Meeting of the Board of Regents | September 2007

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:	Full Board
FROM:	Johanna Duncan-Poitier
SUBJECT:	Proposed Amendment to the Regulations of the Commissioner of Education Relating to Student Eligibility for the Higher Education Opportunity Program
DATE:	August 29, 2007
STRATEGIC GOAL:	Goal 4 and 5
AUTHORIZATION(S):

SUMMARY

 

 

Issue for Decision (Consent Agenda)

 

              Should the Board of Regents amend Section 27-1.1 of the Rules of the Board of Regents relating to student eligibility for the Higher Education Opportunity Program?

 

Reason(s) for Consideration

              Review of Policy.

 

Proposed Handling

 

The proposed amendment will come before the Board of Regents in September for adoption as a permanent rule.

 

Procedural History

 

The proposed amendment was discussed at the meeting of the Higher Education and Professional Practice Committee in June 2007.  A Notice of Proposed Rule Making was published in the State Register on June 27, 2007.  Supporting materials for the proposed amendment are available upon request from the Secretary to the Board of Regents. 

 

Background Information

 

              The proposed rule is needed in order to update the current criteria for determining student economic eligibility for the Higher Education Opportunity Program by: (1) taking into account inflationary conditions and changes in annual income; (2) accounting for New York State and local taxes and regional maintenance costs; (3) assuring consistency across the State-supported postsecondary opportunity programs; (4) maintaining the continuing linkage of these eligibility criteria with federally approved methods of needs analysis; and (5) recognizing the costs associated with a household that is solely supported by one member who is employed by two or more employers. 

 

              The amendment will update the existing definition of "economically disadvantaged," which was promulgated in 2002 and has become outdated because of inflationary factors.  It will prevent a reduction in the pool of eligible students due to inflation and other factors.  The amendment will ensure that the appropriate pool of students will be eligible for the program.

 

              The proposed changes in the economic income guidelines for 2008-2009, 2009-2010, and on or after July 2010 were developed with the goal of determining for each household size, with the exception of the household of one, the income under which the expected family contribution would calculate to be zero.  The income level for the household of one was determined by calculating 150% of an income at poverty level as established by U.S. Department of Health and Human Services poverty guidelines.  The guidelines are based on poverty measures issued by the U.S. Census Bureau.  The development model assumes an inflation rate of three percent for each of the three years, a New York specific allowance for State and local taxes, standard federal deductions and exemptions and a neutral effect for assets.  It also makes an income adjustment for a household supported solely by one member who works for two or more employers at the same time, to account for additional costs associated with such employment.

 

              The proposed amendment is also needed to update the definition of an independent student, to be more consistent with the federal definition of independent student for purposes of the needs analysis for federal student financial aid programs. 

 

              The proposed amendment was developed by a statewide task force of representatives from the City University of New York, the State University of New York, independent colleges and universities and the State Education Department’s Office of Higher Education.  This task force met and reached a consensus on the proposed amendment. 

 

Recommendation

 

              I recommend that the Board of Regents take the following action:

 

VOTED: That Subdivision (b) of section 27-1.1 of the Rules of the Board of Regents be amended, as submitted, effective October 4, 2007.

 

 

Timetable for Implementation

 

              The proposed amendment will become effective on October 4, 2007.

             

Attachments

 

 

AMENDMENT TO THE RULES OF THE BOARD OF REGENTS

Pursuant to sections 207 and 6451 of the Education Law.

Subdivision (b) of section 27-1.1 of the Rules of the Board of Regents is amended, effective October 4, 2007, as follows:

              (b) Economically disadvantaged.  (1) A student is economically disadvantaged if he or she is a member of a household supported by one member thereof with a total annual income which does not exceed the applicable amount set forth in the following tables; or of a household supported solely by one member thereof who is employed by two or more employers at the same time, if the total annual income of such household does not exceed the applicable amount set forth in the following tables [by more than $1,800] for the number of members in the household plus the second job allowance; or of a household supported by more than one worker thereof, or a household in which one worker is the sole support of a one-parent family, if the total annual income of such household does not exceed the applicable amount set forth in the following tables [by more than $4,800] for the number of members in the household plus the employment allowance.  For the purposes of this subdivision, the number of members of a household shall be determined by ascertaining the number of individuals living in the student's residence who are economically dependent on the income, as defined in subdivision (c) of this section, supporting the student.

Table I

For students first entering college between [July 1, 2003 and June 30, 2004] July 1, 2005 and June 30, 2008

Number of members in                         Total annual income in

household (including                 preceding calendar year

head of household)

                            1                                                      [$13,300]                        $14,100

                            2                                                      [18,400]                         19,600

                            3                                                      [21,100]                         22,350

                            4                                                      [26,200]                         27,800

                            5                                                      [31,000]                         32,850

                            6                                                      [36,350]                         38,550

                            7 or more                                     [40,450]                         [40,450] 42,900 plus $[4,100]

                                                                                                                              4,350 for each

family member in excess of 7

                            Second Job Allowance                                               $1,800

                            Employment Allowance                                              $4,800

 Table II

For students first entering college between [July 1, 2004 and June 30, 2005] July 1, 2008 and June 30, 2009

Number of members in                         Total annual income in

household (including                 preceding calendar year

head of household)

                            1                                                      [$13,700]                        $15,140

                            2                                                      [18,950]                         20,390

                            3                                                      [21,700]                         25,650

                            4                                                      [26,950]                         30,900

                            5                                                      [31,900]                         36,150

                            6                                                      [37,450]                         41,410

                            7 or more                                     [41,650]                         [41,650] 46,660 plus $[4,200]

                                                                                                                              5,250 for each

family member in excess of 7

                            Second Job Allowance                                               $2,630

                            Employment Allowance                                              $5,250

 

Table III

For students first entering college [on or after July 1, 2005] between July 1, 2009 and June 30, 2010

Number of members in                         Total annual income in

household (including                 preceding calendar year

head of household)

                            1                                                      [$14,100]                      $15,590

                            2                                                      [19,600]                         21,000

                            3                                                      [22,350]                         26,420

                            4                                                      [27,800]                         31,830

                            5                                                      [32,850]                         37,240

                            6                                                      [38,550]                         42,650

                            7 or more                                     [42,900]                         [42,900] 48,060 plus $[4,350]

                             5,410 for each

 family member in excess of 7

                            Second Job Allowance                                               $2,710

                            Employment Allowance                                              $5,410

 

Table IV

For students first entering college on or after July 1, 2010

Number of members in                         Total annual income in

household(including                 preceding calendar year

head
of household)

                            1                                                      $16,060

                            2                                                      21,630

                            3                                                      27,210

                            4                                                      32,790

                            5                                                      38,360

                            6                                                      43,960

                            7 or more                                     49,500 plus $5,570 for each

family
member in excess of 7

                            Second Job Allowance     2,790

                            Employment Allowance    5,570

The income figures in Tables I, II [and], III and IV of this paragraph apply to the student applicant's income only when he or she is an independent student.  For purposes of this Part, an independent student means a student who:

(i) is 24 years of age or older by December 31st  [of the academic year for which aid is requested] of the program year; or

(ii)  [meets the criteria set forth in one of the following clauses:

(a)]  is an orphan or ward of the court (A student is considered independent if he or she is a ward of the court or was a ward of the court until the individual reached the age of eighteen); or

              [(b)] (iii)  is a veteran of the Armed Forces of the United States who has engaged in the active duty in the United States Army, Navy, Air Force, Marines, or Coast Guard and was released under a condition other than dishonorable; or

              [(c)] (iv)  is a married individual; or

              [(d)] (v)  has legal dependents other than a spouse; or 

              [(e)] (vi) is a student for whom an opportunity program and financial aid administrator has made a satisfactory documented determination of independence by reason of other extraordinary circumstances;

(2) . . .

(3) . . .

(4) . . .

(5) . . .