(b) Exceptions.

[(6) A student who is receiving Federal financial assistance under title IV of the Higher Education Act of 1965 and who attends a State-operated campus of the State University for the first time shall receive a pro rata refund of tuition and fees, provided that the student's date of withdrawal from the campus is on or before the 60 percent point in time in the enrollment period for which the student has been charged. Such refund shall be the larger of the amount refundable under this paragraph or under subdivision (a) of this section. Any amount refundable shall first be credited to outstanding loan balances and awards under Federal student assistance programs in the order specified under title IV of the Higher Education Act of 1965, as amended.]

([7]6) Notwithstanding any other provisions for refund, when a student has withdrawn through circumstances beyond [his] their control, under conditions in which the denial of refund would cause undue hardship, the chief administrative officer of the unit may, [in his] at their discretion, determine that no liability for tuition has been incurred by the student, provided the student has not completed more than one half of the term, [and] has not received or will not receive academic credit for the term[.], and that the request for refund is made within one year after the end of the term in question. Such action, including the reason therefor, shall be in writing.

(c) Military personnel withdrawing from any program or term because of changes of assignment beyond their control and upon proper certification of such change from a base education service officer or other appropriate military official shall be deemed to have incurred no liability for tuition and fees due from [him] the student, as opposed to tuition and fees paid by the Federal government [in his] on the student's behalf.

1. Statutory Authority: Education Law, Sections 355(2)(b) and 355(2)(h). Section 355(2)(b) authorizes the State University Trustees to make and amend rules and regulations for the governance of the State University and institutions therein. Section 355(2)(h) authorizes the State University Trustees to regulate the admission of students, tuition charges and other fees and charges, curricula and all other matters pertaining to the operation and administration of each state-operated institution of the University.

2. Legislative Objectives: The present measure makes revisions in the policy governing tuition refunds at state-operated campuses of the State University of New York. Tuition revenue is used in furtherance of the statutorily-defined mission of the State University of New York under Article 8 of the Education Law.

3. Needs and Benefits: The present measure is needed to clarify that students who withdraw from a campus of the State University of New York because of circumstances beyond their control must request a tuition refund on the basis of hardship within a year of the end of the term in which the student withdrew. This time limitation is consistent with the general tuition liability schedule in 8 NYCRR § 302.2(a) which also requires that requests for refunds be made within one year after the end of the term for which tuition was paid. The proposed amendment will give the campuses of the State University of New York greater certainty with regard to tuition collections and revenues which will aid in planning and accountability.

4. Costs: There will be no additional costs to students due to the amendments. The present measure does not change the amount of tuition or the general tuition liability schedule. It does ensure, however, that campuses will not have to make refunds of tuition to students who withdrew due to circumstances beyond their control more than one year after the term in which they withdrew. Accordingly, some students who may have been entitled to apply for a refund due to hardship will no longer be eligible to request such a refund.

5. Local Government Mandates: There are no local government mandates.

6. Paperwork: Tuition refund information in catalogs and other publications will have to be updated at the state-operated campuses of the State University of New York.

7. Duplication: None

8. Alternatives: While there is an alternative of keeping the tuition refund policy unchanged, it is not acceptable since it continues the inconsistency with the general tuition liability schedule and lessens the certainty campuses have over tuition revenue collections.

9. Federal Standards: The proposed measure also eliminates a section of the refund policy which has become outdated due to changes in federal law governing federal financial assistance programs.

10. Compliance Schedule: It is intended that the amendments will be effective for the Fall 2008 semester.

No regulatory flexibility analysis is submitted with this notice because the proposed rule does not impose any requirements on small businesses and local governments. This proposed rule making will not impose any adverse economic impact on small businesses and local governments or impose any reporting, record keeping or other compliance requirements on small businesses and local governments.

No rural area flexibility analysis is submitted with this notice because the proposed rule does not impose any requirements on rural areas. The rule will not impose any adverse economic impact on rural areas or impose any reporting, record-keeping, professional services or other compliance requirements on rural areas.

No job impact statement is submitted with this notice because the proposed rule does not impose any adverse economic impact on existing jobs, employment opportunities, or self-employment. This regulation governs the structure of the University-wide student governance body for The State University of New York and will not have any adverse impact on the number of jobs or employment.