NY Pub Auth L § 1679-A (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 4 - Dormitory Authority 1679-A - Health Education Assistance Loan Financing Program.

§  1679-a.  Health education assistance loan financing program. 1. The purpose of the  health  education  assistance  loan  financing  program, hereafter  referred  to  as  the HEAL loan financing program, is to make available to students attending public and independent institutions  for higher  education  financial  assistance  beyond  the  grants  and loans available  from  state,  federal  and  private   sources,   other   than supplemental  higher education loans pursuant to section sixteen hundred seventy-nine of this chapter, where such students demonstrate  remaining financial  need.  Such program is created to encourage the participation of  HEAL  eligible  institutions  in  conjunction  with,  but   not   in substitution  for, the participation of financial or credit institutions in increasing the availability of HEAL loans to all  eligible  students. The  authority  and  institutions  for higher education participating in such program shall to the extent practicable ensure  that  borrowers  of such loans include individuals who are underrepresented or unrepresented in the health professions.   2.  In  furtherance of its powers under this title with respect to the HEAL loan financing program, the authority is authorized:  (a) to receive and accept from  any  source  loans,  contributions  or grants  for  or in aid of the HEAL loan financing program or any portion thereof and, when desirable, to use such funds, property or  labor  only for the purposes for which it was loaned, contributed or granted;  (b)  to  make  HEAL  direct  loans  to  students  attending,  and HEAL education loans to participating  independent  institutions  for  higher education, and require that the proceeds of HEAL education loans be used for   making   HEAL  student  loans,  funding  reserves,  providing  for capitalized interest and paying other costs and fees involved in  making HEAL student loans or issuing bonds; and  (c)   to   purchase  HEAL  student  loans  solely  from  participating independent institutions for higher education under terms and conditions which require that such loans were originated after the  effective  date of  this  section in contemplation of participation by such institutions for higher education in the HEAL loan financing program of the authority authorized by this section and in anticipation of the purchase  of  such loans  by  the  authority,  provided, however, that prior to the sale of bonds any portion of the  proceeds  of  which  shall  be  used  for  the purchase,  acquisition  or  taking  by  assignment  or otherwise of HEAL student  loans,  the  authority  shall  by  resolution  adopt   specific guidelines  setting  forth  the  terms  and  conditions  upon which such purchases, acquisitions and taking by assignment or otherwise  shall  be made. No such resolution shall be adopted until at least forty-five days after  the  delivery  of  a  copy  of  such  proposed  guidelines to the governor, the temporary president of the senate and the speaker  of  the assembly for comment.  (d)  to  sell HEAL direct loans, HEAL education loans and HEAL student loans purchased, acquired or taken by assignment  or  otherwise  by  the authority  to  the  extent  necessary to assure the marketability of and adequacy of the security for the bonds of the authority.   3. The authority shall adopt guidelines,  subject  to  review  by  the advisory  committee,  created  pursuant  to  subdivision  ten of section sixteen hundred  seventy-nine  of  this  chapter,  and  consistent  with federal  law  and  regulations  to  the  extent  applicable, which shall include but not be limited to: (a) eligibility criteria for making  HEAL education  loans  and  HEAL  direct  loans;  (b)  limitations  upon  the principal amounts and the terms of HEAL education loans and HEAL  direct loans;  (c)  qualifications  and  characteristics  of borrowers; and (d) procedures  for  allocating  HEAL  education  loans  among   independent institutions  and  for  allocating direct loans among students attending  public institutions. Such guidelines shall also include such eligibility standards for borrowers as the authority shall determine  are  necessary or  desirable  in  order  to  effectuate  the  purposes  of this section including  the  following:  (a) each student shall have a certificate of enrollment or acceptance for  enrollment  at  a  specific  participating institution  for  higher  education; (b) each student shall satisfy such financial qualifications as the authority shall establish to  effectuate the  purposes  of  this  section; and (c) each student shall submit such information  as  may  be  required  by  the  authority  to  his  or  her institution  for  higher education. Such guidelines shall also establish specific criteria governing  the  making  of  HEAL  direct  loans,  HEAL education  loans  and  HEAL  student  loans, provisions for default, the establishment  of  default  reserve  funds,  the  purchase  of   default insurance,   the  provision  of  debt  service  reserve  funds  and  the furnishing by the  participating  independent  institutions  for  higher education  of  such  additional guarantees of, and security with respect to, HEAL education loans,  HEAL  student  loans  or  the  bonds  as  the authority  shall  determine,  all  of such criteria to be established to assure the marketability of the bonds and the adequacy of  the  security for the bonds to finance fully federally insured HEAL direct loans, HEAL education loans, and HEAL student loans.   4.  The  authority shall contract with financial institutions, the New York state higher education  services  corporation  established  by  the provisions  of  section  six  hundred  fifty-two of the education law or other qualified loan origination and servicing organizations, which  may assist  in  pre-qualifying  borrowers  for  HEAL  student loans and HEAL direct loans and which may service and administer each HEAL student loan and HEAL direct loan and each institution's respective HEAL loan  series portfolio.   5. The maximum amount of a HEAL student loan or HEAL direct loan shall not  exceed  the student's cost of attendance for the period of time for which the loan is made, minus the following amounts applicable  to  such period of time:  (a)  the maximum net loan proceeds which the student receives, or will receive, under the guaranteed student loan program as defined under  (i) title  IV,  part  B,  of  the  "Higher Education Act of 1965", as now or hereafter amended, and (ii) the regulations  implementing  such  program promulgated  at  34  Code  of  Federal  Regulations, part 682, as now or hereafter amended;  (b) the maximum net loan proceeds which the student's parents receive, or will receive, under the parent loan to undergraduate students program as defined under (i) title IV, part B, of the "Higher Education  Act  of 1965",   as   now   or  hereafter  amended,  and  (ii)  the  regulations implementing such program promulgated at 34 Code of Federal Regulations, part 683, as now or hereafter amended;  (c) the maximum net loan proceeds which the student receives, or  will receive,  under the auxiliary loan to assist students program as defined under (i) title IV, part B, of the "Higher Education Act  of  1965",  as now  or  hereafter  amended,  and (ii) the regulations implementing such program promulgated at 34 Code of Federal Regulations, part 683, as  now or hereafter amended;  (d)   the   amount  of  scholarships,  grants  or  other  nonrepayable assistance received from government agencies,  educational  institutions or private institutions or organizations.   6.  Notwithstanding  any other provisions contained in this title, but pursuant to guidelines,  the  authority  may  commingle  and  pledge  as security  for a series or issue of bonds, with the consent of all of the institutions for higher education which are participating in such series  or issue, the HEAL student loan series portfolios and some or all future HEAL student loan series portfolios  of  such  institutions  for  higher education  provided  that  HEAL student loan series portfolios and other security  and  moneys  set  aside  in  any fund or funds pledged for any series of bonds or issue of bonds shall be held for the sole benefit  of such  series  or  issue separate and apart from HEAL student loan series portfolios and other security and moneys pledged for any other series or issue of bonds of the authority, and provided further that in  no  event shall  HEAL  student  loan  series portfolios be commingled with student loan series portfolios comprised of student loans made pursuant  to  the supplemental  higher  education  loan  financing  program  authorized by section sixteen hundred seventy-nine of this act or with any other  loan portfolio.  Bonds  may be issued in series under one or more resolutions in the discretion of the authority.   7. The authority shall require  that  HEAL  education  loans  be  used solely  to  make  HEAL  student loans and that HEAL direct loans be used solely for the purpose of financing the cost  of  attendance  at  public institutions  for  higher  education.  The  authority shall require that independent institutions for higher education shall  require  that  each borrower  under  a  HEAL  student loan shall use the proceeds solely for such cost of attendance and that each such borrower shall so certify.   8. Any student otherwise eligible for a HEAL student  loan  or  for  a HEAL direct loan shall not be disqualified by reason of his or her being under  the  age of eighteen years and, for the purposes of applying for, receiving and repaying such a loan, any such student shall be deemed  to have  full legal capacity to act; provided, however, that the signatures of one parent of an unemancipated applicant shall be  required  for  the purpose  of  receiving  such  a  loan unless the authority determines in accordance with guidelines established by the  board  of  the  authority that  unusual  family  circumstances  preclude  the availability of such signature.   9. The authority may  charge  to  and  apportion  among  participating institutions  of  higher  education  and students its administrative and operating costs and expenses incurred in the exercise of the powers  and duties conferred by this section.   10.  Bonds issued by the authority for the HEAL loan financing program shall be within the two hundred million dollar limitation set  forth  in paragraph (c) of subdivision two of section sixteen hundred seventy-nine of  this chapter and each such issuance shall be subject to the approval of the public authorities control board.   11. The authority shall  report  annually  to  the  governor  and  the legislature  on  or  before  February  first  concerning  its  findings, conclusions and recommendations with respect to  the  operation  of  the programs provided for in this section.