20 AAC 15.922 - Institutional eligibility to participate in Alaska education loan programs

Current through September 28, 2021

(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(3) repealed 1/30/2003;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

20 AAC 15.922
Eff. 12/4/96, Register 140; am 3/22/97, Register 141; am 3/23/98, Register 146; am 4/20/2000, Register 154; am 3/1/2002, Register 161; am 1/30/2003, Register 165; am 4/6/2018,Register 226, July 2018

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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