(a) To be considered in attendance at an educational institution, a student must either be matriculated at that educational institution, or must be registered at that educational institution under permit from another educational institution at which the student is regularly matriculated. A student who is regularly matriculated at an out-of-state school and who attends an educational institution without full transfer and matriculation shall be considered as an out-of-state student.

(b) Instruction received by a student outside New York State may be considered as instruction conducted by an educational institution in this State, within the intent of the law, only if the student is required to pay all tuition and instructional fees for such foreign or out-of-state study to the approved educational institution. To be approved, an off-campus study program must be an integral part of the curriculum of the educational institution, and tuition must be payable to and received by the educational institution in the same manner as tuition charged for any other educational institution program. If the student pays tuition or educational fees to an out-of-state institution, the student shall be considered as receiving instruction provided by that institution, notwithstanding the fact that the student may be maintaining registration in an educational institution, or that the educational institution may also be charging the student a fee for supervisory, guidance, or administrative services.

(c) Notwithstanding the provisions of this section, the corporation may establish additional standards for the approval of foreign and out-of-state study programs in order for students to qualify for awards under this Chapter. An educational institution must receive approval of its foreign or out-of-state study program from the corporation prior to certifying any student enrolled in such programs for an award.