1. (1) Students seeking Liberty Scholarships shall establish their eligibility by submitting an application, in accordance with section 2201.1 of this Title.

2. (2) Liberty Scholarships are available to students who satisfy the general eligibility requirements of Subpart 145-2 and Part 2201 of this Title and who, in addition:

   1. (i) have graduated from a secondary school located within New York State or have received a high school equivalency diploma from New York State;
   2. (ii) have not attained the age of 22 as of June 30th prior to the academic year for which the initial award is received and who are undergraduate students receiving aid under Chapter 16 of the Consolidated Laws of New York for the first time during academic year 1991-1992 or thereafter;
   3. (iii) have enrolled in an approved program as defined in Section 601.4 of the Education Law in a degree-granting institution located in New York state within 24 months of the date that the recipient graduated from secondary school or received a high school equivalency diploma;
   4. (iv) qualify for a scholarship pursuant to subdivision (b) of this section;
   5. (v) if enrolled in a program of full-time study, receive a tuition assistance program (TAP) award or Supplemental Tuition Assistance Program (STAP) award and a Pell grant award pursuant to section 1070-a of title 20 of the United States Code; and
   6. (vi) if enrolled in a program of part-time study, receive a Pell grant award pursuant to section 1070-a of title 20 of the United States Code.
3. (3) In the event a student, who would otherwise be entitled to a tuition assistance program (TAP) award or a supplemental tuition assistance program (STAP) award, does not receive payment of such award due to receipt of educational aid considered to duplicate the purpose of such award pursuant to section 145-2.13 of this Title, such a student shall not be considered ineligible for a Liberty Scholarship due to the provisions of subparagraph (1)(v) of this subdivision.

4. (4) In the event a student, who is entitled to a Pell grant award pursuant to section 1070-a of title 20 of the United States Code, does not receive payment of such award due to a linear reduction of such awards pursuant to paragraph (g) of section 1070-a of the United States Code, such a student shall not be considered ineligible for a Liberty Scholarship due to the provisions of subparagraphs (1)(v) or (vi) of this subdivision.

   (b) Amount.

   Liberty scholarships shall be granted by the president in amounts determined pursuant to section 610.6 of the Education Law. For purposes of said section, adjusted gross income shall mean federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986. Notwithstanding the provisions of subdivision (f) of section 2200.2 of this Title, nontuition cost of attendance shall be determined solely as prescribed by section 610.6(a)(4) of the Education Law. Any state or federal scholarship or grant, receipt of which is conditioned upon the student agreeing to perform services after graduation, shall not be considered as requiring repayment pursuant to section 610.6(a) of the Education Law, and shall therefore reduce a student's nontuition cost of attendance pursuant to such section.

   (c) Payment.

5. (1) Notwithstanding the provisions of subdivision (a) of section 2203.1 of this Title, the period of availability of Liberty Scholarships shall commence with the academic year beginning after the twenty fourth month following the date a student graduates from secondary school or receives a high school equivalency diploma, or the academic year in which a student first receives payment of a Liberty Scholarship, or the academic year beginning after the student attains the age of 22, whichever is first. Such period shall be seven years if a recipient receives payment solely for full-time study, eight years if a recipient receives any payments for part-time study, or ten years if a recipient receives payment solely for part-time study in a program normally requiring five years approved by the commissioner pursuant to section 145-2.7 of the Title. Nothing herein shall grant eligibility to students who would otherwise be ineligible due to their having attained the age of 22 as of June 30th prior to the academic year for which an initial award is requested or their having failed to enroll in an approved program as defined in section 601.4 of the Education Law in a degree-granting institution located in New York State within 24 months of the date that student graduated from secondary school or received a high school equivalency diploma.
6. (2) Prior to the receipt of the first payment of an award, the corporation may grant a leave of absence to students who are otherwise eligible but temporarily unable to avail themselves of a Liberty Scholarship at the time such scholarship is first available, due to causes established in accordance with rules of the Board of Regents. All such students shall make application for a leave of absence, in such form as the President shall establish, within 24 months from the date they shall have graduated from secondary school or received a high school equivalency diploma. The President may, however, for good cause shown, accept a late filing of such application. Such a leave of absence shall not extend the seven or eight-year period for which an award is available. In the event a student has been granted a leave of absence or has obtained an extension of the period of availability for payment of Liberty Scholarships pursuant to section 2203.1(c) of this Part, such student shall not be deemed ineligible for payment due to his or her having attained the age of 22 as of June 30th prior to the academic year for which the initial award is received, pursuant to section 610.2(c) of the Education Law or due to his or her failure to enroll in an approved program in a degree-granting institution located in New York State within 24 months of the date the student graduated from secondary school, or received a high school equivalency diploma, pursuant to section 610.2(d) of the Education Law.

(a) Eligibility.