20 AAC 15.735 - Conditions and limitations on loans

Current through April 6, 2022

(a) A loan award will be based upon computation of allowable costs of attendance, and may not exceed a borrower's estimated cost of attendance less other forms of financial aid awarded to the borrower to pay for these costs for the period of enrollment for which the loan is intended. The authorized loan award for a student enrolled for less than a full academic year will be determined on a pro rata basis so that an otherwise eligible student attending
(1) one-third of the academic year is eligible for one-third of the annual loan maximum;
(2) one-half of the academic year is eligible for one-half of the annual loan maximum; or
(3) two-thirds of the academic year is eligible for two-thirds of the annual loan maximum.
(b) Repealed 9/4/2014.
(c) Repealed 9/4/2014.
(d) For the purposes of determining the total of loans awarded to a borrower under AS 14.43.173(b), loans made
(1) under AS 14.43.091-14.43.160 (Alaska Education Loan Program), AS 14.43.250-14.43.325 (Memorial Education Loans), and AS 14.43.600-14.43.700 (Teacher Education Loan Program) will be included; and
(2) for the borrower to attend career education programs are subject to the aggregate maximum borrowing limit for undergraduate enrollment.
(e) Repealed 9/4/2014.
(f) An ASEL will not be awarded for
(1) an elementary or secondary educational program;
(2) an educational program that is avocational or recreational in nature; or
(3) a program of study offered outside the state in which the institution is located, unless the program's location is based upon, and serves, a bona fide educational purpose.
(g) An ASEL will not be awarded for flight instruction
(1) leading to certification as a private pilot;
(2) unless the student has received a private pilot's certificate at the time of application for the loan;
(3) for type rating or other proficiencies, unless the student has received a commercial license at the time of application for the loan;
(4) for more than the total of the annual loan maximum under AS 14.43.173(a)(3) for any single certification or flight rating; or
(5) that is offered through a flight-training course other than one certified under 14 C.F.R. Part 141 or Part 142.
(h) Only one loan will be awarded to a student to attend a non-flight career education program that is 12 months or less in duration and that awards a single certificate or degree.
(i) Within 30 days after the change, a borrower or endorser, if any, shall report in writing to the commission any change that affects the conditions of a loan or the loan's repayment schedule, including any change of the borrower's or endorser's name or address, the borrower's state residency status, or the student's change of institution, change in dates of attendance, change in attendance to less than at least half-time status, change in enrollment status, or withdrawal or dismissal from the course of study for which the loan was awarded.
(j) If the student changes institutions after the loan was disbursed, the borrower shall submit a revised application form.
(k) During the period that a student fails to meet any of the eligibility requirements applicable to the ASEL, the student is not eligible to receive a loan disbursement.
(l) A student may be enrolled in more than one institution, but must be admitted into a degree or certificate program at one of the institutions of enrollment. The total of the student's degree-applicable credits must be equivalent to at least half-time student enrollment. The degree-granting institution must be able to certify that the student is enrolled on at least a halftime basis and that the number of degree-applicable credits for which the borrower is enrolled is equivalent to at least half-time enrollment.
(m) In order to receive a new loan, an otherwise eligible applicant must be current in repayment on any prior loans received from the commission at the time of filing the application.
(n) A student enrolled in a flight school program must log a minimum of 17 hours per month, or 51 hours for a three-month period. The required number of logged hours will be reduced if the student provides documentation that adverse weather conditions prevented logging the required number of hours.
(o) For purposes of this section, allowable costs of attendance are
(1) tuition and required fees;
(2) required books, supplies, and equipment;
(3) transportation;
(4) room and board; and
(5) an allowance for personal expenses as provided in the institution's budget.
(p) Borrowing under the Alaska supplemental education loan program is subject to the annual and aggregate limits under AS 14.43.173 and 20 AAC 15.935(f).

Notes

20 AAC 15.735
Eff. 7/1/2002, Register 162; am 1/30/2003, Register 165; am 12/31/2005, Register 176; am 11/16/2012, Register 204; am 2/22/2015, Register 213, April 2015

Authority:AS 14.42.030

AS 14.43.164

AS 14.43.171

AS 14.43.172

AS 14.43.173

AS 14.43.175

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