N.Y. Comp. Codes R. & Regs. tit. 8, § 2410.3 – Institutional eligibility and responsibility.

(a) Subject to paragraph b of subdivision 4 of section 661 of the Education Law, an educational institution shall:
1. (1) be exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code;
2. (2) have its headquarters and main campus located within the State;
3. (3) be eligible for funds under title IV of the Higher Education Act of 1965, as amended;
4. (4) be accredited by an accrediting agency as defined in section 2400.2 of this Title;
5. (5) certify that its students are eligible to receive Federal pell grants in accordance with section 1,070 of title 20 of the United States code, et. seq. and the regulations promulgated thereunder;
6. (6) provide a postsecondary program of instruction in an approved program lasting at least three years, in which the student is enrolled; and
7. (7) enter into a participation agreement with the corporation consistent with subdivision (f) of this section.
(b) Educational institutions shall be responsible for the accuracy of information provided the corporation concerning an applicant's fulfillment of the following eligibility criteria:
1. (1) that the applicant is enrolled for that term as a full-time student pursuant to section 2407.1 and as defined in sections 2400.2 and 2408.6 of this Title;
2. (2) that the applicant is matriculated at that institution;
3. (3) that the applicant is enrolled in a program of study for which the award may be made, and that such program is conducted in accordance with its approval or registration as determined by, or on behalf of, the corporation; and
4. (4) that the applicant has satisfied the standards established pursuant to section 2408.7 of this Title, or has been granted a waiver of such standards pursuant to section 2408.7(d) of this Title.
(c) Institutions shall also be responsible for the accuracy of information reported to the corporation concerning the term structure of the institution, tuition and educational fees charged the applicant and reported to the corporation, and for reporting to the corporation the failure of an applicant, at the time of application or at any time thereafter, to satisfy any other eligibility requirement for an award, where the institution has knowledge of such circumstances.
(d) Institutions shall certify, on forms and in the manner prescribed by the president, each recipient's eligibility to receive an award made pursuant to this Subchapter. Such certification shall be made as of the date that the student incurred or would have incurred a full tuition liability for that term of attendance, and shall state that the applicant fulfilled all criteria of subdivision (a) of this section and shall state the tuition liability actually incurred. Institutional certification of student eligibility for any term for which payment is requested must be completed and returned to the corporation no later than 30 days after the end of such payment term as assigned to an institution by the corporation for the purposes of payment, or 60 days after receipt of the payment roster on which a student appears, whichever is later. Institutional changes to student certification must be made on forms provided by the corporation no later than 90 days after the end of the term for which a student is being certified, or 90 days after the date of the remittance advice on which the student whose record is to be changed appears, whichever is later. The date of issuance of any document from the corporation and the postmark on any document submitted by an educational institution shall be determinative.
(e) Whenever the corporation gives written notification to a student of the amount of an award of student financial aid such student will receive under the provisions of this Subchapter, such written notification shall be accepted by the educational institution as a deferment against tuition charges pending the issuance of such moneys by the corporation, unless:
1. (1) the educational institution has more current or accurate information on file indicating the student will receive a different amount from that calculated by the corporation, in which event the educational institution's calculated amount shall be accepted as a deferment against tuition charges pending the issuance of such moneys by the corporation; or
2. (2) the educational institution is waiting for the student to complete correction of financial aid forms or supply information for income verification, in which case, deferment shall not be required until such time as the student has completed his or her responsibilities.
  (f)
3. (1) No educational institution providing approved programs as defined in this Chapter may participate in the award program described in this Chapter unless it has entered into written awards participation agreement with the corporation. The effective period of the agreement shall be fixed by the president; however, a new agreement must be executed upon a change of ownership of the educational institution, which shall mean a transfer of the majority of shares in the case of a corporation. This agreement shall set forth the educational institution's obligation to comply with all laws and regulations governing the award program and, in addition, shall set forth such educational institution's obligation to:
  1. (i) make payment of refunds created due to receipt of prepayment pursuant to section 2411.3(b) of this Title upon the request of or within a time period established by the president;
  2. (ii) comply with the procedures set forth in the programs policy and procedures manual issued periodically by the corporation and revisions thereto;
  3. (iii) credit each student's account with financial aid award payments received within seven days from the date the applicant incurred a full tuition liability for that semester or term of attendance, or within seven days from the receipt, by the educational institution of payments or prepayments associated with such student's award, whichever is later;
  4. (iv) not certify any award recipient in the event the educational institution has information indicating that the award recipient is not eligible for an award. In the event such educational institution is uncertain with regard to the eligibility of an award recipient, the educational institution shall report the information to the corporation, and the corporation will work with the educational institution to determine the recipient's eligibility;
  5. (v) provide information, upon the request of the president, regarding the ownership of the educational institution; and
  6. (vi) provide the corporation notice of any disciplinary action brought against it by any state or Federal agency.
4. (2) Failure on the part of the educational institution to comply with the terms of the participation agreement established pursuant to this subdivision shall be grounds for the suspension, limitation or termination of such school's participation in the award program administered by the corporation, pursuant to Part 2404 of this Title; provided, however, that no such action shall be taken except after a hearing conducted in accordance with the State Administrative Procedure Act.
  (g)
5. (1) Each educational institution participating in the award program administered by the corporation shall report to the corporation, in such form and at such times as prescribed by the president:
  1. (i) the records which it maintains demonstrating the eligibility of award recipients attending such educational institution;
  2. (ii) the manner in which it maintains such records;
  3. (iii) the location of such records; and
  4. (iv) the length of time the educational institution intends to maintain such records.
6. (2) In the event there is a substantial change in any of the information provided to the corporation pursuant to paragraph (1) of this subdivision, subsequent to the last report but prior to the submission of the next report, the educational institution shall promptly report such change to the corporation if the president shall so prescribe.
7. (3) The president may suspend, limit or terminate an educational institution's participation in the award program administered by the corporation in the event it shall be determined, after a hearing conducted in accordance with the State Administrative Procedure Act and pursuant to the provisions set forth in Part 2404 of this Title, that the institution has failed or refused to submit such report after written demand therefore or shall have willfully submitted a materially false report.