Relates to the criteria for determining tuition assistance program awards; provides for the elimination of the distinction between dependent students and independent students for the purpose of determining tuition assistance program award amounts and eligibility.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8432
SPONSOR: Fahy
 
TITLE OF BILL:
An act to amend the education law, in relation to the criteria for
determining tuition assistance program awards
 
PURPOSE OR GENERAL IDEA OF BILL:
To create a single standard for determining tuition assistance program
eligibility and award amounts, regardless of a student's dependent or
independent tax-filing status.
 
SUMMARY OF PROVISIONS:
Section 1 amends subsection 3 of section 667 of the education law to
remove subparagraph (iii) which creates separate income thresholds and
award amounts for students who are independent tax-filers, and to make
all students subject to the award amounts outlined in subparagraph ji)
and income thresholds outlined in subparagraph (ii).
Section 2 is the effective date.
 
JUSTIFICATION:
The current eligibility criteria for New York's Tuition Assistance
Program creates a two-tiered system of support for New Yorkers pursuing
higher education. Students who are claimed as dependents are eligible
for TAP as long as their family income is less than $80,000, and they
can receive up to a maximum award of $5,665. Students who are independ-
ent tax-filers, however, receive much less support. Single independent
tax-filers with no dependents are only eligible if their income is below
$10,000, and for married independent students, the income limit is
$40,000. The maximum award amount of $3,525 for independent students is
40% lower than it is for dependent students.
This system places an unjustified burden on nontraditional students-it
assumes that single independent students can afford to finance their own
higher education if they make more than $10,000. Given the challenges
facing New York State in terms of workforce shortages and declining
college enrollment, TAP should be redesigned to encourage nontraditional
students to go to college and gain new skills and credentials. The elim-
ination of the distinction between dependent and independent students
would level the playing field, removing a barrier to access to higher
education for thousands of nontraditional students.
 
LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect 180 days after it shall have become law.
STATE OF NEW YORK
________________________________________________________________________
8432
2023-2024 Regular Sessions
IN ASSEMBLY
December 29, 2023
___________
Introduced by M. of A. FAHY -- read once and referred to the Committee
on Higher Education
AN ACT to amend the education law, in relation to the criteria for
determining tuition assistance program awards
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 667 of the education law, as added
2 by chapter 83 of the laws of 1995, paragraph a as amended by section 1
3 and subparagraph (iv) of paragraph b as amended by section 3 of part B
4 of chapter 60 of the laws of 2000, clause (A) of subparagraph (i) of
5 paragraph a as amended by section 1 and subparagraphs (i) and (ii) of
6 paragraph b as amended by section 2 of part DD of chapter 56 of the laws
7 2021, subparagraph (iii) of paragraph a as amended by section 3 of part
8 H and paragraph c as relettered by section 2 of part J of chapter 58 of
9 the laws of 2011 and paragraph b as amended by chapter 309 of the laws
10 of 1996, is amended to read as follows:
11 3. Tuition assistance program awards.
12 a. Amount. The president shall make awards to students enrolled in
13 degree-granting institutions or registered not-for-profit business
14 schools qualified for tax exemption under § 501(c)(3) of the internal
15 revenue code for federal income tax purposes in the following amounts:
16 (i) For each year of undergraduate study, assistance shall be provided
17 as computed on the basis of the amount which is the lesser of the
18 following:
19 (A) [(1) In the case of students who have not been granted an exclu-
20 sion of parental income, who have qualified as an orphan, foster child,
21 or ward of the court for the purposes of federal student financial aid
22 programs authorized by Title IV of the Higher Education Act of 1965, as
23 amended, or had a dependent for income tax purposes during the tax year
24 next preceding the academic year for which application is made, except
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13836-01-3
A. 8432 2
1 for those students who have been granted exclusion of parental income
2 who have a spouse but no other dependent:
3 (a)] Five thousand dollars, except starting in two thousand fourteen-
4 two thousand fifteen such students shall receive five thousand one
5 hundred sixty-five dollars, and except starting in two thousand twenty-
6 one--two thousand twenty-two and thereafter such students shall receive
7 five thousand six hundred sixty-five dollars, provided however that
8 nothing herein shall be construed as increasing any award made pursuant
9 to this section for an academic year prior to two thousand twenty-one--
10 two thousand twenty-two; or
11 [(b)] (B) For undergraduate students enrolled in a program of study at
12 a non-public degree-granting institution that does not offer a program
13 of study that leads to a baccalaureate degree, or at a registered not-
14 for-profit business school qualified for tax exemption under section
15 501(c)(3) of the internal revenue code for federal income tax purposes
16 that does not offer a program of study that leads to a baccalaureate
17 degree, four thousand dollars, except starting in two thousand twenty-
18 one--two thousand twenty-two and thereafter such students shall receive
19 four thousand five hundred dollars. Provided, however, that this [subi-
20 tem] clause shall not apply to students enrolled in a program of study
21 leading to a certificate or degree in nursing[.]; or
22 [(2) In the case of students receiving awards pursuant to subparagraph
23 (iii) of this paragraph and those students who have been granted exclu-
24 sion of parental income who have a spouse but no other dependent begin-
25 ning in the two thousand twenty-one--two thousand twenty-two academic
26 year and thereafter, three thousand five hundred twenty-five dollars,
27 provided that nothing herein shall be construed as increasing any award
28 made for any prior academic year; or
29 (B)] (C) (1) Ninety-five percent of the amount of tuition (exclusive
30 of educational fees) charged and, if applicable, the college fee levied
31 by the state university of New York pursuant to the April first, nine-
32 teen hundred sixty-four financing agreement with the New York state
33 dormitory authority.
34 (2) For the two thousand one--two thousand two academic year and ther-
35 eafter one hundred percent of the amount of tuition (exclusive of educa-
36 tional fees) charged and, if applicable, the college fee levied by the
37 state university of New York pursuant to the April first, nineteen
38 hundred sixty-four financing agreement with the New York state dormitory
39 authority.
40 (ii) [Except for students as noted in subparagraph (iii) of this para-
41 graph, the] The base amount as determined from subparagraph (i) of this
42 paragraph, shall be reduced in relation to income as follows:
43 Amount of income Schedule of reduction
44 of base amount
45 (A) Less than seven thousand None
46 dollars
47 (B) Seven thousand dollars or Seven per centum of excess
48 more, but less than eleven over seven thousand dollars
49 thousand dollars
50 (C) Eleven thousand dollars or Two hundred eighty dollars
51 more, but less than eighteen plus ten per centum of excess
52 thousand dollars over eleven thousand dollars
53 (D) Eighteen thousand dollars or Nine hundred eighty dollars
54 more, but not more than eighty plus twelve per centum of
A. 8432 3
1 thousand dollars excess over eighteen
2 thousand dollars
3 (iii) [(A) For students who have been granted exclusion of parental
4 income and were single with no dependent for income tax purposes during
5 the tax year next preceding the academic year for which application is
6 made, the base amount, as determined in subparagraph (i) of this para-
7 graph, shall be reduced in relation to income as follows:
8 Amount of income Schedule of reduction
9 of base amount
10 (1) Less than three thousand None
11 dollars
12 (2) Three thousand dollars or Thirty-one per centum of
13 more, but not more than ten amount in excess of three
14 thousand dollars thousand dollars
15 (B) For those students who have been granted exclusion of parental
16 income who have a spouse but no other dependent, for income tax purposes
17 during the tax year next preceding the academic year for which applica-
18 tion is made, the base amount, as determined in subparagraph (i) of this
19 paragraph, shall be reduced in relation to income as follows:
20 Amount of income Schedule of reduction
21 of base amount
22 (1) Less than seven thousand None
23 dollars
24 (2) Seven thousand dollars or Seven per centum of excess
25 more, but less than eleven over seven thousand dollars
26 thousand dollars
27 (3) Eleven thousand dollars or Two hundred eighty dollars
28 more, but less than eighteen plus ten per centum of excess
29 thousand dollars over eleven thousand dollars
30 (4) Eighteen thousand dollars or Nine hundred eighty dollars
31 more, but not more than forty plus twelve per centum of
32 thousand dollars excess over eighteen
33 thousand dollars
34 (iv)] If the amount of reduction is not a whole dollar, it shall be
35 reduced to the next lowest whole dollar. In the case of any student who
36 has received four or more payments pursuant to any and all awards
37 provided for in this subdivision, for the two thousand--two thousand one
38 academic year the base amount shall be reduced by an additional one
39 hundred fifty dollars for the two thousand one--two thousand two academ-
40 ic year and thereafter the base amount shall be reduced by an additional
41 one hundred dollars.
42 [(v)] (iv) The award shall be the net amount of the base amount deter-
43 mined pursuant to subparagraph (i) of this paragraph reduced pursuant to
44 subparagraph (ii) [or (iii)] of this paragraph but the award shall not
45 be reduced for the two thousand--two thousand one and two thousand one-
46 -two thousand two academic years below two hundred seventy-five dollars
47 if the amount of income is eighty thousand dollars or less and more than
48 seventy thousand dollars, three hundred twenty-five dollars if the
49 amount of income is seventy thousand dollars or less and more than sixty
A. 8432 4
1 thousand dollars and four hundred twenty-five dollars if the amount of
2 income is sixty thousand dollars or less.
3 [(vi)] (v) For the two thousand two--two thousand three academic year
4 and thereafter, the award shall be the net amount of the base amount
5 determined pursuant to subparagraph (i) of this paragraph reduced pursu-
6 ant to subparagraph (ii) [or (iii)] of this paragraph but the award
7 shall not be reduced below five hundred dollars.
8 b. Amount. The president shall make awards to students enrolled in two
9 year programs offered in registered private business schools except for
10 registered not-for-profit business schools qualified for tax exemption
11 under section 501(c)(3) of the internal revenue code for federal income
12 tax purposes in the following amounts:
13 (i) For each year of study, assistance shall be provided as computed
14 on the basis of the amount which is the lesser of the following:
15 (A) [(1)] one thousand three hundred dollars[, or
16 (2) for students receiving awards pursuant to subparagraph (iii) of
17 this paragraph, one thousand one hundred forty dollars]; or
18 (B) (1) Ninety-five percent of the amount of tuition (exclusive of
19 educational fees) charged.
20 (2) For the two thousand one--two thousand two academic year and ther-
21 eafter one hundred percent of the amount of tuition (exclusive of educa-
22 tional fees).
23 (ii) [Except for students as noted in subparagraph (iii) of this para-
24 graph, the] The base amount as determined in subparagraph (i) of this
25 paragraph, shall be reduced in relation to income as follows:
26 Amount of income Schedule of reduction
27 of base amount
28 (A) Less than seven thousand None
29 dollars
30 (B) Seven thousand dollars or Seven per centum of the excess
31 more, but less than eleven over seven thousand dollars
32 thousand dollars
33 (iii) [For students who have been granted exclusion of parental income
34 and were single with no dependent for income tax purposes during the tax
35 year next preceding the academic year for which application is made, the
36 base amount, as determined in subparagraph (i) of this paragraph, shall
37 be reduced in relation to income as follows:
38 Amount of income Schedule of reduction of
39 base amount
40 (A) Less than three thousand None
41 dollars
42 (B) Three thousand dollars or Thirty-one per centum of the ex-
43 more, but not more than ten cess over three thousand dollars
44 thousand dollars
45 (iv)] If the amount of reduction is not a whole dollar, it shall be
46 reduced to the next lowest whole dollar. In the case of any student who
47 has received four or more payments pursuant to any and all awards
48 provided for in this subdivision, for the two thousand--two thousand one
49 academic year the base amount shall be reduced by an additional one
50 hundred fifty dollars for the two thousand one--two thousand two academ-
A. 8432 5
1 ic year and thereafter the base amount shall be reduced by an additional
2 one hundred dollars.
3 [(v)] (iv) The award shall be the net amount of the base amount deter-
4 mined pursuant to subparagraph (i) of this paragraph reduced pursuant to
5 subparagraph (ii) [or (iii)] of this paragraph but the award shall not
6 be reduced below one hundred dollars. If the income exceeds the maximum
7 amount of income allowable under subparagraph (ii) [or (iii)] of this
8 paragraph, no award shall be made.
9 c. Restrictions. In no [even shall] event shall any award:
10 (i) be made unless the annual tuition (exclusive of educational fees)
11 and, if applicable, the college fee levied by the state university of
12 New York pursuant to the April first, nineteen hundred sixty-four
13 financing agreement with the New York state dormitory authority charged
14 for the program in which the student is enrolled total at least two
15 hundred dollars; or
16 (ii) exceed the amount by which such annual tuition (exclusive of
17 educational fees) and, if applicable, the college fee levied by the
18 state university of New York pursuant to the April first, nineteen
19 hundred sixty-four financing agreement with the New York state dormitory
20 authority exceed the total of all other state, federal, or other educa-
21 tional aid that is received or receivable by such student during the
22 school year for which such award is applicable and that, in the judgment
23 of the commissioner, would duplicate the purposes of the award; or
24 (iii) be made when income exceeds the maximum income set forth in this
25 subdivision. The commissioner shall list in his regulations all major
26 state and federal financial aid available to New York state students and
27 identify any forms of aid that are duplicative of the purposes of the
28 tuition assistance program. For the purposes of this subdivision,
29 neither United States war orphan educational benefits nor benefits under
30 the veterans' readjustment act of nineteen hundred sixty-six shall be
31 considered as federal or other educational aid.
32 § 2. This act shall take effect on the one hundred eightieth day after
33 it shall have become a law.