N.Y. Comp. Codes R. & Regs. tit. 8, § 2008.1 – Eligibility for further financial aid after default.

(a) Any person in default on a previous loan made or guaranteed by the corporation, or who has failed upon demand to make a refund of an overpayment of a State award, at the sole discretion of the president, may be granted further loans or awards, or both, if the following conditions are met:
1. (1) the applicant has demonstrated a present inability to pay the entire obligation in full, including by utilization of award offset procedures or otherwise;
2. (2) the applicant has entered into a satisfactory repayment arrangement with the corporation and has made payments thereunder for a period of at least six months prior to the date the application is filed. For purposes hereof, satisfactory repayment arrangements are those in which the applicant and the corporation have agreed to a specific monthly payment amount. Payments will be deemed to have been satisfactorily made for six months if each monthly payment has been voluntarily made on a timely basis; and
3. (3) in the case of a defaulted loan only, the applicant has demonstrated to the satisfaction of the president that, at the time of the default, he or she is eligible, but failed to apply for, a deferment or forbearance.
(b) In granting any application for new aid hereunder, or in awarding and disbursing such aid, the president may impose any or all of the following terms and conditions, as well as any other terms and conditions reasonably related to protecting the financial interest of the corporation and the State of New York:
1. (1) require payment to continue, in whole or in part, during the period the applicant is in school or in any grace period or period during which the applicant may be entitled to a deferment on any new loan;
2. (2) require a confession of judgment;
3. (3) require that the applicant provide financial reports in such form and at such times as the president shall require, and to make available his or her financial records, produce copies of tax returns, and provide an authorization in writing for the corporation to obtain copies of such returns;
4. (4) provide for disbursement of loans in installments and limit the amount of loans to particular educational expenses; and/or
5. (5) require the applicant to agree in writing to the terms and conditions imposed.
(c) Application for such additional financial aid hereunder shall be in writing and upon such form and in such manner as the president may from time to time require.
(d) The determination of the president shall be deemed final agency action; however, nothing herein shall be construed as prohibiting a person from reapplying for relief hereunder for subsequent academic periods if an application is denied.
(e) In the event a recipient for further financial aid shall have filed a false application or shall breach any term or condition of the award, the president may revoke the award and prohibit any remaining installment payments to be made thereunder, require the resumption of payments on the prior obligation, and take such further action as may be permitted under law or regulation to require the immediate payment of the new loan or award effected under the provisions of this Part.