senate Bill S1563

2013-2014 Legislative Session

Requires institutions of higher education to disclose financial aid policies

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to higher education
Jan 09, 2013 referred to higher education

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S1563 - Bill Details

Current Committee:
Law Section:
Education Law
Laws Affected:
Add Art 14-B §§698 - 698-b, §209-b, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1807
2009-2010: S2050

S1563 - Bill Texts

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Enacts the "financial aid disclosure act"; makes definitions; requires institutions of higher education to disclose financial aid policies relating to contributions to be made by such institution, any changes which may result to such financial aid and the reasons therefor; makes board of regents in charge of enforcement.

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BILL NUMBER:S1563

TITLE OF BILL: An act to amend the education law, in relation to
financial aid disclosure

PURPOSE: This legislation protects students and those responsible for
the payment of enrollment costs for that student at an institution of
higher education by requiring that institutions of higher education
disclose their policies regarding adjustments to financial aid awards.

SUMMARY OF PROVISIONS: This legislation requires that an institution
of higher education disclose to students and prospective students its
financial aid policy regarding adjustments made by the institution to
an individual's financial aid award.

JUSTIFICATION: Due to the rising costs of receiving higher education,
students often rely on financial aid awards when choosing which
college they will attend. Financial aid is often awarded to students
when several factors such as the individual's income, financial need,
outside scholarships, grants, the school's available pool of financial
aid, etc. are considered. Many times some of these factors change
during the course of the individual's attendance at the institution,
resulting in a subsequent change in the individual's financial aid
package. This legislation would require the institution to disclose
its policy concerning how changes in these factors might cause
adjustments in the individual's financial aid package. In addition the
institution would be required to disclose how those adjustments would
be implemented.

This legislation further charges the regents to establish guidelines
for an enforce the provisions of this legislation.

LEGISLATIVE HISTORY: 2011-12 S.1807; 2009-10 S,2050; S.6373 of 2000,
S.2353 of 2001-02; S.299 of 2003-2004; S.837 of 2005-2006; S.3921,
2007-2008.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This legislation shall take effect on the first day
of July next succeeding the date on which it shall have become a law,
provided, however, that the adoption, amendments and/or repeal of any
rule or regulation necessary for the timely implementation of the
provisions of this act is authorized and directed to be completed on
or before such effective date.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1563

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  LAVALLE, DeFRANCISCO, LARKIN, RANZENHOFER -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Higher Education

AN  ACT to amend the education law, in relation to financial aid disclo-
  sure

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The education law is amended by adding a new article 14-B
to read as follows:
                              ARTICLE 14-B
                      FINANCIAL AID DISCLOSURE ACT
SECTION 698. SHORT TITLE.
        698-A. DEFINITIONS.
        698-B. DISCLOSURE OF FINANCIAL AID POLICY.
  S 698. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AS THE "FINANCIAL  AID
DISCLOSURE ACT."
  S  698-A.  DEFINITIONS.  AS  USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS UNLESS OTHERWISE SPECIFIED:
  1. "INSTITUTION OF HIGHER EDUCATION" SHALL HAVE THE  SAME  MEANING  AS
DEFINED IN ARTICLE FOURTEEN-A OF THIS CHAPTER.
  2.  "STUDENT" MEANS ANY INDIVIDUAL OR GROUP OF INDIVIDUALS RESPONSIBLE
FOR PAYING THE COST OF AN ENROLLED STUDENT'S HIGHER EDUCATION, INCLUDING
BUT NOT LIMITED TO A STUDENT AND HIS OR HER FAMILY.
  3. "FINANCIAL AID AWARD" MEANS ANY SCHOLARSHIP, GRANT, LOAN  OR  OTHER
FINANCIAL  AID  COMPENSATION  AWARDED  TO  A  STUDENT BY OR ADMINISTERED
THROUGH AN INSTITUTION OF HIGHER EDUCATION WITH THE PURPOSE OF  DECREAS-
ING  THE STUDENT'S COST OF ATTENDANCE AT AN INSTITUTION OF HIGHER EDUCA-
TION.
  4. "OUTSIDE FINANCIAL AID AWARD" MEANS ANY SCHOLARSHIP,  GRANT,  AWARD
OR  OTHER TYPE OF FINANCIAL ASSISTANCE AWARDED TO A STUDENT BY OR ADMIN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06165-01-3

S. 1563                             2

ISTERED THROUGH STATE OR NATIONAL GOVERNMENT OR A PRIVATE INDIVIDUAL  OR
COMPANY  FOR  THE PURPOSE OF DECREASING THE STUDENT'S COST OF ATTENDANCE
AT AN INSTITUTION OF HIGHER EDUCATION.
  5.  "FINANCIAL AID PUBLICATION" MEANS ANY CATALOG, HAND BOOK, PROSPEC-
TUS, PAMPHLET, BULLETIN OR OTHER WRITTEN MATERIAL, SUPPLIED BY AN INSTI-
TUTION OF HIGHER EDUCATION THAT CONTAINS, EITHER  EXCLUSIVELY  OR  ALONG
WITH  OTHER MATERIAL, CONSIDERABLE INFORMATION REGARDING THE INSTITUTION
OF HIGHER EDUCATION'S FINANCIAL AID POLICIES.
  6. "FINANCIAL AID AWARD STATEMENT" MEANS THE STATEMENT PROVIDED BY THE
INSTITUTION OF HIGHER EDUCATION AND DISTRIBUTED TO  A  STUDENT  ACCEPTED
FOR  ENROLLMENT  AT SUCH INSTITUTION OF HIGHER EDUCATION THAT IDENTIFIES
THE SPECIFIC AMOUNT OF THE PROPOSED  INDIVIDUAL'S  FINANCIAL  AID  AWARD
FROM THE INSTITUTION OF HIGHER EDUCATION.
  7.  "FINANCIAL  AID AWARD AGREEMENT" MEANS THE ACTUAL FORM UTILIZED BY
THE INSTITUTION OF HIGHER EDUCATION AND THE STUDENT IN ORDER TO FINALIZE
THE FINANCIAL AID AGREEMENT.
  S 698-B. DISCLOSURE OF FINANCIAL AID POLICY. ALL FINANCIAL AID  PUBLI-
CATIONS, AWARD STATEMENTS AND AWARD AGREEMENTS SHALL DISCLOSE THE INSTI-
TUTION OF HIGHER EDUCATION'S FINANCIAL AID POLICY REGARDING:
  1. ANY CHANGES TO THE CONTRIBUTION THE INSTITUTION OF HIGHER EDUCATION
MAY  MAKE  IN  ITS AWARD DUE TO THE STUDENT'S USAGE OF OUTSIDE FINANCIAL
AID AWARDS, SCHOLARSHIPS, GRANTS, AWARDS OR  OTHER  TYPES  OF  FINANCIAL
ASSISTANCE  AWARDED TO A STUDENT BY OR ADMINISTERED THROUGH THE STATE OR
FEDERAL GOVERNMENT OR A PRIVATE INDIVIDUAL OR COMPANY FOR  THE  PURPOSES
OF DECREASING THE STUDENT'S COST OF ATTENDING COLLEGE;
  2.  ANY  ANNUAL ADJUSTMENT OF AN AWARD DUE TO CHANGES IN THE RESOURCES
OF THE STUDENT OR THOSE OF THE INSTITUTION OF HIGHER  EDUCATION  OR  FOR
ANY OTHER REASON; AND
  3.  IN  WHAT  SEQUENCE THE COMPONENTS OF A FINANCIAL AID AWARD WILL BE
INCREASED OR DECREASED WHEN A TOTAL  AWARD  IS  ADJUSTED,  AND  HOW  THE
INCREASE OR DECREASE WILL BE DISTRIBUTED BETWEEN COMPONENTS.
  S  2.  The  education  law is amended by adding a new section 209-b to
read as follows:
  S 209-B. ENFORCEMENT RELATING TO FINANCIAL AID DISCLOSURE. THE REGENTS
SHALL, BY RULE OR REGULATION, ESTABLISH GUIDELINES FOR AND CARRY OUT THE
ENFORCEMENT OF THE PROVISIONS OF ARTICLE FOURTEEN-B OF THIS CHAPTER  AND
SHALL PROVIDE NOTICE TO ALL INSTITUTIONS OF HIGHER EDUCATION OF ANY SUCH
RULE OR REGULATION ADOPTED FOR SUCH PURPOSES.
  S  3.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law provided, however, that the
adoption, amendment and/or repeal of any rule  or  regulation  necessary
for  the  timely implementation of the provisions of this act is author-
ized and directed to be completed on or before such effective date.

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