content: UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
  
                                 FORM 8-K
  
                              CURRENT REPORT
     pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
  Date of report (Date of earliest event reported):      June 3, 2003
                                                         ------------
  
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  ------------------------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)
  
  
              Delaware                                 13-2846796
  -----------------------------------     --------------------------------------
    (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification No.)
  
        P.O. Box 382, 4 Hardscrabble Heights, Brewster, New York  10509
  ------------------------------------------------------------------------------
                 (Address of principal executive offices)
  
                                (845) 277-8100
  ------------------------------------------------------------------------------
                        (Issuer's telephone number)
  
  
  ------------------------------------------------------------------------------
            (Former name, former address and former fiscal year,
                        if changed since last report)
  
  
  <PAGE>
  
  
                INFORMATION TO BE INCLUDED IN THE REPORT
  
  ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
  
          Effective June 3, 2003, the Company completed the
  previously announced strategic divestiture of its post-secondary
  proprietary school, Mildred Elley, with locations in the Albany,
  NY area and Pittsfield, Massachusetts.  TASA has been reporting
  the Mildred Elley Schools as discontinued operations since TASA
  made the decision in 2002 to sell the schools.
  
          TASA sold substantially all of the assets and
  liabilities of the post-secondary school to the Empire Education
  Corporation ("Empire"), owned by Faith Takes.  Ms. Takes was
  the president and former owner of the Mildred Elley Schools. The
  post-secondary school assets were held by TASA's subsidiary,
  Mildred Elley Schools, Inc. ("MESI").  At the closing, MESI
  received $50,000 in cash proceeds from the sale.  In addition,
  MESI will receive 25% of the proceeds from the sale or
  refinancing of the schools by Empire to a third party, which must
  take place within seven years from the date of the closing.
  
          In addition, Empire assumed (a) all liabilities of
  MESI, including notes issued by and all obligations incurred by
  MESI to the former shareholders of Mildred Elley in connection
  with the original acquisition of the Mildred Elley Schools in
  1998, (b) all accounts payable of MESI in the ordinary course of
  business, (c) all liabilities of MESI directly relating to the
  operations of MESI, known to or arising from Ms. Takes' actions
  in operating the Mildred Elley Schools, (d) all accrued and
  unpaid employment wages and benefits, (e) the $75,000 judgment
  entered against MESI in favor of Ms. Takes in connection with a
  litigation commenced by Ms. Takes against MESI, and (f) all
  liabilities that originate or result from the recertification of
  the change in school ownership and other currently pending
  regulatory proceedings.
  
          Based upon the operations of the Mildred Elley Schools
  for the quarter ended April 30, 2003, TASA will take a $633,860
  non-cash charge for discontinued operations in connection with
  the closing.
  
  ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
          AND EXHIBITS.
  
          (b)     Pro Forma Financial Information
  
          The pro forma financial statements of TASA after giving
  effect to the disposition of the assets of the Mildred Elley
  School will be filed by amendment to this Current Report on Form
  8-K no later than the date which is sixty days after the date of
  this Current Report.
  
          (c)     Exhibits
  
                  10.1    Asset Sale Agreement, dated as of June 3,
                          2003, among Mildred Elley School, Inc.,
                          Touchstone Applied Science Associates,
                          Inc., TASA Educational Services
                          Corporation, Faith A. Takes and Empire
                          Education Corporation
  
                  10.2    Escrow Agreement, dated as of June 3,
                          2003, by and among Mildred Elley School,
                          Inc., Touchstone Applied Science
                          Associates, Inc., TASA Educational
                          Services Corporation, Empire Education
                          Corporation, and Hodgson Russ LLP, as
                          escrow agent.
  
                  99.1    Press Release, issued June 9, 2003, by TASA
  
  
                               SIGNATURE
  
          In accordance with the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report
  to be signed on its behalf by the undersigned, thereunto duly
  authorized.
  
                                    TOUCHSTONE APPLIED SCIENCE
                                    ASSOCIATES, INC.
  
  
  
                                    By: /s/ ANDREW L. SIMON
                                        --------------------
                                        Andrew L. Simon
                                        President, Chief Executive Officer
                                        and Chief Financial Officer
  
  Date:  June 18, 2003
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metadata_filer: {"company-data": {"conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC /NY/", "cik": "0000726603", "assigned-sic": "8200", "irs-number": "132846796", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16689", "film-number": "03748564"}, "business-address": {"street1": "4 HARDSCRABBLE HEIGHTS", "street2": "P O BOX 382", "city": "BREWSTER", "state": "NY", "zip": "10509", "phone": "9142778100"}, "former-company": {"former-conformed-name": "TOUCHSTONE APPLIED SCIENCE ASSOCIATES INC", "date-changed": "19920914"}}
text: UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
  
                                 FORM 8-K
  
                              CURRENT REPORT
     pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
  Date of report (Date of earliest event reported):      June 3, 2003
                                                         ------------
  
                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
  ------------------------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)
  
              Delaware                                 13-2846796
  -----------------------------------     --------------------------------------
    (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification No.)
  
        P.O. Box 382, 4 Hardscrabble Heights, Brewster, New York  10509
  ------------------------------------------------------------------------------
                 (Address of principal executive offices)
  
                                (845) 277-8100
  ------------------------------------------------------------------------------
                        (Issuer's telephone number)
  
  ------------------------------------------------------------------------------
            (Former name, former address and former fiscal year,
                        if changed since last report)
  INFORMATION TO BE INCLUDED IN THE REPORT
  
  ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
  
          Effective June 3, 2003, the Company completed the
  previously announced strategic divestiture of its post-secondary
  proprietary school, Mildred Elley, with locations in the Albany,
  NY area and Pittsfield, Massachusetts.  TASA has been reporting
  the Mildred Elley Schools as discontinued operations since TASA
  made the decision in 2002 to sell the schools.
  
          TASA sold substantially all of the assets and
  liabilities of the post-secondary school to the Empire Education
  Corporation ("Empire"), owned by Faith Takes.  Ms. Takes was
  the president and former owner of the Mildred Elley Schools. The
  post-secondary school assets were held by TASA's subsidiary,
  Mildred Elley Schools, Inc. ("MESI").  At the closing, MESI
  received $50,000 in cash proceeds from the sale.  In addition,
  MESI will receive 25% of the proceeds from the sale or
  refinancing of the schools by Empire to a third party, which must
  take place within seven years from the date of the closing.
  
          In addition, Empire assumed (a) all liabilities of
  MESI, including notes issued by and all obligations incurred by
  MESI to the former shareholders of Mildred Elley in connection
  with the original acquisition of the Mildred Elley Schools in
  1998, (b) all accounts payable of MESI in the ordinary course of
  business, (c) all liabilities of MESI directly relating to the
  operations of MESI, known to or arising from Ms. Takes' actions
  in operating the Mildred Elley Schools, (d) all accrued and
  unpaid employment wages and benefits, (e) the $75,000 judgment
  entered against MESI in favor of Ms. Takes in connection with a
  litigation commenced by Ms. Takes against MESI, and (f) all
  liabilities that originate or result from the recertification of
  the change in school ownership and other currently pending
  regulatory proceedings.
  
          Based upon the operations of the Mildred Elley Schools
  for the quarter ended April 30, 2003, TASA will take a $633,860
  non-cash charge for discontinued operations in connection with
  the closing.
  
  ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
          AND EXHIBITS.
  
          (b)     Pro Forma Financial Information
  
          The pro forma financial statements of TASA after giving
  effect to the disposition of the assets of the Mildred Elley
  School will be filed by amendment to this Current Report on Form
  8-K no later than the date which is sixty days after the date of
  this Current Report.
  
          (c)     Exhibits
  
                  10.1    Asset Sale Agreement, dated as of June 3,
                          2003, among Mildred Elley School, Inc.,
                          Touchstone Applied Science Associates,
                          Inc., TASA Educational Services
                          Corporation, Faith A. Takes and Empire
                          Education Corporation
  
                  10.2    Escrow Agreement, dated as of June 3,
                          2003, by and among Mildred Elley School,
                          Inc., Touchstone Applied Science
                          Associates, Inc., TASA Educational
                          Services Corporation, Empire Education
                          Corporation, and Hodgson Russ LLP, as
                          escrow agent.
  
                  99.1    Press Release, issued June 9, 2003, by TASA
  
                               SIGNATURE
  
          In accordance with the requirements of the Securities
  Exchange Act of 1934, the registrant has duly caused this report
  to be signed on its behalf by the undersigned, thereunto duly
  authorized.
  
                                    TOUCHSTONE APPLIED SCIENCE
                                    ASSOCIATES, INC.
  
                                    By: /s/ ANDREW L. SIMON
                                        --------------------
                                        Andrew L. Simon
                                        President, Chief Executive Officer
                                        and Chief Financial Officer
  
  Date:  June 18, 2003