20 AAC 15.950 - Disbursement and handling of loan awards
(a) The commission
will disburse a loan in installments based upon the terms, quarters, or
semesters used by the institution of attendance. A loan for attendance at an
institution that does not operate on a term, quarter, or semester system will
be disbursed in two installments. The first disbursement will be made at the
beginning of the program and the second will be made at the halfway point,
based on the dates of attendance for which the loan is made. Disbursements will
be made in equal amounts unless an eligible postsecondary institution
designates alternate amounts, the total of which does not exceed the total
certified loan amount.
(b) The
commission will send each loan award installment on behalf of the student to
the financial aid office of the institution that the student is
attending.
(c) Before disbursing
the loan, the institution of attendance shall certify on a form provided or
approved by the commission, or by using an alternative method approved by the
commission, that institutional records indicate as of the disbursement day or
the business day before disbursement that
(1)
the student is eligible for the disbursement under
20 AAC 15.945(b) and
(c);
(2) the institution is not disbursing loan
proceeds in excess of costs allowed under
AS
14.43.120(a), after
considering other financial aid and either
(A) the institution's standard budget for the
applicable number and type of credit hours, or vocational program, in which the
student is enrolled, or
(B) the
student's documented actual costs for the number and type of credit hours, or
vocational program, in which the student is enrolled; and
(3) the institution's records classify the
student as an Alaskan resident, if the institution maintains records of the
residency of students.
(d) Loan proceeds may not be disbursed under
a power of attorney assignment by the student unless
(1) the student has already successfully
completed the program of study for which the loan was awarded; or
(2) the student is unavailable because the
student is in an extern program of the institution.
(e) The institution is responsible for the
completion and retention in the permanent student file of an institution
disbursement and receipt form approved by the commission. The commission staff
may not issue further loan warrants or transfer additional loan proceeds if the
institution fails to comply with this requirement.
(f) An institution shall return to the
commission, with an explanation for the return, loan proceeds that are not
disbursed to the student within the later of
(1) 60 calendar days after the date the
commission issued the warrant or transferred loan proceeds to the
institution;
(2) 60 calendar days
after the beginning of the term for which the loan proceeds are awarded;
or
(3) for a second disbursement of
a vocational program loan, 60 calendar days after the midpoint of the program
period for which the loan is awarded.
(g) An institution that has courses of study
for which tuition is charged on a pay-as-you-go basis and that holds unearned
tuition money on behalf of a student shall place that money in a
non-interest-bearing trust account containing only tuition money. The tuition
money may be withdrawn only as it is earned by the institution as a result of
the student's enrollment and attendance under the terms of the institution's
enrollment agreement. If a student fails to attend, or otherwise withdraws from
the institution, the balance of the student's tuition money remaining on
account with the institution shall be returned to the commission within 60
days.
(h) An institution may not
disburse loan proceeds to a student who is on an approved leave of absence or
if the institutional records contain documentation to indicate that, as of the
business day before the disbursement, the student is not eligible for the
disbursement, and the student did not become eligible before the disbursement
occurred.
(i) The commission staff
may make loan award payments electronically or in another format that provides
loan proceeds directly to the institution rather than by loan warrants payable
to individual borrowers. Before approving an institution for participation in
electronic or direct loan payment, the commission staff may require
documentation of the institution's administrative capability to successfully
participate in electronic fund transfers or alternative direct payment. The
requirements under this section for handling a loan warrant apply to the
handling of a payment electronically transferred or otherwise directly
transferred to an institution.
(j)
For a student enrolled in more than one institution, the degree-granting
institution must also make the certification required by
20 AAC
15.945(e).
Notes
Authority: AS 14.43.105
AS 14.43.120
AS 14.43.300
AS 14.43.320
AS 14.43.630
AS 14.43.640
AS 14.43.740
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.