Establishes the New York state educating leaders for excellence in community transformation program

Title of bill

An act to amend the education law, in relation to establishing the New York state educating leaders for excellence in community transformation program

Purpose

To establish NY-ELECTS, providing loan forgiveness or scholarship awards to students who demonstrate excellence in student government, campus or community leadership activities.

Summary of provisions

Section 1 amends the education law to add a new section 669-h which provides for the New York State Educating Leaders for Excellence in Community Transformation Scholarship and Loan Forgiveness Program (NY-ELECTS).

Subdivision 1 of new section 669-h of the education law provides the purpose of this program. It is established to provide loan forgiveness or scholarship awards to students who demonstrate excellence in student government, civic organizations or through campus community leadership activities.

Subdivision 2 provides eligibility for this program. To be eligible, an applicant must have graduated from a New York State high school, be enrolled in a program of study in a New York State post secondary institution beginning in the 2014-2015 academic year or after and have either: (1) been granted an associate's degree within 2 years of entering the program; (2) been granted an associate's degree within 2 years of having entered the program and have enrolled in a 4-year institution with the appropriate amount credits to be considered a junior; or (3) been enrolled in a 4 year degree program and have successfully completed freshman and sophomore years within 2 years. An applicant must also have: (1) maintained a 3.0 GPA or above; (2) been involved in or held leadership positions in student government, civic clubs or organizations or demonstrated leadership in campus or community activities as determined by the State Education Department; and (3) agreed to live and work in New York upon graduation for at least 2 of the next 5 years. If it is a scholarship award and the student does not work in New York for 2 of the next 5 years, the student will agree to have the award converted into a student loan.

Subdivision 3 provides for guidelines for loan forgiveness awards.

Subdivision 4 provides for guidelines for scholarship awards.

Subdivision 5 provides guidelines for how awards are given. Loan forgiveness or scholarship awards can be granted for the duration of 2 years. The awards must not exceed $6,500 per year and must not exceed the total cost of student loan debt for a loan forgiveness award. An award must also not exceed the total cost of tuition at a 4 year institution within the State University of New York system after any other state or federal financial aid is applied.

Subdivision 6 allows the Higher Education Services Corporation (HESC) to promulgate rules and regulations necessary for implementation of this section.

Section 2 sets for the effective date.

Justification

NY-ELECTS identifies students who have demonstrated excellence in student government, civic clubs or organizations and campus or community leadership activities as future leaders of New York State. The program offers loan repayment and scholarship award options to students who commit to working in New York State after graduation in the hopes that their interest in their communities will carry on past their years as students. Providing loan forgiveness or scholarships will alleviate the financial burden associated with attaining a degree for outstanding student leaders and will encourage students to become civically engaged young adults who positively impact their communities.

Legislative history

New bill.

Fiscal implications

$10 million in the first year of implementation.

Effective date

Immediately.