This regulation implements a statutory student financial aid program providing for awards to be made to students who receive their undergraduate or graduate degree from a college or university located in New York State. Emergency adoption is necessary to avoid an adverse impact on the processing of awards to eligible applicants and award payments to eligible recipients. The statute provides for student loan relief to such college graduates who continue to live in New York State upon graduation, agree to work as child welfare workers at not-for-profit agencies in New York State licensed by the New York State Office of Children and Family Services, on a full-time basis, for five years, and apply for this program within two years after graduating from college. Eligible applicants will receive up to $10,000 per year for five years in loan forgiveness payments. Since individuals must apply within two years of college graduation, it is critical that the terms of this program as provided in the regulation be effective immediately in order for HESC to process applications so that timely payments can be made on behalf of program recipients. To accomplish this mandate, the statute further provides for HESC to promulgate emergency regulations to implement the program. For these reasons, compliance with section 202(1) of the State Administrative Procedure Act would be contrary to the public interest.

(1) “Award” shall mean a New York State Child Welfare Worker Loan Forgiveness Incentive Program award pursuant to section 679-i of the New York State Education Law.

(2) “Child welfare worker” shall mean an individual who provides direct-care services to children and families at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services.

(3) “Corporation” shall mean the New York State Higher Education Services Corporation.

(4) “Direct care services” shall mean the provision of programs and services to children and families that requires some degree of interaction between the child/family and the child welfare worker. Such direct care services include, but are not limited to, assessments, home visits, or direct implementation of care plans.

(5) “Economic need” shall mean applicants whose household adjusted gross income is at or below 250 percent of the federal poverty level for the most recent calendar year available.

(6) “Full time” shall mean employment as a child welfare worker providing direct-care services to children and families at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services for an average of 35 hours per week, or more, continuously over a calendar year, except for an allowable interruption of employment.

(7) “Interruption of employment” shall mean an allowable temporary leave for a definitive length of time due to circumstances approved by the corporation, including, but not limited to, parental leave, medical leave, death of a family member, or military duty that exceeds forty-two calendar days, excluding legal holidays, regardless of whether such absence or leave is paid or unpaid.

(8) “Household adjusted gross income” shall mean the federal Adjusted Gross Income (AGI) for individuals or married couples filing jointly, or the aggregate AGI of married couples filing separately, reduced by a cost of living allowance, which shall be equal to the applicant’s eligible New York State standard deductions plus their eligible New York State dependent exemptions for personal income tax purposes.

(9) “Outstanding student loan debt” shall mean the total cumulative student loan balance required to be paid by the applicant at the time of selection for an award under this program, including the outstanding principal and any accrued interest covering the cost of attendance to obtain an undergraduate or graduate degree from a college or university located in New York State. Such outstanding student loan debt may be reduced as provided in subparagraph (iii) of paragraph (4) of subdivision (c) of this section.

(10) “Program” shall mean the New York State Child Welfare Worker Loan Forgiveness Incentive Program.

(1) satisfy the requirements provided in section 679-i(2) of the Education Law;

(2) be in a non-default status on a student loan made under any statutory New York State or federal education loan program or repayment of any award made pursuant to Article 14 of the Education Law; and

(3) be in compliance with the terms of any service condition imposed by an award made pursuant to article 14 of the Education Law.

(1) An applicant for an award shall:

(i) apply for program eligibility on forms and in a manner prescribed by the corporation. The corporation may require applicants to provide additional documentation evidencing eligibility; and

(ii) electronically transmit an application for program eligibility to the corporation on or before the date prescribed by the corporation.

(2) A recipient of an award shall:

(i) execute a service contract prescribed by the corporation;

(ii) confirm each year, for five years, employment as a child welfare worker providing direct-care services to children and families at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services by submitting a certification from his or her employer attesting to the recipient’s employment setting, job title, job duties, employment period, full time employment status, and any other information necessary for the corporation to determine eligibility. Said submissions shall be on forms or in a manner prescribed by the corporation;

(iii) apply for payment annually on forms prescribed by the corporation; and

(iv) receive no more than ten thousand dollars per year for not more than five years in duration, and not to exceed the total amount of such recipient’s outstanding student loan debt as defined in paragraph (9) of subdivision (a) of this section.

(3) If a recipient has been employed as a child welfare worker at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services for less than one year upon his or her initial selection for an award, the final award payment shall be prorated based on the ratio of months in the year that the recipient worked in such capacity when initially selected and disbursed in two proportionate installments. The first disbursement shall be made as part of the regular annual payment and the second disbursement shall be made at the time such recipient completes his or her full year of employment as a child welfare worker at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services.

(4) The outstanding student loan debt shall:

(i) include New York State student loans, federal government student loans, and private student loans for the purpose of financing undergraduate or graduate studies made by commercial entities subject to governmental examination.

(ii) exclude federal parent PLUS loans; loans cancelled under any program; private loans given by family or personal acquaintances; student loan debt paid by credit card; loans paid in full, or in part, before, on, or after the first successful application for program eligibility under this program; loans for which documentation is not available; loans without a promissory note; or any other loan debt that cannot be verified by the corporation.

(iii) be reduced by any reductions to student loan debt that an applicant has received or shall receive including voluntary payments made which reduces the balance owed.

(1) For the first year of this program’s operation, awards shall be made in the following order of priority:

(i) applicants who are completing the second, third, fourth or fifth year of full-time employment as a child welfare worker at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services;

(ii) applicants who can demonstrate economic need.

(2) For the second year of this program’s operation and thereafter, awards shall be made in the following order of priority:

(i) applicants who received payment of an award in a prior year and remain eligible;

(ii) applicants who are completing the second, third, fourth or fifth year of full-time employment as a child welfare worker at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services;

(iii) applicants who can demonstrate economic need but did not receive an award during the first year of this program’s operation.

(3) All awards are contingent upon annual appropriations.

(1) a failure to apply for payment or reimbursement;

(2) a failure to respond to requests to contact or communication with the corporation;

(3) a failure to respond to a request for information; or

(4) any other information known to the corporation reasonably evidencing an indication of failure to comply with program requirements by a program participant.

Statutory authority:

The New York State Higher Education Services Corporation’s (“HESC”) statutory authority to promulgate regulations and administer the New York State Child Welfare Worker Loan Forgiveness Incentive Program (“Program”) is codified within Article 14 of the Education Law. In particular, Section 3 of Part MMM of Chapter 59 of the Laws of 2017 created the Program by adding a new section 679-i to the Education Law. Pursuant to subdivision 5 of section 679-i of the Education Law, HESC is required to promulgate rules and regulations for the administration of this Program.

Pursuant to Education Law § 652(2), HESC was established for the purpose of improving the post-secondary educational opportunities of eligible students through the centralized administration of New York State financial aid programs and coordinating the State’s administrative effort in student financial aid programs with those of other levels of government.

In addition, Education Law § 653(9) empowers HESC’s Board of Trustees to perform such other acts as may be necessary or appropriate to carry out the objects and purposes of the corporation including the promulgation of rules and regulations.

HESC’s President is authorized, under Education Law § 655(4), to propose rules and regulations, subject to approval by the Board of Trustees, governing, among other things, the application for and the granting and administration of student aid and loan programs; the repayment of loans or the guarantee of loans made by HESC; and administrative functions in support of State student aid programs. Also, consistent with Education Law § 655(9), HESC’s President is authorized to receive assistance from any Division, Department or Agency of the State in order to properly carry out his or her powers, duties and functions. Finally, Education Law § 655(12) provides HESC’s President with the authority to perform such other acts as may be necessary or appropriate to carry out effectively the general objects and purposes of HESC.

Legislative objectives:

This Program was created to enhance the ability of child welfare workers in New York State to meet the needs of the children and youth in care as well as provide them with the skills needed to operate in today’s changing health landscape by alleviating the student loan debt burden for recent college graduates pursuing careers in child welfare.

Needs and benefits:

New York State law provides various loan forgiveness programs to encourage individuals to pursue careers in a needed area or profession. Providing student loan relief to college graduates pursuing careers in child welfare serves to help address the growing demand in this sector for a skilled workforce.

The landscape of the child welfare system in New York State has changed dramatically. According to the Council of Family and Child Caring Agencies (COFCCA), the closure of state-operated mental health and juvenile justice facilities and recent focus on community-based and prevention services have helped to preserve thousands of families and has kept hundreds of children and youth out of the State’s care. However, the result has been that children and youth who are residentially placed or who require services from a not-for-profit child welfare agency have higher and more complex needs. Additionally, these children and their families living in poverty desperately need access to programs and services. With child welfare agencies now providing services to an extremely vulnerable population of children and families, there is a greater need for a higher skilled workforce than in the past.

COFCCA reports that jobs in the child welfare sector are among the lowest paying jobs across the State. Due to the low wages, this sector has a difficult time recruiting and retaining employees. The current annual turnover rate for this sector is approximately 33 percent. While there are career track opportunities and potential for advancement, it is extremely difficult for entry level staff and/or direct care workers to enhance their education while working. Child welfare agencies need qualified individuals who have the education, training, and experience to provide the care needed.

Costs:

a. There are no application fees, processing fees, or other costs to the applicants of this Program.

b. The estimated cost to the agency for the implementation of, or continuing compliance with this rule is $489,975.

c. It is anticipated that there will be no costs to local governments for the implementation of, or continuing compliance with, this rule.

d. Costs to the State shall not exceed available New York State budget appropriations for the Program. The 2017-18 State Budget contained an appropriation for this Program in the sum of $50,000.

Local government mandates:

No program, service, duty or responsibility will be imposed by this rule upon any county, city, town, village, school district, fire district or other special district.

Paperwork:

This proposal will require applicants to file an electronic web application to determine eligibility and an electronic application for each year they wish to receive an award payment for up to five years.

Duplication:

No relevant rules or other relevant requirements duplicating, overlapping, or conflicting with this rule were identified.

Alternatives:

Given the statutory language as set forth in section 679-i(5) of the Education Law, a “no action” alternative was not an option.

Federal standards:

This proposal does not exceed any minimum standards of the Federal government.

Compliance schedule:

The agency will be able to comply with the regulation immediately upon its adoption.

This statement is being submitted pursuant to subdivision (3) of section 202-b of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s (HESC) Notice of Emergency Adoption and Proposed Rule Making seeking to add a new section 2201.22 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

It is apparent from the nature and purpose of this rule that it will not have a negative impact on small businesses or local governments. HESC finds that this rule will not impose any compliance requirement or adverse economic impact on small businesses or local governments. Rather, it has potential positive impacts by providing loan forgiveness benefits to recent New York State college graduates who agree to work as child welfare workers at not-for-profit agencies in New York State licensed by the New York State Office of Children and Family Services, on a full-time basis, for five years. Providing such financial assistance will encourage individuals to pursue careers in child welfare throughout New York State, which will provide an economic benefit to the State’s small businesses and local governments as well.

This statement is being submitted pursuant to subdivision (4) of section 202-bb of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s Notice of Emergency Adoption and Proposed Rule Making seeking to add new section 2201.22 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

HESC finds that this rule will not impose any reporting, record keeping or other compliance requirements on public or private entities in rural areas. Rather, it has potential positive impacts by providing loan forgiveness benefits to recent New York State college graduates who agree to work as child welfare workers at not-for-profit agencies in New York State licensed by the New York State Office of Children and Family Services, on a full-time basis, for five years. Providing such financial assistance will encourage individuals to pursue careers in child welfare benefitting rural communities throughout New York State.

This statement is being submitted pursuant to subdivision (2) of section 201-a of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s Notice of Emergency Adoption and Proposed Rule Making seeking to add a new section 2201.22 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

It is apparent from the nature and purpose of this rule that it will not have a negative impact on jobs or employment opportunities. Rather, it has potential positive impacts by providing loan forgiveness benefits to recent New York State college graduates who agree to work as child welfare workers at not-for-profit agencies in New York State licensed by the New York State Office of Children and Family Services, on a full-time basis, for five years. Providing these benefits will encourage individuals to pursue careers in child welfare throughout New York State.