HESC Colleague NewsletterSpring 2009  

2009 Budget Update

John Austin

The 2009-10 State Budget, enacted on April 3, 2009, includes several higher-education-related provisions important to students, parents, college administrators and lenders. Following are the highlights:


NYHELPs
The 2009-10 State Budget includes legislation establishing the New York Higher Education Loan Program (NYHELPs), a program that will help fill the gap between college costs and financial aid by giving New York students and families access to low-cost education loans not currently available in the private loan market. A minimum of $350 million in loans will be provided annually to approximately 45,000 resident students enrolled in degree-granting programs at a college or university in New York State.

This unique program creates a new paradigm in student lending by employing a public/private partnership – in which the State, the banking community and colleges work together – to ease the financial burden on students and families.

The legislation includes provisions that ensure transparency, borrower protections, and preference for students demonstrating financial need based on family gross income.

Learn more about NYHELPs.

TAP
The Budget preserves several TAP provisions, including:

  • The current TAP award calculation for full-time students enrolled in fewer than fifteen semester credits.
  • Current academic standards for non-remedial students.
  • Adjustments to TAP awards for families with multiple dependent family members in college.
  • Funding for graduate students.
  • Funding for students in default on certain Federal education loans.

The Budget does include a new requirement that income from New York State, federal, and local government pensions be included as income when determining TAP eligibility as well as for calculating the TAP award, consistent with private pension income.

Scholarships and Loan Forgiveness
The Budget largely continues funding for State scholarship and loan forgiveness programs at 2008-09 levels, and also:
  • Creates a new Flight 3407 Memorial Scholarship Program to benefit children, spouses and financial dependents of those who perished in the crash of Continental Airlines Flight 3407 in Clarence, New York on February 12, 2009.
  • Expands the District Attorney Loan Forgiveness Program to include legal services attorneys who work with the indigent.
  • Eliminates funding for new awards for the NYS Regents Professional Opportunity Scholarship, the NYS Regents Health Care Opportunity Scholarship and the NYS Volunteer Recruitment Service Scholarship. Current award recipients will continue to receive funding through program completion.