A recipient must, at the time of receipt of his or her first payment under this Part, (1) be a citizen of the United States, or (2) be an alien lawfully admitted for permanent residence in the United States, or (3) be an individual of a class of refugees paroled by the Attorney General of the United States under his parole authority pertaining to the admission of aliens to the United States.

A recipient must, at the time of receipt of his or her first payment under this Part be a resident of the State of New York.

Except as provided herein, any recipient who is in default in the repayment of any student loan, the payment of which has been guaranteed by the corporation pursuant to the provisions of Education Law, section 680, or any recipient who has failed to comply with the terms of any service condition imposed by an academic performance award or any recipient who has failed to repay an award as required by Education Law, section 665(4)(a) shall not be eligible for payment of an award under this section, so long as such default status or failure to comply or repay continues. A recipient, however, shall be eligible to receive payment of the award if such recipient fulfills the conditions set forth in Education Law, section 661(6)(c) and Part 2008 of this Title or agrees to assign the award payments to the corporation toward payment of the amount due on the defaulted loan or other outstanding obligation.