20 AAC 15.922 - Institutional eligibility to participate in Alaska education loan programs
(a) To participate in Alaska education loan
programs, an institution must apply for and be granted approval under this
section.
(b) To be eligible to
participate in Alaska education loan programs, an institution must meet the
requirements of AS 14.43 and this section and be
(1) authorized under AS 14.48 and eligible
under
AS
14.43.120(b);
(2) approved as eligible to participate in
Alaska education loan programs for the 1995-96 school year;
(3) repealed 1/30/2003;
(4) approved by the United States Department
of Education, office of financial assistance, for receipt of federal student
financial aid; or
(5) certified as
a flight school under 14 C.F.R. Part 141 or Part 142.
(c) An institution shall provide the
commission with the documentation and information necessary to determine the
institution's eligibility to participate in Alaska education loan programs.
Commission staff may require the institution's administrative and financial aid
representatives to attend training regarding Alaska education loan programs at
the onset of participation and when a change occurs in the following:
(1) institutional ownership;
(2) financial aid staff;
(3) institutional compliance or eligibility
status as determined in a commission staff compliance review.
(d) Before being approved by the
commission to participate in Alaska education loan programs, an institution
must enter into a program participation agreement that includes the subject of
compliance with state statutes and regulations; change in ownership, name,
address, location, program, or accreditation; managing education loan
documents; default management; refunds to the commission ; borrower information
sharing; staff training; financial capability and reporting; administrative
capability; standards for admission; performance reviews; minimum satisfactory
progress requirements; career and completion information to consumers; program
assessment; compliance review; and consequences of violating the agreement.
However, unless the institution is on probation, or the commission staff finds
evidence of any of the conditions listed in (g) of this section, the commission
may waive the requirements of this subsection if the institution has a default
rate of less than 10 percent, as calculated under
20
AAC 15.925.
(e) Before each loan disbursement, an
institution shall verify the eligibility for each student who is currently
enrolled .
(f) As the executive
director considers necessary to ascertain compliance with the Alaska education
loan programs' statutes and regulations and the institution's program
participation agreement, an institution may be required to reapply biennially
for approval for continuing participation in Alaska education loan programs,
and the executive director may require an audit as described in
20 AAC
15.924. The executive director may require
institutional representatives of the institution to complete program
administration training as part of the institution's reapplication
process.
(g) The commission may
investigate, require an independent audit, or preclude an institution's
participation in the Alaska education loan program, if probable cause exists
based on evidence showing the institution's
(1) loss of authorization to operate as a
postsecondary institution;
(2) loss
of accreditation or licensing;
(3)
high volume of student complaints;
(4) failure to meet the requirements of the
institution's program participation agreement;
(5) failure to comply with any statute or
regulation governing the Alaska education loan programs;
(6) lack of financial soundness;
(7) fraudulent activity, including the
school, its owner, agent, employee, or other person affiliated with the school
making payment to prevent the default of an education loan;
(8) misrepresentation of services and
programs offered by the institution;
(9) lack of administrative capability;
or
(10) circumstances similar to
those described in (1) - (9) of this subsection and that give rise to concerns
about the integrity of the institution.
(h) For the purpose of
AS
14.43.120(b), "operating on
a sound fiscal basis" means operating as an educational institution and
enrolling and teaching students for at least two years on a sound fiscal basis
as determined by the commission after review of an institution's audited
financial statements and other documents pertinent to the institution's fiscal
health as required by and submitted to the commission .
(i) Repealed 3/1/2002.
(j) An institution participating in a federal
loan program under
20 U.S.C.
1001-
1155
(Higher Education Act of 1965) is exempt from the requirements of (d) and (h)
of this section, if the institution maintains eligibility to participate in
that program.
(k) Institutions
participating in electronic funds transfer (EFT) programs must enter into an
electronic funds transfer agreement with the commission , including mandatory
participation in a method of electronic funds transfer approved by the
commision.
Notes
As of Register 160 (January 2002), the regulations attorney made a technical revision under AS 44.62.125(b)(6), and in accordance with ch. 85, sec. 45, SLA 2001, to change "student loan" to "education loan" in 20 AAC 15.922.
Authority: AS 14.42.030
AS 14.43.105
AS 14.43.120
AS 14.43.160
AS 14.43.320
AS 14.43.630
AS 14.43.740
AS 14.48.050
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