§ 665. Payment. 1. Semester payment. The annual award to each
recipient shall be paid in separate installments on a prorated basis,
for each semester, quarter, or other term of attendance during the
academic year. For an approved two-year program of study conducted on a
clock hour basis at a registered private business school, the award
shall be paid in installments by payment term as such period is defined
by the rules of the board. The board shall take into consideration in
promulgating such rules an appropriate proration of the regular program
of study provided during an academic year and the periods at which
student progress and academic standing are evaluated. In no event shall
there be less than two, nor more than four, payment terms in an academic
year, including when such year contains a semester, quarter or other
term of accelerated study, provided however, that up to thirty percent
of payments may be paid in the following academic year but no later than
August first.

2. Payment for accelerated study. a. If the student enrolls for a term
of study which shall be beyond the regular program of study for the
academic year, an additional award shall be made for each such term of
study on the basis of an equivalent full semester, quarter, or term of
attendance during the regular academic year.

b. If the student enrolls in a term of accelerated study as described
in paragraph a of this subdivision constituting less than the equivalent
of a full semester, quarter, or term of attendance, but at least half of
the minimum of such a full-time program, as defined by the commissioner
pursuant to article thirteen, the award for such term of study shall be
one-half of the award that would otherwise have been received for
full-time study. The total period of study for which payment may be made
shall not exceed the equivalent of the maximum period authorized for
that award. In the case of awards under subdivision four of section six
hundred sixty-seven, the base award shall be the lesser of (i) one-half
of the amount of the award provided for or (ii) the amount of tuition,
and the deduction shall be at one-half the rate that would otherwise
apply to full-time study.

c. A student shall qualify for accelerated study upon the completion
of twenty-four credit hours, or its equivalent, from such institution in
the preceding two semesters, or the equivalent, prior to the term of the
application provided however, that the equivalent of three credits per
semester may be remedial courses and therefore such student shall be
eligible for an accelerated award after having earned a total of
eighteen degree credits in the preceding two semesters.

3. Institutional certification, audit and payment procedure.

a. Each institution of post-secondary education shall certify to the
corporation that each student in attendance at that institution who has
applied for a general award or academic performance award under this
article is eligible for such award in accordance with all criteria
established for such award by statute and regulation. Such certification
shall be made on forms provided by the president within such time as
required by the president and shall state that, as of the date
established by the institution in accordance with its refund policy and
the regulations of the commissioner, the student (i) has incurred a full
tuition liability for that term of attendance, (ii) was no longer
eligible for a refund upon withdrawal from study, (iii) was in full-time
attendance and (iv) satisfied all other eligibility requirements for
such award. If any student does not satisfy the necessary eligibility
requirements on that date, it shall be the responsibility of the
institution to so state, to specify whether such student was eligible
prior to that date and the amount of tuition liability incurred.

b. The comptroller shall audit institutional adherence to the
statutes, rules and regulations governing general and academic
performance awards and shall be responsible for determining the amount,
if any, owed to the state by an institution which amount represents
overpayment to the institution on a student's behalf. The comptroller
shall report cases of suspected willful and knowing institutional
violation of such statutes, rules or regulations to the district
attorney in the county in which such institution is located.

c. (i) Payments under this article shall be made by the comptroller
upon the certificate of the president to or for the benefit of the
recipient of each award. Such certificate shall be given upon vouchers
or other evidence provided by the student and by the institution of
attendance showing that the person named therein is entitled to receive
the sum specified, either directly or for his benefit. Payments may be
made directly to the school attended by the person named in such
certificate, on behalf of and for the benefit of such person. The
president may establish such methods of payment, including prepayment,
of awards to students or to schools on behalf of students as may effect
the orderly administration of the program as he may deem appropriate.
Selection of the method of payment shall be at the option of the
institution, provided, however, that the president may limit
participation in such alternative methods of payment to schools
fulfilling criteria established by the president to assure the
appropriate receipt and handling of funds.

(ii) Notwithstanding any other provision of law, and in accordance
with rules adopted by the board for these purposes, the president may
suspend, limit or terminate an institution's participation in the
general, academic and other award programs administered by the
corporation in the event it shall be determined after a hearing
conducted in accordance with the state administrative procedure act that
the institution has violated any statute, rule or regulation applicable
to such award programs. If the president shall determine that immediate
action is necessary in order to prevent an unreasonable risk of
substantial loss of funds administered by the corporation, the president
may, in accordance with rules and regulations adopted by the board for
this purpose, withhold payments and prepayments of awards upon the
initiation of the suspension, limitation and termination proceeding as
an emergency measure. Upon receipt of a report or other information
indicating a violation by an institution of any law or rule applicable
to the award programs affecting the eligibility of a substantial number
of students attending the institution and receiving awards, or
indicating the institution may terminate its program prior to the
completion of the term or semester or may fail to repay refunds due, the
president, in accordance with rules adopted by the board for this
purpose, may make payments and prepayments to the institution in
installments, in trust, or under such other terms and conditions as the
president may deem necessary to assure such payments shall be expended
consistent with statutory and regulatory requirements or shall be
available for application to the payment of refunds due.

(iii) During the initial year a school shall offer approved programs,
the president may make payments and prepayments to the school in
installments, in trust, or under such other terms and conditions as the
president may deem necessary to assure such payments shall be expended
consistent with statutory and regulatory requirements or shall be
available for application to the payment of refunds due.

d. A registered business school shall submit to the president at such
time as the rules of the board may provide a statement of such school's
financial operations and condition as of the end of the school's most
recent fiscal period prepared by an independent public auditor in
conformity with generally accepted auditing standards. Submission of
such a statement may be made a condition of further participation in the
awards program.

4. a. Student refunds. If a student receives payment as a result of
administrative error by the institution or the corporation or a false or
erroneous statement on his application or financial form, or any other
act of omission or commission on the part of the student, his spouse, or
his parents, such that the recipient would otherwise have been
considered by the president ineligible to receive such payment, the
recipient shall be required to refund the improper payment to the state.

b. Institutional refunds. The president shall require institutions to
refund payment to the state, and the student shall not be required to
refund such payments, when (i) the president has determined that
inadequate administrative procedures or practices of the institution
resulted in the incorrect certification of the eligibility of a program
or student, or (ii) the commissioner has determined that the institution
failed to conduct an approved program in accordance with the regulations
of the commissioner in effect when such program was conducted.

c. The president shall be empowered to: (i) require such payment
immediately, (ii) accept a repayment schedule or installment payments
over a reasonable period of time, (iii) reduce any future award received
by such student by the amount of the refund due, or (iv) reduce any
future payments receivable by the institution on behalf of currently
eligible students by the amount of refund due with a direction to the
institution to consider each eligible student's account to have been
credited with the amount of his award eligibility for that term of
attendance. The board of trustees shall promulgate regulations governing
procedures for the assertion, appeal and recovery of a refund claimed by
the corporation against a student or an institution.

d. If the recipient or the institution, as the case may be, without
reasonable cause, fails to promptly comply with the president's demand
for such refund, the attorney general of the state shall, upon request
of the president, bring suit to obtain such refund.

5. Payment for prior study. If the recipient of an award under section
six hundred five of this chapter, except subdivision four thereof, has
enrolled in an approved program during the academic year prior to the
normal effective date of such aid, his scholarship shall become
effective at the time he began his regular college course and he shall
be entitled to receive payment of awards under such scholarship for such
prior study.

6. Loss of good academic standing. a. If the recipient of an award
fails to maintain good academic standing as defined by the commissioner
pursuant to article thirteen of this chapter, which definition shall
include direction to institutions to establish standards of reasonable
progress toward completion of the program in which a student is
enrolled, the president shall suspend further payments under the award
until and unless the student shall establish, to the satisfaction of the
commissioner, promise of successful completion of the program for which
the award is made, and the president may revoke the award if the
recipient is not reinstated in good academic standing within a
reasonable time to be set by the commissioner.

b. Students who receive their first state award during the nineteen
hundred eighty-one--nineteen hundred eighty-two academic year through
and including the two thousand five--two thousand six academic year,
shall maintain good academic standing as defined by the commissioner,
except that such standard shall not apply to students receiving aid
under section six hundred sixty-seven-a of this part.

c. Students who receive their first state award during the two
thousand six--two thousand seven academic year and thereafter shall make
satisfactory progress toward the completion of the program's academic
requirements as provided in this paragraph. For purposes of this
subdivision, "reasonable progress toward completion of the program"
shall mean a student must complete, at a minimum, the following
requirements at the time of certification; provided that nothing shall
prevent a college from developing stricter standards to measure
reasonable progress:

(i) For students first receiving aid in two thousand seven--two
thousand eight, through and including two thousand nine--two thousand
ten, and for students enrolled in a program of remedial study as defined
in paragraph d of this subdivision who first received aid in two
thousand seven--two thousand eight, and thereafter, and enrolled in
four-year or five-year undergraduate programs whose terms are organized
in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student Must 0 3 9 21 33 45 60 75 90 105

Have Accrued at

Least This

Many Credits

With At Least 0 1.1 1.2 1.3 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(ii) For students first receiving aid in two thousand seven--two
thousand eight, through and including two thousand nine--two thousand
ten, and for students enrolled in a program of remedial study as defined
in paragraph d of this subdivision who first received aid in two
thousand seven--two thousand eight, and thereafter, and enrolled in
two-year undergraduate programs whose terms are organized in semesters:

Before Being 1 2 3 4 5 6

Certified

for This

Payment

A Student 0 3 9 18 30 45

Must Have

Accrued at

Least This

Many Credits

With at Least 0 .5 .75 1.3 2.0 2.0

This Grade

Point Average

(iii) For students first receiving aid in two thousand seven--two
thousand eight, through and including two thousand nine--two thousand
ten, and for students enrolled in a program of remedial study as defined
in paragraph d of this subdivision who first received aid in two
thousand seven--two thousand eight, and thereafter, and enrolled in
four-year or five-year undergraduate programs whose terms are organized
on a trimester basis:

Before Being 1 2 3 4 5 6 7 8

Certified

for This

Payment

A Student 0 2 4 9 17 25 33 40

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.1 1.2 1.2 1.3 2.0 2.0

This Grade

Point Average
and,

Before Being 9 10 11 12 13 14 15

Certified

for This

Payment

A Student 50 60 70 80 90 100 110

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(iv) For students first receiving aid in two thousand seven--two
thousand eight, through and including two thousand nine--two thousand
ten, and for students enrolled in a program of remedial study as defined
in paragraph d of this subdivision who first received aid in two
thousand seven--two thousand eight, and thereafter, and enrolled in
two-year undergraduate programs whose terms are organized on a trimester
basis:

Before Being 1 2 3 4 5 6 7 8 9

Certified

for This

Payment

A Student 0 2 4 9 15 21 30 37 45

Must Have

Accrued at

Least This

Many Credits

With At Least 0 .5 .5 .75 .75 1.3 2.0 2.0 2.0

This Grade

Point Average

(v) For students first receiving aid in two thousand ten--two thousand
eleven and thereafter, who do not meet the definition of a student
enrolled in a program of remedial study as defined in paragraph d of
this subdivision, and are enrolled in a four-year or five-year
undergraduate program whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student 0 6 15 27 39 51 66 81 96 111

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.5 1.8 1.8 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(vi) For students first receiving aid in two thousand ten--two
thousand eleven and thereafter, who do not meet the definition of a
student enrolled in a program of remedial study as defined in paragraph
d of this subdivision, and are enrolled in a two-year undergraduate
program whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th

Certified

for This

Payment

A Student 0 6 15 27 39 51

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.3 1.5 1.8 2.0 2.0

This Grade

Point Average

(vii) For students first receiving aid in two thousand ten--two
thousand eleven and thereafter, who do not meet the definition of a
student enrolled in a program of remedial study as defined in paragraph
d of this subdivision, and are enrolled in a four-year or five-year
undergraduate program whose terms are organized on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 4 8 14 22 30 38 46

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average

and,

Before Being 9th 10th 11th 12th 13th 14th 15th

Certified

for This

Payment

A Student 56 66 76 86 96 106 116

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(viii) For students first receiving aid in two thousand ten--two
thousand eleven and thereafter, who do not meet the definition of a
student enrolled in a program of remedial study as defined in paragraph
d of this subdivision, and are enrolled in a two-year undergraduate
program whose terms are organized on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th

Certified

for This

Payment

A Student 0 2 6 14 22 30 38 46 54

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.0 1.3 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average

d. For purposes of paragraph c of this subdivision, a student enrolled
in a program of remedial study shall mean a student: (a) whose scores on
a recognized college placement exam or nationally recognized
standardized exam indicated the need for remediation for at least two
semesters, as certified by the appropriate college official and approved
by the commissioner; or (b) who was enrolled in at least six semester
hours of non-credit remedial courses, as approved by the commissioner,
in the first term they received a tuition assistance program award in an
approved program; or (c) who is or was enrolled in the higher education
opportunity program (HEOP), the educational opportunity program (EOP),
the search for education, elevation and knowledge (SEEK) program, or the
college discovery (CD) program.

e. Notwithstanding the provisions of paragraph c of this subdivision,
for students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101, and who receive their first
state award during the two thousand ten--two thousand eleven academic
year and thereafter shall make satisfactory progress toward completion
of the program's academic requirements as provided in this paragraph.
For purposes of this subdivision, "reasonable progress toward the
completion of the program" shall mean a student must complete, at a
minimum, the following requirements at the time of certification;
provided that nothing shall prevent a college from developing stricter
standards to measure reasonable progress:

(i) For students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101, first receiving aid in two
thousand ten--two thousand eleven and thereafter, and enrolled in
four-year or five-year undergraduate programs whose terms are organized
in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Certified

for This

Payment

A Student Must 0 3 9 21 33 45 60 75 90 105

Have Accrued

at Least This

Many Credits

With At Least 0 1.5 1.8 1.8 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(ii) For students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101, first receiving aid in two
thousand ten--two thousand eleven and thereafter, and enrolled in
two-year undergraduate programs whose terms are organized in semesters:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 3 9 18 30 42 51 60

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.3 1.5 1.8 2.0 2.0 2.0 2.0

This Grade

Point Average

(iii) For students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101, first receiving aid in two
thousand ten--two thousand eleven and thereafter, and enrolled in
four-year or five-year undergraduate programs whose terms are organized
on a trimester basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 2 4 9 17 25 33 40

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.1 1.5 1.5 1.8 2.0 2.0 2.0

This Grade

Point Average
and,

Before Being 9th 10th 11th 12th 13th 14th 15th

Certified

for This

Payment

A Student 50 60 70 80 90 100 110

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0 2.0 2.0 2.0

This Grade

Point Average

(iv) For students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101, first receiving aid in two
thousand ten--two thousand eleven and thereafter, and enrolled in
two-year undergraduate programs whose terms are organized on a trimester
basis:

Before Being 1st 2nd 3rd 4th 5th 6th 7th 8th

Certified

for This

Payment

A Student 0 2 4 9 15 21 30 37

Must Have

Accrued at

Least This

Many Credits

With At Least 0 1.0 1.3 1.5 1.5 1.8 2.0 2.0

This Grade

Point Average
and,

Before Being 9th 10th 11th 12th

Certified

for This

Payment

A Student 45 50 55 60

Must Have

Accrued at

Least This

Many Credits

With At Least 2.0 2.0 2.0 2.0

This Grade

Point Average

(v) Notwithstanding any other provision of law or regulation to the
contrary, upon each certification, payment eligibility shall be
determined and measured proportionally in equivalence with full time
study for students who are disabled as defined by the Americans with
Disabilities Act of 1990, 42 USC 12101.

7. Availability of academic performance awards. Except as provided
herein, payment of academic awards may be made for a period of seven
years beginning with the academic year in which payment is first
available. In the event that a person entitled to such an award is
engaged in active service in the armed forces of the United States or
active service in the national welfare in a program such as the peace
corps, an extension of the seven year period equivalent to the period of
such active service but not in excess of three years may be granted upon
application to the corporation. A recipient who is ineligible for
payment of an award in the first academic year of eligibility due to
attendance in an ineligible out of state school shall not be thereafter
eligible for any other payments of such award. Recipients of an award
which may be reawarded who are temporarily unable to avail themselves of
the benefits of the award due to illness or other cause established by
the board of regents prior to receipt and utilization of the first
payment of such award, may apply for a temporary leave of absence
pursuant to the regulations of the corporation. The provisions of this
subdivision shall not be considered to increase or in any way alter the
number, amount or methods of payments made under an academic performance
award.