Purpose

To determine whether Plaza College complied with the Education Law and the Commissioner of Education’s Rules and Regulations when certifying students for State-funded Tuition Assistance Program (TAP) awards.  

Background

Plaza College (Plaza) is a private postsecondary educational intuition located in Queens County.  Plaza offers certificate and degree programs in business, technology, and allied health. Plaza serves approximate 800 students and tuition is about $5,000 per semester.  TAP is an entitlement program designed to provide funds for paying tuition costs to eligible students. Schools receiving TAP payments certify student eligibility. For the three academic years ended June 30, 2009, Plaza certified 4,454 TAP awards totaling $9.4 million that were paid to the school for 1,859 students. We reviewed a sample of 200 randomly selected TAP awards paid to 190 students as well as other awards to these students through Winter 2011.    

Key Findings

• We determined that Plaza College was overpaid $549,316 because school officials incorrectly certified students as eligible for TAP awards.
• Incorrect certifications include 18 students who received awards but did not meet the requirements for full-time status, nine students who did not maintain good academic standing, and four students who did not meet the requirements for accelerated TAP.  Many of these disallowances result from Plaza students enrolling in courses not required for their programs of study.  

Key Recommendations

• The Higher Education Services Corporation should recover $549,316, plus applicable interest, from Plaza College.  
• The State Education Department should ensure that school officials comply with requirements relating to full-time attendance, good academic standing, and accelerated TAP payments. 

Other Related Audits/Reports of Interest

Higher Education Services Corporation/State Education Department: Audit of the Tuition Assistance Program at SUNY ‐ Fashion Institute of Technology (2010-T-4)
Higher Education Services Corporation/State Education Department: Audit of the Tuition Assistance Program at The New School (2010-T-5)
Higher Education Services Corporation/State Education Department: Audit of the Tuition Assistance Program at SBI Campus (2011-T-1)