Provides student tuition relief initiative for valued education awards

In order to be eligible for the STRIVE and Enhanced STRIVE programs, a student must be a New York state resident, attend a college or university in New York state, and the family's annual net taxable income must be $150,000 or less. Additionally, the student must maintain a minimum grade point average of 2.0 after the first and second academic years and a 2.5 after the third and fourth years, if applicable, and complete a minimum of 20 hours of community service per academic year.

The STRIVE and Enhanced STRIVE aid is awarded to students after federal Pell Grants and TAP have been applied to the student. The total amount of federal aid and state aid (including TAP and STRIVE) cannot exceed the annual cost of tuition and fees.

The amount of the STRIVE aid for awarded to students will be equivalent to the cost of tuition and fees at SUNY, minus any federal and state aid that the student receives.

The amount of the Enhanced STRIVE aid for students from families with net taxable incomes of less than $125,000 is 10 percent of their family's net taxable income. The Enhanced STRIVE award will he greater than 10 percent of the family's net taxable income if the total of federal and state aid is not equivalent to the cost of tuition and fees at SUNY. For families with net taxable incomes between $125,000 and $150,000, the Enhanced STRIVE award is $25,000 less 10 percent of the family's net taxable income.

The Enhanced STRIVE program limits the student's contribution for any remaining costs of tuition and fees to no more than 10 percent of their family's net taxable income.

Students who receive STRIVE and Enhanced STRIVE awards trust remain in New York State for at least five years, or the awards will be converted to loans. Awards will not be converted to a loan while students are enrolled in full time graduate programs not located in New York State or serving in active duty in the military.

The bill amends section 664 of the education law to allow students to receive Tuition Assistance Program awards, STRIVE and Enhanced STRIVE awards, and any scholarships for academic achievement awarded by the State simultaneously.

Section five amends a grammatical error in section 667 of the education law.

Section six allows for funds in the Higher Education Endowment to be used for the STRIVE and Enhanced STRIVE programs.

Justification

Today's New York state college students are graduating with an average of $18,000 in student loan debt. As college costs continue to rise, more and more students and families are being forced to assume huge amounts of debt to cover tuition expenses. When students graduate with increasing amounts of college debt, they are less able to afford to buy a home in New York state and contribute to the State's local economies. The STRIVE program is designed to help New York state families with incomes of less than $150,000 meet the rising costs of a college education, lower the amount of debt students incur, and encourage students to live in New York state.

Legislative history

2007-08, S.6889-B.

Fiscal implications

The fiscal impact for SFY 2009-10 is estimated to be $195 million, and when fully effective in SFY 2012-13 the fiscal impact will be $650 million.

Effective date

This act shall take effect July 1, 2010 for students entering the first academic year of study at a higher education institution, and July 1, 2011 for students entering the first and second academic years of study at a higher education institution, and July 1, 2012 for students entering the first, second, and third academic years of study at a higher education institution, and July 1, 2013 for all students.