eligibility requirements
 Use certification code =2 (TAP no
Scholarship) for students who do not
meet STEM program requirements
but are eligible for a TAP award
New York State Young Farmers
Forgiveness Incentive Program
 Provides loan forgiveness awards to
college graduates who agree to
operate a farm in NYS for five years
 Up to 10 annual awards to qualified
applicants
 Up to $10,000 per year, per
applicant
Evaluating Student Eligibility
and Avoiding Audit
Disallowances
Evaluating Student Eligibility
 HESC first
 Schools confirm eligibility (certification)
– Access to student
– Access to records
 Office of the State Comptroller (OSC)
– Audits schools
– Audit disallowances
 Avoid audit disallowances
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Know your students
Trust but verify - document student statuses
Maintain student records (7 years)
Maintain school records supporting program approval
Student Eligibility Criteria
 HESC
 Schools
– Citizenship
– New York State
residency
– Income eligibility
– Financial independence
– Not in default on a state
or federal student loan
– High School diploma
– Approved program of
study
– Enrolled
• Study abroad
• Out of state study
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Matriculated status
Full-time status
Good academic standing
Level of study undergraduate only
Citizenship
 Federal requirements
 Title IV eligibility
NYS Residency
 Who is
 Who isn’t
• Student residing in New
York State permanently
• Student can evidence
domicile/permanent abode
• Members of Armed Forces
stationed in NYS and
immediate family members
• Student financially dependent
on parent(s) who are also
legal residents of NYS
• Financially dependent student
is considered resident of state
where parents reside
• Student merely living in
New York State to
attend college
• Student cannot
evidence domicile /
permanent abode
• Student financially
dependent on parents
who reside in another
state
Residency - Points
 Legal resident 12 months prior to term
 Parents retired to Florida
– If student claimed as dependent – student
now Florida resident
– Ineligible for TAP
 Residency appeal
– Log into HESCWeb and request a Residency
Questionnaire
– HESC will evaluate
Residency
 Warning signs
– Parents have a non-New York address
– Student off-campus address not in New York
– H.S. diploma not from New York school
 Consult with HESC
– Don’t certify if unsure
– Log onto HESCWeb–Student Record Maintenance to
request RFI or Residency Questionnaire be sent to
student
– Send any documents you have using Doc Trac
 DocTrac
– E-mail: doctrac@HESC.ny.gov
– Fax: (518) 473-1414
Income Eligibility
 Income determines award
 What is income?
– NYS Net Taxable Household Income
– Pensions not included on tax return
 HESC verifies income with NYS Department
of Tax & Finance
 Maximum income
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Dependent or married with dependents - $80,000
Independent, single with dependents - $80,000
Independent, married, no dependents - $40,000
Independent, single, no dependents - $10,000
Financial Independence – Basic
Conditions
 Does not and will not live with parents for
more than six weeks during preceding,
current and future tax year
 Did not receive support from parents
exceeding $750 during preceding, current
and future tax year
 Is not claimed as dependent on parent(s)
tax return(s) for preceding or current tax
year
 Honorably discharged from US military
service and not claimed by parents for
preceding or current tax year
Financial Independence – (cont.)
 35 years old as of June 30 of the academic
year (June 30, 2014, for 2014-15)
 22-35 years old as of June 30 and meet
basic conditions
 Married on or before December 31 preceding
the academic year and meet basic conditions
 Previously approved for financial
independence and meet basic conditions
 Under 22 years old
– Meet basic conditions and
– Meet special conditions
Financial Independence – Special
Conditions
 Under 22
 Both parents are
– Deceased; or
– Totally and permanently disabled; or
– Declared incompetent
 Applicant receives public assistance
 Applicant is ward of the court
 Involuntary dissolution of family unit
High School Diploma
 Diploma or certificate from high school
within the United States
 Equivalent exam acceptable to NYS
Education Department (e.g. TASC –
Test Assessing Secondary Completion
 Passing score on Ability to Benefit Test
(ATB)
 Maintain documentation in student file
Matriculated
 Applied for admission at school
offering approved program
 Enrolled in courses fulfilling degree
requirement
Full-Time
 12 credits or more per semester
toward degree program
 No repeated courses for better grade
 Can retake failed course if Good
Academic Standing requirements
met
Good Academic Standing
 Good academic standing (GAS)
components
– Pursuit of Program (POP)
– Satisfactory Academic Progress (SAP)
 POP + SAP = GAS
 Evaluated each term at time of
certification
Good Academic Standing – POP
 Pursuit of Program –
– A requirement that a student receive a
passing or failing grade in a certain
percentage of courses each term
– Based on the number of TAP payments
the student has received
 POP Chart
Good Academic Standing – SAP
 Satisfactory Academic Progress
– Accumulate a specified number of credits
– Achieve a specified cumulative grade point
average each term
– Based on the number of TAP payments
students have received
 SAP Chart
– C average requirement after 4th payment
Exceptions and Waivers
 Americans with Disabilities Act (ADA)
– May be eligible for TAP for 3 credits or more
(1 class)
 Medical / health waiver
– Serious illness or other adverse physical
condition which requires restricting the
student's program of study
– Combine course work of multiple terms to
meet full-time study requirement
– Medical documentation
 Document special conditions in student file
Waivers
 One-time GAS waiver
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One-time waiver
Extenuating circumstances
Based on school’s published criteria
Improperly granting waiver may result in
audit disallowance
 C average waiver
– Death of relative
– Student illness or injury
– Extenuating circumstances
 Consistency – follow published guidelines
 Document all waivers
Certification Components
 When?
– HESC processes no earlier than 14 days
after term start date
– 60 days from the roster date or 30 days
from end of term, whichever is later
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Other benefits
Enrollment status – “FT”
Academic waiver – GAS Waiver Only
5 year program?
OSC Audits
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Office of the State Comptroller (OSC)
Draft Audit Report
School comment
Final Audit Report
HESC may enforce audit findings –
payment of audit disallowances
Avoid Audit Disallowances –
Document!
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HS Diploma
Full-time Status
Satisfactory Academic Progress
Waivers
– 1 Time GAS waiver
– C average waiver
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Student Transcripts
Residency
Citizenship
Enrollment Records
Any information you possess that may
affect a student’s TAP award
QUESTIONS?
Contact:
Barbara.Hochberg@hesc.ny.gov