New York Codes, Rules and Regulations › Title 8 - EDUCATION DEPARTMENT › Chapter XX - Higher Education Services Corporation › Subchapter D - The New York Higher Education Loan Program (nyhelps) › Part 2213 - The New York Higher Education Loan Program (nyhelps) › Section 2213.7 - Fixed rate program loans

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  The interest rate or rates for fixed rate program loans expected to be sold to
				  the agency, or to another public benefit corporation, shall be based on the
				  interest rate payable on the bonds issued by the agency, or other public
				  benefit corporation, to fund the loan purchases. The interest rate or rates on
				  fixed rate program loans shall be determined by the corporation, and with
				  respect to program loans that are otherwise eligible for purchase by a public
				  benefit corporation shall be determined by such public benefit corporation, on
				  at least an annual basis with respect to program loans to be made for the
				  following academic year, or portion thereof, after taking into account
				  applicable financial market conditions.
(b) The corporation shall notify lenders and
				  schools after the establishment of the new rate. Such notification shall
				  include publication on the corporation's website. The requirements set forth in
				  section
				  2213.5(g) 
				  of this Part shall be satisfied prior to the sale of any fixed rate program
				  loan to the agency.
(c) Allocation
				  of fixed rate program loans.
(1) Available
				  amounts. The corporation, in consultation with the agency, shall determine, on
				  an annual basis, the amount of funding that will be available for fixed rate
				  program loans eligible for sale to the agency based on the agency's
				  determination as to available bond proceeds and based on projected statewide
				  demand for fixed rate program loans. Such amount shall be publicly available on
				  the corporation's website.
(2)
				  Funding pools. Upon the determination of the available amounts of fixed rate
				  program loans as set forth above, the corporation shall establish multiple
				  fixed rate program loan funding pools to promote equitable distribution of
				  fixed rate program loan funds to students throughout the state (region-based
				  pools) and to ensure the availability of fixed rate program loan funds to
				  students demonstrating financial need (income-based pool):
(i) in establishing the income-based pool for
				  the initial academic year, the corporation shall project demand for fixed rate
				  program loans using tuition assistance program (TAP) data from the prior
				  academic year and other available data that would reasonably demonstrate
				  financial need;
(ii) for subsequent
				  academic years, the corporation shall project demand for the income-based pool
				  using actual program loan experience and any other available data that would
				  reasonably demonstrate financial need;
(iii) the available amounts of funding, based
				  on projected demand, for the income-based pool shall be subtracted from the
				  total available amounts of fixed rate program loan funding for the academic
				  year;
(iv) the remainder of
				  available amounts of funding for the region-based pool shall be allocated based
				  on a formula to be determined by the corporation, in consultation with the
				  agency. Such allocation shall ensure, to the extent practicable, distribution
				  among students statewide based on factors including college type and level of
				  study. The corporation may consider other factors as necessary to ensure
				  equitable distribution of fixed rate program loans;
(v) during each application period, the
				  corporation may adjust initial pool allocations based on fixed rate program
				  loan application approvals within the region-based and income-based pools as
				  necessary to maximize the use of total available amounts for fixed rate program
				  loans for the academic year. Otherwise qualifying borrowers demonstrating
				  financial need, as defined by the corporation in subdivision (c) of this
				  section, shall receive fixed rate program loans from the income-based pool. If
				  actual demand for loans from the income-based pool exceeds the allocated
				  amount, such otherwise qualifying borrowers shall be eligible to receive fixed
				  rate program loans from any remaining available funds in the borrower's
				  region-based pool. A borrower's eligibility for available amounts from a
				  region-based pool shall be based on the borrower's place of residence within
				  New York State. If actual demand for fixed rate program loans from the
				  income-based pool is less than the available amounts allocated to or for such
				  pool, the corporation may reallocate fixed rate program loan funds for the
				  academic year to one or more region-based pools to maximize the use of total
				  funds available for fixed rate program loans. If actual demand for fixed rate
				  program loans in a region-based pool is less than the available amounts
				  allocated for that region, the corporation may reallocate fixed rate program
				  loan funds for the academic year to the income-based pool or another
				  region-based pool to maximize the use of total funds available for fixed rate
				  program loans.