nys higher education services corporation 2014-15 budget update avoiding audit disallowances nysfaaa...
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NYS Higher Education Services Corporation
•2014-15 Budget Update•Avoiding Audit Disallowances
NYSFAAA 2014
2014-15NYS 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 schoolSchedules 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 courtCurrently: TAP award calculated using independent schedulesChange: 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 classBe matriculated in an approved undergraduate program leading to a degree in Science, Technology, Engineering or Mathematics at a SUNY or CUNY collegeExecute 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– Know your students– Trust but verify - document student statuses– Maintain student records (7 years)– Maintain school records supporting program approval
Student Eligibility Criteria
HESC– Citizenship– New York State
residency– Income eligibility– Financial independence– Not in default on a state
or federal student loan
Schools– High School diploma– Approved program of study– Enrolled
• Study abroad• Out of state study
– Matriculated status– Full-time status– Good academic standing– Level of study -
undergraduate only
Citizenship
Federal requirements Title IV eligibility
NYS Residency
Who is• 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
Who isn’t• 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: [email protected]
– 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– 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– 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
Other benefits Enrollment status – “FT” Academic waiver – GAS Waiver Only 5 year program?
OSC Audits
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!
HS Diploma Full-time Status Satisfactory Academic Progress Waivers
– 1 Time GAS waiver– C average waiver
Student Transcripts Residency Citizenship Enrollment Records Any information you possess that may
affect a student’s TAP award
