HESC will use the NYS residence self-reported field in HESC’s Student Loan Marketplace to determine residency. The servicer will also be able to verify residency through their data collection process (e.g., tax returns). Colleges will also be able to contact HESC if they feel a borrower may not be eligible for NYHELPs due to residency.
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If a non-student borrower is in active military status, and is currently stationed at or deployed from a NYS military base, he does not need to be a NYS resident. In this case, must the student be a NYS resident?

The student does not need to be a NYS resident; however the student must attend a participating college in New York State.
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If a sponsor is taking out a NYHELPs loan, must the student take out an Unsubsidized Stafford Loan, if the sponsor's preference is not to burden the student with any loans?

NYHELPs regulations require that the student must exhaust all available aid based on their eligibility. This includes an unsubsidized Stafford loan.
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Even though colleges are not required to display the link for the HESC Student Loan Marketplace on their Web site for students, will they need to direct students to that Web site in order for them to apply for a NYHELPs loan?

The HESC Student Loan Marketplace will be the only mechanism for a borrower to apply for a NYHELPs loan. Colleges do not need to display a link on their Web site. HESC can provide the college with written materials or the college can direct students to the HESC Web site to begin the process.
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In order to pay back balances, how many days after the loan period ends will HESC accept a NYHELPs loan application?

Borrowers may apply for a NYHELPs loan up to 90 days after the loan period but the loan must be disbursed within 180 days of the end of the loan period. A college must certify for the loan period in which the loan is requested.
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If a NYHELPs borrower has not reached their annual loan limit and is interested in borrowing more money, a new application must be initiated. Will a new credit check be necessary if the secondary application is submitted within 45 days of the initial application?

A borrower must complete a new application within 45 days of the initial application date in order to avoid an additional credit check. All borrowers in Marketplace are provided up to 45 days to “shop for a better deal” or complete the process. This requirement is clearly stated in the Marketplace process.
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Are non-student borrowers allowed to submit a cosigner for a NYHELPs loan?

Non-student borrowers may utilize a cosigner, and would select the cosigner as part of the application process for a NYHELPs loan.
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At what point in the process flow is the entrance counseling conducted? Who is responsible for this step?

The entrance counseling is part of the HESC Student Loan Marketplace experience and will be provided there.
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Will there be an exit counseling module developed within the Financial Literacy e-learning portal?

HESC will develop exit counseling materials and distribute to borrowers.
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Is the requirement to participate in “Financial Literacy Education” a one-time requirement per borrower?

All NYHELPs borrowers are required to complete Financial Literacy Education each time the borrower applies for a NYHELPs loan.
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Are cosigners required to complete the financial literacy requirement?

Cosigners are not required to complete financial literacy.
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Will the use of paper certifications from schools be permitted?

No.
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Which satisfactory academic progress (SAP) policies will HESC use?

Colleges will use the SAP policy they currently use for determining eligibility for federal awards.
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If the first disbursement is cancelled, is the second disbursement cancelled or still valid?

If the first disbursement is cancelled, either pre- or post-disbursement, the second disbursement will be valid.
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If funds are returned post-disbursement, at what point is the borrower subject to interest that had accrued on those funds? Is there a window of time before the borrower is responsible for any interest that would have accrued?

There is no window where interest is not charged. Once the funds are disbursed interest accrues.
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Must the borrower use the full six months of grace in order for the grace period to be considered used up? For example, if a borrower is out of college for five months and then returns to college, does that five months count as part of the grace period?

A full six month timeframe is considered as a grace period. If a borrower is out of college for less than six months, the grace period will not be exhausted.
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If a student's second disbursement comes in early January for the spring semester, will their repayment begin 60 days after that? How will lags in enrollment for optional summer terms be treated? Will the student end up using their deferment period for the time between their last spring and next fall disbursements?

Repayment begins 60 days after full disbursement. HESC will consider the student as in-school during summer terms.
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Who do borrowers contact if they wish to cancel their NYHELPs loan? Will NYHELPs borrowers be required to notify HESC? Will HESC notify the college?

The borrower will be able to contact HESC or the servicer to cancel and HESC will notify the college.
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How will HESC update change of enrollment if the college does not use the National Student Clearinghouse?

On a monthly basis, the servicer sends the Clearinghouse a file of all of the borrowers/students on their system. Each week, the Clearinghouse sends any updates they have received on those borrowers to the servicer. The servicer will also send Enrollment Verification Requests to non-Clearinghouse colleges twice a year, in May and November.
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What is the retention period for NYHELPs?

NYHELPs records must be kept for the balance of the calendar year in which a loan was made and for six additional years thereafter. This requires colleges to maintain the NYHELPs records for a total of seven years. The original NYHELPs college participation agreement (Agreement) states a different time frame; however, #18 of the Agreement states that when there is a conflict, Appendix A, which identifies the seven years, shall apply.
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Will a college have the ability to limit NYHELPs loan volume at their institution?

Colleges will be able to set limits on their participation in NYHELPs. HESC has a mechanism in place through the HESC Student Loan Marketplace that will allow a cap on loans for an individual college. Colleges must inform HESC of their set limit at least ten business days before the start of the academic year’s processing.
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